A Trio to Forge A Carbon Credit Market Alliance in the West

Jennifer L
-
0
A Trio to Forge A Carbon Credit Market Alliance in the West

As the urgency to combat climate change intensifies, regional efforts in the Western United States and Canada are gaining traction. California, Quebec, and Washington are forging ahead with plans to link their carbon markets, a move that could significantly impact emissions trading dynamics. Let’s delve into the latest developments shaping this convergence.

The three jurisdictions plan to work together to form a bigger carbon credit market. Their proposed alliance could take effect in 2025 at the earliest. 

California Carbon Market’s Regulatory Review

The California Air Resources Board (CARB) is expected to submit a standardized regulatory impact assessment (SRIA) to the state’s Department of Finance as part of amending the cap-and-trade program, also known as the compliance carbon market. This assessment will evaluate potential changes to the program, with CARB planning to release a draft of the proposed changes. 

The last SRIA submitted by CARB for amending the cap-and-trade program was on June 25, 2018.

Amidst this regulatory plan, secondary market prices for California Carbon Allowances (CCA) showed strength, building on the previous week’s gains. Contracts for both April and December delivery futures saw robust trades. The CCA V24 December 2024 contract trades between $39.60/mt and $40.56/mt on the Intercontinental Exchange (ICE). 

Similarly, the ICE CCA V24 April 2024 contract traded at $38.05/mt and $38.80/mt. These prices represent an upward trend compared to the assessments from last Thursday, indicating a positive market outlook.

Meanwhile, Regional Greenhouse Gas Initiative (RGGI) prices show a trend for an upward trajectory, with December delivery contracts showing strong trading activity. Contracts for ICE RGGI V24 December 2024 traded at $20.39/st and $20.40/st. 

April delivery contracts also demonstrated positive momentum, indicating potential all-time highs.

Market analysts view the filing of the California Cap-and-Trade SRIA as a bullish signal for the market. It can help maintain regulatory momentum.

Cross-Border Emissions Trading Collaboration

In Quebec, updates to its cap-and-trade program are also anticipated, with a draft regulation expected by September and amendments slated for enactment by December. Quebec’s carbon credit market was linked with California’s program in 2014 to enhance liquidity.

To facilitate this cross-border trading and ensure accurate accounting of greenhouse gas (GHG) emissions reductions, California and Quebec developed an accounting mechanism in place. This mechanism assesses Quebec’s progress towards its GHG emissions reduction targets by considering its domestic emissions inventory and the emission allowances traded between Quebec and California.

Having its own carbon pricing mechanism in place, Canada’s recent carbon price hike won’t impact Quebec. But the province can voluntarily adopt the federal carbon pricing system.

In Washington, Carbon Allowance secondary market prices remained stable, with no observed trades. However, recent legislative actions and announcements by the Washington Department of Ecology regarding the second quarterly cap-and-invest auction scheduled for June 5, continue to influence market sentiment.

Washington Takes a Legislative Leap

Washington State has taken significant steps to integrate its cap-and-invest market with those of California and Québec by signing Senate Bill 6058 into law. This legislation aims to streamline the process of linking Washington’s carbon program with the established joint California-and-Québec cap-and-trade programs.

The new law introduces several amendments to Washington’s Climate Commitment Act, including adjustments to compliance periods, allowance purchase limits, and offset credit usage rules. These changes will align Washington’s regulations with those of California and Québec, facilitating potential linkage agreements between the jurisdictions.

Key provisions of the legislation include:

  • Adjusted compliance periods to align with those of California and Québec, allowing for synchronization of regulatory frameworks.
  • Expanded allowance purchase limits (25%) and increased flexibility in offset credit usage to promote market efficiency and integration.
  • Removal of specific dates from compliance period language to accommodate potential linkage agreements and ensure regulatory consistency.
  • Provision for rulemaking by the Washington Department of Ecology to further align cap-and-invest policies with the requirements for linkage.

This legislative development follows joint announcements by California, Québec, and Washington expressing their intent to explore linking their carbon markets. If successfully implemented, a linked program would enable joint auctions of allowances and establish a uniform allowance price across jurisdictions.

Ecology Director Laura Watson remarked that:

“As long as we are linked by Nov. 1, 2027, entities that are required to comply in Washington can use allowances from the larger market to meet their Washington compliance obligation.”

Despite fluctuations in market prices, regulatory developments and auction outcomes can significantly shape the trajectory of carbon credit markets. 

By integrating their carbon trading systems, Washington, Quebec, and California aim to enhance the effectiveness of their climate mitigation efforts. This collaboration exemplifies a commitment to regional cooperation in reducing greenhouse gas emissions and addressing climate change.

Silver’s Crucial Role in Achieving a Net Zero World

Jennifer L
-
0
Silver’s Crucial Role in Achieving a Net Zero World

As investors and environmental enthusiasts scout for tangible opportunities in the green revolution, silver emerges not merely as a precious metal but as a pivotal element in the quest for a net-zero future. 

With its price on a notable ascent touching $27 per ounce, silver’s inherent value is being redefined, transcending its traditional allure to become a cornerstone in sustainable technology.

silver stock price trading view
Chart from Trading View

Silver, with its dual role as an industrial workhorse and a financial asset, deserves a closer look from investors, policymakers, and industry stakeholders

Silver’s Ascending Value in the Green Era

Silver’s price trajectory is more than a market anomaly; it’s a reflection of its significant role in modern technology and sustainable initiatives. As industries pivot towards eco-friendly solutions, silver’s conductive and reflective properties are in unprecedented demand, especially in sectors crucial for reducing carbon footprints. 

This metal, once confined to jewelry and currency, is now a linchpin in solar panels and electric vehicles, illustrating a direct correlation between its market value and its environmental significance.

Over 50% of silver serves industrial needs, powering sectors from electronics to metalworking.

silver demand

More than half of silver’s demand is driven by sectors critical to the low-carbon transition. It’s a testament to silver’s versatility and indispensability, echoing its historical role as a currency foundation but now reimagined as a cornerstone of modern technology.

The legacy of silver, from ancient empires to contemporary economies, underscores a metal that has continually adapted and thrived.

The Metal Driving Us Toward Net Zero

The surge in solar installations and electric vehicle production is not just a trend; it’s also a strong call for increased silver demand. The metal’s unmatched conductivity and application in photovoltaic cells position it as a key player in the transition to renewable energy. 

Solar panels that harness the sun’s power heavily rely on silver’s conductivity, making it a key player in renewable energy’s expansion. Silver holds a unique position in the realm of metals due to its exceptionally low electrical resistance at standard temperatures. This characteristic makes it unrivaled by substitutes, as they cannot match its energy output per panel.

Moreover, the demand for silver in the solar industry, as a percentage of the total silver demand, increased from 5% in 2014 to around 14% by the end of 2023.

