Green Markets - February 3, 2025

News in environmental markets.

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

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General Environmental/Regulatory

• The European Union is investing over €1.2 billion ($1.23 billion) in cross-border energy infrastructure through the Connecting Europe Facility (CEF). This funding will support 41 projects under the Trans-European Networks for Energy (TEN-E) framework, marking the largest allocation under the current CEF Energy program. The initiative includes projects related to hydrogen and offshore electricity grids, with nearly €750 million allocated to electricity grid projects. The largest single grant of €645 million will go to Denmark’s Bornholm Energy Island.

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Battery Metals

• Donald Trump has indicated that he wants Ukraine to provide rare earth elements and other critical minerals in exchange for continued U.S. military aid. Speaking from the Oval Office, he emphasized securing these resources, which are vital for electronics, batteries, and defense applications. It remains unclear whether the deal would include only rare earth elements or also minerals like lithium and titanium, of which Ukraine has significant reserves.

Related Stock List(s): Commodity Trust Stocks, Commodity Royalty Stocks

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Voluntary Carbon Markets (VCMs)

• The International Carbon Registry (ICR) has received a full endorsement from the International Carbon Reduction and Offset Alliance (ICROA). This endorsement follows ICROA’s updated 2024 criteria, which introduced stricter transparency and conflict-of-interest requirements. ICR becomes the second organization to achieve full endorsement under these new guidelines. Established in 2020, ICR hosts 121 climate projects so far.

Related Stock List(s): Carbon Credit Stocks

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Electric Vehicles

• Norway is on the verge of reaching its goal of selling only zero-emission vehicles by 2025, with nearly 96% of new car registrations in January being fully electric. Out of 9,343 new cars sold, 8,954 were EVs, an unprecedented rate globally. This achievement is driven by Norway’s strong incentives, including tax breaks, toll exemptions, and access to public transport lanes, rather than an outright ban on combustion engine cars. In contrast, the EU's EV market share declined in 2024 to 13.6%, highlighting Norway’s progress in electrification.

Related Stock List(s): Electric Vehicle Stocks

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Hydrogen

• BP has paused its $1 billion hydrogen and biofuels projects at its former Kwinana oil refinery in Western Australia due to rising costs and uncertain local market demand. The Kwinana Renewable Fuels (KRF) project was expected to produce 10,000 barrels per day of SAF and renewable diesel. Additionally, the H2Kwinana green hydrogen plant, which was shortlisted for Australian government funding, are both under review.

Related Stock List(s): Hydrogen Stocks

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Liquified Natural Gas (LNG)

• In January, nearly 90% of U.S. LNG exports went to Europe as cold weather and rising prices drove demand, with total U.S. LNG exports reaching 8.46 million metric tonnes (MT). This was just shy of the record 8.6 MT in December 2023. At least six cargoes originally bound for Asia were diverted to Europe due to higher prices. Meanwhile, LNG shipments to Asia and Latin America declined significantly.

Related Stock List(s): LNG Stocks

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Nuclear Energy

• India has launched a Nuclear Energy Mission with a goal of developing at least 100 GW of nuclear power by 2047. The government has allocated $2.3 billion to support research and development of small modular reactors (SMRs), with at least five indigenous SMRs expected to be operational by 2033. State-owned NTPC is establishing a nuclear power subsidiary and exploring SMR technology.

• Belgium's new government under Bart De Wever is reversing the country's nuclear phase-out, aiming for 4 GW of nuclear power by extending existing reactors and investing in new capacity. The government plans to amend the nuclear exit law, extend the life of the Doel 4 and Tihange 3 reactors by at least 10 years, and explore prolonging operations at older reactors. It also seeks to develop Belgium’s first small modular reactor (SMR). However, Engie, the current nuclear operator, opposes further extensions and has no plans to invest in nuclear, meaning the government may need to find a new operator or nationalize the plants.

Related Stock List(s): Nuclear Energy & Uranium Stocks

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Recycling

• The United Nations is considering Geneva, Switzerland, as the venue for the next round of global plastics treaty negotiations (INC-5.2) in mid-July 2025. This follows the INC-5 session in Busan, South Korea, which ended without a legally binding agreement on plastic waste. The proposed session would last 10 to 14 days, longer than previous meetings, to allow for more in-depth discussions. While Bangkok was considered as a potential location, its UN Convention Centre was deemed insufficient in capacity. The UN Secretariat is still exploring other venue options.

Related Stock List(s): Recycling Stocks

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Green Equity

Paid section - Green Equity is a daily series dedicated to tracking emerging investment opportunities in environmental markets. Notable events include news from public companies, fundraising, M&A, and public listings.