Verra Partners with the State of Amazonas to Boost Regional Carbon Markets

Saptakee S
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Verra Partners with the State of Amazonas to Boost Regional Carbon Markets

Following serious discussions and decisions on carbon markets at the COP29 summit, Verra and the state of Amazonas, Brazil, signed an agreement to enhance regional carbon markets on November 13. This Memorandum of Understanding (MOU) was announced during COP29 in Baku, Azerbaijan.

The collaboration aims to strengthen carbon market frameworks, improve regulations, and foster sustainable development in Amazonas.

Eduardo Taveira, Amazonas’ Secretary of State for the Environment and represents Governor Wilson Lima at COP29 in Baku, said,

“Verra is the largest carbon credit certifier in the world. This partnership represents a significant advance in the sustainability trajectory of Amazonas, as it will provide all the necessary support for the State to be a generator of high-integrity credits, following strict environmental criteria, with a guarantee of high environmental, social and low carbon economy impact that we seek.”

Verra: Pioneering Transparent Environmental Solutions

In the past, Verra had addressed global environmental and social challenges by supporting climate action. They have offered transparent standards and tools to assess impacts, reduce emissions, improve livelihoods, and protect natural resources. Notably, they enable funding for verified, scalable projects that have long-lasting environmental benefits.

vcs Verra

Source: Verra

Leveraging Amazonas’ Natural Strengths

The press release mentions that Amazonas is uniquely positioned to develop carbon market projects with 92% of its land covered by rainforest. Verra’s methodologies, including the Reducing Emissions from Deforestation and Forest Degradation (REDD) framework, offer tools to protect these forests. Such projects can help reduce emissions, conserve biodiversity, and support local communities.

So, what’s Verra’s role here exactly? Well, Verra a global leader in setting standards for climate action and sustainable development, will work with Amazonas to enhance the state’s capacity and provide technical expertise. The partnership focuses on creating high-integrity carbon credits while adhering to strict environmental and social criteria.

Mandy Rambharos, Verra CEO expressed herself by noting,

“We are honored that the state of Amazonas selected Verra as a partner in strengthening regional carbon markets. These markets hold the key to unlocking the climate finance needed to reduce emissions, save forests, retain biodiversity, and support local communities. We look forward to collaborating closely with the state of Amazonas, who has undertaken critical work in advancing nature-based climate solutions in its jurisdiction.”

Key Focus Areas in Verra-Amazonas MOU

Let’s discover the key areas of collaboration that are covered in the MOU.

Capacity Building

Verra will offer specialized training to Amazonas on carbon markets. The training will cover the Verified Carbon Standard (VCS) Program, Climate, Community & Biodiversity Standards (CCBS), and the Sustainable Development Verified Impact Standard (SD VISta). Additionally, the Verra Registry, which tracks carbon credits, will also be part of the training.

Essential components of Verra’s VCS Program

verra

Source: Verra

Information Exchange

Both will exchange public data to develop robust carbon market frameworks. Further Verra will provide information from its Registry and share insights about its new REDD methodology and modules. Jointly, both parties will explore how Amazonas can apply these methodologies to potential projects.

Strengthening Regulation

Verra will help Amazonas develop and refine significant carbon market regulations. These efforts will include public discussions to ensure transparency and community participation. In the past, Verra has followed a similar process with other countries to meet their sustainability goals. Subsequently, this vast experience working with governments in different regions will guide Amazonas’ regulatory framework.

A Partnership Innovating Climate Finance

This partnership can potentially make Amazonas a leader in sustainable carbon markets. By leveraging Verra’s expertise, the state can do a lot to attract climate finance. For example, it can boost its fund conservation efforts, create more economic opportunities, and strengthen its low-carbon economy.

The collaboration also addresses the global need for effective climate solutions. Amazonas’ commitment to protecting its rainforest and Verra’s innovative methodologies make this partnership a model for other regions. As the state gears up to develop high-integrity carbon credits it can contribute significantly to global efforts to combat climate change.

We have already read at COP29 leaders have agreed on having robust international carbon market standards. And this initiative is just a testament to that even though it reinforces the role of regional carbon markets. All in all, Verra and Amazonas will set a remarkable example of sustainable development by tackling environmental challenges while fostering economic growth.

Source: Verra and State of Amazonas to Collaborate on Strengthening State’s Carbon Markets – Verra

Shell’s Carbon Offset Exit: What Does It Mean for the Voluntary Carbon Market?

Jennifer L
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Shell’s Carbon Offset Exit: What Does It Mean for the Voluntary Carbon Market?

Shell Plc plans to sell part of its nature-based carbon projects as the carbon offset market, also known as the voluntary carbon market, faces challenges. This move fits into CEO Wael Sawan’s focus on boosting profits with high-return ventures such as fossil fuels. Sawan is shifting away from ventures that don’t offer a strategic advantage, such as offshore wind.

This change shows Shell’s updated strategy and recalibration of its low-carbon commitments. While the company once aimed for big growth in low-carbon projects, it’s now focusing on areas that deliver stronger returns.

Shell’s Carbon Credit Journey: From Green to Greener Profits

Shell launched its nature-based carbon offsets portfolio in 2018, with the goal of generating 120 million carbon credits annually. These credits come from REDD+ projects, which aim to stop deforestation. Each REDD+ credit equals one ton of carbon dioxide emissions avoided.

By 2022, Shell was the world’s largest publicly known buyer of carbon credits, according to BloombergNEF. However, the market has struggled recently. 

Spot prices for REDD+ credits have plummeted to an average of $3.60 per credit in 2023, a sharp decline from $12.50 in 2022, according to MSCI Carbon Markets. 

In another carbon pricing data by Viridios AI, REDD+ carbon credit prices for 2018 and 2022 vintages in all regions have been dropping. This price drop reflects reduced demand and skepticism about the environmental benefits of some projects.

REDD+ carbon credit price
Chart from Viridios AI

Shell retired 20 million tonnes of carbon offsets in 2023, a significant increase from the 4.1 million tonnes counted in its 2022 net carbon intensity. According to the oil major’s Energy Transition Strategy 2024 report, carbon dioxide emissions from the energy system accounted for nearly 75% of global greenhouse gas emissions in 2023.

Despite this, the company remains committed to reducing emissions from its operations by 50% by 2030, compared to 2016 levels.

Shell 2050 net zero goal

Other major corporations and Shell’s industry peers are turning to carbon credits to offset their remaining emissions. Projections suggest the voluntary carbon market could soar to $950 billion by 2037, a dramatic rise from its current $2 billion value. 

