Green Markets - November 26, 2024

Nov 26, 2024

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

COP 29 concluded with the approval of a global carbon market framework after a decade of negotiations. The Paris Agreement Crediting Mechanism under Article 6.4 of the Paris Agreement will allow countries and companies to buy and sell carbon credits for projects that remove CO2 from the atmosphere. However, concerns from environmental groups remain regarding transparency and the risk of low-quality carbon credits. The mechanism's implementation is expected to begin in 2025, with full operations by 2026.
Equinix raised €1.15 billion in green bonds, bringing its total green bond issuance to $6.9 billion, positioning it among the top 5 U.S. issuers in the investment-grade green bond market. The funds will support sustainability projects aligned with Equinix's 2024 Green Finance Framework, including renewable energy, energy efficiency, decarbonization, and resource conservation initiatives.

Vedanta plans to invest $2 billion in copper projects in Saudi Arabia through its subsidiary, Vedanta Copper International. The investment will fund a 400 KTPA copper smelter and refinery, as well as a 300 KTPA copper rod project. Vedanta's initial project, a 125 KTPA copper rod mill, is expected to start operations by 2026.

Solarig is set to invest $1.20 billion in the development of a SAF plant in Spain. The Turboleta project aims to produce 75,000 tons of SAF annually by 2030. Construction is scheduled to start in 2027.

Rivian Automotive has secured a conditional commitment from the U.S. Department of Energy’s Advanced Technology Vehicle Manufacturing (ATVM) Loan Program for up to $6.6 billion. This funding will support the construction of a new electric vehicle production facility in Georgia. Phase 1 of production is set to begin in 2028.

Germany's KfW Bank has announced a €24 billion loan to support the development of a 9,040-kilometer hydrogen network by 2032. The network will repurpose existing natural gas pipelines for hydrogen use, covering 60% of the infrastructure, while the remainder will require new construction or retrofitting.
Poland has unveiled a €640 million hydrogen investment plan, focusing on hydrogen refueling stations, transportation solutions, and renewable hydrogen production. Funded through the National Recovery and Resilience Plan, the initiative will provide subsidies for hydrogen projects with at least 20 MW capacity. The Bank Gospodarstwa Krajowego will oversee and monitor project implementation.

Related Stock List(s): Hydrogen Stocks

A U.S. bankruptcy judge has dismissed two lawsuits totaling $1.3 billion against Zachry Group and its partners, Chiyoda International and CB&I, over a 2022 explosion at the Freeport LNG terminal in Texas. Insurers claimed the contractors failed to implement safeguards, but the court ruled the project’s contracts shielded the builders from liability and required Freeport LNG to obtain insurance for such risks.

Related Stock List(s): LNG Stocks

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