Rio Tinto Aims 3.5M Carbon Credit Pledge, Eni Leads with Retired Credits

Jennifer L
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Rio Tinto Aims 3.5M Carbon Credit Pledge, Eni Leads with Retired Credits

As corporations worldwide intensify their efforts to combat climate change, commitments to carbon offsetting have become increasingly prominent. In this update, we delve into Rio Tinto’s ambitious pledge to retire 3.5 million carbon credits annually by 2030 and Eni’s remarkable achievement of already reaching this milestone. 

These recent developments in the voluntary carbon market (VCM) have bolstered longer-term confidence in the market’s pivotal role in corporate net zero programs.

Rio Tinto’s Ambitious Carbon Credit Goal

Rio Tinto, the world’s second-largest miner, aims to boost its retirement of carbon credits to 3.5 million annually by 2030. This accounts for roughly 10% of its baseline emissions, according to its recent climate report.

The company plans to intensify its involvement in the VCM to meet its 2030 climate goal. This comes into light after acknowledging the necessity of offsets after likely missing interim 2025 decarbonization targets.

To achieve this, Rio Tinto will conduct feasibility studies in Guinea and South Africa while scaling up activities in priority regions. This effort will particularly focus on nature-based solutions (NBS) pilots and studies. The company pledges to disclose commercial partnerships in the VCM, along with details of its carbon credit sourcing strategy.

With annual scope 3 emissions of 578 million tonnes of carbon dioxide equivalent (tCO2e), Rio Tinto’s emissions in scopes 1 and 2 remained relatively stable at 32.6 million tCO2e in 2023.

The company has set targets of 15% reduction by 2025 and 50% by 2030 for these emissions.

Rio Tinto 2030 emissions reduction pathway

From an initial aim of generating 1.7 million tonnes yearly by 2030, the miner plans to retire about 3.5 million carbon credits annually over the next decade.

Carbon credit procurement, mainly through Australian Carbon Credit Units (ACCUs), is expected to rise to around 1.7 million tCO2e by the end of the year.

The company aims to commit at least 500,000 hectares of land to high-integrity NBS programs globally by 2025.

Total decarbonization spending for 2024 is estimated at $750 million, including capital and operational expenditures, offsets, and Renewable Energy Credits (RECs). However, Rio Tinto revised its expected expenditure for meeting 2030 climate targets downward to $5-6 billion from $7.5 billion.

To lower emissions, Rio Tinto plans to increase biofuel use, procure renewable energy, enhance smelter efficiency, and introduce more LNG vessels. The mining giant will also focus its carbon credit investments in regions with substantial emissions, such as Australia and North America. Their strategy entails transitioning upstream to co-developing or co-financing carbon offset projects, ensuring long-term access to high-quality credits. 

Eni’s Remarkable Feat: 3.5M Retired Credits 

While the Australian miner targets to retire 3.5 million carbon credits, the Italian oil and gas producer, Eni SpA has already achieved it. Eni retired a total of about 3.5 million carbon credits from various REDD+ projects. These include the following:

  • Mai Ndombe REDD+ project (VCS934): 1,058,000 v2020, 600,000 v2019, 600,000 v2018, and 269,000 v2017 credits.
  • Ntakata Mountain REDD project (VCS1897): 650,000 credits
  • Kulera Landscape REDD+ project (VCS1168): 269,000 credits

The energy company aims to reach net zero emissions by 2050. For Eni, net zero means “achieving carbon neutrality of processes and products”. 

The company’s interim targets include achieving net zero from exploration activities by 2030 and from operations by 2035 (Scope 1+2). Ultimately, they aim to reach Net Zero for all greenhouse gas emissions, including Scopes 1, 2, and 3 by 2050, as shown below. 

ENI SpA net zero pathwayTo hit those goals, Eni employs various decarbonization measures in a comprehensive industrial transformation plan involving the entire company. Key components include decarbonizing the upstream portfolio, expanding into biofuels, renewables, and circular economy sectors, and providing new energy solutions. 

In addition to Eni’s emissions reduction plan, they have initiated Carbon Offset Solutions projects. They aim to safeguard biodiversity, sustainably manage land through ecosystem restoration, and compensate for residual emissions that cannot be mitigated.

