Climate Economics with Fexingo: Carbon Pricing, Green Policy, and Sustainability Costs

Episode 79 of Climate Economics with Fexingo dives into green ammonia — the zero-carbon fuel that shipping giants are betting on to decarbonize global trade. Lucas and Luna unpack why ammonia, not hydrogen or methanol, is emerging as the frontrunner, how the first ammonia-powered vessel just completed its maiden voyage in May 2026, and what the economics of production, storage, and bunkering look...

The U.S. Inflation Reduction Act's green subsidies are provoking retaliation from Europe and Asia. This episode examines the specific case of EU 'carbon border adjustment' tariffs on American solar panels and how the U.S. is responding with counter-subsidies for domestic battery production. We break down the $9.5 billion in EU countervailing duties proposed in May 2026, the WTO disputes brewing, a...

Lucas and Luna explore a fast-growing shift in corporate climate strategy: green insurance. They break down why companies from manufacturers to airlines are now buying policies that cover carbon credit invalidation, regulatory penalties, and supply chain disruptions tied to climate risk. Drawing on data from a 2026 Marsh report showing a 40% jump in green insurance premiums to $2.3 billion, they e...

Carbon markets are well-established, but a new frontier in environmental finance is emerging: biodiversity credits. In this episode, Lucas and Luna explore how companies are starting to pay for measurable improvements in ecosystem health—from restoring wetlands in Louisiana to protecting rainforest corridors in Costa Rica. They break down the pilot program launched by the Taskforce on Nature-relat...

Episode 75 of Climate Economics looks at industrial energy efficiency as the most overlooked low-cost decarbonization lever. We examine how the U.S. Department of Energy's Better Buildings Initiative has helped manufacturers cut energy intensity by 2.5 percent per year since 2011. Lucas breaks down the $1.2 trillion in cumulative energy savings from efficiency measures across the U.S. economy sinc...

In this episode of Climate Economics, Lucas and Luna examine the often-overlooked economic and environmental costs of sourcing raw materials for electric vehicle batteries. They focus on lithium, cobalt, and nickel, discussing how price volatility, geopolitical risks, and ESG pressures are reshaping supply chains. The episode details a 2026 study from the International Energy Agency showing that r...

Lucas and Luna explore how the cement industry, responsible for 8% of global CO2 emissions, is turning to an ancient Roman recipe to decarbonize. They break down how a startup called TerraCem is blending volcanic ash and lime to create a concrete that cures like Roman harbor structures, cutting emissions by 70% while matching modern strength specs. The episode dives into the economics: why this 'R...

By 2030, the world will have millions of tons of decommissioned solar panels. In this episode, Lucas and Luna explore the emerging economics of photovoltaic recycling — a market projected to hit $2.7 billion by 2030. They look at the current cost structure, the regulatory push in the European Union, and why companies like Veolia and First Solar are investing in recycling technology. They also disc...

Electric vehicles depreciate differently than gas cars. In this episode, Lucas and Luna explore why a 2023 Tesla Model 3 lost roughly 45 percent of its value in its first three years, compared to about 35 percent for a comparable Toyota Camry. They unpack the role of battery warranty transfers, software lock-in, and federal tax credit eligibility on used EV pricing. Lucas cites data from a 2026 iS...

Episode 70 explores a fresh corner of climate finance: carbon removal bonds. Unlike traditional green bonds that fund low-carbon projects, these bonds tie coupon payments to verifiable tons of CO2 removed. Lucas and Luna break down the mechanics using the example of a hypothetical $200 million bond from a direct air capture company targeting 500,000 tons of removal over ten years. They discuss how...

Episode 69 of Climate Economics with Fexingo: Lucas and Luna unpack the green bond market in mid-2026. With issuance expected to hit $1 trillion this year, green bonds are the fastest-growing fixed-income segment. But a new study from the Climate Bonds Initiative finds that only 60% of labelled green bonds actually fund projects with measurable emissions reductions. The hosts drill into a specific...

Lucas and Luna explain how the 45Q tax credit for carbon capture is turning oil and gas companies into unlikely carbon storage operators. They walk through the mechanics of the credit—$85 per ton for permanent storage—and why it's creating a new revenue stream for legacy energy firms. The episode centers on Occidental Petroleum's direct air capture facility in Texas and the tension between climate...

