Green Markets - November 11, 2024

Nov 12, 2024

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

At the COP29 climate summit, countries approved carbon credit quality standards that are crucial for launching a U.N.-backed global carbon market (Article 6.4 of the Paris Agreement). The market could begin operating as early as next year, even if the U.S. exits the Paris Agreement.
President-elect Donald Trump has selected former Congressman Lee Zeldin to lead the Environmental Protection Agency (EPA). Zeldin, a lawyer with limited environmental policymaking experience, is known for his deregulatory stance and support for business interests. During his time in Congress, Zeldin voted in favor of policies like lifting the crude oil export ban and supporting offshore drilling, while opposing renewable energy mandates.
A Dutch court is set to rule on Tuesday whether to uphold or modify a 2021 landmark ruling against Shell, which mandated the oil giant to cut its carbon emissions by 45% by 2030 compared to 2019 levels. This ruling included emissions from the use of Shell’s products, not just from its own operations. Shell has appealed, arguing that such emissions reduction targets should be set by governments, not courts, and that the ruling would force the company to shrink its business without significant climate benefits. The outcome, whatever it turns out to be, can be appealed further to the Netherlands' Supreme Court.

The U.S. Department of Energy finalized a $2.26 billion loan to develop Lithium Americas’ Thacker Pass lithium mine in Nevada, supporting efforts to secure a domestic lithium supply chain for electric vehicle batteries. This project is set to produce 40,000 metric tons of lithium carbonate per year. General Motors has invested close to $1 billion in the mine.

Germany and the UAE have deepened their hydrogen cooperation, focusing on hydrogen trade, emissions trading, carbon management, and decentralized solar energy during a visit by a UAE delegation to Berlin. A key part of the visit was a meeting of the hydrogen task force, created in 2021 to foster collaboration between businesses, research institutions, and governments from both countries.
Construction has begun construction on a $290 million green hydrogen project in Ningxia, northern China, marking the first phase of the Ningxia Sun Mountain Integrated Green Hydrogen Project. This initial phase will produce 16,500 tonnes of renewable hydrogen annually. The project is a collaboration between Shanghai Refire Group, a maker of electrolysers, and Jiangsu Seraphim, a solar panel manufacturer.

Related Stock List(s): Hydrogen Stocks

European Commission President Ursula von der Leyen suggested that the European Union could consider replacing Russian LNG imports with cheaper LNG from the United States. Von der Leyen emphasized that the EU's approach to future trade policies, especially if Donald Trump returns to the U.S. presidency in January, will focus on engaging with the U.S., identifying common interests, and negotiating.

Related Stock List(s): LNG Stocks

Siemens Gamesa, the wind division of Siemens Energy, secured a £1 billion ($1.3 billion) order from ScottishPower to supply 64 offshore wind turbines for the East Anglia TWO wind farm. Located 33 km off Suffolk's coast, the 960 MW project will power nearly one million homes.

Acumen, a U.S. nonprofit, is launching a $1.5 billion investment initiative to support agritech startups that enhance agricultural adaptation in developing countries by 2030. Acumen itself will contribute $300 million, with plans to raise an additional $1.2 billion from partners.

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