Signs of Market Resilience? New Credits Listed on CBL

These announcements occurred during a week marked by active corporate interest and discussions but relatively light carbon credit trading volumes. The total volume on the CBL platform was 123,721 tons, with nature-based carbon credits comprising the majority. 

Notably, though, Xpansiv’s weekly environmental markets report revealed a significant number of new voluntary credits posted to the CBL central limit order book. That includes almost 100,000 I-RECs alongside various nature and technology carbon credits. 

The offers listed below are firm, yet subject to execution, modification, or cancellation.

New voluntary carbon credits listed on Xpansiv CBL
Source: Xpansiv update

Nevertheless, that bunch of new voluntary credits listed and increased retirement plans indicate continued interest and participation in the market. More interestingly, does that mean carbon prices could rebound after plummeting in the last two years? This is something to keep a close eye on.

Singapore’s Carbon Credit Market Surging At 21% CAGR

Saptakee S
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Singapore’s Carbon Credit Market Surging At 21% CAGR

Late last year, the Ministry of Sustainability, and the Environment (MSE) and the National Environment Agency (NEA) rolled out the Eligibility Criteria under the International Carbon Credit (ICC) Framework. Under Article 6 of the Paris Agreement, Singapore’s ICC Framework fosters global collaboration to attain climate sustainability objectives. Effective cooperation from international carbon markets will further boost Singapore’s goal to achieve net zero emissions by 2050.

In 2023, the market size of Singapore’s Carbon Credit reached US$ 14.5 million. Current industry data shows that this is expected to jump to US$ 55.14 million by 2030, reflecting a compound annual growth rate (CAGR) of 21% from 2023 to 2030.

Take a quick look at the chart to know the market size and the major players.

singapore carbon credit players

Source: Coherent Market Insights

Moving on, we will deep dive into the analysis of the Singapore Carbon Credit Market, exploring its current status, key trends, and future prospects.

Singapore Carbon Credit Market – A Current Analysis

In December 2021, The Singapore Finance Minister Lawrence Wong stated:

“In many ways, we believe we are well-positioned to serve as a carbon services and trading hub for Southeast Asia and the Asia Pacific, given our foundation as a regional centre for professional services, commodity trading and financial services”.

He further added that the country is already home to more than 70 carbon services and trading firms that use Singapore as a base to serve the region and engage in carbon market activities.

Key factors fueling the rise of Singapore’s carbon market are primarily attributed to the following:

  • increasing awareness on climate change
  • enforcement of government regulations
  • and a focus on corporate sustainability commitments

Singapore relies heavily on renewable energy projects like solar, wind, and hydropower to propel its carbon credit demand. The market dynamics show that the Singapore government has implemented several initiatives to achieve its projected value of its domestic carbon credit market.

Government Regulations: The Carbon Pricing Act

The Carbon Pricing Act mandates the disclosure of greenhouse gas (GHG) emissions and imposes a tax linked to these emissions. Its objective is to incentivize businesses and industries to actively diminish their carbon footprint. Early in 2019, a carbon tax was set at $5 per tonne of CO₂ equivalent (tCO₂e) but to support the net-zero target, the tax is increased to S$25/tCO₂e in 2024 and 2025, and expected to rise to S$45/tCO₂e in 2026 and 2027 and S$50- S$80 by 2030.

The taxation system applies to all businesses emitting 25,000 tonnes or more of greenhouse gas each year. This further aligns with the estimated target to achieve $55.14 Million by 2030. Not only this, the government also focuses on Energy Efficiency Programs to encourage use of clean and renewable sources of energy.

And according to recent reports, the government has set a target to cut down 50% of carbon dioxide emissions by 2030 and achieve net zero emissions at the earliest by 2050.

Further Reading: Singapore Sets Higher Standards for International Carbon Credits

ESG Policies towards Decarbonization Commitments

The long term sustainability goals are shaped by an organization’s individual goals and values and geographic context. Priority is given to energy efficient cost savings, energy security, and advance to decarbonization. This is a collective commitment of the corporate sector to achieve net zero by 2050.

As per NCCS Singapore, the city currently hosts over 70 organizations offering carbon services, marking the highest concentration in Southeast Asia. Global corporations and local settings are investing resources to establish and fortify their carbon services platforms in the country.