Based on BloombergNEF’s estimate of 12 tonnes of silver demand per gigawatt of solar capacity, the demand for silver in solar panels could surge by nearly 169% by 2030. This increase would amount to about 273 million ounces of silver, constituting roughly one-fifth of the total silver demand based on trend projections.

Similarly, as the automotive industry accelerates toward electric vehicles, silver’s role in electrical contacts and conductors becomes increasingly critical.

This intrinsic link between silver and green technology underscores not just an environmental imperative but a burgeoning market trend. Others consider silver to be the new oil, only if the world has enough of it. 

Supply Chain Scrutiny: The Geopolitical Dance of Silver Production

The spotlight on Latin America’s Silver CAMP—Chile, Argentina, Mexico, and Peru—reveals a narrative rich in opportunity and fraught with challenges. These nations, pivotal to silver’s global supply, explore a complex geopolitical landscape where policy shifts and operational risks are huge.

The impending start-up of Guatemala’s Escobal mine adds another layer to this intricate story. It promises to reshape the supply dynamics and spotlight the importance of sustainable mining practices.

global silver production 2023

According to Katusa Research, Mexico is the largest producer of silver in the world by a comfortable margin, thanks to its generous healthy reserves and low costs of production.

China is also a major player in this space, having maintained steady production of roughly 3,500 tonnes a year for the past decade.

University College London (UCL) researchers are exploring the use of silver in carbon capture and storage (CCS) technologies, aiming to make CCS more cost-effective by utilizing silver’s high-temperature stability in innovative membranes that separate carbon dioxide from other gases. This approach could be crucial for industries like steel and cement, which are slower to transition to renewable energy.

However, the reliance on CCS and its potential to delay immediate emission reduction efforts raises concerns, with some experts cautioning against viewing CCS as a definitive solution to climate change. UCL’s commitment to net-zero targets by 2030 highlights the urgency of reducing emissions alongside developing removal technologies.

Mining for a Greener Tomorrow

While we champion silver’s role in sustainability, it’s crucial to scrutinize its source. 

Silver mining, like any extractive industry, poses environmental challenges. However, the industry is on a transformative journey, adopting more sustainable and less invasive mining techniques. 

Understanding where and how silver is extracted is vital, as responsible sourcing becomes synonymous with environmental stewardship. 

Latin American silver miners are advancing in decarbonizing their operations, aligning with net zero commitments by 2050. However, emissions per ounce are increasing due to lower ore grades. 

For example, despite a temporary rise in emissions in 2020, attributed to COVID-19 impacts, the industry is adopting automation and alternative energy to reduce its carbon pollution.

Political factors and energy reforms, particularly in Mexico, pose challenges to these efforts. While larger firms lead in emission reductions, smaller silver miners are also making significant strides, adapting to their unique operational scales and contexts.

A Sterling Opportunity?

Investors are increasingly aligning their portfolios with their values, and silver could offer a compelling narrative that marries financial growth with ecological responsibility. 

By investing in silver, one is not just betting on a metal’s value but could be supporting the infrastructural backbone of the net zero movement. 

Silver’s story is evolving, from a symbol of wealth to a beacon of sustainability. Its rising demand and price are representative of a broader narrative, where financial markets and environmental goals are increasingly intertwined.

For investors, industry stakeholders, and environmental advocates, silver represents a multifaceted opportunity: a chance to drive and benefit from the monumental shift towards a cleaner, greener, and more sustainable world. 

Silver’s journey from a symbol of wealth to a driver of sustainability underscores its evolving role in shaping our net zero future. 

Adani Reaches India’s First 10,000 MW Renewable Energy Capacity

Saptakee S
-
0
Adani Reaches India’s First 10,000 MW Renewable Energy Capacity

India’s largest and one of the world’s leading renewable energy (RE) giants, Adani Green Energy Limited (AGEL), has soared above 10,000 MW renewable energy milestone. This is indeed a historic achievement not only for the Adani Group but also for India.

An Overview of AGEL’s Powerful Renewable Energy Portfolio

AGEL uses the latest technology and is equipped with the best operational proficiency involving a solid supply chain network. Investing in sustainable practices and long-term infrastructure financing can propel the green energy transition and large-scale decarbonization effort.

  • AGEL’s current operational portfolio stands at 10,934 MW.
  • It is capable of powering more than 5.8 million homes.
  • Can curb 21 million tonnes of CO2 emissions annually.

The company supplies clean power to the national grid at an affordable cost.

AGEL’S Hallmark Clean Energy Projects

Mr. Gautam Adani, Chairman of Adani Group and a visionary has noted,

“In less than a decade, Adani Green Energy has not just envisioned a greener future but has actualized it, growing from a mere idea to explore clean energy to achieving a phenomenal 10,000 MW in installed capacity. This achievement is a demonstration of the rapidity and scale at which the Adani Group aims to facilitate India’s transition to clean, reliable, and affordable energy.”

The company has installed large-scale renewable energy projects at prime locations in India. It encompasses solar, wind, and hybrid projects of differential capacities.

Gujrat’s bold 30000 MW solar project installation is in progress…

AGEL is spearheading the development of the world’s largest renewable energy project, encompassing 30,000 MW, situated on barren land in Khavda, Kutch, Gujarat.

  • Spanning 538 square kilometers, this colossal project will be 5X the size of Paris and almost the size of Mumbai city.
  • Remarkably, AGEL has already operationalized 2,000 MW of cumulative solar capacity, marking over 6% completion within just 12 months of project initiation.
  • Once completed, it will become the world’s largest power plant, regardless of the energy source.

Noteworthy, this latest solar project is bolstered by AGEL’s utilization of:

  • Adani Infra’s project execution proficiency
  • Adani New Industries Limited’s manufacturing acumen
  • Adani Infrastructure Management Services Ltd.’s operational excellence,
  • Robust supply chain facilitated by strategic partnerships.

Carbon removal potential of Khavda Solar Park

The Khavda project is strategically located to harness abundant wind and solar resources. It is expected to generate an annual green footprint of approximately 30 gigawatts (GW) of clean electricity, equivalent to 81 billion units.

This clean energy will power approximately 16.1 million households. Moreover, the project will create over 15,200 green jobs and avoid approximately 58 MT of CO2 emissions.

Further putting this into perspective, the emission avoided is equivalent to the carbon sequestered by 2,761 million trees. It is also comparable to avoiding the use of 60,300 tonnes of coal and taking 12.6 million cars off the roads.

The Khavda region experiences approximately 2,060 kWh/m2 of high solar irradiation. Additionally, it boasts one of the best wind resources in India, with average wind speeds of around 8 meters per second.

The picture shows the work-in-progress of the massive Khavda Solar Park in Gujrat.

source: AGEL

AGEL achieved another remarkable milestone with the development of the 648 MW solar project at Kamuthi in the State of Tamil Nadu. It is one of the world’s largest single-location solar power projects and is fully operational.

