US to extend USD 20 bn grants to green projects

US announces USD 20 bn in grants to fund clean energy and transport projects: The Biden administration will fund thousands of clean energy and transport projects across the US with USD 20 bn in grants that are expected to reduce up to 40 mn tons of pollution annually, Reuters reported on Thursday. The spending will be overseen by eight organizations that will create a national clean financing network to move projects along — varying from home energy retrofitting to off-grid renewables — over the next seven years. The money comes from the USD 27 bn Greenhouse Gas Reduction Fund created under the Inflation Reduction Act and is expected to reach the organizations by September. Some USD 14 bn from the National Clean Investment Fund will go towards affordable clean technology projects, and USD 6 bn from the Clean Communities Investment Accelerator will fund similar projects in low-income and disadvantaged communities, including rural communities and tribal nations.

Tesla eyes EV manufacturing facility in India: Tesla is planning to scout locations in India this month for a proposed USD 2-3 bn EV plant, The Financial Times reported last week, citing sources with knowledge of the matter. The move follows New Delhi's tariff reduction on imported EVs for companies committing to local production within three years. Potential sites include Maharashtra, Gujarat, and Tamil Nadu, which have existing automotive hubs. Tesla has said it might manufacture a smaller car at the factory priced under USD 30k, with production expected to reach up to 500k cars annually at full capacity.

IN OTHER TESLA NEWS- Tesla is launching Robotaxis this August: EV giant Tesla is set to unveil its long-awaited fully autonomous vehicle robotaxi on 8 August, Bloomberg reported Friday, citing comments made by Tesla CEO Elon Musk on X. Following Musk's announcement, Tesla's shares surged up to 5.1% in postmarket trading. Tesla’s robotaxi has been in the works since 2019, when Musk first pitched the autonomous taxi to investors, Bloomberg writes. The company recently shared footage of its Full-Self Driving (FSD) software which would be used for the launch of its new EV in the summer.

OTHER STORIES WORTH KNOWING ABOUT THIS MORNING-

• EU carbon market sees record 15.5% drop in emissions: Carbon emissions regulated by the EU's Emissions Trading System (ETS) saw a record decrease of 15.5% y-o-y in 2023 driven by a surge in renewable energy output, particularly wind and solar energy. The power sector experienced the largest drop at 24%, while emissions from energy intensive industries fell by 7%. Emissions from the aviation industry, however, rose by 10%. (Statement)
• Africa’s largest BESS project awarded preferred bidder status: South African power company Globeleq's 153 MW Red Sands project, Africa's largest standalone battery energy storage system (BESS), has been awarded preferred bidder status in South Africa's Energy Storage Capacity IPP Procurement Programme. The project will cost about USD 300 mn and will take 24 months to construct after the expected financial close later this year. (Statement)