Investment Rating - The report does not explicitly provide an investment rating for the industry but emphasizes the potential for significant economic growth and job creation through the adoption of bio-based building products. Core Insights - The manufacturing of building products from upcycled biomass can address the urgent need for affordable housing, create high-quality jobs, and contribute to environmental sustainability by reducing greenhouse gas emissions and storing carbon [8][21][22]. Summary by Sections Executive Summary - The United States requires 4 to 7 million new affordable and healthy homes, and the current construction practices contribute to 30 million tons of greenhouse gas emissions annually. Upcycling biomass into building products presents a viable solution to these challenges [9][11][12][18]. Climate Impacts of Bio-Based Products in Housing - The report highlights that using bio-based building products can significantly reduce embodied carbon emissions, with estimates suggesting that up to 80 million tons of embodied carbon are generated annually from new low-rise home construction [29][30]. Economic Impacts of Bio-Based Building Product Manufacturing - The current market for building products is valued at $88.8 billion, with a significant portion being domestically manufactured. The report suggests that increasing bio-based product manufacturing could create approximately 42,000 direct jobs and generate $79 billion in economic activity [81][88]. Projecting the Growth of Bio-Based Building Products - The report models three adoption scenarios for bio-based products by 2050, projecting that even in a low-adoption scenario, 100 million metric tons of CO2e could be stored profitably in new residential buildings [60][62]. Product Cost Implications - Many bio-based products are at or near cost parity with conventional products, indicating that transitioning to these materials need not increase housing costs significantly [66][70]. Call to Action - The report calls for a coordinated effort among stakeholders, including builders, manufacturers, and policymakers, to scale the adoption of bio-based building products to meet housing demands and environmental goals [32][88].

Investment Rating - The report does not explicitly provide an investment rating for the electronics manufacturing industry Core Insights - The electronics manufacturing industry is experiencing rapid growth, valued at $1.275 trillion in 2023, with a growth rate of 7.5% driven by digitization and automation [7] - The industry is responsible for over 4% of global greenhouse gas emissions, highlighting the need for energy efficiency to mitigate environmental impact [7][9] - Energy efficiency is identified as a critical lever for reducing emissions, with potential energy savings of 25% to 30% achievable in fabrication facilities without compromising quality [8][12] - Effective management of energy use across the supply chain is essential for achieving net-zero emissions, as consumer electronics suppliers account for over 77% of the industry's total emissions [9] Summary by Sections 1. Why Supply Chain Energy Management Matters in the Electronics Manufacturing Industry - The global electronics market is growing rapidly, with significant contributions from the Asia-Pacific region and North America [7] - China's electronics manufacturing industry reached RMB 37.72 trillion (US$5.2 trillion) in 2023, with over 41,200 companies [7] - The sector's environmental impact is significant, necessitating innovation in energy technologies to support a low-carbon economy [7][8] 2. Retrofitting Existing Facilities for Energy Efficiency - Existing FATP facilities require urgent energy upgrades, particularly those built 10-20 years ago [24] - International and national standards are becoming stricter, necessitating compliance for energy management systems [24][25] - A structured process for optimizing energy efficiency includes conducting energy audits, project implementation, and savings verification [28][29] 3. Planning for Optimum Energy Efficiency in New Facilities - New FATP facilities should adopt an integrated design approach to maximize energy efficiency [6] - Key considerations include building layout, system and equipment selection, and control and monitoring strategies [6] 4. Managing Energy Efficiency in FATP Facilities - FATP facilities consume energy primarily through production, HVAC, and process air systems [18] - The production system accounts for 32% of energy consumption, while HVAC and process air systems account for 30% and 28%, respectively [20] - Implementing energy efficiency measures can significantly reduce energy consumption and costs [16][22] 5. Energy Efficiency Measures (EEMs) - EEMs can achieve substantial energy savings across various systems, including HVAC, process air, and production processes [62] - Case studies demonstrate that comprehensive energy-efficiency programs can lead to over 30% energy savings in FATP facilities [62][63] 6. Project Implementation and Acceptance - Effective project execution requires addressing challenges such as production schedule impacts and high upfront investments [66] - Collaboration with OEMs can enhance project success and streamline implementation [67] 7. Savings Verification - A rigorous measurement and verification process is essential for validating energy savings from implemented measures [72][73] - Engaging external auditors can enhance the credibility of the energy-efficiency program [75]

