Bursa Malaysia Debuts Malaysia’s First Nature-Based Carbon Credits

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Bursa Carbon Exchange (BCX), a 100% owned subsidiary of Bursa Malaysia, debuted the Malaysian carbon credits auction on July 25. It is BCX’s first offering of Malaysia Nature-based Carbon Credits Plus (MNC+) from its Kuamut Rainforest Conservation Project. This is indeed a huge achievement for Malaysia as it features domestic carbon credits.

Bursa Malaysia Drives Carbon Credits Market with Kuamut Project

Bursa Malaysia is proactive in engaging with stakeholders, carbon experts, and local developers to boost the carbon credit market in Malaysia.

Notably, in March 2024, the Kuamut project achieved its first Verified Carbon Units (VCUs) under Verra’s Verified Carbon Standard (VCS), cutting annual emissions nearly by 800,000 tCO2e.

It also provides significant climate, community, and biodiversity benefits, earning Gold Level status for Climate under the Climate, Community, and Biodiversity (CCB) Standards. Furthermore, it has accolades from BeZero Carbon for being one of the most advanced forest management projects.

Leading news agencies revealed that units and organizations committed to reducing their environmental impact had joined the auction. Essentially, they focused on offsetting tough GHG emissions through carbon credits. The auction for the forest protection and regeneration project was cleared at RM50 per contract.

Bursa Malaysia CEO Datuk Muhamad Umar Swift has emphasized,

“It has been a long wait for Malaysia to finally witness the auction of the country’s first domestically produced quality carbon credits. A critical step to accelerate the development of domestic carbon projects is to adopt some form of compliance carbon market.”

He has critically assessed the situation, pointing out that the voluntary renewable energy certificates (RECs) market took five years to expand. Given the complexities of implementing carbon projects, especially nature-based ones, he believes Malaysia’s voluntary carbon market will need ongoing improvements to reach its full potential.

Kuamut Project: The Ultimate Carbon Sink

Earlier in May, Bursa Malaysia released a press statement glorifying the geography, ecology, and biodiversity of the Kuamut Project. Located in Sabah’s Tongod and Kinabatangan districts of Malaysian Borneo, it protects and preserves 83,381 hectares of tropical forest.

It is a public-private partnership between the Sabah Forestry Department, Rakyat Berjaya Sdn Bhd, Yayasan Sabah, and Permian Malaysia. Describing further, the project also receives operational support from PACOS Trust and the Southeast Asia Rainforest Research Partnership (SEARRP).

The Kuamut Project is hugely significant for the South Asian nation and is handled by Permian Malaysia, the leading environmental & ecological services for businesses headquartered in London. The project addresses the climate crisis by preventing emissions from deforestation and forest degradation. Safeguarding the forest ensures that carbon remains stored in the biomass. Moreover, as the forest regenerates, it will strengthen its function as a carbon sink.

Bursa Malaysia through this conservation project also aims to improve the livelihood of the locals by creating ample sustainable economic opportunities. They are equally responsible for preserving the rich biodiversity, flora and fauna of the forest.

Image: The Kuamut Forest Conservation Project

source: Permian Global

Permian Global: In a Mission to Secure Tropical Forests

Permian Global operates across Brazil, Colombia, Indonesia, Malaysia, and Peru. It uses private-sector carbon finance to protect, and regenerate threatened tropical forests. The company halts deforestation, prevents species loss, and empowers local communities through large-scale projects in collaboration with locals.

By generating verified carbon units, these projects help corporations meet their climate goals. They believe that protecting forests keeps biomass carbon locked in vegetation, thereby mitigating climate change. Furthermore, local involvement ensures sustainable economic alternatives are carried out in those specific regions.

Most importantly, tropical forests, rich in biodiversity, benefit from these projects, which also include species research and monitoring.

Stephen Rumsey, founder and Chairman of Permian Global said,

“We are incredibly grateful to Bursa Malaysia for their vision and leadership in developing the Carbon Exchange and especially for their support of the Kuamut Project.”

He further added,

“Climate action requires system-wide transformation. This means the rapid development of high-integrity, high-impact actions on the ground, like the Kuamut Project, but it also means building the financial infrastructure that drives investment in these vital activities. BCX is an enormously important piece in the climate puzzle.”

Bursa Malaysia Ensures to Carbon Market Transparency

Last year, BCX auctioned credits from the Linshu Biogas Project in China and Cambodia’s Southern Cardamom Project. However, the Southern Cardamom Project faced backlash for lacking free, prior informed consent from the local community, prompting Verra to investigate in June 2023. So, this time Bursa Malaysia does not want any discrepancy in information. It is rather completely focused on sustained improvement in Malaysia’s voluntary carbon market.

All in all, as Malaysia’s carbon market grows, Bursa Malaysia aims to position the country as a prime spot for nature-based carbon projects, attracting local and international investment. Consequently, the successful launch of the Kuamut project is expected to boost funding for forest conservation and community development. We hope these efforts will solidify Malaysia’s role in global sustainability initiatives.

FURTHER READING: Singapore’s CRX Partners with Malaysian University for Carbon Projects

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Xpansiv Launches First ICVCM CCP-Approved Carbon Credits

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Xpansiv, a leader in market infrastructure for the global energy transition, has launched trading of the Integrity Council for the Voluntary Carbon Market’s (ICVCM) Core Carbon Principles (CCP) standardized carbon credits on its CBL spot exchange. 

This significant launch marks an important step towards enhancing the transparency and accessibility of the voluntary carbon market (VCM). 

