Green Markets - November 13, 2024

Nov 13, 2024

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

Singapore has committed up to $500 million in concessional funding to support the "Financing Asia's Transition Partnership," a climate initiative launched in 2023 by the country's central bank. The initiative combines both public and private sector funding to support climate projects focused on decarbonization across Asia.

Citi Research has lowered its short-term copper price forecast, citing reduced demand due to U.S.-China trade tensions and slower economic growth in China. The forecast now projects copper prices at $8,500 per metric ton, down from the prior $9,500 estimate, with an average of $9,000 per ton for Q4 2024. Weaker global manufacturing demand, potential U.S. tariff increases on Chinese imports, and limited economic stimulus from China have tempered confidence in a near-term recovery for the copper market. While Citi anticipates copper demand to strengthen in the medium term, driven by decarbonization needs, significant price recovery may be delayed until late 2025.

Shell is seeking to sell a majority stake in its carbon offsets business as the market for emissions credits contracts. Shell’s carbon offset portfolio, launched in 2018, includes majority REDD+ projects, for which demand has waned, and credit prices have dropped sharply amid scrutiny of these projects’ impact. Shell may sell its project equity but continue purchasing credits, as it explores options to shift toward more scalable, engineered carbon removal solutions like direct air capture.

Related Stock List(s): Carbon Credit Stocks

Volkswagen has increased its investment in Rivian to $5.8 billion. This funding will support Rivian’s upcoming R2 SUV launch in Illinois and future production in Georgia, while also potentially aiding VW in overcoming software challenges. The joint venture aims to debut Rivian’s R2 in 2026, with Volkswagen models to follow in 2027, as both companies work to expand their EV capabilities.

At COP29, six additional countries: El Salvador, Kazakhstan, Kenya, Kosovo, Nigeria, and Turkey, joined the Declaration to Triple Nuclear Energy, raising the total to 31 nations committed to tripling nuclear capacity by 2050. Key financial institutions also back the initiative, which aligns with the U.S.’s recent commitment to add 35 GW of nuclear capacity by 2035. The Nuclear Scaling Initiative (NSI) aims to further accelerate nuclear deployment to 50 GW per year by the 2030s.
Chugoku Electric Power plans to restart Unit 2 at the Shimane nuclear power plant in Japan on December 7th. Shimane-2, a 789-MW boiling water reactor (BWR), will be the second BWR to resume operations in Japan since the 2011 Fukushima disaster. Currently, 13 of Japan’s 33 operable reactors have resumed operation under post-Fukushima safety regulations.

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