However, Shell faces challenges in sourcing carbon offsets that meet its rigorous quality standards. And under Sawan’s leadership, Shell’s carbon strategy shifted. 

Sawan’s Strategic Shift

Sawan became CEO in January 2023 and quickly changed Shell’s approach to carbon projects. Just six months into his role, Shell cut its plan to spend $100 million a year on new carbon credits. This decision was part of Sawan’s strategy to focus more on fossil fuels, moving away from some of the targets set by his predecessor.

The pivot is evident in Shell’s evolving approach to its carbon credit portfolio. Now, Shell is looking to sell some of its carbon projects but plans to keep a minority stake. Talks are underway with private equity firms interested in buying these projects.

The Royal Dutch energy giant is considering different ways to structure the deal. One option is to sell its share in the projects while agreeing to keep buying the credits. Another option is to sell the projects without any commitment to buy credits. However, this second option might make it harder to find buyers.

This move comes as the voluntary carbon market faces changes. In Asia-Pacific, demand for credits that meet specific local regulations is growing. 

At the same time, the Integrity Council for the Voluntary Carbon Market is pushing for higher standards. These stricter rules are influencing what buyers want.

What’s Next for Carbon Removal?

As Shell reduces its focus on nature-based carbon projects, it may look into engineered carbon removal technologies. These include direct air capture (DAC), which removes carbon dioxide directly from the air. These technologies offer a more permanent solution for carbon removal, though they remain costly and require significant scaling.

However, many DAC firms are now aligning with strict carbon accounting standards to satisfy buyer and carbon credit exchange requirements.

Kyle Harrison, head of carbon markets at BloombergNEF, expects more companies to move toward these solutions. He noted that:

“The pain point right now is cost and scale – as these improve it will open the door for more companies to adopt these solutions.”

Shell’s decision to sell part of its carbon portfolio marks a shift in its climate strategy. The company is focusing more on profitable ventures and exploring advanced carbon removal technologies. This change reflects the evolving carbon market and could reshape Shell’s role in the energy transition. 

Crypto Market Tops $3 Trillion Amid ‘Trump Bump’, Bitcoin Hits All-Time High at $93K

Jennifer L
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Crypto Market Tops $3 Trillion Amid ‘Trump Bump’, Bitcoin Hits All-Time High at $93K

The global cryptocurrency market has surpassed $3 trillion, fueled by renewed investor optimism following Donald Trump’s re-election as U.S. President. Alongside this, Bitcoin has reached an all-time high at $93,434.

According to CoinMarketCap, the total market cap currently sits at $3 trillion, up 4% in the past day. CoinGecko reports an even higher figure of $3.15 trillion, tracking over 15,000 cryptocurrencies, compared to CoinMarketCap’s 10,000.

global crypto market hitting $3 trillion
Chart from CoinMarketCap

The $3T Surge: What’s Driving the Crypto Boom?

This milestone marks an all-time high, surpassing the 2021 bull run. The surge, dubbed the ‘Trump Bump,’ reflects expectations of a pro-crypto regulatory environment under the new administration. 

Trump’s campaign promises, including making the U.S. a global crypto hub and establishing a national Bitcoin reserve, have strengthened market confidence.

Institutional appetite for digital assets continues to grow. A recent survey of 400 global institutional investors revealed that 57% plan to increase their crypto allocations, with many aiming to do so within the next 6 months. 

Companies like MicroStrategy have also made significant investments, recently acquiring $2 billion in Bitcoin.

Analysts predict further growth but caution against potential corrections, citing external risks like weak U.S. economic data.

Bitcoin’s Record-Breaking Rally: Is $100K Next?

Bitcoin has been a key driver of this crypto rally, hitting a new all-time high (ATH) of $93,434 on November 13. Its market cap now stands at almost $1.8 trillion, comprising 60% of the total crypto market. 

Altcoins are also experiencing significant gains, contributing to the broader market’s upward momentum.

Maksym Sakharov, CEO of DeFi platform WeFi, attributes the surge to “Bitcoin’s price rally above $93,000, growing demand, and regulatory clarity.” Bitcoin has more than doubled in 2024, fueled by the launch of spot Bitcoin ETFs and increased institutional interest.

Many crypto analysts suggest Bitcoin’s rally is far from over. Some predict it could hit $100,000 in the coming months. 

Galaxy Digital CEO Mike Novogratz offers an even bolder outlook, forecasting a potential surge to $500,000—if Bitcoin gains traction as a national reserve asset in the U.S. 

Bitcoin Surpasses Silver, Becomes World’s 8th Largest Asset

Even more remarkable, Bitcoin has reached a new milestone. It surpassed silver with a market cap of $1.8 trillion, positioning itself as the world’s 8th largest asset. This marks a significant leap in Bitcoin’s trajectory, as it now trails only major players like gold, Apple, and Microsoft, according to Companies Market Cap.

Bitcoin market cap surpassing silver

The surge comes as Bitcoin’s price hit over $93,000, with even more bullish projections ahead. In contrast, silver fell by 2%, helping Bitcoin secure its spot ahead of the precious metal.

Institutional Momentum Drives Bitcoin’s Rise

Institutional activity played a crucial role in today’s rally. BlackRock’s iShares Bitcoin Trust (IBIT) recorded $4.5 billion in trading volume, reflecting the growing interest in Bitcoin from major financial players. 

Bloomberg’s Eric Balchunas highlighted this trend, noting that Bitcoin ETFs and related assets, including MicroStrategy and Coinbase, reached a combined trading volume of $38 billion.

Optimism in the crypto market has surged following Donald Trump’s re-election, with analysts suggesting his pro-crypto stance could pave the way for favorable regulations. This sentiment has fueled predictions that Bitcoin could surpass the $100,000 mark by the end of 2024.

However, behind all this hype with the crypto industry, particularly Bitcoin’s sudden surge, lurks the digital asset’s environmental impact. 

Crypto’s Environmental Toll: Balancing Growth and Sustainability

The rising energy consumption of crypto mining has sparked global concern due to its environmental impact. The White House’s 2022 report highlighted the substantial electricity demands of cryptocurrency mining, which now rival the energy consumption of countries like Poland. 

In an analysis by the International Monetary Fund (IMF), crypto mining and data centers made up 2% of global electricity demand in 2022. This figure could rise to 3.5% within three years, matching Japan’s current electricity usage—the fifth highest in the world—according to projections from the International Energy Agency.

crypto and data center share of global emissions

  • Bitcoin’s proof-of-work (PoW) consensus mechanism is a primary contributor, with global electricity use for PoW estimated between 97 and 323 terawatt-hours annually. This translates to significant greenhouse gas emissions, with Bitcoin alone responsible for around 88 million metric tons of CO₂ each year.

