Green Markets - January 30, 2025

Jan 31, 2025

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

The UK has confirmed its updated NDC, aiming for a 81% reduction in greenhouse gas emissions by 2035 compared to 1990 levels, excluding aviation and shipping. It also reaffirmed its £11.6bn commitment to International Climate Finance by 2025/2026, with a focus on nature-based solutions.
Pennsylvania Governor Josh Shapiro has unveiled a plan to fast-track energy projects and provide substantial tax incentives to attract new power plants and hydrogen production facilities. The proposal includes a new board to streamline siting decisions for energy projects, aiming to speed up the development of energy infrastructure amidst growing demand. The plan offers up to $100 million annually for power plants, $49 million for hydrogen producers, and $15 million for SAF projects.

Shell is exiting the Alberta oil sands by selling its remaining 10% stake in the Albian mine to Canadian Natural Resources. In exchange, Shell is increasing its investment in the Scotford upgrader and Quest Carbon Capture and Storage (CCS) facility, both near Edmonton. This move aligns with Shell's strategy to shift toward assets with lower greenhouse gas emissions. The company will now hold a 20% interest in both the upgrader and the Quest CCS project, which has already captured 7.7 million tonnes of CO2.
Rio Tinto and Norsk Hydro have entered a partnership to explore and evaluate carbon capture technologies for aluminum smelters. The companies plan to invest approximately $45 million over five years, with most research conducted at Rio Tinto’s European facilities and Hydro’s headquarters in Norway. Their goal is to assess technologies for capturing carbon from aluminum smelter flue gas, a process that accounts for a significant portion of smelter CO2 emissions.

Related Stock List(s): Carbon Capture Stocks

Microsoft has signed a carbon credit deal with reforestation startup Chestnut Carbon, purchasing over 7 million tons of carbon credits in a 25-year agreement. This deal will support the reforestation of 60,000 acres across Arkansas, Louisiana, and Texas.

Related Stock List(s): Carbon Credit Stocks

Despite ambitious global targets, green hydrogen implementation lags significantly, with only 7% of planned capacity realized in 2023. High production costs, a lack of offtake agreements, and insufficient policy support are major barriers. A recent study from the scientific journal Nature Energy estimates that $1.3 trillion in subsidies would be needed to scale green hydrogen projects, far exceeding current commitments.

Related Stock List(s): Hydrogen Stocks

Kazakhstan is accelerating its nuclear energy plans following last year’s referendum approval, with the government finalizing agreements for an initial nuclear plant in the Almaty region and identifying a second site. President Tokayev envisions a broader "nuclear cluster" to support economic growth and reduce dependence on coal.

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