Daily Update — June 25, 2025
Navigating Carbon Uncertainty; IEA Monitoring Energy Flows; and Increasing Private Equity Carve-Outs
Today is Wednesday, June 25, 2025, and here’s your curated selection of Essential Intelligence on global markets from S&P Global. Subscribe to be notified of each new Daily Update.
Energy Transition & Sustainability
Carbon Capture and Sequestration (CCS) — Navigating Uncertainty and Viability
Despite being a mature and scalable technology, carbon capture and storage remains at the early stages of deployment due to the nascent markets for carbon and decarbonized products.
Financing capital-intensive and long-lived projects in these markets is often a significant undertaking for companies and investors, although government support can incentivize CCS projects and help to reduce the capital at risk. Key provisions of the US Inflation Reduction Act incentivized clean energy efforts, including CCS, but uncertainty about possible changes to those provisions is a hurdle.
Global Trade
IEA monitoring how US strikes on Iran nuclear sites impact oil and gas flows: Sadamori
The International Energy Agency is monitoring the impact of the recent US airstrikes on Iran. Keisuke Sadamori, the IEA's director of energy markets and security, emphasized its commitment to observing how oil and natural gas flows are affected. He indicated that the IEA is prepared to respond to any disruptions, particularly concerning supplies through the critical Strait of Hormuz.
President Donald Trump announced the strikes on three key nuclear facilities in Iran via his Truth Social platform, stating that all aircraft had safely left Iranian airspace after completing their mission.
Private Markets
PE carve-out deal value rises as companies refocus on core operations
Global private equity buyouts of corporate units, also known as carve-outs, have increased as corporations focus on balance sheets in an environment of shifting taxes, regulations and tariffs.
Private equity asset and business unit acquisitions amounted to $23.72 billion across 145 deals between Jan. 1 and June 3, higher than the roughly $19.37 billion across 127 carve-outs in the first five months of 2024, according to S&P Global Market Intelligence data.
In case you missed it
- Year-to-date benchmark European covered bond issuance recovered since April and remained in line with the average for the past decade, with a 13% year-over-year decline.
- South Korea has decided not to reduce electricity rates for the third quarter despite lower fuel import costs, with mounting concerns about LNG supply disruptions due to tensions in the Middle East.
- California should reduce its reliance on natural gas-fired power plants with a suite of regulatory reforms to expand energy storage, according to a report highlighting the central role of batteries in California ISO's improved grid reliability.
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