Adani Group has established additional solar setups of varying capacities. They are distributed across multiple states in India, including Uttar Pradesh, Karnataka, Rajasthan, and Punjab.

Adani Group is known for crafting its projects meticulously and making them economically viable. The team radically scrutinizes the land attributes, solar radiation levels, grid infrastructure, and the technologies involved. This comprehensive process also ensures that all capital investments undergo risk assessment before implementation.

Gujrat, the hub for AGEL’s wind projects 

According to an editorial synopsis released by the Adani Group, the key developments in the wind domain are:

  • AGEL has operationalized 126 MW wind power capacity in Gujarat. The completion of the 300 MW project marks the implementation of 174 MW earlier.
  • The project can generate ~ 1,091 million electricity units, curbing ~ 0.8 MT of CO2 emissions annually.

AGEL has made Kutch district in Gujrat the prime hub for all its major wind and solar projects. Mr. Gautam Adani has further given his statement, that

“This milestone is a validation of the Adani Group’s commitment and leading role in accelerating India’s equitable clean energy transition journey towards its ambitious goals of 500 GW of renewable energy capacity by 2030 and carbon neutrality.”

AGEL’s 10,000 MW Target Aligns with India’s Renewable Energy Ambitions

As per data fetched from the AGEL’s site, the company’s greenfield expansion is the largest in India’s renewable energy (RE) sector. It constitutes ~ 11% of the nation’s installed utility-scale solar and wind capacity.

This is significant to India’s renewable energy landscape. AGEL’s expansion has also generated over 3,200 direct green jobs, further fostering economic growth and sustainability.

Thus, AGEL creating 10,000 MW renewable energy capacity is a huge accomplishment for India towards a decarbonized future. It aligns with the country’s renewable energy objectives, boosting significant job creation and environmental responsibility.

Key Challenges and Opportunities in Global Lithium Metal Market

Jennifer L
-
0
Key Challenges and Opportunities in Global Lithium Metal Market

The global demand for lithium metal batteries is surging, yet production falls short of meeting the need, hindering industry growth. According to Benchmark’s Solid-State and Lithium Metal Forecast, the sector faces challenges in sourcing adequate lithium metal for battery production, despite its high capacity potential.

In 2024, if all suitable lithium metal produced were used for batteries, it could support 5 to 10 gigawatt-hours (GWh) of cell production. However, much of the lithium metal is diverted to other industries, leading to a supply deficit this year. From almost 10 GWh in deficit in 2024, jumping to around 60 GWh by 2026.

lithium metal production forecast

Chinese Dominance and Global Ambitions

China dominates global lithium metal production, accounting for over 90% of capacity in 2023. This dominance is poised to continue, with China aiming to double its capacity within the next 3 to 5 years.

Currently, some companies worldwide are scaling back output and spending due to improved supply prospects and slowing demand from EVs. Yet, Chinese firms are taking a different approach. 

China’s leading lithium companies, Tianqi Lithium Corp. and Ganfeng Lithium Group Co., are undeterred by recent profit declines and aim to expand their market presence. Despite sharp drops in net income in 2023 due to plummeting prices, both companies are focused on acquiring global lithium reserves and increasing production capacity. They believe in the long-term potential of rising demand for lithium, looking beyond current challenges.

Tianqi seeks partners to explore high-quality lithium sources, accelerating work at its Yajiang mining project in Sichuan province. Meanwhile, Ganfeng plans to develop low-cost resources like lithium derived from brine and expand processing facilities in China and Argentina.

These companies’ optimism aligns with other Chinese miners like CMOC Group Ltd. and Zijin Mining Group Co. They are also eyeing opportunities in battery materials amid signs of a potential price recovery.

However, this total capacity may not meet the requirements of next-generation battery technologies.

Growing Demand Amid Technical Hurdles

The deficit arises as demand for lithium metal batteries grows rapidly, exceeding 10 GWh by 2026. Developers are transitioning from cell development to pilot production, driving up demand for lithium metal.

The precursor to lithium metal, lithium chloride, is sourced directly from brine or converted from lithium carbonate. However, most brine resources have unsuitable impurity profiles, and converting lithium carbonate incurs significant capital expense.

Next-generation lithium metal batteries require thinner lithium metal foils for the anode, challenging traditional production processes. Overcoming this technical barrier is crucial for industry growth, with companies exploring novel approaches to address this challenge.

Nevertheless, trading of the metal in CME Group Inc. is experiencing a significant surge, drawing increased attention from funds amid declining battery metal prices.

The contract has seen open interest reach a record high of 24,328 contracts in the first quarter, extending to September 2025. This uptick in open interest indicates a notable increase in liquidity within the contract. This further suggests a maturing market for the lithium industry.

CME lithium trading price

Trading Surge Reveals Market Resilience

The growth in open interest follows a robust year in 2023, primarily driven by arbitrage trading between China and the US. Notably, China introduced its lithium carbonate contract on the Guangzhou Futures Exchange in July last year. In turn, this further contributes to the trading activity. 

This development underscores the growing importance of lithium derivatives markets as key tools for industry participants to manage price risks.

The rise in liquidity in CME’s lithium hydroxide contract is a positive sign for an industry grappling with challenges. Prices of lithium have declined by over 80% from their record high in November 2022. This drastic drop in prices has been attributed to shifting market dynamics, swaying between fears of shortages and the emergence of surplus inventories.

Despite the challenges facing the industry, the surge in open interest offers assurance to funds and financial participants. It provides them with the confidence that they can easily trade the contract, enabling them to enter and exit positions as needed, even in the face of adverse price movements. 

Additionally, more Asia-based funds are showing interest in trading the CME contract this year, reflecting the growing appeal of lithium as an investment opportunity.

Moreover, the current market conditions, with lithium prices in contango (futures prices higher than spot prices), present lucrative opportunities for funds. 

The contango structure allows traders to profit by buying futures contracts and selling them at a higher price in the future. This has attracted the attention of funds looking to diversify their portfolios and capitalize on the volatility in commodity markets.

The increasing liquidity and trading activity in CME’s lithium hydroxide futures contract signal a growing interest in lithium derivatives. With trading volume on pace to surpass last year’s record, lithium futures are attracting the attention of investors seeking exposure to the rapidly evolving battery materials sector. 

US SEC’s Climate Disclosure Rules Spur Renewed Interest in Carbon Credits

Jennifer L
-
0
US SEC’s Climate Disclosure Rules Spur Renewed Interest in Carbon Credits

Multiple private equity firms have recently entered the carbon credit market, capitalizing on the rising demand for high-quality credits. This significant market development is amid expectations of enhanced transparency from the US Securities and Exchange Commission (SEC)’s new disclosure regulations.

