March 12, 2024

ESG in 5: 12 March 2024

By Anthony Walters

– RBC Unveils Decarbonization Finance Initiative

– DOE Allocates $425M for Clean Energy in Former Coal Communities

– Southwest Airlines Launches Renewable Ventures for Sustainable Aviation Fuel

– Morocco Offers 1 Million Hectares for Green Hydrogen Projects

 

Market Recap

The Global market was down for the week, with the MSCI ACWI ESG Universal Index performing best (-0.67%) whilst the Screened Index was the most challenged (-0.90%). The unconstrained Index was ‘middle of the road’ with a -0.84% return.

(1 week performance from 04/03/24 to 08/03/24)

 

Royal Bank of Canada launches Decarbonisation finance

Royal Bank of Canada (RBC) has announced a series of new sustainable finance goals and initiatives, including the establishment of a new “decarbonisation finance” category aimed at increasing clarity for clients on the eligibility of decarbonisation activities, and to help accelerate capital deployment to emissions reduction efforts in high-emitting, hard-to-abate sectors.

 

$425m in funding for former coal mine communities

The U.S. Department of Energy (DOE) announced the allocation of $425 million in funding for small and medium businesses to support clean energy manufacturing and industrial decarbonisation projects in former coal communities.

The new investments, which will be funded by the Bipartisan Infrastructure Law (BIL), passed by the Biden administration in 2021, and forms the second round of the Advanced Manufacturing and Recycling Grant Program, established by the BIL to support manufacturing projects in energy communities that have experienced coal mine or coal-fired power plant closures.

 

Southwest Airlines in Sustainable Aviation Fuel push

Southwest Airlines announced the launch of Southwest Airlines Renewable Ventures (SARV), a new subsidiary responsible for managing the airline’s sustainable aviation fuel (SAF) investments, and creating opportunities for the company to obtain SAF to reach its clean fuel goals.

The company also announced a new $30 million investment in SAF technology startup LanzaJet, which will form part of the SARV portfolio.

 

Morocco to dedicate 1 million hectares to green hydrogen projects

The Moroccan government said on Monday it will allocate 1 million hectares to green hydrogen projects, starting with 300,000 hectares in a first phase, as part of an offer to attract investors.

Green hydrogen, produced by splitting water through electrolysis using renewable energy, is expected to play a key role in decarbonising industries.

The initiative would help Morocco “play a major role in the field of energy transition globally,” the prime minister’s office said in a statement.

 

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Sources.

Anthony Walters – Head of ESG at Clever Adviser Technology Ltd (Clever)
Market recap Data sourced from FE FundInfo & Koyfin (quoted in Pounds Sterling).
RBC Adds “Decarbonization Finance” Category for Hard-to-Abate Sectors to Sustainable Finance Framework, ESG today, 11/03/24
Biden Administration Invests $425 Million in Clean Energy and Decarbonization Projects in Former Coal Communities, ESG today, 11/03/24
Southwest Airlines Launches Sustainable Aviation Fuel Venture Investment Business by ESG Today 08/03/24
Morocco to dedicate 1 million hectares to green hydrogen projects, by Reuters, 11/03/24

Risk Warning: These are Anthony’s views at the time of writing and should not be construed as investment advice. The opinions expressed are correct at time of writing and may be subject to change. Capital is at risk. The value and income from investments can go down as well as up and are not guaranteed. An investor may get back significantly less than they invest. Past performance is not a reliable indicator of current or future performance and should not be the sole factor considered when selecting funds.

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Anthony Walters

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