Investment Rating - The report does not explicitly provide an investment rating for the industry Core Insights - Michigan's grid faces significant challenges, including reliability issues, resource adequacy, and the need for decarbonization. Virtual Power Plants (VPPs) are identified as a viable solution to address these challenges while maintaining cost-effectiveness [2][7]. Summary by Sections Michigan's Grid Challenges and the VPP Opportunity - Policymakers and utilities can incorporate VPPs as part of a broader strategy to tackle Michigan's grid challenges, which include aging infrastructure and increasing demand [7]. Distribution System Reliability and Affordability - Michigan experiences frequent and prolonged power outages, costing customers an average of $1,272 annually from 2013 to 2022, which is approximately $600 higher than the average in other Great Lakes states [8][10]. - The state ranks poorly in reliability metrics, with significant room for improvement in system average interruption duration index (SAIDI), average interruption frequency index (SAIFI), and customer average interruption duration index (CAIDI) [10][11]. Resource Adequacy - The retirement of coal plants and projected load growth could lead to resource adequacy risks, with a potential summer capacity deficit of 1 to 3.7 GW projected for the MISO North/Central region in the planning year 2025-26 [26][27]. Decarbonization - Michigan has set ambitious clean energy targets, aiming for 80% clean energy by 2035 and 100% by 2040. Achieving these goals will require a significant shift in utility investments and operations [30][41]. Michigan's VPP Readiness - Michigan has made strides in deploying distributed energy resources (DERs), with a notable increase in electric vehicle registrations and a growing interest in battery storage [33][35]. - The state has a supportive regulatory environment, with the Michigan Public Service Commission (MPSC) actively working to improve distribution system resilience and affordability [38]. Near-Term Actions for Michigan Decision Makers to Scale VPPs - Decision makers are encouraged to advance policies that promote DER adoption, utilize best practices in program design, and enable VPP participation in wholesale and retail markets [45][48]. - The MPSC can facilitate the aggregation of residential and small commercial customers to enhance participation in VPPs [50].

Investment Rating - The report indicates a positive outlook for the electricity demand sector, with utilities revising their load forecasts upward, projecting a 20% increase in load from 2023 to 2035 [10][27]. Core Insights - The report emphasizes the need for improved load forecasting practices to manage the risks associated with underestimating or overestimating electricity demand. Accurate forecasting is crucial for ensuring affordability and reliability in the energy sector [14][41]. - The emergence of new large loads, such as data centers and industrial electrification, presents unique challenges for load forecasting, necessitating the integration of these characteristics into modern forecasting processes [15][62]. Summary by Sections Executive Summary - Electricity demand in the U.S. is beginning to grow after decades of stagnation, with utilities expecting a 20% increase in load from 2023 to 2035 [10][27]. Load Growth and Forecasting - Utilities have significantly increased their peak load forecasts, with projections rising from an expected 23 GW to 128 GW between 2022 and 2024 [27]. - The report highlights that load forecasting is foundational for utility investment decisions, impacting the reliability and affordability of energy services [34][37]. Risks of Underestimation and Overestimation - Historical data shows that utilities have systematically overestimated electricity demand, with an average overestimation of 8% in five-year forecasts and 17% in ten-year forecasts from 2006 to 2023 [43][47]. - The report identifies the risks associated with both underestimating and overestimating load forecasts, which can lead to affordability issues and reliability challenges [49]. Load Characteristics and Their Importance - New large loads, particularly from data centers and industrial sectors, require specific considerations in forecasting due to their unique operational characteristics and flexibility potential [55][62]. - The report outlines the importance of understanding load shape, forecasting uncertainty, flexibility potential, and flight risk in the context of new load types [56][58]. Best Practices for Load Forecasting - The report suggests several best practices for improving load forecasting, including scenario-based forecasting methods and integrating terminal demand forecasts with econometric predictions [19][20]. - It emphasizes the need for utilities to adopt a more dynamic approach to forecasting that reflects the rapid changes in load characteristics and market conditions [22][24]. Regulatory Actions to Improve Forecasting - Regulatory bodies are encouraged to enhance their understanding of new loads and revise planning guidelines to incorporate emerging forecasting practices [24]. - The report outlines a series of actions that regulators can take to ensure that load forecasts align with the evolving energy landscape [24][25].