Seizing Opportunity Amidst Regulatory Changes

The recent final rules issued by the SEC mandate companies to disclose climate-related information, including the use of carbon credits. While the rules represent a scaled-back version of the initial proposal, notably excluding Scope 3 emissions, they still mark a significant milestone by requiring many of the world’s largest businesses to disclose their emissions and carbon credit usage.

Key players in this emerging trend include:

  • Stafford Capital Partners: the London-based firm aims to raise $1 billion for a fund dedicated to investing in forest projects to generate around 30 million carbon offsets.
  • Bain Capital: the company recently provided backing to Terra Natural Capital, an investment firm specializing in financing offset-generating projects like mangrove forest planting and restoration.
  • Kimmeridge Energy Management: the New York-based firm pledged up to $200 million to forest manager Chestnut Carbon about two years ago. Chestnut Carbon focuses on reforestation projects.

One aspect of the rules that remains ambiguous is the definition of ‘materiality.’ Specifically, companies can adopt a ‘maximum transparency’ approach by disclosing all retired carbon credits within a reporting period. 

Or they may opt for a more selective approach by disclosing only those credits deemed material to specific climate-related goals. This ambiguity will persist until the first wave of disclosures under the rules is observed.

SEC Climate Disclosure Rules FAQs

SEC climate disclosure rules FAQs
Image from BeZero Carbon

Moreover, the rules could prompt companies to go beyond disclosure and include climate-related assets and liabilities on their balance sheets. This is good news because it can help internalize the negative externalities associated with their emissions. 

This internal carbon pricing mechanism is anticipated to drive companies to intensify their efforts towards decarbonization within their value chains and offset residual emissions through purchasing carbon credits.

From Skepticism to Sustainable Impact

Recent research by Ecosystem Marketplace’s Forest Trends suggests that companies purchasing carbon credits reduce their emissions faster than their peers. For instance, they are investing 3x more in emissions reductions within their own value chains. Analysts see this as an indicator of the potential efficacy of carbon credit utilization in accelerating climate action.

The carbon market is often met with skepticism due to greenwashing claims against companies participating in it. For instance, a class-action lawsuit against Delta Air Lines in California alleged that the carrier overstated its “carbon neutrality” based on potentially questionable offsets.

Some legal experts highlighted a “crisis of confidence” in the quality of voluntary carbon credits from emission reduction projects. 

In response to these concerns, some firms, like Bregal Investments in London, have supported developers of carbon-insetting projects. These projects aim to reduce emissions across companies’ supply chains, particularly in the agricultural sector. 

In Europe, where the largest carbon-trading system exists, new sustainability-reporting rules mandate businesses to disclose greenhouse gas emissions across their supply chains or by customers using their products, known as scope 3 emissions.

Concerns about the reliability of carbon credits raised doubts about the effectiveness of these projects generating the credits. This is where the new reporting requirements by the SEC would bring greater transparency to the market. 

Shaping the Future of Carbon Credit Trading

The new SEC rules will subject carbon credits, also known as carbon offsets when used to compensate for a company’s carbon emissions, to additional scrutiny. Thus, it will drive demand for high-quality offsets. 

In the case of private equity firms, some face legal challenges and a temporary suspension of enforcement by the US appeals court. Despite this, these businesses still see potential in meeting the unmet demand for high-quality credits with verifiable mitigation benefits. 

Last year saw a decline in the number of credits issued to 277, the lowest in 3 years after dropping to 25% year-on-year, according to an MSCI report. 

lowest number of credits issued for 3 years MSCI

However, despite the shrinking supply, the average price dropped by 13% to $6/credit in the third quarter of 2023. This underscores the need for greater transparency and quality assurance in the carbon credit market.

While the SEC initially proposed rules that require companies to report scope 3 emissions, this provision was dropped from the final version due to concerns about compliance costs and difficulty. However, legal experts believe that this decision is unlikely to deter companies from their efforts to reduce scope 3 emissions. 

Other jurisdictions, including California, Illinois, New York, Singapore, and Australia, are also adopting or proposing climate-related disclosure rules that include scope 3 emissions.

California, for example, passed a law last year mandating businesses to report both direct and indirect emissions, including scope 3. As a result, US public companies may still be subject to similar disclosure requirements from various regulators worldwide, despite the SEC’s decision.

As private equity firms delve into the carbon credit market, the landscape of climate finance undergoes significant transformations. Transparency and reliability remain paramount, driving the need for verifiable mitigation benefits and quality assurance. As stakeholders navigate these complexities, the carbon credit market stands at a pivotal juncture, poised to play a crucial role in accelerating climate action and sustainability initiatives worldwide.

Top 4 Carbon Stocks To Watch In 2024

Jennifer L
-
0
Top 4 Carbon Stocks To Watch In 2024
After a record-breaking price run in the compliance and voluntary markets in 2021, many carbon stocks reached large market caps. With a softening of carbon prices across the board last year, however, some companies have retreated to interesting valuations.Here’s how carbon prices performed last year…carbon prices in 2022

Why Carbon Stocks?

Carbon stocks are an attractive option for investors looking to support the transition to a low-carbon economy and mitigate the effects of climate change. 

Companies from Amazon to Netflix and Xerox – and everyone in between – are releasing plans to disclose and reduce their carbon footprint. Most companies are targeting zero net carbon emissions (“net zero”) by the year 2050. But some have chosen much more aggressive targets.

Tech giants Apple and Microsoft, for instance, are committing to net zero by 2030. For companies like these, carbon credits and offsets as well as sequestration and energy reduction play a key role in their plans. 

Let’s take a look at some carbon stocks in 2023 to put on your radar.

1. Carbon Streaming Corporation (NETZ.NEO and OFSTF.OTC)

carbon streaming stocks 2022

Carbon Streaming was one of the first publicly traded carbon stocks focused on offset credits. Being one of the first has allowed the company to become an early mover in the carbon credit space. It also enabled the firm to secure several sources of extremely high-quality carbon credits. 

Carbon Streaming trades on the NEO exchange in Canada, as well as the OTC market in the U.S. The company intends to list on the NASDAQ in the near future.

The company has been picked up by analysts at TD, Bank of Nova Scotia, BMO, and H.C. Wainwright, among other institutions, with an average price target of around US$4.50.

What are streaming and royalty companies?

  • Streaming and royalty companies are businesses that provide financing for the development of projects.
  • In exchange for providing financing, these companies receive a stream of future cash flows from the project, which is called a “stream” or “royalty.”
  • Streaming and royalty companies can be a good option for investors who want to support the transition to a low-carbon economy without having to bear the full financial risk of developing a project or asset.

These companies often have a portfolio of projects in different stages of development, providing diversification and reducing the risk for investors. 

In total NETZ has a portfolio of 21 projects in 12 different countries around the world.