The first-day trading saw participation from major entities such as Mercuria Energy America, ClimeCo, ElectroRoute, Valitera, South Pole, and Cross Stone Capital. A total of 37,606 metric tons of carbon credits were traded via the new CCP GEO contracts, indicating strong interest from global market participants. 

The trades included the following, traded through their respective CBL CCP Global Emissions Offset (GEO®) registry-specific contracts: 

10,000 tons of ACR, 
15,606 tons of CAR, and 
12,000 tons of VCS credits. 

Additionally, there were 73,778 tons of bids and offers for the new contracts posted during the trading day.

Promoting High-Integrity Carbon Credits

CCP-labelled carbon credits are issued under programs and methodologies independently assessed through the ICVCM’s rigorous process. This ensures they meet high-integrity standards for additionality, accurate quantification of emission reductions and removals, permanence, and positive social and environmental impacts. 

The introduction of these standardized contracts in Xpansiv platform aims to provide transparent price discovery and streamlined market access for buyers and sellers of ICVCM CCP-approved credits. Industry leaders have expressed strong support for this initiative. 

Adam Raphaely, Managing Director of Mercuria Energy America, remarked that:

“The launch of Xpansiv CBL’s standardized contracts is an important step to provide transparent price discovery and streamlined market access to buyers and sellers of ICVCM CCP-approved credits.”

Alex Bryson, Head of Green and Carbon at ElectroRoute, noted that standardization efforts are likely to have a positive impact on the market and expressed enthusiasm about participating at an early stage.

The experts see these standardized contracts’ launch as a critical step towards enabling market participants to differentiate high-quality carbon credits within the VCM.

Market Response and Future Outlook

The new registry-specific GEO® standardized contracts from Xpansiv allow buyers to take delivery of CCP-approved credits from the American Carbon Registry (ACR), Climate Action Reserve (CAR), and Verra registries. These contracts are settled daily to Platts price assessments from S&P Global Commodity Insights, a leading price reporting agency in the carbon markets. 

On the launch day, the CCP ACR contract closed at $2.25, the CCP CAR contract at $9.13, and the CCP VCS contract at $2.50. Russell Karas, Senior Vice President of Xpansiv, expressed gratitude for the participation of leading market stakeholders and highlighted the importance of high-integrity CCPs in revamping the VCM.

The ICVCM developed its Core Carbon Principles to establish a threshold for high-integrity project credits. The first set of seven qualifying CCP methodologies was announced by the ICVCM in June, with additional methodologies expected to be approved in the coming months. 

READ MORE: ICVCM Reveals First CCP-Approved Carbon Credits Worth 27M

Corresponding credits will immediately be deliverable into the respective CCP GEO contract when they are labeled as CCP eligible in their designated registry. As new programs are approved, additional CCP contracts will be introduced, further expanding the range of available credits for trading.

The market response to the new contracts has been positive, with significant trading activity and strong interest from market participants.

The standardized contracts are expected to play a crucial role in the development of the VCM by providing a transparent and efficient mechanism for trading high-quality carbon credits. This initiative is seen as a significant step in ensuring the integrity and effectiveness of carbon offset projects.

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Copper Prices Slump Below $9,000: What Does It Mean for Global Growth?

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Copper prices fell below $9,000 a ton for the first time since early April due to a global stock market selloff and rising pessimism about demand in China and elsewhere. The industrial metal has dropped by about 20% since its mid-May record high, driven by concerns over increasing inventories and weak conditions in the Chinese spot market.

What Causes the Market Downturn?

Copper is hailed as the economic bellwether because it rises and falls in tandem with industrial production. The metal is also popular as “Doctor Copper”, a slang word for copper’s price to foresee the economy’s overall health.

As seen below, copper price at London Metal Exchange (LME) has been dropping since it hit record high in May.

The falling copper prices is further worsened by a significant selloff in global technology stocks and doubts about the growth of the artificial intelligence industry. The AI industry had previously boosted copper prices due to anticipated surges in data center use and power infrastructure.

Gong Ming, an analyst at Jinrui Futures Co., noted that global growth concerns could drive copper prices lower, although prices might find support around $8,900 due to potential supply risks. Copper dropped 2.2% to $8,900 a ton and was trading at $9,010 at the time of writing. Nearly all metals were lower on the LME, with tin declining 2.6% and zinc losing 1.5%.

Iron ore also declined by 0.9% to trade below $100 a ton in Singapore, with signs of robust supply continuing. According to Liz Gao, a senior iron ore analyst at CRU, weak steel demand and negative steel margins in China are causing mills to reduce production and avoid building raw material stocks.

Despite recent rate cuts by China’s central bank to revive the economy, copper price continued to fall. It marks the worst weekly slump in almost two years, as a modest rate cut in China failed to alleviate concerns about demand in the world’s largest commodities consumer. 

SEE MORE: Copper and the Need to Meet the World’s Rewiring Demand for Energy Transition

China’s Copper Exports Hit Record High

The red metal dropped for the 6th consecutive day despite China’s efforts to support its economy through unexpected interest-rate cuts. The lack of short-term stimulus from a recent major Communist Party meeting added to investor disappointment.

Ewa Manthey, commodities strategist at ING Bank NV, noted:

“We expect copper and other industrial metals to decline further in the near term. That trend would reflect “a softer demand outlook in China.

China’s refined copper exports reached a record high in June, driven by weak domestic demand, prompting smelters to seek overseas markets. Exports more than doubled to 157,751 tons from May, surpassing the previous all-time high of 102,000 tons set in 2012, according to customs data.

Asia’s largest economy experienced its slowest growth in five quarters in the three months through June. This leads to a 14% drop in global copper prices since mid-May. 