One notable effort was put forward by GoNetZero who launched a one-stop digital solution for renewable energy certificates, carbon credits, and carbon management. Launched with support from EDB’s Corporate Venture Launchpad programme, GoNetZero secures partnerships with big and small businesses (renewable energy companies), helping them buy carbon credits and offer innovative data driven solutions to track their net zero efforts.

To name a few, KPMG, Sembcorp Industries, Microsoft, Global Centre for Maritime Decarbonization (GCMD), etc. play a significant role towards decarbonization in Singapore.

The following infographic clearly shows how technology can leverage ESG policies:

Source: sganalytics.com

Singapore’s Robust Carbon Trading Ecosystem

Firstly, Singapore’s dedication to environmental sustainability and its initiatives to advance carbon neutrality drives it to be in the mainstream market of carbon credit trading. Simply put, solid backing from the government creates a viable trading environment for carbon exchange.

With the implementation of the National Climate Change Strategy known as the Singapore Green Plan 2030, the city is setting standards high for a favorable carbon trading market.

Second, prominent market leaders in Singapore’s carbon credit market are Climate Impact X, Carbon Credit Capital, Carbonbay, South Pole, and Triple Oxygen. For example, in September 2022, Carbonbay introduced a revolutionary carbon trading and offsetting platform tailored for the Asia Pacific markets. This cutting-edge platform enables organizations to acquire carbon credits while actively participating in the advancement of regional offset projects.

The existence of these big players in Singapore offers a multitude of possibilities to buy, sell, and store carbon credits, thereby reinforcing their carbon ecosystem.

Live Streaming: The easiest way to promote carbon credit market

Live streaming can potentially contribute to the promotion and understanding of the carbon markets. It’s a direct interactive platform for analysts to discuss market trends, and policy changes, and provide insights into carbon credit prices. Given the dynamic nature of carbon markets, live discussions on policy developments, regulatory changes, and government initiatives can keep the audience informed about the evolving landscape.

Many tech companies and start-ups have already begun hosting virtual conferences or events related to the carbon market. This provides a platform for networking, collaboration, and exchange of ideas among participants.

With all said and done, Singapore is strategically positioned to emerge as a central hub for carbon services and trading in both Southeast Asia and the wider Asia Pacific region. Therefore, the goal to achieve the target of $55.14 million by 2030 with a 21% CAGR is very likely attainable.

Read More: Sylvera and Singapore Forge Path Towards High-Quality Carbon Credits

Toucan Launches World’s First Liquid Market for Biochar Carbon Credits

Jennifer L
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Toucan Launches World’s First Liquid Market for Biochar Carbon Credits

Digital platform Toucan.earth is set to launch the world’s inaugural ‘liquid’ market for biochar credits, in response to escalating interest from carbon credit buyers and developers. 

Toucan creates a digital infrastructure for climate finance, simplifying the process of buying, selling, and retiring carbon credits.

Why Biochar Carbon Removal Credits?

Biochar, a type of charcoal, is created through the pyrolysis process of organic matter, typically derived from plant-based sources such as wood, crop residues, or manure. This process allows biochar to store carbon for longer periods while offering multiple co-benefits beyond carbon removal. 

Such is the reason why biochar has been the go-to approach companies are looking for in their carbon removal solutions. The World Economic Forum calls it a “carbon removal’s jack of all trades”.

Biochar carbon removal process
Source: Carbonfuture

For WEF, Biochar Carbon Removal (BCR) isn’t just optional for achieving net-zero targets – it’s critical. It can remove between 0.44 to 2.62 gigatons of CO2 annually, addressing up to 35% of the Carbon Dioxide Removal (CDR) requirements in scenarios aimed at stabilizing the climate. 

Notably, 94% of delivered carbon credits in 2023 are biochar while only receiving about 12% of CDR funding (CDR.fyi). Plus, biochar comes at a considerably lower cost compared to other durable CDR approaches. On average, BCR costs $179 per ton of CO2, significantly lower than the average price of $388/ton across all CDR methodologies.

Biochar Unleashes Nature’s Carbon Removal Power

Moreover, demand for biochar carbon removal credits has surged. According to the International Biochar Initiative, the industry’s main trade group, there would be a potential 6-fold increase in biochar material output within the next 2 years.