The Rimba Raya Biodiversity Project in Indonesia is one of NETZ’s flagship projects. It’s one of the world’s largest REDD+ projects and addresses all 17 of the UN Sustainable Development Goals.

Carbon Streaming is a leveraged play on the demand and the value of carbon credits increasing in the voluntary carbon market.

Carbon Streaming Corp.’s Highlights:

  1. Carbon credits expected to be issued from 10 or more carbon projects by the end of 2023E,
  2. Currently trading at a significant discount to net asset value,
  3. Management team has executed >$2 billion of streaming agreements and includes leading experts in the carbon markets,
  4. The company expects moderate and then rapid growth of credits in the coming years, peaking near 20 million credits per year by 2027.

growing carbon credits volume

NETZ is an option for investors with a high-risk tolerance. The company was a the first of its kind in the carbon markets, and its unique business model could help it outperform the competition. 

It’s worth checking the company presentation out for those interested in carbon credit stocks and investments.

2. DevvStream (DESG.NEO)

DevvStream is a new company that provides money for green projects in exchange for carbon credit rights: a potentially lucrative revenue model, as we established before. 

  • In addition to these rights, DevvStream manages the carbon credits generated by using an advanced blockchain-based ESG platform.

The primary business of Devvio, which is DevvStream’s parent company, is its proprietary blockchain-based ESG platform. 

As a B2B service, Devvio provides its corporate clients with a framework for global-scale enterprise management.

DevvESG offers regulatory-compliant transaction management and tracks assets for maintenance. It also has record keeping, automation, and ESG reporting capabilities. All of this is done transparently.

It was built with smart contracts through its proprietary blockchain. And that’s for a fraction of the transaction cost of other blockchain (i.e. 1/1,000,000th the energy cost of Ethereum). 

On top of this, Devvio’s platform is highly scalable. It can allow for over 8 million transactions per second. For reference, Visa only sees around 1,700 transactions per second worldwide.

And as Devvio is the majority owner of DevvStream, the latter is fully ready to make good use of its infrastructure.

Total ESG assets under management have more than tripled in the past decade, and analysts estimate that number will hit $41 trillion by the end of this year.

  • Globally, one in every three dollars of managed money belong to ESG-related assets.

On top of this, carbon markets are set to grow between 15x and 100x by 2030.

Put together, this gives DevvStream access to an extremely high-growth market which it can target thanks to the Devvio technology. Here’s a snapshot from their investor deck:

devvstream investor deck snapshot

DevvStream’s Highlights:

What sets DevvStream apart from its competitors are its partnerships and the ecosystem that they play in both the voluntary and compliance markets.

For instance, through its partnership with its parent company, DevvStream gets direct access to all of the companies in Devvio’s ESG corporate client base who happen to be looking to buy carbon credits.

  • They also get the exclusive right to manage the data used to generate the carbon credits from their streaming agreements on Devvio’s blockchain platform for transparency and recordkeeping purposes. 

This gives them a major advantage over traditional carbon credits.

In addition to having access to all of Devvio’s corporate clients, DevvStream can also choose to sell its carbon credits on its partner Xpansiv’s CBL market.

Xpansiv is the largest voluntary carbon credit marketplace in the world, currently hosting over 90% of all transactions worldwide. Companies with major net-zero commitments like Chevron, Shell, Walmart, and Goldman Sachs – all use Xpansiv’s trading platform. 

Xpansiv and Devvio make the perfect partners for DevvStream. The latter provides both a blockchain platform for credits as well as access to an ESG customer base. And the former offers a secondary market for any of DevvStream’s excess credits.

DevvStream is another good option for investors with a larger appetite for risk. The company can leverage its unique partnerships to differentiate itself from its competitors.

You can learn more about DevvStream at their corporate page here.

3. Base Carbon (BCBN.NEO)

base carbon stocks 2022

Like Carbon Streaming Corp., Base Carbon is also involved in financing carbon projects that generate voluntary carbon credits.

Base has two executed project agreements estimated to generate a total of 34 million carbon credits. This amounts to about 3 million tonnes per year at full production.

base carbon credit projects

The company has committed USD$29.6 million for projects in Rwanda and Vietnam.

Project #1: Vietnam Household Devices

  • 51.4% of Vietnam’s primary household energy is generated from solid fuel combusted within open fires or inefficient cookstoves for cooking or water sanitization.
  • Base Carbon will fund the manufacturing and distribution of 850,000 fuel-efficient cookstoves and 364,000 safe-drinking water purifiers to families in rural areas of Vietnam.

Project #2: Rwanda Cookstoves

  • Households in Rwanda rely nearly entirely on biomass for cooking and related purposes resulting in inefficiencies in fuel use and negative health impacts.
  • Base aims to facilitate 250,000 fuel-efficient cookstoves as part of the Tubeho Neza project, distributed to rural families, reducing consumption of wood by at least 71%

Base Carbon’s Highlights:

The projected growth of the voluntary carbon market will serve as an excellent catalyst for Base, which already has a steady source of carbon credit production locked in for the next decade.

Base has a healthy balance sheet with a strong cash position, and management is continuing to work on sourcing other high-quality carbon credit projects for the company. For instance, Base recently partnered with the Danish Red Cross to develop blue carbon projects in Southeast Asia.

In addition, the company boasts management, advisors and key insider ownership at 36.4% of shares outstanding. And institutional shareholders own another 27.7%. Base is a carbon stock where key players have a high degree of “skin in the game”.

Base is yet another option for investors with high risk tolerance. 

Its small market cap and thin volume could provide a fast-moving tailwind with any rise in carbon credit prices.

4. Brookfield Renewable Partners (BEP)

BEP carbon stocks 2022

Rounding out our list is Brookfield Renewable Partners, one of the world’s largest publicly traded renewable energy companies.

One of the key things that sets Brookfield apart from many similar companies in the space is the fact that BEP is a pure-play renewable company.

What that means is that the entirety of BEP’s portfolio consists solely of renewable sources of power generation. This is unlike many other power companies whose portfolios often also include traditional fossil fuel power plants.

This focus on clean energy has made BEP a world leader in renewable energy and decarbonization technologies. Plus, they have projects all over the world in both Americas, Europe, and Asia.

Currently, BEP owns 24 gigawatts of power generating assets including 229 hydroelectric plants, 105 wind farms, 88 solar power plants and a number of other sustainable & distributed energy solutions.

BEP assets 2022

BEP’s management team isn’t content to sit on their laurels, however. They have an extensive development pipeline in place, with 11 GW of power capacity. And that’s a 46% increase over what they have now – secured over the next three years.

Brookfield Renewable Partners’ Highlights:

Simply put, BEP is a well-established major company with a proven and stable business model, a strong balance sheet and tons of cash flow.