The U.S. accounts for nearly 46% of Bitcoin mining emissions, releasing about 15.1 million metric tons of CO₂ annually. Other major contributors include China and Kazakhstan, emphasizing the global nature of the issue. 

The mining process also has indirect environmental impacts, such as electronic waste and water usage, with one Bitcoin transaction consuming thousands of gallons of water.

Efforts to reduce Bitcoin’s carbon footprint include transitioning to less energy-intensive consensus mechanisms like proof-of-stake (PoS) and adopting renewable energy sources for mining.

However, regional emission reduction efforts often fall short due to the global supply chain’s carbon intensity. For instance, even countries with cleaner energy grids, like Norway, face indirect emissions from imported mining equipment manufactured in coal-reliant regions like China.

Interestingly, recent studies challenge the perception of Bitcoin mining’s environmental impact. 

Bitcoin Mining’s Role in Carbon Reduction

Research from the Bitcoin Policy Institute (BPI) highlights how mining increasingly relies on renewable energy, turning surplus energy into a valuable resource. By using excess power from renewable sources like wind and solar, mining helps stabilize grids and reduce energy waste, proving that it can contribute to carbon reduction rather than exacerbating emissions.

The researchers also compared the energy use of Bitcoin mining, data centers, and AI server energy in the U.S. in 2023. Bitcoin used 48 TWh in 2023, while AI servers consumed between 20 and 125 TWh. On the other hand, data centers have the biggest power consumption, ranging from 100 to 325 TWh. 

The following chart shows the historical results and forecasts up to 2027. 

US Bitcoin mining vs US Data center energy use 2023
Chart from BPI

Another report from the Digital Assets Research Institute (DA-RI) reveals flaws in past research on Bitcoin’s energy use. It critiques outdated models that overlooked miners’ shift to renewable energy, resulting in sensational headlines and misinformed policies.

The new findings urge regulators to base decisions on empirical data, underscoring Bitcoin’s potential to align with global carbon reduction goals.

These studies suggest that sustainable Bitcoin mining could play a crucial role in green initiatives. By leveraging clean energy, mining could evolve into a climate-friendly industry, offering both economic and environmental benefits. As this perspective gains traction, policymakers may adopt more balanced regulations, supporting sustainable growth in the crypto sector.

The crypto market’s unprecedented growth comes with both promise and challenges. As Bitcoin leads the charge, its environmental impact sparks global debate. Sustainable mining practices and pro-crypto policies could shape a greener, more resilient future for digital assets.

Can Canada’s Uranium Reserves Transform it into a Nuclear Superpower?

Saptakee S
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0
Can Canada’s Uranium Reserves Transform it into a Nuclear Superpower?

Canada, already the world’s second-largest uranium producer, is experiencing a renewed surge in uranium mining. This momentum is driven by a global shift to nuclear energy as a cleaner solution to climate change. Canada’s resources, which supply over 20% of the world’s uranium demand, are vital for fueling nuclear energy worldwide.

Historically, most of Canada’s uranium output came from the eastern Athabasca Basin. But now, the western region is flourishing. Promising projects like Fission Uranium’s PLS and NexGen Energy’s Rook 1 are advancing quickly making the western Basin a future hub of Canadian uranium production.

Some other top companies ruling this region are IsoEnergy, Uranium Royalty Corp, and Cameco. These players are investing heavily in exploration and development, leveraging the Athabasca Basin’s rich uranium deposits to secure Canada’s role as a major nuclear fuel supplier.

Speaking about the nuclear sector, it is equipped with Canadian Deuterium Uranium (CANDU) reactors and SMRs. They support global emission reduction and energy security goals. By integrating all non-emitting energy sources, most significantly nuclear, Canada aims to reach net-zero emissions by 2050.

Check out Canada’s nuclear profile highlights according to IAEA :

IAEA Canada Nuclear

Canada’s Uranium Comeback: NexGen Energy CEO Shares Insights

BBC recently rolled out a report where NexGen Energy CEO and Director, Leigh Curyer has analyzed the Canadian uranium potential and expressed his opinion.

He notes that several key moments helped drive nuclear energy’s resurgence in Canada and NexGen Energy’s success. In 2018, Bill Gates publicly endorsed nuclear power as “ideal for dealing with climate change,” drawing widespread attention to its low-carbon benefits. Four years later, former UK Prime Minister Boris Johnson championed a policy aimed at generating at least 25% of the UK’s energy from nuclear sources.

Moving ahead, uranium prices have surged by more than 200% making it the world’s top-performing commodities. Consequently, NexGen’s Rook 1 project, located in the Athabasca Basin, could soon push Canada to become the world’s leading uranium producer. The company anticipates that once its mine is operational, it will boost that to 25%, which can surpass Kazakhstan’s uranium potential.

Curyer and other leaders in the uranium mining industry strongly believe that the next few years are crucial for the thriving uranium industry in Canada. The approval process for new mines is lengthy, sometimes taking a decade from exploration to production.

They estimate that failure to bring these projects online could lead to a uranium shortage. Consequently, driving up power costs globally.

Canada Uranium

Source: Natural Resources: Govt of Canada

Athabasca Basin: Canada’s High-Grade Uranium Hub Sees New Investment Surge

The Athabasca Basin’s appeal has attracted major players, including Cameco and Uranium Royalty Corp, as well as numerous newcomers to the region.

A recent significant event was Uranium Royalty Corp.’s acquisition of a royalty on the Millennium and Cree Extension Uranium Projects located in Saskatchewan. The company purchased this royalty from a third-party industrial gas firm for $6 million.

Canadian mining companies like NexGen and Cameco are highly optimistic and they aim to meet rising uranium demand as many countries commit to tripling nuclear energy output by 2050.

Saskatchewan’s uranium-rich terrain is attracting investors which is pushing Canada to the nuclear forefront. The industry, along with its investors, remains hopeful that this time the demand will be sustained in the long-term. With rising interest and substantial backing, the western Athabasca can be a global hotspot for uranium production.

________________________________________________________________________

Uranium Royalty Corp.: Powering Decarbonization with Nuclear Efficiency

The only pure-play uranium royalty company is focused on capturing value from uranium price shifts through strategic investments. These include royalties, streams, debt, equity in uranium companies, and even physical uranium holdings. Notably, the company is growing with the rising demand for uranium.