The surge in exports is also reflected in the increased copper inventories at LME warehouses, which have more than doubled since mid-May, reaching their highest levels since September 2021. This increase is largely due to the lack of domestic demand. 

Benchmark Minerals Intelligence believes that despite spot treatment and refining charges (TC/RCs) at record lows, Chinese smelters are maintaining strong output. Benchmark estimates most smelters in China are loss-making, despite improved by-product credits. 

Interestingly, copper prices peaking in May increases scrap copper supply by 20% year-on-year. Most incremental supply went to Chinese smelters, boosting refined copper production. 

Copper Demand for Clean Energy is Positive

With prices now below the $9,000 threshold, scrap merchants are less willing to supply, and inventories are low. As scrap supply fades in Q3, raw material supply will tighten. Benchmark projects a refined copper production growth rate of 2.3% in H2.

Moreover, though China’s refined copper supply was strong in Q2, consumption growth was weak. High copper prices led to reduced restocking and plant utilization, causing a counter-seasonal stock-build and record exports in May. 

Despite short-term pressures, end-use demand indicators are positive: electric vehicle sales are up 32%, and solar installations and grid investments increased 29% and 22%, respectively. 

Copper demand in traditional uses will grow by just 0.5%, but substantial increases could come from green energy sectors, per the International Copper Association. Demand from EVs and chargers will rise by 11%, grid expansion will boost demand by 19%, and renewable energy technologies will see a 7% increase in copper use.

Moreover, meeting net zero carbon emission targets by 2035 may require doubling annual copper demand to 50 million metric tons, according to an industry-backed S&P Global research. Even conservative projections suggest a one-third increase in demand over the next decade due to investments in decarbonization by governments and businesses.

These trends underscore copper’s major role in the transition to clean energy. Miners must embrace this shift and increase production of this essential metal to meet the growing demand. With copper price falling down, this remains to be seen.

READ MORE: The World Needs 194 New Large Copper Mines to Reach Net Zero

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How India’s Budget 2024 Sets a Global Standard for its Critical Minerals

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In a groundbreaking move, India’s Finance Minister Nirmala Sitharaman has given utmost significance to critical minerals in the Union Budget for 2024-25. The Critical Minerals Mission aims to bolster India globally by ramping up domestic production of critical minerals for electric vehicles (EVs) and renewable energy technologies.

What is India’s Critical Mineral Mission?

Critical and rare earth elements (REE) are crucial for advancing clean energy and electric mobility, as the Economic Survey 2023-24 emphasized. The survey highlighted issues at mineral deposit sites and trade policies that are affecting India’s renewable energy and EV targets.

The government aims to launch this mission to eliminate these challenges and establish a smooth policy for domestic mineral exploration. The mission has outlined a comprehensive strategy that includes the recycling of lithium, copper, cobalt, and other REEs.

Furthermore, India will actively collaborate with REE-dominant nations like Australia and engage in initiatives like the Mineral Security Partnership (MSP). This will be a key component of the critical mineral mission. These partnerships are essential for securing overseas mineral resources and advancing India’s strategic objectives in exploration science.

Mrs. Sitharaman in her Budget speech, said,

 “We will set up a Critical Mineral Mission for domestic production, recycling of critical minerals, and overseas acquisition of critical mineral assets. Its mandate will include technology development, a skilled workforce, an extended producer responsibility framework, and a suitable financing mechanism.”

She proposed that,

“25 critical minerals will be exempted from Basic Custom Duties (BCD). This will provide a major fillip to the processing and refining of such minerals and help secure their availability for these strategic and important sectors.”

READ MORE: India Challenges EU’s Carbon Border Adjustment Mechanism (CBAM)

How will the Budget 2024 Impact EVs and REEs?

Lithium, the key element for manufacturing batteries in EVs, just got a boost from the Budget 2024. The elimination of custom duty on lithium is set to drive down prices, making EV batteries more affordable in India. The same policy applies to ferrous scrap and nickel cathode while offering a concessional rate for copper scrap. These measures are aimed at fostering local manufacturing and recycling capabilities.

Currently, high lithium-ion battery costs are making EVs costlier. The Union Ministry of Mines reported that last year India imported over 2,000 tons of lithium, priced at Rs 700 crore. However, this waiver on customs duties, paired with declining global lithium prices, promises to reduce EV manufacturing costs. Additionally, the discovery of new lithium reserves in India could further slash prices, making EVs more accessible and affordable.

Pratik Kamdar, CEO & co-founder of EV batteries supplier Neuron Energy said,

“This pivotal move will substantially lower the production costs of battery cells, directly translating into more affordable electric vehicles (EVs) for consumers. By reducing manufacturing expenses, the overall cost of EV batteries will decrease, making electric vehicles a more economically viable option.”

Bhavish Aggarwal, Founder of Ola remarked,

 “Exciting to see the Union Budget 2024-25 prioritizing DPI, critical minerals, and job creation. The focus on developing DPI applications in agriculture and other areas lays the data foundation for making India the AI hub of the world.”

He further added that the Critical Mineral Mission could be a game changer for India’s energy transition journey and would create ample job opportunities.

Why Mixed Response from Some EV Enthusiasts?

The EMPS (Electric Mobility Promotion Scheme) 2024 will end on July 31, 2024, and with this, the government needs to roll out a fresh long-term strategy to support the EV ecosystem. However, nothing has been clearly explained on the budget about the renewal of EMPS. Hence the response is mixed! EV makers expect that the new plan should focus on supply-side initiatives to boost domestic manufacturing and innovation.

