Green Markets - October 26, 2024

Oct 26, 2024

Green Markets is a daily series dedicated to highlighting events of interest that could impact investments within environmental markets.

Note: Apologies for the late release.

Morgan Stanley has revised its climate targets, now aiming to cap global warming between 1.5°C and 1.7°C instead of a strict 1.5°C, due to slower progress in sectors like energy, automotive, and aviation. The bank set new 2030 emissions reduction targets for six sectors, including a 12-20% reduction for energy operational emissions and a 29-45% cut for the automotive sector. This adjustment reflects ongoing challenges in achieving net-zero goals, especially amid current trends that could lead to a 3.1°C increase in global temperatures by 2100.
The Green Climate Fund (GCF) approved over $1 billion for 16 innovative climate projects during its 40th Board meeting, bringing its total investments to $16 billion across 286 projects.

Alphabet's self-driving unit, Waymo, has closed a $5.6 billion funding round to expand its autonomous ride-hailing services. The funding includes investments from Andreessen Horowitz, Fidelity, Silver Lake, and T. Rowe Price, and will help Waymo expand its Waymo One service in San Francisco, Phoenix, Los Angeles, Austin, and Atlanta, with a growing partnership with Uber.

Cepsa has announced it will delay approximately $3.25 billion in planned investments in green hydrogen projects in southern Spain if the government's temporary windfall tax on energy companies becomes permanent. The tax, imposed in December 2022 to alleviate cost-of-living pressures, has faced significant opposition from oil and utility companies. Similar concerns have led Repsol to suspend its own green hydrogen initiatives due to an unfavorable regulatory environment.

Related Stock List(s): Hydrogen Stocks

Western sanctions have led to the temporary shutdown of Russia's Arctic LNG 2 project, with production halted on October 11th, 2024, just months after it was restarted. The facility has struggled to find buyers for its LNG, with over 1 million cubic meters of LNG remaining undelivered due to buyer hesitance linked to potential secondary sanctions.

Related Stock List(s): LNG Stocks

The IAEA's 2024 report emphasizes the need for a substantial increase in nuclear energy investments— up to $125 billion annually— to achieve net-zero emissions by 2050. It calls for more than doubling nuclear capacity to provide stable, low-carbon energy alongside renewables.

Uzbekistan is set to invest $1.3 billion in waste-to-energy projects aimed at diversifying its energy sources and enhancing waste management. The initiatives will process approximately 4.7 million metric tons of solid waste annually and are expected to generate 2.1 billion kWh of electricity by 2027. The country is collaborating with several international companies, including China CAMC Engineering, Shanghai SUS Environment, the UAE's Tadweer Group, and South Korea's Sejin Heavy Industries, to execute these projects.

Related Stock List(s): Recycling Stocks

Cathay Financial Holding and Fubon Financial Holding, two leading Taiwanese insurance firms, are making significant strides in the renewable energy sector. Cathay plans to invest up to $900 million in an offshore wind farm off Changhua County, acquiring a 50% stake in Greater Changhua NW Holdings. Fubon is establishing a new subsidiary, Star Shining Holding, to focus on renewable energy investments.

TPG has successfully raised nearly $5 billion for its second climate-focused fund, Rise Climate II. This fund aims to invest in green mobility, sustainable fuels, and carbon solutions, building on the $7.3 billion raised for its first fund in 2022. TPG is also pursuing a broader goal of raising $10 billion across multiple initiatives, including its Global South Initiative, targeting climate investments in emerging markets.

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