Investment Rating - The report does not explicitly provide an investment rating for the zero-emission truck (ZET) sector in India, but emphasizes the need for significant investment and financial tools to support market growth and transition [9][13][49]. Core Insights - The transition to zero-emission trucks is essential for India to meet its net-zero goals and combat air pollution, with financing being a critical factor in this transition [9][10]. - A cumulative investment of INR 2 lakh crore (US$27 billion) is necessary for ZETs to achieve a 4% sales share by 2030, and INR 257 lakh crore (US$3 trillion) for a 75% sales share by 2050 [13]. - Financial tools such as concessional debt, equity, risk-sharing facilities, and viability-gap financing are crucial to stimulate demand and bridge the total cost of ownership (TCO) gap between ZETs and diesel trucks [13][14][49]. Summary by Sections Introduction - The transportation sector in India is critical for achieving net-zero goals, with a focus on transitioning to zero-emission trucks [9]. Financing Challenges - The ZET market is nascent, and financing challenges arise from the hesitancy of financiers to underwrite new asset classes and the need for infrastructure development [12][10]. Investment Requirements - Significant investments are required for ZET manufacturing, purchasing, charging infrastructure, and grid upgrades to facilitate market penetration [13]. Financial Tools and Strategies - The report outlines various financial tools and strategies to catalyze ZET market growth, including loan guarantees, concessional debt, purchase incentives, and viability-gap funding [15][17][22]. Implementation Pathways - Specific actions are recommended for multilateral development banks, development finance institutions, and the Government of India to initiate ZET financing flows [15][47]. Market Growth and Sustainability - The report emphasizes the importance of blended finance approaches to enhance private investment and sustain market growth, with a focus on reducing operational costs and risks associated with ZETs [22][50][51].

Investment Rating - The report does not explicitly provide an investment rating for the transmission industry but emphasizes the cost-effectiveness and long-term benefits of regional and interregional transmission projects for ratepayers [10][24]. Core Insights - The report highlights that large-scale transmission projects can deliver significant cost savings to American consumers, with benefit-to-cost ratios ranging from 1.1 to 3.9 for the evaluated projects, indicating that every dollar invested yields at least equivalent savings [17][48]. - It emphasizes the importance of well-planned regional and interregional transmission systems to maximize benefits and reduce costs amid rising electricity demand and the integration of new energy resources [10][24]. - The analysis is based on seven case studies of operational transmission projects across various regions, showcasing their economic benefits and contributions to grid reliability [11][36]. Summary by Sections Executive Summary - The report discusses the growing need for transmission investments to meet electricity demand and integrate lower-cost generation resources while maintaining grid reliability [10]. - It presents evidence from seven case studies demonstrating the savings that large-scale transmission can provide to ratepayers [11]. Case Studies on Regional and Interregional Transmission Savings - Seven transmission projects were selected for analysis, each providing at least 10 years of operational data and showcasing geographic diversity [36][39]. - The projects were evaluated based on their performance, focusing on realized benefits and costs, with findings indicating that all projects delivered savings exceeding their costs [16][48]. Key Findings - **Finding 1**: Ratepayer savings exceed costs, with all seven projects achieving benefit-to-cost ratios between 1.1 and 3.9, demonstrating the economic viability of large-scale transmission [17][48]. - **Finding 2**: Projects aimed at delivering economic benefits exceeded planners' expectations, with several projects outperforming their original benefit-cost analyses [18][53]. - **Finding 3**: Reliability-driven projects delivered unintended economic benefits, showcasing that addressing reliability can also yield significant economic returns [19][56]. - **Finding 4**: Transmission is a long-term investment, with benefits increasing over time as initial capital costs depreciate, leading to enduring savings for ratepayers [20][60]. Methodology - The report outlines a methodology that focuses on calculating the benefits and costs of transmission projects using observed performance data, emphasizing a conservative approach to estimating savings [68][74].

