Green Markets - September 17, 2024

Sep 17, 2024

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

A coalition of over 530 financial institutions managing more than $29 trillion in assets has issued the 2024 Global Investor Statement to Governments on the Climate Crisis, urging global governments to adopt policies that facilitate the net zero transition. The statement calls for mandatory climate-related reporting, sectoral transition strategies, and policies that support private investment in clean energy. The statement outlines specific demands for governments, such as setting ambitious 2030 and 2035 targets, as well as implementing carbon pricing.
The head of the World Trade Organization (WTO) has emphasized the need for a global carbon pricing system to prevent trade disputes arising from unilateral environmental measures, like the EU’s carbon border adjustment mechanism. This EU policy, which starts in 2026, imposes a levy on imports of carbon-intensive products to equalize costs with EU manufacturers. She warns that such measures could lead to trade friction and argues for an international framework to harmonize carbon pricing and reduce litigation. The WTO is working with the IMF, OECD, and UN to develop this global system, which aims to reconcile different regional carbon prices and prevent carbon arbitrage.

Woodland Biofuels plans to invest $1.35 billion to establish one of the world’s largest renewable biofuels production facilities at the Port of South Louisiana. This project will utilize waste biomass to produce renewable natural gas and green hydrogen. The project’s first phase, a renewable natural gas plant, is expected to begin commercial operations by 2028, with the final investment decision set for late 2025.
Hygenco has secured up to $280 million in financing from REC Limited for its Green Ammonia Project in Gopalpur, Odisha. This funding is part of Hygenco's larger plan to invest around $2.5 billion in green hydrogen and ammonia projects across India over the coming years.

Credit Agricole is shifting its focus from trading precious metals to participating in the regulated carbon markets starting in 2025. The bank, which has been scaling back its precious metals operations due to past market disruptions and losses, aims to align with its green ambitions by concentrating on carbon trading.

Shopify has launched Carbon Commerce, a dedicated e-commerce platform designed to simplify and scale the buying and selling of carbon credits. This new platform aims to streamline the process for carbon credit suppliers and buyers, offering features like spot purchases, pre-purchase agreements, and long-term contracts.

Related Stock List(s): Carbon Credit Stocks

The Italian government is reallocating funds from a Stellantis and Mercedes-Benz electric vehicle battery plant project to other green energy initiatives due to delays and a lack of clear development timelines. Meanwhile, Stellantis will continue motor production at Termoli until 2028, amid broader industry challenges and recent output slumps at its Italian plants.

Chevron CEO Mike Wirth criticized the Biden administration's pause on new LNG export permits, arguing it would raise energy costs, disrupt European supply, and slow the transition from coal to natural gas. He emphasized that natural gas has already significantly reduced emissions compared to coal and should be embraced as a key transitional energy source.
- The CEO of ConocoPhillips shared similar sentiments recently.
Egypt and Hungary have signed a memorandum of understanding (MoU) to collaborate on nuclear reactor technology.

The EU has approved €682 million in state aid for Belgium to support constructing and operating the first offshore wind farm in the Princess Elisabeth zone of the North Sea. The new wind farm is set to produce 700 MW by 2028.
Uzbekistan’s Navoi Mining and Metallurgical Company (NMMC) is investing $450 million over three years to increase its renewable energy usage. NMMC is installing a 500 MW solar power facility in two phases, expected to generate about 1 billion kWh annually and cover 21.4% of its energy needs.

Patria Investments is launching a reforestation fund with a target of raising $100 million to restore degraded land in Brazil's Atlantic rainforest. The fund will focus on planting native trees, high-priced timber, and crops like cacao and coffee to create sustainable agricultural ecosystems. Unlike other projects, it will not target remote areas such as the Amazon but instead prioritize land near major cities with better infrastructure.

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