Many startup founders and industry pandits have assessed the situation differently. They perceive that EV startups need robust support for R&D, easy capital access, and production-linked incentives. These measures will spur rapid innovation, scale operations, and increase contributions to India’s EV manufacturing. They believe that boosting India’s EV charging infrastructure is crucial to winning customer confidence. This demand is directly tied to ramping up the production of Indian EVs, including batteries and other components.

From media reports, we discovered that there’s strong anticipation for a reduction in GST rates on EV components and batteries from 18% to 5%. This tax cut would offset potential price hikes following the end of subsidies, keeping EVs affordable.

source: Grand View Research

After speculation and analysis, we can conclude that the current budget with its focus on critical minerals can position India as a global leader in clean mobility and innovation. We expect significant impacts on EV batteries, nuclear technology, AI, telecommunications, and advanced electronics. However, clear guidelines for EVs are still needed, which we hope to see in the coming months.

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

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Paris Olympics: Can Offsets Truly Halve Their Carbon Footprint?

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The 2024 Paris Olympics, running from July 26 to August 11, aims to cut its carbon footprint by 50% compared to past games. To bring this change organizers have brought 360-degree transformations in infrastructure, games, electric sources, food and catering, and transportation. So, this year the game is going to be GREEN!

Marie Sallois, IOC Director for Sustainability has briefed,

“As climate change accelerates, the Games’ response to it must do the same. The Paris 2024 organizers are stepping up to the challenge, and they are doing so by focusing first and foremost on the core part of addressing it: by cutting emissions.”

Making a Robust Carbon Budget to Mitigate CO2 Emissions

The Tokyo Olympics used 4.38 MMTs of CO2 equivalents through Japanese emissions trading programs. As said before, this time Paris Olympics intends to halve its carbon emissions across scope 1, 2, and 3 categories, setting a benchmark against all the events occurred to date. The organizers have installed renewable energy instead of diesel generators.

S&P Global has reported that they have already secured 1,472,550 metric tons of CO2 credits from 13 projects. These initiatives, mainly in Africa, focus on cookstoves, solar power, mangrove restoration, forestry, and clean water. Additionally, four forestry projects in France and nine other projects endorsed by Gold Standard and Verra’s Verified Carbon Standard contribute to this effort.

Their comprehensive carbon budget will cover energy, transport, catering, and procurement. Advanced tools will estimate, track, and manage the carbon footprint at every stage. With this initiative, they expect to keep energy emissions below 5% of the total carbon budget.

source: S&P Global

Carbon Offsets: Using the 3 Rs Strategy

In line with a circular economy, Paris 2024 emphasizes on “Reducing, Renting, and Reusing” resources.  This year they aim for a carbon footprint of 1.58 million metric tons of CO2 equivalents, below the target of 1.75 million. The committee has planned to keep 95% of the infrastructure temporary or reuse the already existing ones to cut down construction emissions.

The official Olympics site mentioned that the games will run on 100% renewable energy, reducing diesel generator reliance. France’s power grid, low in carbon intensity, will be further equipped with solar rooftops and urban solar PV arrays. Another notable upgrade is, UK’s leading energy provider EDF will supply green power certificates, and a blockchain system, Trackelec to ensure continuous power supply.

International Olympic Committee (IOC) President, Thomas Bach remarked,

 “Paris 2024 is pioneering a new model for Olympic Games delivery, fully aligned with Olympic Agenda 2020,” “The IOC is particularly excited to see that Paris 2024 is aiming to organize climate-positive Games already in 2024, in this way setting the pace for future organizers.”

The committee has further noted that Paris 2024 will cut CO2 emissions and is in line with the Paris Agreement on Climate Change. The entire event will offset more than its residual emissions and promote long-term carbon compensation projects. Significantly, the strategy has three pillars: reducing greenhouse gas emissions, supporting projects with a positive climate impact, and mobilizing stakeholders to ensure long-term benefits.

READ MORE: Beyond Touchdowns and Trophies: Unveiling the Carbon Footprint of Superbowl LVIII 

Lighting Up Paris 2024: The Biopropane Torch

Biopropane comes from renewable feedstocks like plant and vegetable waste. It is a byproduct of the hydrogenated vegetable oil process, which also creates renewable diesel and sustainable aviation fuel.

S&P Global revealed that this green fuel comes at a premium, with Platts assessing NWE biopropane at $1,399/mt on July 16—over $800/mt more than the CIF NWE large cargo assessment.

(According to Law Insider, CIF NWE is a term used in the oil industry to describe the price of jet fuel. It stands for “Cost, Insurance, and Freight” and “Northwest Europe”)

Despite its higher cost, biopropane helps reduce the carbon footprint of the Torch Relay, which began on May 8 in Marseille. This segment of the Paris Olympics accounts for only 2% to 4% of the overall carbon emissions of the games. Furthermore, the torch itself is made from recycled steel and is produced renewably in France.

source: S&P Global

Sustainability in Food and Travel and Impact on Locals

As per reports, during the Games, 13 million meals will be delivered with 50% carbon emissions of typical French meals. This will be achieved by increasing plant-based ingredients and sourcing 80% of food locally. Furthermore, they have significantly emphasized minimizing food waste and plastic use.

Moving on to travel and transport, Paris’s extensive public transport network and new bike lanes will facilitate eco-friendly travel. Athletes will travel less with 80% of venues within 10 kilometers of the Olympic Village. Public transport operators will expand services, and the vehicle fleet will include electric, hybrid, and hydrogen fuel.

The impact of the games on the local community is another critical focus. The Aquatics Centre, for example, will serve the local community even after the event is over. They also plan to make the Olympic Village new residential and business districts. It will offer homes and workplaces for thousands of people. IOC is also putting efforts into cleaning the River Seine and improving local infrastructure to enhance the living standards of the residents.