  • IEA revealed that in the U.S. alone, nuclear energy supplied roughly 19% of total electricity in 2022 and accounted for 55% of the nation’s carbon-free electricity.
  • This nuclear output mitigated around 482 MMT of CO₂ emissions, which is equivalent to taking 107 million gasoline-powered vehicles off the roads.

More Power per Punch: Nuclear Energy Outshines Fossil Fuels

carbon credits

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“With Great Power Comes Great Responsibility”

Nuclear power, even though has minimal carbon emissions has faced resistance from environmentalists.

The BBC report also explained the existing and forthcoming challenges that might cross the path of Canada’s nuclear journey. Critics argue that nuclear projects take too long and cost too much, often making them an unviable solution for urgent climate needs.

Over the past two decades, more than 100 nuclear plants have closed, including several in Canada and the U.S., mainly due to high costs and environmental concerns. Even British Columbia having substantial uranium deposits has banned nuclear plants and mining since 1980 voicing similar worries.

Environmentalists are also concerned about the radioactive waste and the risk of accidents like Fukushima, which released radioactive material and caused mass evacuations. However, experts, advocates, and mining veterans argue that modern technology has significantly improved nuclear safety.

In this perspective, Cameco CEO Tim Gitzel insists that the industry has learned from past mistakes and is prepared to meet growing energy demands safely and more responsibly. This is why the saying goes “With great power comes great responsibility.”

Rafael Mariano Grossi Director General, IAEA at COP29’s Nuclear Energy for Clean Energy Transitions session said, 

“Pro-environment and pro-nuclear, they are already changing minds with science, courage, and a clear call for climate action. It’s high time all leaders listen — and more than that, act.”

iaea nuclear CanadaSource: IAEA

With its high-grade uranium deposits in the Athabasca Basin, Canada is well-positioned to meet the growing global demand for clean energy. Furthermore, this could reduce reliance on Russian imports and establish Canada as a nuclear “superpower.“ Overall, the potential is clear, and the path forward is promising for both Canada’s energy future and sustainability goals.

Disclosure: Owners, members, directors, and employees of carboncredits.com have/may have stock or option positions in any of the companies mentioned: UROY.

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Laconic and Bolivia Set New Benchmark with USD$5 Billion Sovereign Carbon Deal

Saptakee S
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0
Laconic and Bolivia Set New Benchmark with USD$5 Billion Sovereign Carbon Deal

Laconic Infrastructure Partners Inc. (Laconic), a Public Benefit Corporation (PBC) founded in 2021 and headquartered in Chicago has announced a new mandate from the Plurinational State of Bolivia. The agreement authorizes Laconic to deploy its unique SADAR™ Natural Capital Monetization (NCM) platform to facilitate technology transfer and bolster Bolivia’s capacity-building efforts.

Notably, Bolivia could generate up to $5 billion, funding sustainability projects that align with global climate goals from this groundbreaking model.

Marcelo Montenegro Gomez Garcia, Minister of Economy & Public Finance of Bolivia emphasized, 

“The Plurinational State of Bolivia is committed to completely ending deforestation within our territorial borders by 2030. By working with Laconic, we have been able, for the first time, to generate sufficient development financing to enable our country to make this commitment a reality and enhancing our ambition under the Paris Agreement. This benefits not only our own citizens, but all of mankind, as we collectively strive to meet NetZero 2050.”

Empowering Bolivia’s Carbon Market with Laconic’s Innovative Technology

Laconic offers advanced environmental intelligence and data management solutions. They empower governments, corporations, and financial institutions to engage openly and fairly in the carbon market.

Image: Energy and Emissions Bolivia 2022

Bolivia carbon emissions

Source: IRENA

The SADAR™ NCM platform

The company’s one-of-its-kind SADAR™ NCM platform will help Bolivia secure funding for its enhanced NDC goals. The AI-powered platform delivers an essential, unchangeable data store and a structured information exchange that carbon markets need to operate effectively.

Explaining further SADAR’s carbon securitization technology can transform Bolivia’s environmental assets into financial capital.

This platform will function in the following ways:

  • Aggregate and analyze large-scale data streams from Bolivia’s extensive natural resources. Laconic’s platform can monetize both current and future carbon stocks.
  • Potentially generate up to $5 billion for Bolivia, thereby creating a robust funding stream for sustainability projects that align with global climate commitments.

Bolivia’s collaboration with Laconic comes at a critical moment for the global carbon market. Through Laconic’s SADAR™ platform, Bolivia can ensure its compliance with the Paris Agreement as well as with local and regional regulations. This is how the government can focus on expanding its NDC ambitions and global decarbonization efforts.

Laconic signed a new Memorandum of Understanding (MOU) with the State of Espirito Santo, Brazil last month. This agreement will also incorporate Laconic’s SADAR™ Platform and Natural Capital Monetization (NCM) services and explore how they can support the state in creating a digital platform to help meet Brazil’s climate goals.

The company revealed that for the first time, all carbon market participants have timely access to the right information, ensuring liquidity and compliance for large-scale trading in global financial markets.

Check out Lanconic’s CEO Andrew Gilmour’s take on how AI and financial innovation can save the planet

Sovereign Carbon: The Carbon Financing Mechanism

The platform will manage Bolivia’s carbon assets as a “Sovereign Carbon” product. Creation of a Sovereign Carbon product is the only scalable way to mobilize the $1 trillion in annual carbon trading, required to meet collective net zero goals.

Bolivia’s market launch marks a significant milestone as the world’s first Article 6-compliant sovereign carbon sale. This sets a new standard for national-level carbon financing.

This capability provides governments with an efficient mechanism to monetize natural capital on a global scale. Subsequently enabling institutional investors to purchase bona fide securities backed by carbon assets.

CEO Andrew Gilmour remarked, 

“Laconic is honored to be working with the Plurinational State of Bolivia to champion the innovative Sovereign Carbon market. This transaction demonstrates the power of technology to drive change in emerging markets finance, as, for the first time, we are able to collectively harness market forces to generate more economic growth from the preservation of natural capital assets than from the exploitation of them. Put simply – our technology has made it possible to make more money preserving your forests than you can by cutting them down.”

Laconic’s Sovereign Carbon provides a distinctive option for investors in the carbon market, structured as a financial asset with built-in security features, verified uniqueness, and alignment with the Paris Agreement. The asset’s compliance and security framework position it as a noteworthy entry in the carbon finance sector.

This initiative not only strengthens Bolivia’s role in the global carbon market but also sets a promising precedent for Article 6-compliant carbon financing, supporting global climate goals through innovative financial solutions.

