Green Markets - September 24, 2024

Sep 24, 2024

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

The United Arab Emirates (UAE) is advancing its energy transition by launching seven new renewable energy projects valued at $2.16 billion in the past year, which include solar, waste-to-energy, and geothermal technologies. By the end of 2024, the UAE plans to have 13 operational solar power projects with a total generation capacity of 10.6 GW, leveraging its significant solar resources. Additionally, the country aims to produce 1.4 million metric tons of hydrogen annually by 2031.
Green banks across the U.S. have formed a new coalition called U.S. Green Bank 50 to enhance community lending for low-carbon projects and access federal funding for climate initiatives. This partnership comes as the federal government invests billions in climate programs, including the $27 billion Greenhouse Gas Reduction Fund established by the Inflation Reduction Act.

The U.S. Department of Energy (DOE) has announced plans to allocate up to $1.8 billion to scale Direct Air Capture (DAC) facilities and infrastructure. The funding will be distributed across various project categories, including infrastructure scaling platforms and both mid and large-scale DAC facilities. The first funding solicitation is expected in winter 2024.

Related Stock List(s): Carbon Capture Stocks

Shell has abandoned its plans for a low-carbon hydrogen plant on Norway's west coast due to insufficient demand. They had aimed to produce blue hydrogen, which involves extracting hydrogen from natural gas while capturing carbon emissions, but the high costs and lack of market interest have led to the projects being deemed unviable.
Equinor has canceled its plans to export blue hydrogen to Germany due to high costs and insufficient demand. The company’s spokesperson noted that the viability of their proposed offshore hydrogen pipeline was in question, and without long-term commitments from European buyers, further investment was not feasible.
Spain has increased its green hydrogen production capacity target to 12 GW by 2030, up from 11 GW, reflecting confidence in the sector. The updated national energy and climate plan, which is set to be approved soon, will provide a roadmap for investors and outline various targets for energy efficiency and renewables.
KGAL has announced an investment in a green hydrogen project at the port of Lubmin, Germany, developed by GP JOULE and initiated by PtX Development GmbH. The investment comes from the KGAL ESPF 6 Energy Transition Fund and focuses on a project that aims to reach up to 1,050 MW of electrolyzer capacity.

Related Stock List(s): Hydrogen Stocks

A group of 14 global financial institutions has expressed strong support for the initiative to triple nuclear energy capacity by 2050. This announcement follows the COP28 conference, where 25 countries pledged to accelerate nuclear power deployment to help achieve net-zero emissions. The coalition includes major banks like Bank of America, Goldman Sachs, and Barclays.

California Attorney General Rob Bonta has filed a lawsuit against ExxonMobil, accusing the company of misleading consumers about the viability of plastic recycling while being aware that most plastics end up incinerated or in landfills. Environmental advocates view this lawsuit as a critical step in targeting the fossil fuel industry's accountability for its plastic production and environmental impact.
- In response, ExxonMobil criticized the state's Attorney General Rob Bonta, claiming that California has long been aware of the inefficiencies in its recycling system and should not blame the company. The company asserts that it has successfully processed over 60 million pounds of plastic waste through "advanced recycling," which it claims offers real solutions beyond traditional recycling methods.
The "Accelerating a Circular Economy for Plastics and Recycling Innovation Act of 2024," introduced by Congressmen Dr. Larry Bucshon and Don Davis, aims to enhance plastics recycling and combat pollution in the United States. This bipartisan bill proposes modernizing recycling infrastructure, establishing national plastic recycling standards through the EPA, and mandating a minimum recycled content of 30% in plastic packaging by 2030.

Related Stock List(s): Recycling Stocks

Brookfield Asset Management has raised $2.4 billion in the initial closing of its Catalytic Transition Fund (CTF), aiming for a total of $5 billion to invest in clean energy and transition projects in emerging markets. The fund is anchored by a $1 billion commitment from ALTÉRRA and backed by institutional partners like CDPQ, GIC, Prudential, and Temasek.

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