Green Markets - July 19, 2024

Jul 19, 2024

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

A three-judge panel from the D.C. Circuit Court of Appeals unanimously rejected a request from over two dozen red states to pause the EPA's rule on carbon emissions and power plants. The judges, appointed by Obama and Trump, decided there was no urgency to halt the rule as compliance deadlines aren't until 2030, and suggested the states are unlikely to win on the merits. The EPA’s rule aims to set performance standards for greenhouse gas emissions from fossil fuel-fired units. Trade groups and states plan to appeal to the Supreme Court.
Ursula von der Leyen has been reelected for a second term as President of the European Commission. She will continue her focus on the EU Green Deal amid rising energy security concerns and competition from China. Her next term will emphasize implementing existing Green Deal laws, fostering green technology competitiveness, and streamlining regulatory processes, with a new Clean Industrial Deal planned for her first 100 days.
The Hong Kong (HKSAR) Government has launched a successful HK$25 billion ($3.2 billion) green bond offering. The offering, which included pioneering 20-year and 30-year RMB green bonds, saw overwhelming global interest with HK$120 billion ($15.3 billion) in orders. The bonds will support Hong Kong's low-carbon transformation and green finance hub status, with proceeds funding environmental projects through the Capital Works Reserve Fund.

The U.S. Department of Agriculture (USDA) announced a $90 million investment in 53 Conservation Innovation Grants (CIG) projects to develop tools and technologies for natural resource conservation on private lands. This initiative, supported by President Biden's Inflation Reduction Act, focuses on innovative solutions to reduce livestock emissions of enteric methane and other climate challenges.
Abu Dhabi's state-owned renewable energy company Masdar is planning to issue green bonds annually to fund its global expansion, following a successful $1 billion bond sale this week. This is Masdar’s second dollar-denominated green bond issuance, after a $750 million debut last year. The company aims to invest in 100 GW of clean energy projects by 2030.

A 7.4 magnitude earthquake struck northern Chile’s mining region late Thursday, affecting areas near major copper and lithium operations. Initial reports indicate no immediate operational issues at the mines, including BHP/Rio Tinto’s Escondida, Codelco’s Chuquicamata, and SQM’s Salar de Atacama. These are some of the largest copper and lithium producing mines in the world. Even with no immediate operational concerns, all of these firms are conducting inspections and have activated preventive measures.
The surge in U.S. funding for lithium mining, driven by the Inflation Reduction Act (IRA) and other federal programs, aims to meet the rising demand for battery materials crucial for renewable energy technologies. This funding, including $11.7 billion in new loans and up to $7,500 in tax credits for electric vehicles, boosts both mining and technology development.

Eaglesledge Energy is investing $3 billion in a green energy-powered refinery and solar farm in Saskatchewan, Canada. The project includes a refinery designed to produce up to 85,000 barrels per day of clean fuels and a 125-megawatt solar farm to power the refinery and support the local grid.

Illinois Governor J.B. Pritzker has signed the SAFE CCS Act into law, establishing new regulations for carbon capture storage and pipelines, including a moratorium on CO2 pipeline approvals while federal rules are revised. This makes Illinois the second state, after California, to impose such a moratorium following a 2020 pipeline failure in Mississippi.
Pennsylvania Governor Josh Shapiro signed a significant carbon capture and storage (CCS) bill into law, aiming to advance the state's industrial decarbonization efforts. The legislation enhances landowner rights, mandates seismic monitoring, and sets a default 50-year monitoring period to ensure the safe storage of CO2.

Neoenergia, Brazil’s largest energy distributor, has announced the formation of a joint venture with Carbon2Nature to generate carbon credits through reforestation and mangrove preservation projects in Brazil. The initiative aims to capture over 10 million tons of CO2 by planting 15 million trees across 19,000 hectares. Neoenergia will hold a 49% stake, with Carbon2Nature owning 51%.

Lhyfe, a green hydrogen producer, announced it will supply green hydrogen to Hyliko’s refueling station, part of France’s first dedicated hydrogen truck center. This center of excellence for hydrogen trucks will feature a green hydrogen refueling station and a maintenance facility for hydrogen heavy goods vehicles (HGVs).

Rolls-Royce has submitted its nuclear small modular reactor (SMR) design for regulatory justification in the UK. The reactor is expected to generate up to 470 MW of clean energy. The UK Department for Environment, Food and Rural Affairs (DEFRA) will review the design’s benefits and risks before approval. Rolls-Royce is also building a manufacturing facility in Sheffield and exploring hydrogen production using SMR-generated power.

The Norwegian Climate Investment Fund, managed by Norfund, has made its first direct investments in Indonesia, totaling $29.6 million, to support renewable energy projects in the country. This initiative includes funding for rooftop solar, solar-battery solutions, and hydropower projects. The investments align with Norway’s commitment under the Just Energy Transition Partnership (JETP) to accelerate Indonesia’s energy transition, with a broader goal of mobilizing $20 billion in clean energy financing.

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