Thus, we can feel that this year’s Paris Olympics weaves sustainability into every aspect of the games, setting a new benchmark for future Olympics. On July 26, the games will start with a spectacular opening ceremony. The Tuileries Garden, right in front of the Louvre Museum, will host the lighting of the Olympic cauldron. The countdown has begun, and excitement is truly palpable!

KNOW MORE: Carbon Neutrality Tokens Backed by Chinese Carbon Credits Sold in Singapore

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Fulcrum Metals and Terra Balcanica Forge Deal to Explore Uranium in Canada

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UK-based Fulcrum Metals has acquired 100% interest in the Charlot-Neely Lake, South Pendleton, and Snowbird uranium projects in Saskatchewan, Canada, through its subsidiary, Fulcrum Metals (Canada) Ltd. Terra Balcanica Resources Corp a polymetallic exploration company, has signed a “definitive option agreement”, that allows a four-year option to acquire a 100% interest in Fulcrum’s uranium exploration licenses in northern Saskatchewan, Canada. These licenses cover 596.71 km² of promising uranium exploration ground. With uranium prices rising quickly, this deal is sure to make an impact.

Fulcrum Advances Acquisition and Sale of Major Uranium Projects

The company’s press release reveals that Fulcrum paid CA$ 5,000 upon receiving the option and an additional CA$ 60,000 when exercising it on June 28, 2024. These projects now belong to Fulcrum Metals (Canada) Ltd. This acquisition, covering 11,481 hectares, follows an agreement with Gary Clayton Dunn and Jonathan Stewart Dunn, the owners of The Dunn Option Uranium Projects of Saskatchewan.

This acquisition brings Fulcrum closer to finalizing the sale of its 59,000 hectares of uranium projects to Terra Balcanica Resources Corp. The projects include Charlot-Neely Lake, Fontaine Lake, Snowbird, and South Pendleton, all situated along the northern and southeastern edges of the Athabasca Basin. This Basin is a major source of about 20% of the world’s uranium and hosts significant deposits.

Terra has already paid Fulcrum C$25,000 in cash to secure the option. The company anticipates completing the agreement soon and will provide updates as developments occur.

MUST READ: Uranium Royalty Corp. Publishes First-Ever Sustainability Report

Terra Balcanica CEO, Dr. Aleksandar Mišković has given a long statement on this. He said,

“The agreement signed with Fulcrum marks an exciting new chapter in Terra’s corporate history as a high-quality target generator and explorer of critically needed commodities. The Company is now exposed to a world-class uranium district that is experiencing a mining renaissance as evidenced by the recent discovery made just 20 km from of our flagship Charlot-Neely license. With close to 600 km2 of land tenure, we are supremely positioned to take early-mover advantage of opportunities along the entire northern and eastern margins of the Athabasca Basin. The optioned portfolio comprises geologically promising ground that has not seen modern surveying nor recent drilling. We are excited to approach it by applying the same level of technical rigor as we did in the Balkans to define drill targets with a high probability of success.

Dr. Aleksandar further added that the licenses also feature gold, copper, nickel, and cobalt showings, anticipating an eventful autumn of prospecting, sampling, and structural mapping. Additionally, he plans to conduct airborne geophysics to rapidly define drill targets.

A MESSAGE FROM URANIUM ROYALY CORP.
[Disseminated on behalf of Uranium Royalty Corp.]

NASDAQ’s Sole Uranium Focused Royalty Company

The company is Uranium Royalty Corp., trading as (NASDAQ: UROY, TSX: URC), holding a strong portfolio includes strategic acquisitions in uranium interests with royalties, streams, equity in uranium companies, and physical uranium trading. Their strategic approach aims to support cleaner, carbon-free nuclear energy while fostering long-term relationships based on sustainability principles.

Learn about the company’s portfolio of royalty assets and uranium holdings >>

Athabasca Basin: The Hot Spot of the Uranium Project

Terra’s press release has emphasized this uranium project’s notable attributes and the sites’ substantial mining potential.

The optioned terrain lies near the northern and southeastern edges of the Athabasca Basin in northern Saskatchewan, a renowned mining area and top global source of high-grade uranium. It includes four license clusters targeting promising NE-SW structures and electromagnetic conductors.

Furthermore, these corridors are identified as likely zones for basement- and intrusive-hosted uranium mineralizations. The southeastern margins of the Athabasca Basin have world-class uranium deposits, such as NexGen Energy’s Arrow (4.3 Mt at 0.83% U3O8) and Fission Uranium’s Triple R (2.7 Mt at 1.94% U3O8).

Charlot-Neely Lake has significant REE potential. It lies within the emerging Uranium City district on the Basin’s northwestern margin. Past work shows evidence of uranium mineralization along favorable structural trends with promising target horizons identified by electromagnetic conductors.

The samples showed over 31% U3O8 and 16% REE. The company will target high-grade uranium sources along the most radioactive segments of the graphitic conductors, focusing on previously untested drill targets.

Similarly, Fontaine Lake and Snowbird showed 1% uranium in a minimal 2008 field program. Future exploration will involve modern systematic geological fieldwork to assess the uranium potential.

Additionally, South Pendleton shares the same basement lithologies as the prolific Key Lake and Rabbit Lake mines. Despite several surface radioactive anomalies and occurrences of uranium mineralization, this area remains unexplored.

source: Terra Balcanica

CHECK OUT: U.S. DOE Aims to Expand Domestic Uranium Supply with US$2.7B RFP 

Fulcrum Metals: Strategic Ventures in Canada’s Uranium-Rich Terrain

Fulcrum Metals, a multi-commodity explorer has built an impressive portfolio of gold, base metal, and uranium projects. Mostly they are strategically located near rich deposits and active mines with established infrastructure. And Canada is the key hub!