The group also found out that biochar can potentially eliminate up to 6% of global emissions annually. That’s equivalent to about 3 billion tonnes of CO2 of the total emissions produced by 800+ coal-fired power plants in a year. 

BeZero, a credit rating platform, recently reaffirmed its confidence in BCR by awarding an A rating to a BCR project. This marks BeZero’s inaugural evaluation of CDR credits, highlighting the increasing recognition and reliability of BCR within the removal landscape.

However, the absence of a liquid market, one that is widely traded, has impeded many investment opportunities in BCR.

Within the broader voluntary carbon market, standardized contracts on exchanges have lost momentum due to a significant price decline. Meanwhile, over-the-counter trading for individual projects remains active but highly customized. 

This VCM issue is what Toucan addresses as emphasized by its founder, Raphaël Haupt, saying: 

“Everyone is trying to understand how we can have the best of the standardized and the OTC worlds…The pool is our answer.”

Toucan gained prominence in 2021 by introducing ‘tokenization‘. It’s a digital process that transforms carbon offsets into assets transferable on the blockchain, facilitating their use in various financial applications.

By seamlessly integrating with existing registries, Toucan moved over 20 million carbon offset credits into the crypto space within weeks. It is further fueled by a growing interest in the energy transition from the crypto community.

However, amid widespread adoption, concerns arose regarding the quality of transferred credits. 

CHAR: Transforming Carbon Trading with Crypto Innovation

Subsequently, the practice was prohibited by the US-based registry Verra, despite the enthusiasm for crypto assets and brokers’ profit motives.

Last year, Toucan established a seamless connection with the Puro.earth registry, facilitating credit transfers between their platforms. 

The digital platform has introduced an additional screening process for Puro.earth projects based on its criteria. From that, Toucan is on the brink of launching a marketplace for biochar carbon removal credits sourced from those projects. 

  • Toucan believes that this new crypto-based carbon platform called CHAR would give buyers a low-risk process to acquire BCR credits. 

CHAR by Toucan serves as a pivotal infrastructure facilitating the automated, on-demand trade of biochar carbon credits. It consolidates pre-screened credits sourced from Puro.earth called “CORCs” onto a unified platform under the banner of CHAR. 

CHAR’s streamlined access to capital aligns with Toucan’s mission to alleviate significant supply bottlenecks prevalent across CDR initiatives. It aids existing and emerging projects within the nascent biochar market to liquidate their credits to finance their expanding operations.

A sneak peak into CHAR by Toucan
A sneak peak into CHAR by Toucan

 The pool will establish a unified price for BCR credits accessible online round the clock, enhancing transparency within the industry. A sale within Toucan’s CHAR pool will automatically trigger a payment to the original project developer in the form of ‘royalties’, offering them potential upside if a project experiences high trading activity.

The company has enlisted its initial group of project developers, including US-based Oregon Biochar Solutions, Quebec-based GECA Environnement, Exomad from Bolivia, American Biocarbon, and BC Biocarbon from Canada.

Thanks to the direct integration with Puro’s registry, buyers will also have the flexibility to permanently retire the credits, sell them into the pool, or transfer them back into their Puro account.

Toucan.earth’s innovative CHAR platform heralds a new era for carbon markets, providing a liquid marketplace for biochar credits. With surging demand and the potential to offset billions of tons of CO2 emissions annually, the crypto trading platform streamlines access to capital, fostering growth in the biochar industry while advancing carbon dioxide removal efforts.

Spectaire Holdings’s Innovative Tech Helps Truckers Generate Carbon Credits

Jennifer L
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Spectaire Holdings’s Innovative Tech Helps Truckers Generate Carbon Credits

Spectaire Holdings Inc., a global leader in air quality monitoring and emissions reduction technologies, has announced a significant development in response to the mounting financial and environmental challenges posed by escalating carbon taxes in Canada. 

Spectaire specializes in delivering effective solutions that help companies reduce their carbon footprint while focusing on creating high-quality carbon credits.

The company proudly unveils the successful deployment of its groundbreaking AireCore technology within several prominent Canadian trucking fleets. This strategic initiative aims to offer a sustainable solution that aligns with national objectives for carbon emission reduction. It also provides a means to alleviate the economic burden imposed by tax legislation on the trucking industry.

