Green Markets - October 3, 2024

Oct 04, 2024

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

The EU has delayed the implementation of its Deforestation-free Products Regulation, initially planned for December 2024, by one year. Large businesses now have until December 2025, and micro/small businesses until June 2026, to comply with the regulation aimed at ensuring that key commodities like palm oil, soy, and wood do not contribute to deforestation. The delay comes in response to lobbying from countries such as Indonesia, raising concerns among environmental groups about the EU’s commitment to tackling deforestation.
Striking members of the International Longshoremen’s Association will return to work on Friday after reaching a tentative wage agreement with the United States Maritime Alliance. The existing contract, which expired on Monday, will now be extended until January 15th while the final details are negotiated. The union, representing 50,000 members at ports from Maine to Texas, had been on strike since Tuesday, halting most containerized imports and exports into the U.S.
Ireland is increasing its carbon tax on fossil fuels by €7.50 every year from now until 2029. The tax will reach €100 per tonne by 2030.

India and the USA signed a memorandum of understanding (MOU) to enhance cooperation on supply chains for critical minerals like lithium and cobalt. The agreement aims to build resilience in the sector by focusing on the exploration, extraction, processing, refining, and recycling of these minerals.

Rachel Reeves, the Chancellor of the Exchequer, announced a £21.7 billion pledge for carbon capture and storage in the UK. The initiative includes the establishment of Great British Energy, a public energy company focused on clean energy investments.

Related Stock List(s): Carbon Capture Stocks

The U.S. Attorney's Office has charged Kenneth Newcombe and Tridip Goswami with fraud related to their company, CQC Impact Investors LLC, which allegedly manipulated data to fraudulently obtain tens of millions of dollars in carbon credits and secure over $100 million in investments. CQC submitted false information to exaggerate the environmental impact of its carbon projects. While the defendants face serious charges, CQC will not be prosecuted due to its voluntary disclosure and cooperation with the investigation.

Related Stock List(s): Carbon Credit Stocks

The U.S. Department of Energy has offered EVgo a conditional loan guarantee of up to $1.05 billion to expand its EV charging infrastructure. The loan will support the installation of 7,500 high-power charging stalls at nearly 1,100 stations.
Toyota has announced a $500 million investment in Joby Aviation to support the certification and commercial production of its electric air taxi. This funding will bring Toyota's total investment in Joby to $894 million and includes plans to establish a manufacturing alliance to facilitate the first phase of commercialization.

KKR has provided $450 million in debt financing to two U.S. battery energy storage system firms, Powin and Peregrine Energy Solutions.

Tunisia has launched an ambitious national strategy to position itself as a global leader in green hydrogen production. The country plans to enhance its renewable energy capacity, primarily through solar and wind power, to support green hydrogen production. Existing natural gas pipelines will be repurposed to transport green hydrogen.
Avalon Energy has launched a $380 million Agriculture-Sustainable Aviation Fuel (SAF) biorefinery in Uruguay, supported by the Uruguayan government. The facility will produce 100,000 MT per year of SAF.

Related Stock List(s): Hydrogen Stocks

The Climate Investment Funds (CIF) will invest up to $1 billion to decarbonize key industrial sectors like cement, steel, iron, and chemicals in developing countries. The initiative targets sectors responsible for 25% of global emissions.
Ara Partners has announced the launch of a new strategy aimed at decarbonizing conventional energy assets across North America. This initiative is in partnership with HF Capital, which has committed up to $725 million to support Ara in its decarbonization efforts.

Green Investing