Green Markets is a daily series dedicated to highlighting events of interest that could impact investments within environmental markets.
General Environmental/Regulatory
Snam, the Italian energy infrastructure firm, has announced a comprehensive €26 billion ($28.1 billion) investment plan to support its 2050 Net Zero transition and decarbonize the energy system through initiatives like biomethane, hydrogen, carbon capture and storage, and energy efficiency.
Taiwan plans to raise its carbon emissions reduction target for 2030. Following the enactment of a law committing to net-zero carbon emissions by 2050, the government is preparing to implement a carbon fee rate of $40 to $60 per tonne of CO2 emissions by 2030.
Voluntary Carbon Markets (VCMs)
The Global Green Growth Institute (GGGI) has launched the Carbon Transaction Facility (CTF), aimed at enhancing international carbon trading under Article 6 of the Paris Agreement. This facility is designed to facilitate the transaction of Internationally Transferred Mitigation Outcomes (ITMOs) and is set to mobilize up to $500 million by 2030. Key participants, including New Zealand and Sweden, are already involved, with projects in Rwanda and Sri Lanka approved to begin this year.
Related Stock List(s): Carbon Credit Stocks
Energy Efficiency
Indonesia has partnered with China's Contemporary Amperex Technology Co. Ltd. (CATL) to establish a $1.2 billion battery production venture. The joint project, between CATL's subsidiary CBL International Development and Indonesia Battery Corporation, aims to produce 15 GW of battery capacity annually in Karawang, West Java.
Related Stock List(s): Energy Efficiency Stocks
Nuclear Energy
Italy is in discussions with U.S. energy company Westinghouse and France's EDF to establish a state-backed company for building advanced nuclear reactors. The current administration, led by Prime Minister Giorgia Meloni, believes that small modular and advanced modular reactors could aid in decarbonizing Italy’s economy. Italy projects that incorporating at least 11% nuclear power into its energy mix could save around €17 billion ($18.4 billion) in decarbonization costs by 2050.
Related Stock List(s): Nuclear Energy & Uranium Stocks
Renewable Energy
The U.S. Department of Energy (DOE) has finalized an $861.3 million loan guarantee for Project Marahu, which will add 200 MW of solar generation and 285 MW/1,140 MWh of standalone energy storage in Puerto Rico. Led by a joint venture between AES and TotalEnergies, the project is part of the island's plan to eliminate coal-fired energy by 2028 and achieve 100% renewable energy by 2050.
Primergy Solar secured an additional $350 million in tax equity financing for its 408 MWac Ash Creek Solar project in Texas, bringing total capital raised to nearly $1 billion. The project is expected to be operational by early 2025 and has a power purchase agreement with Microsoft.