Source: Laconic and the Plurinational State of Bolivia announce landmark 5 Billion USD Sovereign Carbon Transaction

Climate Tech Funding Hits a 4-Year Low: Who Gets the Top Equity Deals in Q3?

Jennifer L
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0
Climate Tech Funding Hits a 4-Year Low: Who Gets the Top Equity Deals in Q3?

Global climate tech funding and deals hit a 4-year low in Q3 2024, per CB Insights’ State of Climate Tech Report. The decline in financial backing comes despite growing urgency around climate action and the push to commercialize technologies that can help mitigate climate change.

As seen below, the funding for the quarter totaled only $4.8 billion, the lowest since 2020. The same goes for the number of deals, which reached only 461 in the said quarter.

climate tech Quarterly equity funding and deals CB Insights

Here are the other key climate tech trends we uncovered from the report.

Regional Disparities in Funding Trends

While global funding has dropped, the US and Europe have managed to grow median deal sizes due to government support. Both regions continue to advance climate tech through substantial grants, loans, and other funding mechanisms. These have somewhat offset the broader slowdown in venture capital (VC) interest. 

climate tech Funding and deals by global region in Q3’24 CB Insights

On the other hand, China has taken a different approach: government subsidies for clean energy have been reduced this year, contributing to a cooling of investor enthusiasm in the climate sector. This shift is particularly notable, as China had previously been a significant player in cleantech innovation and adoption.

A Focus on Early-Stage Innovations

Across major economies, government funds are increasingly flowing into early-stage climate tech ventures, particularly those nearing commercialization. In the US, significant federal support has been directed toward advanced technologies such as nuclear fusion and direct air capture (DAC) of carbon dioxide, both of which promise groundbreaking ways to reduce greenhouse gas emissions at scale. 

The US Department of Energy has led in funding these emerging technologies, recognizing their potential for long-term impact on global climate targets.

Why Climate Tech Funding is Declining

This funding slowdown reflects multiple challenges. Investors face high interest rates and economic uncertainties, which have impacted the willingness to fund high-risk projects typical in climate tech. 

Additionally, some tech investors are refocusing on sectors with quicker returns. The reduction in VC enthusiasm, particularly in markets like China, has also been tied to shifting political and regulatory priorities, which in turn affects international investor confidence.

In response to these challenges, governments in the US, Europe, and other regions are providing targeted funding to keep innovation in climate tech moving forward. By supporting early-stage technologies through grants and loan programs, governments are working to ensure that promising but capital-intensive projects, such as fusion energy and DAC, have a chance to mature and reach commercial viability.

The emphasis on early-stage innovation signals a shift toward investing in technologies that, though not yet ready for widespread deployment, hold the potential for transformative impact on emissions reduction and energy transition efforts.

According to the CB Insights Report, here are the top three equity deals in Q3 and what these companies are doing in the sector. 

Fourth Partner Energy: Leading India’s Solar Revolution

Location: India

Round Amount: $275 Million

Fourth Partner Energy is a trailblazer in India’s renewable energy sector, focusing on delivering sustainable, solar-based power solutions to businesses. Founded in 2010, the company has installed over 700 MW of solar capacity, positioning itself as one of India’s top solar energy providers.

The company operates across 20+ states in India, with a diverse portfolio that spans rooftop, ground-mount, and utility-scale solar installations. Fourth Partner Energy has successfully executed more than 1,000 projects, with over 600 clients from various sectors, including manufacturing, retail, and education.

Through innovative financing models, the company has helped clients reduce their energy bills by up to 40%, while also contributing to India’s green energy goals. With an ongoing commitment to sustainability, the company plans to reach 2 GW of installed capacity by 2025.

Below are the climate tech company’s major milestones at a glance:

Fourth Partner Energy milestones

Key Initiatives:

  • 700 MW of installed solar capacity
  • Goal to reach 2 GW of installed capacity by 2025
  • Achieving 40% energy savings for clients on average

With its innovative approach and growing portfolio, Fourth Partner Energy is set to be a significant force in India’s renewable energy future.

Altana AI: Revolutionizing Supply Chains with Artificial Intelligence

Location: United States

Round Amount: $200 Million

Altana AI is transforming global supply chains by leveraging artificial intelligence to drive efficiency, sustainability, and transparency. Founded in 2018, the company’s AI-driven platform helps businesses map, analyze, and optimize supply chain operations with a focus on minimizing environmental impact and reducing waste.

The climate tech company’s platform uses advanced machine learning and big data to provide real-time insights into supply chain networks, identifying inefficiencies and enabling smarter decision-making.

Here’s a glimpse of its dashboard:

Altana AI platform view
Image source: TechCrunch

Altana AI serves industries ranging from manufacturing to retail, providing tools that help companies track carbon footprints, manage risks, and enhance sustainability efforts.

By using AI, the company empowers organizations to reduce emissions, cut costs, and achieve better supply chain resilience.

Key Highlights:

  • Raised over $250 million in funding
  • Serves global Fortune 500 companies in multiple industries
  • Helps reduce carbon emissions by 20% on average across supply chains
  • Provides real-time data insights and predictive analytics for supply chain optimization

Altana AI’s cutting-edge approach to AI-powered supply chain optimization is enabling businesses to make smarter, more sustainable decisions. With an eye on the future, the company continues to lead the charge in using technology to create a greener, more efficient global economy.

Twelve: Transforming CO2 into a Resource for the Future

Location: United States

Round Amount: $200 Million

Twelve is at the forefront of the fight against climate change by transforming carbon dioxide (CO2) into valuable products through its revolutionary technology. Launched in 2020, the company is developing a groundbreaking process that captures CO2 and converts it into clean, sustainable products like chemicals, fuels, and building materials, which can help industries reduce their carbon emissions and reliance on fossil fuels.

Twelve’s carbon transformation technology uses renewable energy to turn CO2 into useful commodities at scale, with the potential to reduce millions of tons of CO2 annually. The company’s efforts align with global net-zero targets that enable industries to meet their climate goals while maintaining economic growth.

Twelve carbon transformation tech
Twelve Carbon Transformation Tech

Twelve’s innovative approach has garnered significant attention, raising over $330 million in funding from leading investors and forming partnerships with top corporations committed to a carbon-free future.

Major Achievements:

  • $330 million raised in funding to date
  • Partnership with BMW and Microsoft to scale CO2-to-product technology
  • Potential to reduce millions of tons of CO2 annually
  • Focused on delivering a net-zero emissions future

As the company continues to scale its operations, Twelve is playing a key role in advancing a circular economy and enabling industries to decarbonize at an unprecedented scale.