Some significant exploration projects include the Schreiber-Hemlo Project in Ontario, which consists of the Big Bear and Jackfish Lake gold assets, covering 113 km². This area is not fully explored yet. Thus, presenting Fulcrum’s complete exploration opportunity. Furthermore, through joint ventures or acquisitions, it plans to develop several early-stage projects in Ontario’s greenstone belts, including Winston Lake, Dog Lake, and Tocheri Lake.

FURTHER READING: Paladin Energy Offers C$1.14 B to Canada’s Fission Uranium. What does it mean for Uranium Mining?

However, the Saskatchewan project is the most promising one. This is because Saskatchewan is a top source of high-grade uranium. It’s getting exposure to the growing global investment in nuclear energy for decarbonizing power. Thus, we can conclude that the Fulcrum Metals and Terra Balcanica deal would give a new dimension to uranium mining in Canada.

SEE MORE: Unplugging The Energy Crisis… Fueled by Uranium

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Why Weak Lithium Prices Will Persist in Early Q3 2024

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Asian lithium prices are expected to stay weak in the first half of Q3 2024 due to oversupply and new import tariffs on Chinese electric vehicles (EVs) by the US and the EU. Lithium prices in China are projected to range between Yuan 80,000-90,000/mt ($11,022-$12,799), while prices in North Asia are likely to remain soft due to a seasonal summer lull and ample supply. 

A potential turnaround may occur in the latter half of Q3, a peak season for lithium demand.

Oversupply and Seasonal Lull Pressure Lithium Prices

According to S&P Global data, Chinese lithium prices began Q2 at Yuan 100,000-114,000/mt but fell to a 3-year low of Yuan 80,000-90,000/mt in June due to weak downstream demand and increased production. 

Moreover, China’s EV sales in Q2 increased following government subsidies for replacing polluting vehicles. However, new US and EU tariffs on Chinese EVs may dampen future sales in these regions.

Despite better-than-expected EV sales in China in June, US tariffs on Chinese EVs will rise from 25% to 100% in August. Meanwhile, the EU has imposed provisional countervailing duties of up to 47.6% on Chinese EV imports.

The EU has raised concerns about the state support China provides for electric vehicles that are exported to the bloc. The region argues that this constitutes unfair subsidization, giving Chinese EV manufacturers an unfair competitive advantage. And thus, the imposition of higher import tariffs on Chinese EVs as the EU seeks to protect its domestic automotive industry.

Supply pressure intensified as more lithium projects became operational and salt lake production levels rose in China, resulting in a 30% increase in lithium salt output and significant increases in lithium carbonate and hydroxide imports. 

Platts assessed lithium carbonate at Yuan 85,500/mt and hydroxide at Yuan 79,000/mt on July 19, down over 20% from the start of Q2.

Upstream, spodumene prices began Q2 at $1,100/mt, peaking at $1,200/mt before falling below $1,000/mt by quarter’s end. The cost of producing spodumene exceeded the lithium carbonate price, resulting in negative margins and limited interest among lithium converters.

Spodumene prices need to fall below $800/mt for favorable margins in Q3. Platts last assessed spodumene at $920/mt FOB Australia on July 19, down 20% since the start of Q2.

INTERESTING READ: The Ultimate Guide to Lithium and Lithium Prices

How Do Lithium Miners Respond?

With lithium prices at three-year lows and no signs of recovery, the focus is shifting to whether miners will cut back on the battery metal’s supply. 

Benchmark Mineral Intelligence predicts a 32% supply growth in 2025, surpassing the expected 23% demand increase, with the surplus peaking in 2027 before a deficit returns later in the decade.

While some smaller producers have already reduced output, the larger firms may soon consider shutting mines and delaying projects in regions like Australia and Chile.

Some smaller players have already responded to the price slump. Australia’s Core Lithium halted operations at its Finniss project. 

Core Lithium, which opened its mine near Darwin in October 2022, experienced rapid growth but was hit hard by the subsequent market downturn. CEO Paul Brown noted the severe commodity cycle’s impact, with the company halting production six months later and laying off over 300 employees. 

Core Lithium is now in “care and maintenance” mode, awaiting a market recovery with a $15 million stockpile of processed lithium products yet to be sold and a cash balance of $87 million.

Similarly, Zhicun Lithium Group in China is putting two carbonate units into maintenance.

Lithium Company Spotlight: The Fastest Developing North American Lithium Junior

According to S&P Global Commodity Insights report, sustained low prices could trigger further mine supply cuts and project delays. Recent data from Platts shows spodumene prices nearing levels that previously led to production cuts.

Chinese lithium giants Ganfeng and Tianqi reported preliminary net losses in the first half. On the other hand, Pilbara Minerals plans to expand output after reporting it has “achieved or exceeded” its full-year guidance across production volume, unit operating cost, and capital expenditure. The Australian miner recorded record production in the June quarter.

The Perth-based group produced 725,000 tonnes, surpassing Pilbara’s FY24 guidance range of 660,000 to 690,000 tonnes. This production level reflects a 17% increase compared to the previous year.

When is The Turning Point?

Despite minimal profit margins, some producers maintain output to keep skilled workforces, avoid restarting costs, and preserve buyer relationships. Other lithium miners face growing pressure to reduce production. 

Linda Zhang of CRU Group noted diminished profit margins in Brazil, Chile, Argentina, and Australia. Curtailments and project deferments are expected to peak next year, potentially tightening the market balance in the medium term, according to Zhang.