Investment Rating - The report does not explicitly provide an investment rating for the concrete industry but emphasizes the need for innovative policy mechanisms like advance market commitments (AMCs) to drive decarbonization efforts in the sector [5][10]. Core Insights - The concrete industry, particularly cement production, is a significant contributor to global carbon emissions, accounting for nearly 7% of all anthropogenic CO2 emissions [1][2]. - Decarbonizing the concrete sector is essential for meeting climate targets, and innovative policies such as AMCs are necessary to commercialize new technologies [5][10]. - AMCs can help transition technologies from research and development to commercialization by guaranteeing demand for low-carbon products [6][10]. Summary by Sections Introduction - Cement production is a major source of greenhouse gas emissions, and innovative policies are required to address the unavoidable emissions from the cement-making process [1][4]. Advance Market Commitments (AMCs) - AMCs are binding contracts that ensure demand for yet-to-be-developed technologies, facilitating financing for early-stage producers [6][7]. - Successful examples of AMCs in other sectors, such as vaccines, demonstrate their potential in the concrete industry [7][10]. Public Sector AMCs - Public procurement can leverage AMCs to incentivize the adoption of low-carbon materials, as governments spend billions on concrete [10][12]. - Twelve states have committed to prioritizing lower-carbon infrastructure materials, indicating a growing trend towards green public procurement [12][10]. Decarbonization Technologies - A variety of technologies are available to decarbonize cement and concrete, including alternative feedstocks, production processes, clinker substitution, and carbon capture [13][15]. - The report identifies at least five promising technologies suitable for AMCs, emphasizing the need for a suite of solutions rather than a single approach [13][15]. Implementation Framework - A five-year framework is proposed to establish AMCs in the public sector, focusing on building consumer confidence, educating stakeholders, and defining evaluation criteria [19][20]. - The framework includes strategies for addressing implementation barriers and unlocking innovation through technology prize programs [19][60]. Organizing Demand - Developing a buyers' coalition is essential to aggregate demand for low-carbon concrete products, which can signal to producers the need for investment in low-emission technologies [66][70]. - Successful examples of demand aggregation in other sectors, such as aviation fuel, highlight the potential for similar initiatives in the concrete industry [70][66]. Conclusion - The report calls for collaboration among industry stakeholders to implement AMCs for low-carbon concrete, emphasizing the need for critical actions to overcome existing barriers [71][73].

Investment Rating - The report does not explicitly provide an investment rating for the zero-emission truck (ZET) industry, but emphasizes the need for innovative financing solutions to accelerate market growth and adoption in India [9][11]. Core Insights - The trucking sector in India is responsible for 34% of CO2 emissions and transitioning to ZETs is essential for achieving net-zero targets, offering benefits such as reduced emissions and lower logistics costs [9]. - Access to affordable financing is identified as a critical lever to accelerate the transition to ZETs, as current financing products are limited and often come with higher interest rates compared to diesel vehicles [10][11]. - The report highlights successful global examples of financing solutions in markets like China, Europe, and the United States, which accounted for 95% of new electric trucks sold worldwide from 2020 to 2023 [12][28]. Overview of ZET Finance Landscape in Key Global Markets - The United States, China, and Europe are the leading regions for ZET sales, utilizing a combination of government grants, tax incentives, and innovative business models to support ZET financing [34]. - In the U.S., tax incentives and concessional loan programs are in place to promote ZET manufacturing and purchases, while California has launched a Zero-Emission Truck Loan Pilot Project to provide loan guarantees [36][45]. - Europe benefits from the European Investment Bank's concessional loans and various national programs that support ZET purchases and charging infrastructure [37]. - China has implemented a range of policies, including direct subsidies and tax benefits, to promote ZET manufacturing and purchases [38][39]. Financial Solutions for ZETs - The report identifies three key financial solutions: risk-sharing facilities, ZET insurance products, and mobility-as-a-service (MaaS) [30][31]. - Risk-sharing facilities, such as loan guarantees, can enhance creditworthiness and reduce lender losses, thereby facilitating access to low-cost financing for ZETs [43]. - ZET insurance products are essential for protecting truck owners from unforeseen risks, but they are currently more expensive than diesel truck insurance [62][64]. - The MaaS model allows fleets to lease ZETs along with additional services, effectively distributing ownership risks and lowering market entry barriers [89][90]. Case Studies and Global Best Practices - The report examines successful case studies from California's Zero-Emission Truck Loan Pilot Project, which provides loan guarantees to small fleet operators, and highlights the importance of public-private partnerships in financing ZETs [45][60]. - In China, innovative insurance solutions and regulatory measures have been implemented to address high insurance costs and improve the availability of ZET insurance products [66][78]. - The report emphasizes the need for India to adapt these global best practices to its unique market conditions to build a thriving ZET market [18][42].