In this episode, Lucas and Luna explore the rise of carbon removal investment trusts, a new financial structure that bundles carbon removal credits into tradable securities similar to REITs. They discuss the first such trust launched by a major asset manager in early 2026, which raised $500 million for direct air capture and biochar projects. The hosts delve into how these vehicles solve the liqui...

Episode 66 of Climate Economics with Fexingo dives into the rapidly evolving market for carbon removal credits, which are moving from niche offsets to a standardized commodity. Lucas and Luna explore the forces driving this shift, including new registry standards, corporate demand for high-durability credits, and the rise of futures contracts on exchanges like the CME. They focus on the recent lau...

Concrete is responsible for roughly eight percent of global CO2 emissions—more than aviation. But a wave of startups and legacy cement makers are now producing carbon-neutral concrete by capturing process emissions and using alternative binders. This episode examines one specific project: the retrofit of a 12-story office tower in Seattle that used carbon-cured concrete from a startup called Solid...

In this episode of Climate Economics, Lucas and Luna explore the intersection of intellectual property and climate finance: how green patents are being bundled, valued, and traded as financial assets. They unpack a specific case—a 2025 patent pool for solid-state battery technology licensed to three Asian EV manufacturers—and trace how that licensing deal was securitized into a $340 million bond b...

Episode 63: Why Carbon-Labeled Products Are Changing Consumer Behavior — Lucas and Luna explore how carbon footprint labels on everyday goods are shifting purchasing decisions. They look at a 2025 study by the Carbon Trust and Unilever showing that products with clear carbon labels saw a 12% sales lift over unbranded equivalents. The hosts debate whether labeling drives genuine behavioral change o...

Lucas and Luna explore how carbon insurance is evolving from a niche risk-transfer product into a legitimate financial asset class. With a concrete case study of a carbon removal project in Texas that insured its 500,000-tonne delivery against wildfire and drought, the hosts unpack the mechanics: how underwriters evaluate permanence risk, why the market has tripled to $1.2 billion since 2024, and...

Episode 61 of Climate Economics dives into the new regulatory framework for carbon removal credits emerging in 2026. Lucas and Luna examine the Voluntary Carbon Markets Integrity Initiative's (VCMI) new claims code, which requires companies to use only credits from registries with third-party verification and transparent methodologies. They discuss how this is splitting the market: high-integrity...

Carbon credits are facing a credibility crisis — and 2026 is the year the auditing system gets teeth. Lucas and Luna drill into the new Integrity Council for the Voluntary Carbon Market standards that took full effect this March, examining a specific case: how one reforestation project in Kenya had its credits retroactively cut by 40 percent after an audit revealed over-counting. They trace the me...

Lucas and Luna explore the rapid evolution of carbon offset regulation in 2026. From the Integrity Council's new labeling system to the SEC's proposed rules on corporate offset claims, they break down what's changing and why voluntary carbon markets are under unprecedented scrutiny. The episode centers on a concrete example: a mid-sized manufacturer that spent $2 million on offsets last year now f...

The European Union's Carbon Border Adjustment Mechanism went into full effect in January 2026, and it's already changing how companies source steel, aluminum, and cement. Lucas breaks down exactly how the CBAM works—importers must buy certificates at a price tied to the EU Emissions Trading System, currently around 80 euros per ton of CO2. He explains why this effectively creates a carbon tariff o...

Lucas and Luna unpack the economics of green hydrogen — why it's not one market but two. They break down the competing production methods, the role of tax credits in the Inflation Reduction Act, and why some industries are racing to adopt it while others are sitting out. Specific focus on the $3-per-kilogram production cost threshold and how electrolyzer efficiency improvements are starting to ben...

Episode 56: Carbon credit prices have fallen more than 30 percent this year, and Lucas and Luna dig into why. The culprit isn't a lack of demand — it's a flood of supply from new methodologies and a credibility crisis in the voluntary market. Lucas walks through the specific numbers: the average price per ton has dropped from $15 to below $10, while issuance of new credits hit a record 350 million...

In Episode 55 of Climate Economics, Lucas and Luna explore how the demand for green skills is remaking the global job market, using a concrete case: the hiring surge at an Indian solar installer, SunSource Energy. They unpack data from LinkedIn's 2025 Global Green Skills Report showing a 22.4 percent year-over-year increase in job postings requiring green skills, and discuss the wage premium for w...