Ultimately, climate tech faces a funding dip, but innovation hasn’t stalled. Governments and investors continue to back transformative technologies of top climate tech companies. As these companies strive to scale their innovative products and services, they can significantly contribute to reducing carbon emissions.

Article 6.2 at COP29: Singapore Partners with Gold Standard and Verra to Advance Climate Action

Saptakee S
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Article 6.2 at COP29: Singapore Partners with Gold Standard and Verra to Advance Climate Action

Singapore’s National Climate Change Secretariat (NCCS) is working with two major carbon credit programs, Gold Standard and Verra’s Verified Carbon Standard (VCS). Their goal is to create a new protocol that will help countries meet their climate targets under Article 6.2 of the Paris Agreement. The newly formed Article 6.2 Crediting Protocol will simplify global efforts to cut emissions and promote sustainable growth.

Over the past year, NCCS, Gold Standard, and Verra have worked closely with governments and climate experts to shape initial recommendations. They plan to finalize the Protocol after COP29 and begin implementation in 2025, giving countries a practical tool to reach their climate goals through strong international cooperation.

Benedict Chia, Director-General (Climate Change), NCCS, Singapore, said,

“It is important to have a protocol that facilitates Article 6.2 cooperation between independent crediting programs and governments. This would ensure that Article 6.2 can operate efficiently.”

Article 6.2: A Pathway to Global Climate Cooperation

Broadly speaking, Article 6.2 of the Paris Agreement helps countries achieve their Nationally Determined Contributions (NDCs) and advance sustainable development. It further leverages governments and private sectors to work together through carbon credit markets to reach their climate goals.

With established carbon crediting programs provided by Gold Standard and Verra, governments can certify emission reductions and removals without creating new standards from scratch. This reduces complexity and ensures quantified results.

Subsequently, this collaboration will also serve a similar purpose in reducing climate efforts and allowing countries to focus on impactful actions.

Margaret Kim, CEO of Gold Standard, expressed her opinion in the following statement,

“If a market is to be trusted, it must be built on solid foundations. For Article 6 to be reliable and efficient, governments and standards need to work together. These initial recommendations outline how, by doing so, they can deliver impact for both the climate and sustainable development.”

Mandy Rambharos, CEO of Verra noted, 

“Independent crediting programs offer comprehensive standards and verification mechanisms that are primed and ready for use by governments in their cooperation under Article 6. The positive reactions we are already receiving from government stakeholders demonstrate how independent standards, that have grown up in the voluntary carbon market, have built a robust and credible foundation that can seamlessly integrate into the infrastructure of compliance markets and Article 6. Together, we can enable these new markets to be operational and effective much more quickly than otherwise possible.”

Collaborative Efforts to Shape Initial Recommendations

The NCCS, Gold Standard, and Verra officially announced their partnership at COP28 in December 2023 with a shared ambition, as described above. They have been working with governments and climate experts to develop the initial recommendations for this protocol.

Without this unified approach, countries might take the risk of inconsistent paths, which could slow down or complicate international cooperation under Article 6.2.

The initial recommendations or insights will outline key ideas and steps that will shape the Protocol. However, they expect to release the final version only after COP29, containing the outcomes of the summit.

Furthermore, the three organizations will continue to engage and seek feedback from stakeholders when developing the final Protocol. This is to ensure that it can serve as a “practical enabler” and complement Article 6.2 rules that are adopted within the United Nations Framework Convention on Climate Change (UNFCCC).

Additionally, the report calls on governments to take steps to limit regulatory and market risk associated with Article 6.2 transactions. For example, by adopting tools like robust templates for Letters of Authorization.

The final protocol will be ready for implementation in 2025.

Key Components and Timelines for the Article 6.2 Playbook

Image: Snapshot of Article 6.2 Crediting Protocol 2024

article 6.2

Source: Verra

COP29 Milestone – November 2024

At COP29, stakeholders will introduce the initial recommendations for the Article 6.2 Crediting Protocol. These guidelines will offer insights on how to harmonize Article 6.2’s implementation across Independent Carbon Programs (ICPs). The focus will be on providing clear guidance for countries, ICPs, and other involved entities to ensure streamlined and effective climate action.

Starting 2025 – Protocol Development and Implementation

From 2025 onward, the development of the full Article 6.2 Crediting Protocol will begin. This will include a specialized data protocol aimed at standardizing how ICPs report to countries. These protocols may also include recommendations for additional reporting to guarantee the full traceability of credit transactions, linking them to corresponding adjustments where required, based on outcomes from COP29.

Ongoing Engagement and Outreach

Regular communication and collaboration with countries, ICPs, and other stakeholders will continue. The goal is to build awareness, secure support, and deepen understanding of the Article 6.2 Crediting Protocol’s implementation, ensuring widespread engagement and effective adoption.

Carbon Credits vs. ITMOs: Clear Lines for Effective Climate Reporting

The Protocol establishes a clear distinction between two elements: carbon credits and Internationally Transferred Mitigation Outcomes (ITMOs). Carbon credits represent the direct mitigation results achieved by projects and are recorded on Independent Carbon Program (ICP) registries.

In contrast, ITMOs reflect the accounting implications of these credits under Article 6.2 which are tracked on national registries. This approach allows private investors to engage in credit transactions. At the same time, it ensures governments track these transactions in their Article 6.2 reports and helps countries meet their Nationally Determined Contributions (NDCs).

We have read in our previous article about COP29 making a breakthrough in global climate action during its opening day. Nearly 200 governments agreed on a framework under Article 6.4 of the Paris Agreement, backed by the UN to create a stronger demand for carbon credits, especially to fund climate projects in developing nations.

For this case, let’s wait and watch how Article 6.2 unfolds at COP29 to meet the unified goal of Singapore’s National Climate Change Secretariat (NCCS), Gold Standard, and Verra.

Source: Singapore, Gold Standard and Verra Release Initial Recommendations Outlining Progress in the Development of a Carbon Crediting Protocol to Implement Article 6.2 – Verra

Freeland Confirms $2.5 Billion Small Business Carbon Rebate Will Be Tax-Free

Jennifer L
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Freeland Confirms $2.5 Billion Small Business Carbon Rebate Will Be Tax-Free

Deputy Prime Minister and Finance Minister Chrystia Freeland announced that the Canada Carbon Rebate for small businesses will not be taxed.

Freeland clarified this in a statement on X, following concerns from the Canadian Federation of Independent Business (CFIB) that the rebate would be considered a taxable benefit.

