Green Markets - September 9, 2024

Sep 10, 2024

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

India and the UAE signed five agreements to strengthen cooperation in energy and other sectors during the visit of Abu Dhabi’s Crown Prince to India. Key agreements include a long-term LNG supply deal between ADNOC and Indian Oil Corporation, with ADNOC delivering 1 million tonnes of LNG annually for 15 years. Additional pacts involve exploring crude storage opportunities between ADNOC and India's Strategic Petroleum Reserve, as well as a nuclear energy MoU between Emirates Nuclear Energy Company and Nuclear Power Corporation of India Limited.
The U.S. Environmental Protection Agency (EPA) is dedicating $27 billion to clean energy projects through the Greenhouse Gas Reduction Fund, announced on the second anniversary of the Inflation Reduction Act. The funding includes $14 billion for the National Clean Investment Fund and $6 billion for the Clean Communities Accelerator, aimed at supporting clean technology projects and assisting disadvantaged communities.
The Asian Development Bank (ADB) aims to allocate 50% of its annual lending to climate finance by 2030, increasing its target from 35% and aiming for $100 billion in cumulative climate finance by then. The bank also seeks to mobilize $13 billion from private sector financing and $4.5 billion in direct private capital over the same period.

China’s Envision Energy plans to invest $1 billion in a green hydrogen industrial park in Spain to support the country’s greenhouse gas reduction targets. The facility will produce electrolyzers, which are critical for green hydrogen production, using locally sourced solar, wind, and biomass energy. Envision will collaborate with the Spanish government to select a site, with construction expected to start in the first half of 2026.

Related Stock List(s): Hydrogen Stocks

QatarEnergy has expanded its shipbuilding order with China State Shipbuilding Corporation (CSSC) to include six additional QC-Max vessels, bringing the total order to 24 of the world's largest LNG carriers, valued at approximately $8 billion. These QC-Max vessels will be delivered between 2028 and 2031 and are part of QatarEnergy’s larger strategy to support its expanding LNG production capacity. The total fleet expansion program includes 128 LNG vessels, contracted with major shipowners and operators, to support Qatar's plans to increase LNG capacity from 77 million to 142 million tons per annum by 2027.

Related Stock List(s): LNG Stocks

The U.S. Environmental Protection Agency (EPA) has announced $7.5 billion in financing for water infrastructure projects through the Water Infrastructure Finance Act (WIFIA) program. This funding aims to help communities implement critical water projects that protect public health, support the environment, and create over 60,000 jobs while providing affordable financing options like long-term loans with flexible repayment terms. The funding includes $6.5 billion available through WIFIA and $1 billion through the State Water Infrastructure Financing Authority (SWIFIA).

Related Stock List(s): Water Stocks

Mirova SA, managing green funds totaling about $14 billion, is considering adding mining stocks to its portfolio as metal producers' valuations decline. This move aims to capitalize on the potential long-term demand for energy transition metals like copper, nickel, and lithium, which are crucial for achieving net zero goals. Despite low valuations due to reduced demand for electric vehicles and a weaker Chinese economy, Mirova sees potential in these undervalued assets.

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