Green Markets - November 15, 2024
News in environmental markets.
Green Markets is a daily series dedicated to highlighting events of interest that could impact investments within environmental markets.
General Environmental/Regulatory
Malaysia's Petronas and China National Petroleum Corporation (CNPC) signed an MoU to enhance their collaboration across the LNG value chain and other areas such as upstream oil and gas exploration, specialty chemicals, renewable energy, green hydrogen, and carbon capture utilization and storage (CCS). The partnership also aims to establish a communication platform for knowledge-sharing.
The Inter-American Development Bank (IDB) and IDB Invest plan to significantly boost climate financing, aiming for $11.3 billion in annual climate finance by 2030, with an additional $6.6 billion mobilized through private capital. Half of this funding will focus on climate adaptation, totaling $25 billion from 2024 to 2030.
IKEA's parent company, INGKA Group, has committed €1.5 billion ($1.6 billion) to accelerate the transition from fossil fuels to renewable heating and cooling systems for its stores. This investment is part of the company's broader goal to reduce its climate footprint by 85% by 2030. This effort complements INGKA Group's €7.5 billion investment in off-site renewable energy, already contributing over €4 billion.
U.S. President Joe Biden announced over $1.4 billion in new funding for climate change initiatives. The funding includes $1.2 billion from the Department of Transportation to encourage states to use cleaner construction materials in transportation projects. Other allocations include $18 million for energy efficiency and decarbonization projects from the Department of Energy and $256 million from the Department of Agriculture to support over 1,100 clean energy projects in agriculture.
Voluntary Carbon Markets (VCMs)
The Integrity Council for the Voluntary Carbon Market (ICVCM) has approved three REDD+ methodologies aimed at reducing emissions from deforestation and forest degradation: ART TREES v2.0, VCS VM0048, and VCS Jurisdictional and Nested REDD+ (JNR) Framework v4.1. These methodologies address concerns from older standards and are expected to issue carbon credits eligible for the Climate, Community, and Biodiversity (CCB) label by early 2025.
Related Stock List(s): Carbon Credit Stocks
Hydrogen
A collaboration between 3TI Progetti Asia and two Chinese firms plans to invest $2 billion in a renewable energy and hydrogen production project in Vietnam's Ninh Thuan province. The project will include a 1,000 MW wind farm, a 500 MW solar power plant, and a hydrogen factory capable of producing 400,000 tons of hydrogen annually.
HysetCo has secured a major hydrogen supply contract with Air Liquide, which will provide renewable hydrogen from the Normand'Hy site, one of Europe's largest electrolyzer projects. The agreement allows HysetCo to supply up to 3,000 tonnes of hydrogen annually to its Ile-de-France network.
Related Stock List(s): Hydrogen Stocks
Liquified Natural Gas (LNG)
Germany's Economy Ministry has directed the state-operated Deutsche Energy Terminal to reject an upcoming delivery of Russian LNG as part of efforts to eliminate reliance on Russian gas and uphold EU sanctions. The terminal was built to reduce dependency on Russian energy imports following the Ukraine conflict. While Germany no longer imports Russian LNG directly, some supplies from Russia’s Yamal facility still enter Europe via France under long-term contracts. The EU imposed restrictions on Russian LNG in its 14th sanctions package in June, and discussions are ongoing about increasing U.S. LNG imports to replace Russian supplies.
Related Stock List(s): LNG Stocks