Freeland’s post reaffirmed the government’s commitment to providing financial relief for small businesses without adding tax burdens.

The CFIB posted on X that the government will tax the long-awaited $2.5 billion carbon tax rebate for small businesses when it’s issued in December.

CFIB President Dan Kelly criticized the move, comparing it to taxing a tax refund. He stated that this undermines claims of the carbon tax being revenue-neutral, as the government will collect significant corporate tax revenue from the rebate.

The Canada Revenue Agency initially assured CFIB that the rebate would be tax-free, similar to the Canada Carbon Rebate for individuals. 

However, the Department of Finance later declared the small business rebate as taxable, considering it “government assistance.” Kelly argued that calling the rebate government assistance is absurd since it merely returns a portion of the taxes small businesses have paid.

CFIB’s Campaign Pays Off

The carbon tax system has long been criticized for its unfairness to small businesses. After initially promising 10% of total carbon tax revenue as rebates in 2019, the government delayed issuing the funds for five years. 

The rebate only materialized after persistent lobbying by CFIB and widespread support from business owners, opposition leaders, and provincial premiers. 

Adding to the frustration, the carbon tax will increase again on April 1, 2025. Meanwhile, future rebates for small businesses will be slashed from 9% to 5% of total revenue. 

In response, CFIB has sent an open letter to Finance Minister Chrystia Freeland, urging the government to reverse course. Kelly noted that:

“It’s clear why 83% of small business owners now oppose the carbon tax. Delaying, taxing, and reducing promised rebates make it evident that the carbon tax should be scrapped entirely.”

Business owners can estimate their rebates and sign CFIB’s petition to abolish the tax using the CFIB’s online calculator.

The Carbon Tax Controversy Continues

The Canada Carbon Rebate (CCR), formerly the Climate Action Incentive Payment (CAIP), is a tax-free payment that helps individuals and families offset the federal carbon price. It includes a base amount, with an extra supplement for those in small or rural communities.

The rebate amount varies by province and is calculated annually based on projected carbon pricing revenue in each province.

The federal carbon price currently increases gasoline costs by about 17.6 cents per liter, but quarterly rebates help Canadians manage these expenses. The chart below outlines the government’s planned annual carbon price hikes, implemented every April 1st.

Canada carbon price rate increase

Canada’s carbon price is currently set at C$65 per tonne and will rise to C$80 per tonne on April 1. After that, it will increase by C$15 annually, reaching C$170 per tonne by 2030. These incremental hikes aim to reduce emissions while generating revenue to support climate initiatives.

The tax-free Canada Carbon Rebate offers some relief for small businesses facing rising carbon costs. However, with future rebates set to decline and carbon taxes increasing, the debate over the system’s fairness and effectiveness remains heated.

Colombia’s Largest Carbon Project Secures $100M Backing from Temasek-Owned GenZero and Trafigura

Jennifer L
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Colombia’s Largest Carbon Project Secures $100M Backing from Temasek-Owned GenZero and Trafigura

GenZero, a decarbonization-focused investment platform owned by Temasek, and global commodities trader Trafigura have committed over $100 million to Brújula Verde, Colombia’s largest nature-based carbon removal project. Located in the Orinoco River Basin, this project aims to restore land degraded by agriculture and wildfires while generating high-integrity carbon removal credits.

Bringing Degraded Lands Back to Life

The planet is losing about 10 million hectares of forest worldwide every single year. The primary reason is to clear land for agriculture and materials like paper. This deforestation, largely concentrated in tropical forests (96%), contributes to 16% of total tree cover loss. 

Notably, deforestation releases nearly 5 billion tons of carbon dioxide annually, accounting for about 10% of global human-made emissions. This is why most nature-based projects are focusing on restoring degraded forests.

tropical primary forest loss 2002-2022
Source: World Resources Institute

In Colombia, 79,256 hectares were deforested in 2023. The South American nation is covered by over 60 million hectares of forests, with 405,000 hectares of planted forests.

The Brújula Verde project focuses on afforestation and reforestation across 30,000 hectares of degraded land, particularly areas previously used for cattle grazing. The initiative will plant 24 million mixed-species trees, with no plans for commercial harvesting. 

  • By restoring the land, the project could sequester over 20 million tonnes of carbon throughout its lifetime.

The project uses advanced technologies such as high-resolution sensors for accurate carbon monitoring and eDNA sampling to track biodiversity. It also assesses the health of local ecosystems, including their biodiversity, water systems, and social impacts.

Expanding the Project’s Scope

Trafigura initially invested in Brújula Verde in 2023, funding the first phase, which reforested 10,000 hectares. This latest investment, supported by GenZero, will double the project’s size and help it issue its first carbon credits by 2025.

Matthew Nelson, Head of Carbon Investments at Trafigura, highlighted the project’s potential to attract institutional investors and deliver environmental and social benefits. He stated that:

“GenZero’s partnership will enhance the scope and impact of Brújula Verde, bringing local employment alongside environmental and biodiversity benefits to the region, whilst producing high integrity nature-based carbon removal credits.”

Trafigura Sustainability and Climate Initiatives

Trafigura is a leading global commodity trading firm, specializing in the trading of oil, refined products, metals, and minerals. The company plays a vital role in connecting producers with consumers through efficient supply chains. In 2023, Trafigura reported revenues exceeding $315 billion, underscoring its significance in global markets.

The global commodity trading giant is actively pursuing ambitious carbon reduction initiatives, aiming to align with global net-zero targets. It targets a 50% reduction in Scope 1 and 2 emissions by 2032 and operational carbon neutrality by 2050.

Trafigura net zero pathway
Trafigura Net Zero Pathway. Source: Trafigura website

 

The company’s emissions reduction strategy also includes reducing its Scope 3 emissions intensity. These targets are complemented by investments in renewable energy projects, such as solar and wind. The company also invests in the development of low-carbon fuels, including green hydrogen and ammonia.

In 2023, Trafigura launched a $2 billion fund to support its energy transition projects. The company is also advancing its emissions trading activities, helping clients offset their carbon footprints by sourcing high-quality carbon credits. Trafigura’s climate action plan underscores its commitment to decarbonizing its supply chain and supporting global sustainability goals​.

The $100 million investment in Colombia’s Brújula Verde project for nature-based carbon removals​ is the company’s most recent initiative. 

Building High-Quality Carbon Markets

The project aims to contribute to the development of robust carbon markets by delivering high-quality, verifiable carbon removal credits. According to Hoon Ling Min, Director of Investments at GenZero, the project’s focus on soil restoration and native species reintegration ensures the production of top-tier carbon credits. He further noted that:

“The Brújula Verde project marks an important effort in restoring one of Colombia’s most biologically diverse areas. It is a unique project which adopts a restoration bridge concept by reconditioning soil health through reforestation, which enables the reintegration of native species gradually.”