With hopes fading for a significant demand rebound this year, BloombergNEF recently lowered its EV sales estimates, indicating the auto industry is falling behind in decarbonization efforts.

With supply still exceeding demand and slow EV sales growth, analysts do not foresee a near-term price recovery. They predict that while EV adoption will eventually increase lithium demand, yet the record prices of 2022 are unlikely to return. The industry must now adapt to a more sustainable operating environment, favoring low-cost producers.

READ MORE: Lithium Markets in Limbo: Next Leg Up or Down?

The post Why Weak Lithium Prices Will Persist in Early Q3 2024 appeared first on Carbon Credits.

Tesla’s Profit Sees a 5-Year Low But Carbon Credit Sales Hit Record High

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Tesla reported its lowest profit margin in over five years and missed Wall Street earnings targets in Q2, as the company cut prices to boost demand while increasing spending on AI projects. However, Tesla’s carbon credit (regulatory credits) revenue is at an all-time high, hitting $890 million. 

Tesla Profit Struggles Amid Carbon Credit Sales Surge

Tesla reported a 45% drop in profit for Q2, earning $1.5 billion on $25.5 billion in revenue, compared to $2.7 billion on $24.9 billion in the same period last year. Thus, the operating profit margin fell to 6.3% from 9.6%.

This decline in profit increases pressure on CEO Elon Musk to find new growth avenues. Despite this, Tesla shares have surged 40% since May, driven by investor optimism that Musk will transform Tesla into an AI company offering driverless taxis and robots.

Tesla’s Q2 electric car sales fell 4.8% to 444,000 vehicles, with production down 14% to about 411,000 cars. This setback follows a 55% drop in profit and a 9% revenue decline in Q1 2024.

Tesla faces increasing competition as other manufacturers ramp up electric vehicle production. For the first time, Tesla’s share of U.S. electric vehicle sales fell below 50% in Q2, according to Cox Automotive.

Amid all these lackluster results, the EV giant has seen a record-high sale of carbon credits at $890 million, the highest since the company started selling these regulatory credits in 2017. This revenue stream is up 216% from $282 million a year earlier and a 102% increase from Q1 ($442m). 

Competition Hits Tesla Hard: Carbon Credits to the Rescue

Most notably, the $890 million carbon credit revenue is almost 60% of Tesla’s Q2 net income of $1,494 million. Thus, carbon credit sales bolstered the company’s bottom line.

This additional revenue stream is essentially pure profit, as companies can bank credits exceeding their immediate needs. For an EV-only company like Tesla, which has no combustion business to offset, the constant flow of these credits has been a financial “gusher,” comparable to a highly profitable oil strike in the fossil fuel industry.

Tesla continues to profit from selling carbon credits to competitors who need to comply with emissions standards. This business model is highly lucrative for Tesla, as earning these credits incurs minimal costs, translating to pure profit. This revenue stream has been crucial for Tesla’s financial success.

The EV maker aims to produce new, more affordable EVs by early 2025, though cost reductions will be less than expected. The company laid off over 10% of its workforce to reduce costs, and profits were impacted by restructuring charges and higher operating expenses driven by AI projects. Automotive gross margin, excluding regulatory credits, was 14.6%, below the estimated 16.29%. 

As a result of a series of price cuts, profit per vehicle plummeted.

Chart from Reuters

Elon Musk acknowledged that the influx of more affordable electric cars from other manufacturers “has made it more difficult for Tesla” to sell vehicles. From April through June, Tesla’s share of U.S. electric vehicle sales dropped to 49.7%, down from 59.3% a year earlier, according to Cox Automotive.

Ford Motor sold nearly 24,000 EVs in Q2, a 61% increase from a year ago, while General Motors’ sales of battery-powered models rose 40% to nearly 22,000 vehicles. Investment analyst Dan Coatsworth noted that Tesla has missed earnings targets for four consecutive quarters. 

Another Growing Business For Tesla

CEO Elon Musk highlighted that new competitors have significantly discounted their EVs, challenging Tesla. The company’s EV deliveries have declined for two quarters, facing rising competition and slow demand due to a lack of affordable new models. Sales of China-made EVs, which are also exported, fell in Q2 compared to strong growth from Chinese automakers like BYD Co.

Despite these challenges, Tesla expects a production increase in Q3. Amid declining profits, the company has seen significant growth in its rapidly growing energy storage business. 

In Q1 2024, energy storage deployments reached a record 4.1 GWh, with revenue and gross profit from the Energy Generation and Storage segment hitting all-time highs.

In Q2 2024, Tesla Energy deployed 9.4 GWh of energy storage products, including Megapacks, Powerwalls, and solar products. This marks a 132% increase from Q1 2024 and a 157% year-over-year rise.

The growing number of Megapack installations and an expanding fleet are expected to drive consistent profit growth in this segment. Battery system sales, primarily for electricity grids, doubled to $3 billion in Q2.

READ MORE: Tesla Signs A Landmark Multi-Billion Dollar 15 GWh Megapack Deal

Tesla’s Q2 financials reflect a significant drop in profit and production amid intensified competition and rising operating costs. However, record-high carbon credit sales provided a crucial boost to the bottom line, demonstrating the importance of this revenue stream. As Tesla navigates these challenges, its investments in AI and energy storage hint at new growth avenues beyond electric vehicles.

The post Tesla’s Profit Sees a 5-Year Low But Carbon Credit Sales Hit Record High appeared first on Carbon Credits.

Google’s Soaring Revenue of $85 Billion Shadowed by Rising Carbon Footprint

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Alphabet, Google’s parent company, reported a 14% year-over-year revenue increase, driven by search and cloud services, with cloud revenues surpassing $10 billion and achieving $1 billion in operating profit for the first time. Financial gains are increasing but so is Google’s carbon footprint.

