Green Markets - January 13, 2025

Jan 14, 2025

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

In 2024, Earth recorded its hottest year ever, surpassing the critical 1.5°C temperature rise limit set by the Paris Agreement for the first time in history. The main driver of this warming is the burning of fossil fuels, with additional heat from the “El Niño phenomenon.” Scientists warn that exceeding this threshold for even a single year is a stark warning of the imminent climate crisis.
The U.S. Department of the Treasury and the IRS announced $6 billion in tax credits for the second round of the 48C Qualifying Advanced Energy Project Tax Credit Program, part of the Inflation Reduction Act's $10 billion investment. This round supports over 140 projects across 30+ states, focusing on clean energy manufacturing, critical materials processing, and industrial decarbonization. Over $44 billion in total investments are anticipated through both rounds.

Lithium prices are expected to stabilize in 2025 following a significant decline over the past two years. This recovery is driven by mine closures, a reduction in the global lithium supply glut, and continued support from China's electric vehicle (EV) subsidies. Analysts predict that the global lithium supply surplus will shrink, bolstering demand. However, any price increases could be limited by the potential reopening of closed mines and uncertainties surrounding future global policy changes.
Copper prices reached their highest level in nearly a month, driven by strong demand in China, the world's largest metals consumer. Three-month copper on the London Metal Exchange (LME) rose to $9,145 per ton, while the Shanghai Futures Exchange (SHFE) saw copper prices rise 0.8% to 75,270 yuan per ton. The surge in Chinese demand was reflected in a higher premium paid in the spot market, indicating increased buying activity. In contrast, U.S. copper futures fell by 0.4%, influenced by expectations of potential tariffs from the incoming U.S. administration. Other metals, including lead, aluminium, nickel, and zinc, also saw price gains.

Scotland will soon host Europe's three largest battery energy storage systems, thanks to an £800 million investment by Copenhagen Infrastructure Partners. The two new 500 MW projects, Coalburn 2 and Devilla, will be operational by 2027-2028. Coalburn 1 is already operational. Together, the three systems will store and supply 3 GWh of electricity.

Ten EU countries, including Sweden, Ireland, and Poland, are pushing for stronger sanctions on Russian natural gas, particularly LNG, to cut Kremlin revenues funding the war in Ukraine. The proposal includes banning imports of Russian gas, targeting Russian LNG tankers with docking restrictions, and addressing the shadow fleet bypassing oil price caps. Implementing these measures faces challenges due to Hungary’s opposition, requiring unanimous approval from all EU member states.
Germany has allocated nearly €3 billion to lease floating LNG import terminals to reduce its dependence on Russian gas following the invasion of Ukraine. These Floating Storage Regasification Units (FSRUs) will enable LNG to be converted into gas and integrated into the pipeline network. Previously reliant on Russia for 55% of its gas, Germany has reduced this to 40% by diversifying imports from the Netherlands, Norway, and LNG exporters like the United States, Qatar, and Australia.

Related Stock List(s): LNG Stocks

Saudi Arabia has announced plans to commercialize its uranium resources, including enrichment and the production of yellowcake, to support its nuclear energy ambitions. Energy Minister Prince Abdulaziz bin Salman emphasized that nuclear power is key to diversifying the country's energy mix and meeting sustainability goals under Saudi Vision 2030.

Indonesia's state-owned oil company Pertamina has agreed to purchase a 20% stake in Citicore Renewable Energy, a major Philippine solar power producer, for approximately $115 million. This partnership will support Citicore's efforts to develop renewable energy projects in both Indonesia and the broader Southeast Asia region.

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