GenZero, a wholly-owned subsidiary of Temasek, is committed to accelerating global decarbonization. The platform invests across three key areas:

  • technology-based solutions,
  • nature-based projects, and
  • carbon ecosystem enablers.

GenZero has already deployed capital in impactful initiatives, including investments in Carbon Capture, Utilization, and Storage (CCUS) and nature-based solutions like sustainable forestry.

The company’s key achievements include reducing carbon emissions through clean cookstove projects in Southeast Asia and supporting the New Forests Tropical Asia Forest Fund 2. Together, these efforts contribute to advancing decarbonization by 2030, aligning with global net-zero goals. 

The Brújula Verde project represents a significant step toward addressing climate change by restoring ecosystems and generating carbon credits. With GenZero and Trafigura’s combined investment, the project will deliver environmental, social, and economic benefits to the Orinoco River Basin while advancing the global carbon market.

Nornickel’s Big Copper Bet: Will It Disrupt China’s Smelting Power?

Saptakee S
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0
Nornickel’s Big Copper Bet: Will It Disrupt China’s Smelting Power?

As reported by Bloomberg, Russia’s largest mining company, Nornickel is negotiating to establish a major copper smelting facility in Fangchenggang, a port city in China’s Guangxi region. The proposed plant will use raw copper concentrate transported from Russia and will have the capacity to refine up to 500,000 tons of copper annually. This project aims to bring the final processing a step closer to China’s vast metal market.

Nornickel’s Push for Joint Ventures in China Amid Western Sanctions

Nornickel is Russia’s leading metals and mining company and the world’s largest high-grade nickel and palladium producer. President, Vladimir Potanin said that the company has been exploring options in copper for joint projects in China since earlier this year.

Strategic ambitions for 2030+ metal production

Nornickel copper

Source: Nornickel

Lately, Western sanctions on Russian commodities have made global trade more difficult. These restrictions limit where and how Russian goods, like metals (aluminum, copper, and nickel) and energy resources, can be sold. As a result, Nornickel has been seeking joint ventures in China since earlier this year even though it is not directly sanctioned by the West.

The mining giant has not disclosed the name of the Chinese partner they are in talks with but they hint at constructing a greenfield plant at the mentioned location.

The smelter project represents a strategic shift for Nornickel, which previously explored partnerships with established Chinese smelters to process Russian concentrate. However, those plans were abandoned in favor of a new, purpose-built facility.

China’s Copper Dominance: Too Much of a Good Thing?

Demand for copper is going high due to renewables, electric vehicles, and grid infrastructure. According to Bloomberg, China’s refined copper output rose by over 5% in 2024 despite certain production curbs. Furthermore, in recent years, the country has rapidly constructed smelters which has led to an increase in its global share for copper.

This burst in capacity is certainly not favorable for the Chinese copper market. Rather it has put tremendous pressure on domestic smelters to slow expansion. This is the outcome of the fierce competition and limited raw materials which have shrunk the profits of the copper industry.

China copper

Source: Bloomberg

Grant Sporre, head of metals and mining research at Bloomberg Intelligence had cautioned that China’s excesses threaten the future of copper refining beyond its borders and operations from Chile to Europe and India could be at risk.

The above analysis is based on the fact that ore supply has intensified as new smelters open in India and Indonesia. India is rapidly building plants to cut down on copper imports and strengthen domestic production. Meanwhile, Indonesia has taken steps to keep its ore resources within the country by curbing exports on which many smelters in Asia rely. This shift forces copper smelters in Asia to secure new sources or risk production slowdowns, further straining the already tight market.

However, interestingly some analysts suggested that state-owned Chinese smelters may handle the market downturn better than global competitors. This is simply because of the cost advantages and more modern facilities the country is equipped with.

Is Nornickel’s Entry A Threat to China’s Copper Giants?

Fangchenggang, where the plant would be built, already has a large smelter with a 600,000-ton capacity and is operated by China’s state-owned Jinchuan Group. On top, this project comes at a time when the country is dealing with an oversupply of copper refining capacity.

As a consequence, Nornickel’s project has met substantial resistance from Chinese copper producers, who feel the extra capacity could harm their domestic output.

China’s refined copper imports from Russia have declined by over one-third year-on-year, totaling about 165,000 tons in the first nine months of 2024. The new smelter, if finalized, would help stabilize the flow of Russian copper into China and offer Nornickel an opportunity to circumvent Western trade restrictions while accessing the world’s largest copper market.

Operational performance

nornickel operational

Source: Nornickel Sustainability Report

Thus, it’s too early to comment on whether Nornickel’s entry will be a boon or a bane for China’s copper market. The study is speculative and the picture will be clear eventually as the mining company reveals more details of their expansion plans.

Expanding on Critical Resources: Alaska’s Role in U.S. Energy Independence

The challenges Nornickel faces in China underscore the broader global race to secure critical mineral resources, especially as countries like the U.S. strive for energy independence. Alaska, a state rich in mineral deposits, is at the center of efforts to boost domestic production of essential metals. Canadian mining company Alaska Energy Metals Corporation (AEMC) is one such player making strides by exploring Alaska’s underground deposits of nickel, a metal critical for energy transition technologies, particularly electric vehicle batteries.

AEMC President Greg Beischer has highlighted the importance of building a sustainable, domestic supply chain for nickel and other key minerals. With AEMC’s flagship project, the 23,000-acre Nikolai deposit, the company aims to help reduce the U.S.’s reliance on imports and support a shift towards a low-carbon economy. The Nikolai deposit holds substantial nickel reserves and also contains copper, cobalt, platinum, and palladium—metals deemed critical by the U.S. Department of Energy.

AEMC’s activities in Alaska mirror Nornickel’s efforts in Fangchenggang. Both companies recognize the growing need to secure a stable supply of strategic minerals, given geopolitical pressures and the global focus on energy security. For AEMC, overcoming challenges posed by fluctuating nickel prices and securing project funding are priorities to advance the Nikolai project, which they aim to assess economically by 2025. This project also aligns with U.S. initiatives to establish local sources for critical minerals, a strategy that could mitigate reliance on overseas production.

Data and Content Sources:

  1. Russian Miner Moves Closer to Deal for New Copper Plant in China – Bloomberg
  2. China’s Copper Production Boom Threatens to Crowd Out the Rest of The World – Bloomberg

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