Over the past 5 years, BEP has averaged just over 5% dividend yield. Since their inception over two decades ago, their distributions have grown by an average of 6% each year. At the same time, the stock itself has seen average returns of 16% a year – an outstanding track record.

Plans and capital are already in place for BEP to grow their operating capacity by 46% over the next 3 years. If the company can fully execute their development pipeline, they’ll be able to multiply their power generation portfolio by 5x. It also means offsetting as much carbon each year as the entire country of Sweden produces.

On top of this, many companies right now are looking to reduce their reliance on carbon-emitting sources of electricity to hit their net zero targets. BEP, with their 100% carbon-free renewable energy portfolio, perfectly fits the bill for such companies.

For investors with a lower appetite for risk that still want exposure to the carbon markets, BEP is a great company to keep your eyes on. 

See Similar Article: Top 3 Private Carbon Companies to Watch 

Carbon Stocks Are Grabbing Investors’ Attention in 2024

As more and more public companies declare their net-zero ambitions and disclose their carbon emissions, responsible investing is becoming a hot topic in financial markets. Big money is pouring into renewable energy and offsetting emissions using carbon credits.

Meta, Apple, and Netflix are among the tech giants leading the charge towards net-zero targets by 2030. Meanwhile, major mining companies like Barrick and Newmont, as well as energy giants like Saudi Aramco, Exxon and Shell, are also making similar commitments.

These developments will likely increase investor interest in all things carbon-related in 2024 and beyond. As net zero targets for 2030 draw closer, we can expect this trend to accelerate even further.

Carbon stocks could prove as a valuable addition to an investor’s portfolio as the world heads towards net zero targets.

Disclosure: Owners, members, directors, and employees of carboncredits.com have/may have stock or option positions in any of the companies mentioned: NETZ, DESG.

Additional disclosure: This communication serves the sole purpose of adding value to the research process and is for information only. Please do your own due diligence. Every investment in securities mentioned in publications of carboncredits.com involves risks that could lead to a total loss of the invested capital.

Please read our Full RISKS and DISCLOSURE here.

US EPA to Invest $20B in Climate and Clean Energy Projects for Underserved Communities

Jennifer L
-
0
US EPA to Invest $20B in Climate and Clean Energy Projects for Underserved Communities

The US Environmental Protection Agency (EPA) announced a significant investment of $20 billion to community lenders to finance climate and clean energy projects. It is a key initiative under the agency’s Greenhouse Gas Reduction Fund, established by the 2022 climate law.

The funding is under President Biden’s Investing in America agenda that’s distributed through the National Clean Investment Fund ($14 billion) and the Clean Communities Investment Accelerator ($6 billion). 

Vice President Kamala Harris, EPA Administrator Michael Regan, and other officials made the announcement in North Carolina. The grants were awarded through two of the three programs overseen by the “green bank” established under the Inflation Reduction Act of 2022.

Serving the Underserved 

The funding aims to create a national financing network for clean energy and climate solutions, particularly in underserved communities. It could mobilize an additional $130 billion in private capital.

The recipients committed to leveraging private sector funding, with $7 in private investment for every $1 from the federal government. The aim is to reduce or avoid 40 million metric tons of carbon dioxide annually.

Seventy percent of the funding is earmarked for disadvantaged and low-income communities disproportionately affected by climate change. This makes the Greenhouse Gas Reduction Fund the single biggest non-tax investment under the IRA to foster a transition to a clean energy economy while prioritizing communities historically left behind.

Eight nonprofits have been selected by the EPA to administer the loans. The programs will provide financing for various projects aimed at energy efficiency and reducing greenhouse gas emissions. 

Eligible projects include residential heat pumps, solar panel installations, energy-efficient home improvements, electric vehicle charging stations, and community cooling centers. 

The National Clean Investment Fund (NCIF) will be split among 3 applicants, including the following: 

  • Climate United Fund ($6.97 billion), 
  • Coalition for Green Capital ($5 billion), and 
  • Power Forward Communities ($2 billion). 

These organizations will establish national financing institutions to provide capital for clean energy projects.

The Clean Communities Investment Accelerator (CCIA) will support 5 applicants in establishing hubs to distribute funding and technical assistance to lenders, prioritizing low-income and disadvantaged communities. This includes significant grants for rural areas and tribal communities. CCIA grant awardees are: 

  • Opportunity Finance Network ($2.29 billion)
  • Inclusiv ($1.87 billion)
  • Justice Climate Fund ($940 million)
  • Appalachian Community Capital ($500 million)
  • Native CDFI Network ($400 million)

The IRA also spurred massive investments in clean energy manufacturing and power in the country. For instance, clean energy manufacturing investments have increased by over 170% in the past year because of the initiatives created by the law, per the National Economic Council data.

A separate database also showed that a total of $213 billion was poured in clean technologies that reduce carbon emissions. The chart below shows that clean energy investments are rising rapidly from 2018 to 2023.

clean energy investment in the US 2018-2023
Chart from CIM

Driving the Clean Energy Revolution 

With this $20 billion climate and clean energy government funding, another massive private capital would be unlocked. Collectively, the 8 selected applicants have committed to: 

  1. Emissions Reduction: The projects will collectively reduce or avoid GHG emissions by up to 40 million metric tons of CO2 equivalent per year. This reduction is significant, equivalent to emissions from 9 million typical passenger vehicles.
  2. Community Benefits: Over $14 billion of the funds will be dedicated to low-income and disadvantaged communities, with $4 billion for rural areas and nearly $1.5 billion for Tribal communities. This ensures equitable distribution of benefits and supports the President’s Justice40 Initiative.
  3. Private Capital Mobilization: The goal is to leverage public funds to mobilize private capital, aiming for a ratio of nearly 7:1 over seven years. This means that for every dollar of grant funds, almost 7 dollars of private investment will be secured.

While this initiative has been praised for its potential impact on reducing greenhouse gas emissions and engaging communities in the clean energy revolution, it has also faced opposition, particularly from Republicans in Congress. They introduced a bill in 2023 to repeal the funding. 

Despite challenges, supporters believe that this initiative is a crucial part of the national strategy to combat climate change and transition to clean energy sources.

The EPA expects to finalize the awards in July, pending the resolution of all administrative disputes related to the competitions. By prioritizing underserved communities and leveraging private sector funding, this investment represents a significant step towards addressing the climate crisis and promoting a clean economy for Americans.

ASIC’s Historic Court Win: Vanguard Found Guilty in Greenwashing Suit

Saptakee S
-
0
ASIC’s Historic Court Win: Vanguard Found Guilty in Greenwashing Suit

The Australian Securities and Investments Commission (ASIC) has secured its first major court win against Vanguard, a global investment management company in Australia. The ruling marks a critical decision in the fight against greenwashing within the financial industry.

