Commodities Trading News and Trends
Welcome to the inaugural issue of
Commodities Trading News and Trends, the first in a series aiming to help commodity market participants identify and adapt to the market news and legal developments that impact their commodity trading. Each issue will feature summaries and insights into current topics, ranging from developments in renewable energy to recently enacted federal and state laws andregulations. Our goal is to help you successfully navigate the shifting currents while remaining competitive. Please enjoy this issue.
Renewables
The US offshore wind industry continues to expand as three states agree to collaborate on a large-scale project off the Atlantic coast. Maryland, Virginia, and North Carolina have agreed to collaborate on offshore wind projects, offering an alternative model for states to pursue their climate related goals. This collaboration has two related aims: to advance regional offshore wind projects and to promote the Southeast and Mid-Atlantic United States as a hub for offshore wind energy and industry. These are not the only Atlantic states acting to develop an offshore wind industry. For example, in June 2020, New Jersey announced its plan to begin constructing in 2021 the country’s first port dedicated to building wind turbine; in the summer, New York’s Governor Andrew Cuomo announced the largest combined clean energy solicitations issued to date in the US. But these are individual, state-level efforts. The Maryland-Virginia-North Carolina collaboration presents a regional, rather than state-level, model; other states may be attracted to this approach because of the economies of scale it offers. As a memorandum of understanding between the participants describes, the states’ wind project pipeline could support up to 86,000 jobs, bring $57 billion in investments, and provide up to $25 billion in economic output by 2030.