Chart of the Week
U.S. Power Plants Distribution in 2024
96 percent of new power plants built in the United States in 2024 were carbon-free, with solar and grid batteries accounting for most of the new capacity. Solar was the leading type of power plants constructed, with 34 gigawatts, and energy storage was the second largest with 13 gigawatts installed across the United States. [Canary Media]
Energy Transition
United Arab Emirates plans to undertake a $6 billion solar and battery project to enhance its clean energy supply. Masdar, the state-controlled company, is targeting to construct a facility with 5.2 gigawatts of solar power capacity and 19 gigawatt-hours of battery storage. [Bloomberg]
Utility-scale energy storage project developer esVolta recently secured $243 million in equity investment for three battery energy storage projects in Texas. These projects, situated in the Electric Reliability Council of Texas (ERCOT) market, are currently under construction and are expected to become operational in the first half of 2025. [ESG Today]
As of January 1, 2025, all of Chicago's municipal buildings, including fire stations, water treatment plants, and international airports, are now powered entirely by Illinois’ newest and largest solar farm. This transition is expected to reduce the city's carbon footprint by approximately 290,000 metric tons of carbon dioxide annually, which is the equivalent of taking 62,000 cars off the road, according to the city. [Canary Media]
Green Mobility
Hyundai Motor Group (HMG) announced an 18.5 percent increase in its planned investments in South Korea, raising the total by approximately $2.6 billion for 2025, marking the largest annual investment increase in the company's history. This investment focuses on advancing next-generation mobility technologies, including electrification and hydrogen systems, with a strong emphasis on sustainability and transitioning production to electrified vehicles. [Yahoo! Finance]
General Motors announced that it is utilizing artificial intelligence and machine learning to determine the optimal locations for installing new electric vehicle chargers. This initiative is part of a collaboration with EVgo to establish 2,850 direct current (DC) public charging stalls in major metropolitan areas across the United States. [Yahoo! Finance]
BMW partnered with South Korea's SK Ecoplant Company to create a global network for recycling electric vehicle (EV) batteries. This partnership aims to recover key battery minerals such as lithium, nickel, and cobalt from used EV batteries, with plans to launch a "pan-European" network in 2025 and expand operations to the US, Mexico, and Canada by 2026. [Yahoo! Finance]
Sustainable Fuels
DHL Express announced that starting in April, it will procure 7,200 kiloliters of sustainable aviation fuel (SAF) annually from Cosmo Energy Holdings. This initiative will commence at Chubu Centrair International Airport, making it the first airport in Asia where DHL procures SAF. [Reuters]
Fuel suppliers at UK and EU airports are now required to supply a portion of sustainable aviation fuel for departing flights, with mandates, starting at 2 percent in 2025 and increasing to 10 percent in the UK and 6 percent in the EU by 2030. These requirements aim to decarbonize flying by forcing demand for greener fuels, though challenges remain due to the higher costs and complexities of producing sustainable fuels compared to fossil fuels. [Financial Times (Subscription)]
Bayer and Neste partnered to advance the cultivation of winter canola in the United States for renewable fuel production. This collaboration aims to promote regenerative agricultural practices, diversify Neste's renewable feedstock supply, and provide farmers with additional income opportunities through the development of a sustainable winter canola ecosystem. [ESG News]
Sustainable Materials & Products
Optera, an enterprise emissions management software company, and SPS Commerce, a technology and application software company, launched the Retail Sustainability Collective, a new solution designed to enable retailers to measure and reduce supply chain emissions by streamlining the emissions data sharing process from suppliers. This initiative combines Optera's emissions management expertise and SPS Commerce's retailer-supplier data exchange experience, facilitating comprehensive data coverage, enhanced collaboration, and accurate reporting. [ESG Today]
Schneider Electric partnered with Liminal Insights, a battery manufacturing intelligence company, to reduce EV battery production scrap by 15 percent. This collaboration integrates Liminal’s ultrasound-based metrology and analytics solutions with Schneider Electric’s automation and industrial intelligence ecosystem, aiming to enhance production efficiency and operational safety while minimizing waste. [ESG News]
Automakers are increasingly opting for sustainable materials in vehicle interiors to meet new sustainability and recyclability initiatives. Companies such as BMW, Volvo, and Polestar are integrating eco-friendly materials like bio-based foams, flax fiber composites, and non-petroleum-based leathers to reduce carbon footprint. [Assembly Magazine]
Notable Corporate Commitments
Ingka Group, the largest global IKEA retailer, plans to invest $1 billion in recycling companies that are increasing recycling infrastructure. This investment aims to enhance recycling capacities for mattresses, plastics, and textiles, aligning with the EU’s upcoming regulations on waste management and promoting IKEA's commitment to sustainability. [Reuters]
Amazon announced plans to invest more than $1 billion to electrify and decarbonize its transportation network across Europe by scaling zero-emissions transportation, focusing on route efficiency, and expanding charging infrastructure. This initiative includes the purchase of over 200 electric heavy goods vehicles from Mercedes-Benz Trucks and aims to help Amazon reach its Climate Pledge commitment of net-zero carbon emissions by 2040. [ESG Today]
Global Climate Commitments & Progress
Following President Trump’s decision to withdraw the U.S. from the Paris Agreement, Michael Bloomberg announced that his philanthropic organization will financially support the United Nations body responsible for implementing the Paris Agreement. Bloomberg's initiative aims to support the continuation of the U.S.'s climate commitments by providing financial assistance. [Bloomberg]
South Korea announced plans to invest at least $14.4 billion in 2025 to revitalize its domestic eco-friendly vehicle and battery industries, with 37.6 percent of the investment allocated to the secondary battery industry. The investment aims to address a slowdown in demand, develop cutting-edge technology, and strengthen the secondary battery ecosystem. [S&P Global]
Multimedia Insights
A Jan 14th release of The Interchange: Recharged discusses the energy analysts' view on what’s ahead in 2025. The podcast highlights the challenges clean energy will face from rising electricity demand, inflation-driven costs, and political pressures, while also noting the continued growth of solar energy leading carbon-free power additions.
An Jan 14th release of Columbia Energy Exchange highlights the severe impacts of climate change, emphasizing that 2024 was the hottest year ever recorded, particularly affecting Southern California with devastating wildfires. The conversation also explores how advancements in AI technology can improve prediction and management of extreme weather events like the LA wildfires.
Climate Events
Dates: February 5, 2025
Location: New York City, New York
Preview: The United Nations Economic and Social Council (ECOSOC) will host its 2025 Partnership Forum under the theme ‘Advancing inclusive, sustainable, science- and evidence-based solutions for the 2030 Agenda for Sustainable Development and its Sustainable Development Goals for leaving no one behind.’ This year’s Forum will focus on five Sustainable Development Goals: Goal 3 (Good Health and Well-being), Goal 5 (Gender Equality), Goal 8 (Decent Work and Economic Growth), Goal 14 (Life Below Water), and Goal 17 (Partnerships for the Goals).
Dates: February 10 - 12, 2025
Location: Phoenix, Arizona
Preview: GreenBiz 2025 brings together nearly 3,000 corporate sustainable professionals and leaders including executives working in sustainability, corporate responsibility, impact, net zero, reporting, environmental health and safety, and communications. The conference focuses on what’s next in decarbonization, disclosure, nature, supply chains, strategic communications, and change management.
This material is solely for informational purposes and shall not constitute an offer to sell or the solicitation to buy securities. The views expressed herein are those of the third-party sources and not necessarily those of TPG.