Let’s read about the background, the allegations, and the global ramifications of this case…

Backdrop of the Case: ASIC vs. Vanguard

On February 26, 2021, The Vanguard Ethically Conscious Global Aggregate Bond Index Fund declared assets under management exceeding $1 billion. Vanguard serves as both the Responsibility Entity and the Investment Manager for this registered investment scheme. It includes ETF, AUD Hedged, and NZD Hedged unit classes.

Graph: Vanguard ESG Developed World All Cap Equity Index Fund (GBP Acc): Performance History for March 2024

source: Morningstar

ASIC has set aside several rules and guidelines to help the companies managing funds and the trustees avoid greenwashing while offering their sustainable products. ASIC’s Information Sheet 271 titled “How to avoid greenwashing when offering or promoting sustainability-related products (INFO 271).” is an important reference material for this.

Subsequently, ASIC’s Report 763, “ASIC’s recent greenwashing interventions,” details regulatory actions taken by ASIC between July 1, 2022, and March 31, 2023, in response to greenwashing concerns.

Last year, ASIC initiated a lawsuit against Vanguard as part of a series of actions focused on greenwashing. These actions also included cases against Marsh McLennan company Mercer Superannuation and superannuation fund Active Super.

According to media reports, ASIC Chair Joseph Longo issued a warning to providers of investment funds and financial products, stating that the regulator was closely monitoring misleading sustainability claims. Longo emphasized that ASIC was guiding fund managers and issuers to avoid greenwashing practices.

As mentioned in ASIC media report, these representations were made to the public in a range of communications. It included:

  • 12 product disclosure statements
  • a media release
  • statements published on Vanguard’s website
  • a Finance News Network interview on YouTube, and
  • a presentation at a Finance News Network Fund Manager Event which was published online

The Allegations: Vanguard’s Misleading Environmental Claims

The case against Vanguard centered on its “Vanguard Ethically Conscious Global Aggregate Bond Index Fund”, which purported to invest in companies aligned with environmental, social, and governance (ESG) principles. It aims to provide investors exposure to international fixed-income investments and excludes companies dealing with fossil fuels, alcohol, and tobacco.

ASIC argued that Vanguard’s marketing materials and product disclosures failed to adequately disclose the fund’s methodology for selecting investments. Technically speaking, the company made false claims about the exclusionary screen applied to investments in its Index Fund.

This made investors believe that their money was being allocated to environmentally responsible companies more extensively than it actually was. To name a few, Chevron Phillips Chemical and Abu Dhabi Crude Oil Pipeline.

The Fund held investments based on an index known as the Bloomberg Barclays MSCI Global Aggregate SRI Exclusions Float Adjusted Index (Index).

ASIC’s investigation revealed that despite Vanguard’s claims of prioritizing ESG factors in its investment decisions, the fund involved companies dealing with fossil fuel extraction and deforestation. This misalignment between Vanguard’s marketing and the fund’s actual holdings constituted a breach of Australia’s consumer protection laws, according to the regulator.

Vanguard’s Confession before the Court…

During a hearing before Justice O’Bryan on March 8, 2024, Vanguard confessed to conducting activities that could mislead the public and acknowledged making false or misleading statements.

Subsequently, on March 28, 2024, Justice O’Bryan concluded that Vanguard had violated the ASIC Act multiple times by disseminating inaccurate or deceptive information regarding the ESG exclusionary screens utilized in the Vanguard Ethically Conscious Global Aggregate Bond Index Fund.

The Court further added,

“As ASIC’s first greenwashing court outcome, the case shows our commitment to taking on misleading marketing and greenwashing claims made by companies in the financial services industry. It sends a strong message to companies making sustainable investment claims that they need to reflect the true position.”

  • Following this suit, the Court has scheduled another hearing on August 1, 2024, during which it will determine the suitable penalty for the conduct.

Image: Vanguard’s Sustainability Index

source: morningstar

Global Implication of Vanguard’s Greenwashing Suit 

The global ramifications of Vanguard’s greenwashing suit are significant, sending the financial industry into a deep-thinking mode. It has impacted the confidence of investors involved in investing in sustainable products worldwide.

  • Vanguard’s case highlights the importance of maintaining transparency and integrity in ESG investments.

  • It emphasizes the need for greater regulatory scrutiny and enforcement in the realm of sustainable finance.

ASIC’s successful prosecution of Vanguard should incorporate a more standardized approach to ESG reporting and disclosure. It should provide investors with more clarity to reduce the risk of greenwashing. Vice versa, investors must conduct thorough and independent research before investing their ESG funds.

This historic win against Vanguard is an eye-opener for global financial institutions about the potential consequences of greenwashing. It can cause reputational damage, give rise to legal repercussions, and impose financial penalties as showcased in the Vanguard’s case.

All said and done, let’s wait for the final verdict!

Harnessing the Sun: America’s Solar Snapshot in April 2024

Jennifer L
-
0
Harnessing the Sun: America’s Solar Snapshot in April 2024

Solar power, harnessing the sun’s energy to generate electricity, is a cornerstone in the global shift towards sustainable energy. This clean, inexhaustible power source is key to reducing greenhouse gas emissions and combating climate change. 

In the USA, solar energy has seen exponential growth, driven by technological advancements, decreasing costs, and increasing environmental awareness. The nation’s solar capacity has expanded rapidly, making it a pivotal player in the global solar industry.

Latest News in Solar Power for April 2024

Virginia Brightens the Path with Major Solar Approvals

A notable stride in this journey is Virginia’s recent approval of an array of solar projects, set to bolster Dominion Energy Virginia’s renewable energy capacity by 764 MW. 

This move includes the green light for four pivotal projects like the 57-MW Beldale Solar in Powhatan and the 127-MW Bookers Mill Solar in Richmond, underscoring the state’s proactive stance on clean energy. 

While this expansion entails a modest increase in residential bills, it marks a significant leap toward Virginia’s cleaner, greener future, eyeing completion by 2026.

Illinois’ Visionary Solar Endeavor with Vistra

In Illinois, Vistra Corp’s ambitious proposal for a 405-MW solar plant in Pulaski County is another testament to the nation’s renewable energy commitment. 

This $650 million project aims to transform the site of the erstwhile Joppa Steam coal plant into a hub of solar energy, reflecting a powerful narrative of transition from coal to solar. Scheduled for an upcoming county board review, this initiative resonates with Illinois’ goal for a 100% clean energy landscape by 2050.

Iberdrola’s $45 Billion Boost

Iberdrola, Spain’s leading power company, is investing $45 billion to enhance and expand the US power grids over three years, marking a significant move in global energy investment and underscoring its dedication to renewable energy. 

This ambitious plan aims to bolster Iberdrola’s renewable capacity to 52 GW by 2025, focusing on offshore wind projects in the US and Europe. 