Industry Investment Rating - The report does not explicitly provide an investment rating for the industry [1] Core Viewpoints - The roadmap emphasizes a global approach to Greenhouse Gas Removal (GHGR) rather than a national one, aiming for a comprehensive understanding of global scaling needs [2] - The goals are based on achieving global climate alignment, with thematic areas discussing what global stakeholders need to advance GHGR [2] - Initiatives are designed with a global perspective, including targets and milestones specified in global terms [2] Stakeholder Engagement - Government actors are crucial for developing deployment practices, establishing GHGR targets, and ensuring equitable and safe development [3] - Stakeholders include GHGR companies, purchasers, MRV developers, financial institutions, philanthropic funders, and community-based organizations [5] - Each stakeholder group has specific roles in advancing GHGR, such as innovation, community engagement, and financing [5] Science and Technology - Science and technology are foundational for GHGR, encompassing basic research, applied research, and the development of prototypes and pilot projects [6] - Deployment-led learning through pilot projects is a near-term priority, with the U S Department of Energy allocating $100 million over five years for such projects [8] - The focus for the next 10 years should be on pilot-scale testing, accompanied by applied research to solve technical barriers [10] Socio-Behavioral and Communities - Communities at risk, including those hosting GHGR activities, must shape GHGR development to their benefit [13] - Procedural justice initiatives focus on early engagement of GHGR communities in decision-making processes related to research, siting, deployment, and MRV practices [15] Finance and Markets - Voluntary markets, such as Frontier's commitment to buying over $1 billion of durable carbon removal between 2022 and 2030, are important for incubating frameworks and standards [18] - Unlocking scaled capital expenditure (capex) financing for first-of-a-kind (FOAK) projects is a key barrier to GHGR deployment [20] Policy and Regulation - Policy and regulation are critical for establishing governance, permitting, and regulatory structures for GHGR [22] - Governments should establish GHGR removal targets tailored to local needs and strengths, separate from decarbonization targets [23] Technological Approaches - Air CDR, including Direct Air Capture (DAC), is a prominent approach with commercial-scale projects being deployed [31] - Ocean CDR approaches vary in technological readiness and require better understanding of ocean baselines and biogeochemistry [33] - Land CDR approaches, such as biochar and BECCS, are more ready for deployment than air, ocean, or rock CDR [85] - Rock CDR involves accelerating natural weathering or mineralization processes, with potential for integration into existing industries [70] Research Priorities - Research priorities for ocean CDR include advances in microalgae cultivation, environmental monitoring, and hardware development [51] - Land CDR research priorities include improved life cycle assessments, novel biomass storage processes, and optimization of BECCS equipment [61] - Rock CDR research priorities include siting analysis, global distribution of mineral resources, and development of modeling tools [101] Barriers to Deployment - Barriers to ocean CDR include deployment and monitoring hardware, environmental impacts, and regulatory frameworks [56] - Land CDR faces challenges related to durability, life cycle assessments, and sustainable biomass production [68] - Rock CDR barriers include mineralization rates, environmental impacts, and feedstock inventory [106] Non-CO2 GHGR - Non-CO2 GHGR focuses on removing methane and nitrous oxide, which have significant warming impacts and increasing atmospheric concentrations [107] - The technological maturity of non-CO2 GHGR is low, with most approaches