What can we take away from the SVB collapse?

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Good morning! Happy National Biodiesel Day! Today we celebrate the important role that biodiesel plays in reducing greenhouse gas emissions and promoting sustainability in the transportation sector. As the world grapples with the urgent need to address climate change, the use of renewable fuels like biodiesel is becoming increasingly important in the global supply chain. So grab a cup of coffee and let's dive in!

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But enough about biodiesel. Let’s talk about the fuel that keeps the American economy running… money. The Silicon Valley Bank collapse last ring has sent alarm bells ringing across the nation and the federal government has been making swift attempts to assure the American public that the banking system is safe.

Check out today’s featured article from Real Clear Policy to read about the now-infamous banking collapse in Silicon Valley and the takeaways from the fallout. Should the American public be concerned? And how does this play into the supply chain industry?

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Featured Article:

Five Facts on the Silicon Valley Bank Crisis | Real Clear Policy

“For the past week, government officials and banks have been working furiously to contain the fallout of the Silicon Valley Bank crisis, which has some worried about ripple effects that could impact the banking industry and the economy at large.”

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Electric Vehicles & Fuel Tech 🔋

Electric school buses are trending, with good reason

Electric school buses are trending, and most of the community is on board with the switch. Diesel exhaust contains harmful pollutants, including particulate matter and nitrogen oxides, that can cause respiratory problems and other health issues. Electric school buses produce no tailpipe emissions, which means they can help improve air quality and protect the health of children and others in the surrounding community. Although electric school buses can be more expensive to purchase than traditional diesel buses, they offer significant cost savings over the long term. Electric buses have lower operating costs and require less maintenance than diesel buses, which can help school districts save money on fuel and maintenance expenses.

As many advocates cite, electric school buses are an important part of America's efforts to reduce greenhouse gas emissions and combat climate change. By switching to electric buses, school districts can reduce their carbon footprint and help promote sustainability in their communities. These vehicles can also serve as a valuable educational tool for students. By learning about the technology behind electric vehicles and the importance of sustainability, students can develop important skills and knowledge that will serve them well in the future.

Read more from Real Clear Energy ▶

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Fuel Tech & Money Matters 💰

Budget cuts, incoming: companies make sacrifices to meet energy price volatility

Volatile energy price swings are causing a ruckus among companies across all sectors, according to a recent survey taken by Zurich-based ABB Electrification, the appliances, electrical, and electronics manufacturing arm of industrial automation provider ABB. Businesses are face increased energy costs, which deeply impacts their profitability. This leads to a need to prioritize spending on energy efficiency measures and renewable energy sources. When energy prices are unpredictable, it can be difficult for businesses to budget effectively - this can lead to a need to prioritize spending on energy management strategies, such as monitoring and reporting, to help mitigate risks and ensure stable budgeting.

As consumers become more environmentally conscious, they may expect businesses to prioritize sustainable practices and invest in renewable energy. This can lead to a need to prioritize spending on sustainability initiatives, such as carbon reduction programs and renewable energy sourcing. Volatile energy prices can impact supply chains, particularly for businesses that rely on energy-intensive processes or transportation… leading to a need to prioritize spending on supply chain management strategies, such as alternative transportation modes or energy-efficient equipment.

Read more from DC Velocity ▶

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Let’s Get Global 🌎

🌴 PepsiCo cuts ties with a long-time Indonesian palm oil supplier. The relationship between PepsiCo and Astra Agro Lestari involved the sourcing of palm oil from the latter by the former. PepsiCo is responding to an open letter from the International Federation of Human Rights to cut ties with the Indonesian company, citing land-grabbing policies and human rights accusations leveled against the company and its operations. Astra Agro Lestari has been accused of clearing large areas of tropical forests and other natural habitats to make way for palm oil plantations. This has led to the destruction of critical habitats for endangered species and contributed to deforestation, which is a major contributor to climate change. Additionally, some NGOs have accused Astra Agro Lestari of human rights abuses, including the exploitation of workers and the forced eviction of indigenous communities from their lands.

🔋 January 2023 boasted a 10% increase in EV sales globally. Despite subsidies evaporating in China and fewer incentives available for EV owners in Europe, there has been a slight jump in sales early in the year. According to EV-Volume data shared by Jose Pontes, this bump will likely climb as the year progresses. The Tesla Model Y remains at the top of the pack, showcasing as the best-selling electric and rechargeable car on Earth and selling nearly 55k new registrations in January alone. China’s BEV auto manufacturer also carries seven of the top ten models sold, projecting dominance in the EV market.

🚢 The green revolution in shipping is incredibly expensive. Global shipping companies are struggling to transition as the upfront costs for green freight transfer require massive upfront costs. The infrastructure required to support green freight transport is not yet fully developed, posing another challenge that can make it difficult for companies to adopt these technologies. Additioanlyl, global shipping companies may be hesitant to invest in green freight transport due to regulatory uncertainty. Changes in emissions standards or other environmental regulations could impact the profitability of these investments, making it difficult for companies to justify the costs. The shipping industry operates in a complex global supply chain that involves multiple stakeholders, including ports, shippers, and suppliers. Implementing green freight transport technologies may require coordination among these stakeholders, which can be challenging.

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