The launch of the Vineyard Wind 1 project, the first large-scale offshore wind farm in the US, highlights this strategic initiative, showcasing Iberdrola’s commitment to reducing carbon emissions and advancing clean energy infrastructure.

UnitedHealth’s Texan Solar Investments Illuminate Corporate Responsibility

The corporate world is not far behind in this solar revolution, with UnitedHealth Group Inc. leading by example in Texas. 

Their new ventures, including a substantial virtual power purchase agreement with Ørsted A/S and an investment in Swift Current Energy’s project, are set to significantly reduce their carbon footprint. These projects are not just about meeting energy needs; they symbolize a broader commitment to renewable energy, aligning with UnitedHealth’s ambitions for a sustainable operational footprint by 2035.

As these stories unfold, they paint a vivid picture of America’s renewable energy canvas, where solar power is increasingly becoming the protagonist. Each project, from Virginia’s extensive solar portfolio to Illinois’ transformative solar plant and UnitedHealth’s strategic investments, contributes to a narrative of progress, resilience, and hope in the face of environmental challenges, illustrating a united march toward a solar-powered tomorrow.

Creative Solar Solutions Across the Globe

Pressed for space, solar energy proponents are deploying panels in diverse and innovative locations, such as retired landfills, decommissioned golf courses, and even floating solar farms. 

These ventures not only optimize underused spaces but also highlight the versatility and adaptability of solar technology. For instance, parking lot canopies and former golf courses are becoming popular choices for solar installations, blending utility with sustainability.

Floating solar farms are a novel approach to circumvent land use challenges, with installations worldwide from Japan to New Jersey. These aquatic arrays harness sunlight without occupying valuable terrestrial real estate, demonstrating the potential for solar power to adapt and thrive in varied environments.

floating solar farms
Image from KrAsia

From Landfills to Solar Fields

Landfills and former fossil fuel sites are transforming into solar energy hubs, turning once unusable lands into sources of clean power. This transition not only repurposes these areas but also symbolizes the shift from traditional energy sources to renewable ones, aligning with global sustainability goals.

As solar power continues to evolve, these inventive installations underline the sector’s ingenuity and resilience, paving the way for a future where clean energy seamlessly integrates into our landscapes and lifestyles.

JSW Energy Secures 45 MW Wind Project from Reliance Power

Saptakee S
-
0
JSW Energy Secures 45 MW Wind Project from Reliance Power

JSW Energy has sealed a significant deal with Reliance Power, acquiring a 45 MW wind project for a staggering Rs 132 crore. The agreement is a remarkable milestone in JSW Energy’s renewable energy expansion journey, solidifying its commitment to sustainability and clean energy initiatives.

By leveraging Reliance Power’s expertise and infrastructure in the renewable energy sector, JSW Energy aims to maximize the efficiency and output of the acquired project.

JSW Energy- Reliance Power Wind Project- A Joint Effort to Sustainability

Reliance Power was the first company in India to launch the gigantic 45 MW Wind power project at Vashpet in the Sangli District of Maharashtra, India. The system operates a huge 2.5 MW capacity turbine. As per media reports, this unit commenced operations in the year 2013 and is currently under a power off-tak agreement with Adani Electricity.

Reliance Power has been clearing its debt obligations with multiple banks like DBS, ICICI, and Axis. The mega Rs 132 crore wind power deal with JW Renewable Energy is a smart move by Reliance Power to become 100% debt-free by the end of this financial year. The transaction is expected to be finalized by May 21, 2024.

The company advocates the utilization of renewable energy sources to reduce their dependence on fossil fuels. It has upgraded its portfolio by investing in sustainable power projects like solar, wind, hydroelectricity, etc. pan India.

Image: Pan-India presence of JSW renewable energy projects

source: JSW energy

The ultimate goal is to tackle environmental challenges, promote green energy, and assist India in fulfilling its net-zero pledge to the Paris Agreement.

Carbon offset project portfolio of Vashpet Wind:

    • Reliance Energy earns 0.7 million carbon credits through its Vashpet Wind entitlements.
    • The company indicates that it is poised to achieve a reduction of 74,828 MMT CO2 equivalent per annum.

As mentioned on their website, Reliance Power actively employs “market-based mechanisms” like the Clean Development Mechanism (CDM) under the United Nations Framework Convention on Climate Change (UNFCCC) to meet international standards to fuel their climate-friendly projects.

JSW Energy has issued an official statement to confirm the deal. It said,

“A Business Transfer Agreement has been signed between the parties and the transaction is subject to other customary approvals standard to a transaction of this size.” 

Unlocking JSW Energy’s Futuristic Renewable Energy Mission

JSW Renewable Energy (Coated) Limited, is a fully owned subsidiary of JSW Neo Energy Limited. Currently, it has an operating capacity of 6.6 GW across thermal, hydro, solar, and wind generation.

JSW Energy is taking a step forward by acquiring the 45 MW Wind Project from Reliance Power, aiming to become a 20 GW company. The company boasts of making substantial investments in renewable sectors like green hydrogen and energy storage.

Sajjan Jindal, Chairman and MD of JSW Group says,

“I am confident that these new-age businesses can change the future of JSW Energy for all our stakeholders – our shareholders, suppliers, customers, and our employees.” 

Thus, this historic deal aligns with the company’s mission to reduce the negative impact of its operations on people, communities, and the environment. It further offers sustainable solutions to enhance business performance and quality.

We have fetched the following data from the JSW Energy resources:

    • In 2021 it had set an ambitious target for a 50% reduction in carbon footprint by 2030, and achieve carbon neutrality by 2050, by transitioning towards renewable energy.
    • The company aims to reach 10 GW installed capacity as well as 1 GWh of storage capacity in 2024.

Image: Energy Generation and Storage Capacity of JSW Energy for March 2023

source: JSW Energy Reports

Apart from the 45 MW wind project, JSW plans to commission the company’s first greenfield wind power project at Tuticorin later this year. This demonstrates the company’s remarkable growth in the energy sector and its capability in executing projects.

JSW Energy leads the energy transition, aligning with India’s Paris Climate Agreement commitments. It believes in prioritizing energy security and reliable power while expanding its progress in the renewable sector.

India, currently the world’s third-largest producer of renewable energy, has a total installed capacity of 172 GW. Therefore, increasing its renewable energy resources is imperative for meeting the NDC target and achieving net-zero emissions by 2070. This is possible when half of its installed capacity comes from non-fossil fuel-based energy sources.

Renewable energy capacity in India from 2009 to 2022(in megawatts)

source: statista

The strategic move of JSW Energy to Secure a 45 MW Wind Project from Reliance Power for Rs 132 Crore reaffirms its commitment to sustainability and positions it as a key player in India’s renewable energy landscape.

This analysis suggests that the deal could drive the company to its goal of becoming a 20 GW power generation giant by 2030.

1...110111112...219Page 111 of 219