Daily Update — May 14, 2025
CO2 Injection Milestone; AI in Supply Chains; and Tariff Impact on Private Credit
Today is Wednesday, May 14, 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
US hits gigaton milestone in CO2 injection
The US achieved a significant milestone in carbon management by successfully injecting 1 gigaton of CO2 into geological formations. This accomplishment highlights the feasibility of capturing, transporting and injecting substantial quantities of CO2. It also positions the US as a leader in carbon management and sets a critical benchmark for global organizations and governments striving to meet climate targets.
S&P Global Commodity Insights has tracked CO2 injection volumes since 1981, when just 4,000 metric tons were injected. This figure increased to 46.3 million metric tons in 2024 and represents approximately 9% of the US' energy-related industrial CO2 emissions, underscoring the potential of carbon capture and storage technologies to significantly reduce emissions from challenging industrial sources.
Artificial Intelligence
Listen: How AI Is Influencing Shipping and Supply Chains
In this episode of “The Decisive” podcast, host Kristen Hallam discusses the transformative impact of AI on the shipping and logistics industry.
Joined by Eric Oak, senior supply chain analyst at S&P Global Market Intelligence, and Eric Johnson, senior technology editor of the Journal of Commerce, the discussion covers the distinctions between AI and automation, the current applications of AI in shipping and the challenges companies face in leveraging this technology.
Explore our Artificial Intelligence Solutions from S&P Global Market Intelligence.
Private Markets
Private Credit Is Insulated But Not Immune From Tariff Risk
While tariffs and other policy factors are not expected to significantly affect direct lending portfolios immediately, second-order effects could adversely influence the performance of middle-market borrowers. A more widespread impact could lead to accelerated downgrades in credit estimates (CEs) and an increase in both general and selective defaults among struggling entities, potentially reversing the recent trend of improving credit quality.
Approximately 10% of S&P Global Ratings’ CE portfolio may be susceptible to direct tariff-related consequences, regardless of their current CE scores. In a moderate stress scenario, about 14% of companies with a “b-” rating could face potential downgrades, resulting in a distribution of “ccc” ratings that may approach levels seen during the peak of the COVID-19 pandemic. The risks remain largely credit-specific, as each company's capacity to manage and withstand various stress factors differs.
In case you missed it
- The US and China will cut reciprocal tariffs by 115% on most of the goods during a 90-day pause agreed by the two countries, effective May 14.
- Serbia intends to secure favorable terms for future gas imports from Russia once their current arrangements expire at the end of May.
- Japanese megabanks are expected to post better-than-expected earnings for the fiscal year ended March 31.
Upcoming events
- Sustainability Unchained: EU CSDDD and How to Efficiently Strengthen Supply Chain Practices | May 15 (Webinar)
- Higher Returns and Lower Carbon: Can Energy Companies Have It All? | May 15 (Webinar)
- Quantext: Quantifying textual data with ProntoNLP’s proprietary LLM framework | May 20 (Webinar)