Green Markets - July 30, 2024

Jul 31, 2024

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

The Science-Based Targets initiative (SBTi) has decided to delay its decision on whether to allow increased corporate use of carbon offsetting to meet climate targets until 2025, following an analysis of evidence showing that many carbon credits in voluntary markets fail to deliver their claimed benefits. The SBTi's Net-Zero Standard, operational since 2021, requires a 90% reduction in absolute emissions across company operations and value chains, but many businesses find this challenging, particularly with Scope 3 emissions.
Singapore's sovereign wealth fund, GIC, has established a private equity group aimed at investing in emerging climate technologies that are moving from the laboratory phase to initial project deployment and scaling. GIC's Sustainability Solutions Group is focused on supporting climate technologies that are too mature for venture capital but lack the established track record required for infrastructure finance.

BHP and Lundin Mining have agreed to acquire Filo Corp (FIL) for C$4.5 billion ($3.25 billion). The two companies will create a 50/50 joint venture to manage the Filo del Sol and Josemaria projects located on the Argentina-Chile border. BHP will contribute $2.1 billion in cash for the acquisition, which comes as part of its strategy to expand its copper assets amid positive long-term demand projections for the metal. This move follows BHP's recent decision to abandon a $49 billion bid for Anglo American, signaling a shift toward acquiring existing assets rather than developing new ones.

International Airlines Group (IAG) has signed a deal with Repsol to purchase over 28,000 tons of sustainable aviation fuel (SAF). This fuel will be used by IAG's airlines, including British Airways and Iberia, to significantly reduce emissions by over 80% compared to traditional jet fuel. IAG has committed $1 billion to SAF investments, aiming to meet its goal of using 10% SAF by 2030 as part of its strategy to achieve net-zero emissions by 2050.
Air New Zealand has abandoned its 2030 carbon emissions reduction targets, citing delays in new aircraft production, limited alternative fuel availability, and challenging regulatory conditions. However, it remains committed to achieving net-zero carbon emissions by 2050 and plans to set new near-term targets.

Verra, the largest carbon registry, has introduced the ABACUS label for Verified Carbon Units (VCUs) from projects following its new Afforestation, Reforestation, and Revegetation (ARR) methodology. This label, developed with input from major environmental organizations, identifies carbon credits that exceed the standard requirements, emphasizing dynamic additionality, transparency, permanence, and the avoidance of food production displacement.

Related Stock List(s): Carbon Credit Stocks

BP has reached a final investment decision (FID) for developing a green hydrogen project at its Castellón refinery in Spain. The Castellón project is expected to feature up to 2 GW of electrolysis capacity by 2030.

Related Stock List(s): Hydrogen Stocks

Zhejiang Akcome New Energy Technology’s subsidiary, a solar firm, has recently been forced into bankruptcy due to insolvency due to a global supply glut of solar panels. The industry, dominated by major players like Longi Green Energy, is seeing increased consolidation, with the Chinese government aiming to accelerate the exit of inefficient producers.

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