not yet past TRL 2 [127] - Research priorities for non-CO2 GHGR include novel technological approaches, improved monitoring, and coupled Earth systems models [132] Decadal Initiatives - The roadmap outlines three decadal periods (2024-2030, 2030-2040, 2040-2050) with specific milestones for each [165] - The first decadal period focuses on emerging GHGR technologies, community engagement, and establishing permitting structures [194] - The second decadal period emphasizes adoption of GHGR, with a focus on workforce development, infrastructure build-out, and scaled financing [205] - The final decadal period aims for expansion of GHGR, achieving a gigaton-scale industry with sustained growth rates [165] Market Infrastructure and Demand - Market infrastructure development includes harmonized accreditation, certification, and risk management standards [221] - Demand for CDR credits must rise to $40-$60 billion per year to achieve scaling goals, with a shift toward publicly mandated procurement by 2030 [204] Workforce Development - Workforce development programs should focus on approach-specific training, creating safe, well-paying jobs for local community members [222] Political Support and Public Engagement - Political support is essential for establishing stable, scaled, long-term demand for CDR, with governments increasing incentive programs and building new procurement frameworks [204] - Public engagement efforts should include evidence-based journalism and community advocacy to build awareness and support for GHGR [223]

Industry Overview - The Canadian agriculture sector is a significant contributor to the economy, generating $143.8 billion (7% of GDP) and employing 2.3 million people (1 in 9 jobs) in 2022 [129] - Canada is a top global exporter of agricultural commodities like wheat and canola, with agri-food exports reaching a record $82 billion in 2022 [129] - The sector is highly fragmented, with 96,702 sole proprietorships, 45,059 partnerships, and 43,233 family-owned corporations operating farms in 2021 [134] Emissions Profile - Agriculture accounted for 10% of Canada's total GHG emissions in 2021, emitting 69 Mt CO2e [137] - Emissions increased 35% from 1990 to 2021, driven by a doubling of crop production emissions [117] - CH4 from enteric fermentation (41%) and N2O from fertilizer use (33%) are the largest sources of agricultural emissions [118] - Beef cattle are the main contributor to enteric fermentation emissions (81%), followed by dairy cattle (15%) [161] Key Subsectors - The top 5 crops (canola, wheat, soybeans, corn, cannabis) account for 62% of total crop receipts [130] - The top 3 livestock categories (cattle, unprocessed milk, hogs) contribute 75% of total livestock receipts [133] - Beef production emitted 22 Mt CO2e in 2016, the largest share of agricultural emissions [167] Decarbonization Progress - Dairy emissions intensity decreased from 1.03 kg CO2e/liter in 2011 to 0.94 kg CO2e/liter in 2016 [108] - Beef emissions intensity fell from 12.6 kg CO2e/kg live weight in 2013 to 10.4 kg CO2e/kg live weight in 2021 [108] - Canadian canola, wheat, lentils and peas are less carbon-intensive than the same crops grown in France, Germany or the US [108] Target Setting - The SBTi FLAG methodology provides a framework for setting science-based emissions reduction targets in agriculture [25] - FLAG has two approaches: sectoral pathway (-3.03%/year reduction) and commodity pathway for 9 key agricultural products [28][29] - Rabobank and Nordea are among the financial institutions that have adopted SBTi FLAG for target setting [14] Challenges - Measuring emissions is complex due to diverse practices, regional variability, and lack of granular client data [279][280] - Smallholder farmers face barriers to adopting low-carbon practices due to slim profit margins and high upfront costs [124] - Balancing emissions reductions with increasing food production to meet growing global demand is a key challenge [125]