Financial Highs, Environmental Lows

As a digital age conglomerate, Alphabet’s portfolio includes Google, YouTube TV, Google Workspace, and the AI chatbot Gemini, rival to ChatGPT. Advertising remains the core of its business, accounting for about 75% of its Q2 revenues, including $49 billion from search and $9 billion from YouTube ads.

Amid the AI boom, Alphabet’s stock has surged, returning about 50% over the past year and more than 100% since its late 2022 low. With a market value of nearly $2.3 trillion, Alphabet is the fourth-most-valuable company globally, following Apple, Microsoft, and Nvidia.

Chart from Forbes

Ad revenue rose to $64.62 billion from $58.14 billion, indicating continued growth despite slower expansion due to rising inflation and interest rates affecting marketing budgets. YouTube ad revenue grew to $8.66 billion, up from $7.66 billion, despite missing estimates and facing competition from platforms like TikTok.

Alphabet’s net income increased to $23.6 billion, or $1.89 per share, compared to $18.4 billion, or $1.44 per share, the previous year. CEO Sundar Pichai highlighted strong performance in Search and Cloud, emphasizing the company’s AI innovation and infrastructure leadership.

Amid this promising financial results, Google is experiencing a setback in its environmental impact as it strives to achieve its 2030 net zero target.

Google’s Way to Net Zero Carbon

Google is committed to accelerating the transition to a net zero future and has taken significant steps over the past two decades to minimize GHG emissions. In 2021, the company set an ambitious goal to achieve net zero emissions across all operations and its value chain by 2030. This goal is being pursued through two key strategies:

Reducing Emissions: Google focuses on reducing emissions across its operations and value chain, including advancing 24/7 carbon-free energy (CFE).
Addressing Residual Emissions: After reducing emissions, the company addresses any residual emissions with carbon removal initiatives.

The tech company’s net zero goal is designed not just for the company but also to help accelerate global decarbonization. To ensure maximum impact, the company regularly evaluates its plan to ensure it is rigorous, science-based, and realistic in light of evolving challenges and standards.

The company is also engaged in advocacy efforts, exploring data center innovations, accelerating global grid decarbonization, and advocating for GHG Protocol reform to drive systemic change. 

2023 Carbon Footprint Rises

Target: Reduce 50% of our combined Scope 1, 2 (market-based), and 3 absolute GHG emissions by 2030, 102 and invest in nature-based and technology-based carbon removal solutions to neutralize our remaining emissions

Charts from Google’s 2024 Environmental Report

In 2023, Google’s total GHG emissions were 14.3 million tCO2e, representing a 13% year-over-year increase and a 48% increase compared to the 2019 target base year. 

This increase was primarily due to higher data center energy consumption and supply chain emissions. As Google further integrates AI into its products, reducing emissions may become more challenging due to the increased energy demands from the greater intensity of AI computing and the emissions associated with the expected growth in technical infrastructure investment.

Google Carbon Lens’ Focus: Carbon Removal Credits 

Google halted buying cheap carbon offsets that backed its carbon neutrality claim. As mentioned earlier, the tech giant is now focusing on investing in and advancing carbon removal solutions. 

To advance carbon removal technologies, Google addresses key challenges facing these solutions. The company committed $200 million to Frontier, an initiative designed to accelerate carbon removal technologies by ensuring future demand. It partners with Charm Industrial, CarbonCapture, and Lithos Carbon.

Moreover, in March 2024, Google announced it would match the U.S. Department of Energy’s Carbon Dioxide Removal Purchase program dollar for dollar, committing to purchase at least $35 million in carbon removal credits over the next year.

READ MORE: Google, Meta, Microsoft, and Salesforce Launch “Symbiosis”, Pledging for 20M Tons of Nature-Based CDR Credits

Carbon-Free Energy Every Hour, Every Day

One big source of its carbon emissions which Google has direct control over is Scope 2. The tech firm’s primary approach to reducing Scope 2 emissions is through the procurement of carbon-free energy. 

In 2020, Google set a goal to operate on 24/7 carbon-free energy (CFE)—every hour of every day on every grid where it operates—by 2030. This goal is being pursued through three main initiatives: purchasing carbon-free energy, accelerating new and improved technologies, and transforming the energy system through policy, partnerships, and advocacy.

The company buys electricity directly from new clean energy projects through various methods depending on the market, including:

Contracting directly via long-term power purchase agreements (PPAs).
Working with utilities or developers to buy and deliver carbon-free energy.
Structuring energy supply contracts with energy providers through the CFE Manager model.
Making targeted investments in renewable energy to enable additional projects on the grids where it operates.

From 2010 to 2023, Google signed more than 115 agreements to purchase over 14 GW of clean energy generation capacity—the equivalent of more than 36 million solar panels. Through these agreements, Google estimates it will spend more than $16 billion to purchase clean energy through 2040.

In 2023, Google signed contracts to purchase approximately 4 GW of clean energy generation capacity—more than in any prior year. These contracts included clean energy deals in North America, Europe, and Asia Pacific. 

RELATED NEWS: Google and NV Energy: Powering Nevada’s Future with 115 MW of Geothermal Energy

In early 2024, Google announced new PPAs—including its largest offshore wind projects to date—that will bring 700 MW of clean energy generation capacity to European grids.

Google’s commitment to achieving net zero emissions by 2030 involves a comprehensive strategy of reducing emissions, investing in carbon removal, and pursuing 24/7 carbon-free energy. Despite challenges like increased energy demands from AI, Google’s innovative approaches and significant investments are driving progress towards a greener digital future.

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