Driving Change: Spectaire’s AireCore Revolutionizes Carbon Monitoring

The trucking sector stands as a vital pillar in Canada’s transportation supply chain. With an extensive road network spanning the nation, trucks serve as the primary mode of transportation for shipping goods across the country. Moreover, the trucking industry plays a pivotal role in facilitating trade with the United States, Canada’s biggest trading partner.

In 2021, the transportation and warehousing sector holds significant importance within the country’s economy, contributing 3.6% to its total gross domestic product (GDP) and employing over 5.2% of its workforce. Within this GDP sector, truck transportation offers the predominant mode of goods movement, constituting over 28% of the sector’s activity.  

Distribution of the Transportation and Warehousing Sector’s 3.6% Share of Canada’s GDP

Canada transport and warehousing sector share of GDP
Source: Library of Parliament

However, the trucking industry is also subject to Canada’s carbon pricing regulations. That could be due to the fact that within the transportation sector, recent data on Canada’s overall emissions indicates a persistent upward trend in greenhouse gas (GHG) emissions from medium- and heavy-duty vehicles (MHDVs).

  • These emissions account for 37% of total transportation emissions.

The country’s largest trucking alliance, the Canadian Trucking Alliance, has called on the government to suspend excise tax on diesel. CTA’s President Steve Laskowski remarked they’re doing their best to advance decarbonization in the sector. Still, the diesel engine remains to be the major method in the sector. 

In the U.S., trucking companies are starting to shift to hydrogen fuel for long-haul trips. Companies like Nikola are investing in hydrogen technology to overcome infrastructure challenges and meet the growing demand for low-carbon energy. They believe that a revolution is underway where hydrogen holds the promise of a sustainable energy transition.

In Canada, CTA responded to the government’s proposal to provide a 3-year carbon tax exemption for home heating oil in specific regions, the alliance is calling for trucking-related adjustments to federal carbon pricing, too.

RELATED: Saskatchewan to End Carbon Tax on Natural Gas & Electric Heating

Addressing the Carbon Tax Surge in Trucking

As of April 2023, Canadian trucking companies experienced a notable surge in carbon pricing – a 30% increase to $65/tonne. This adjustment translates to an approximate additional carbon tax payment of 17 cents per liter of diesel fuel.

Susan Ewart, Executive Director of the Saskatchewan Trucking Association, emphasized the tangible impact of the carbon tax on truckers. She noted that a driver operating a truck equipped with a 300-gallon tank would incur an extra cost of around $193 per fill. With an average of 106 fills annually, Ewart estimated the annual carbon tax payments per truck to exceed $20,000.

Spectaire’s approach aims to facilitate industry-wide emissions reductions, aligning with the increased federal and provincial carbon taxes across Canada. The deployment of AireCore underscores Spectaire’s dedication to delivering innovative solutions for the environmental and economic challenges confronting the sector.

Brian Semkiw, CEO of Spectaire, acknowledged the financial pressures faced by the trucking industry. This is where AireCore’s ability to measure tailpipe emissions during transit offers a solution. 

The technology’s capability enables companies to mitigate their emissions while providing financial relief through carbon offset programs and enhanced tax reporting mechanisms.

Watch here how the technology is installed and works. 

Spectaire allows truckers to create technology-based carbon credits with both permanence and additionality with AireCore.

Clearing the Air and Transforming Trucking Industry Sustainability

Danny Bucciarelli, General Director of G&S Direct, emphasized the operational and financial advantages provided by AireCore. He further highlighted that.

“Our collaboration with Spectaire through AireCore not only signifies our dedication to environmental stewardship but also enhances our competitive positioning, facilitates potential tax benefits, and enables the generation of carbon credits.”

Carbon credits are integral to the emissions reduction infrastructure, but the market faces challenges due to insufficient precision and credit auditability. AireCore addresses this issue by enabling precise auditing of each credit, and when and where the reductions happened.

As such, it allows stakeholders to track emission changes and what specific gases were impacted. Management anticipates that the specificity and traceability of Spectaire’s carbon offsets will provide consumers with lasting value through carbon credits supported by measured results.

Spectaire emphasized the shared commitment to leveraging cutting-edge technology for meaningful emissions reduction, citing AireCore’s capability to provide precise, actionable emissions data as a cornerstone of its sustainability strategy within the trucking industry.

The introduction of AireCore by Spectaire represents a significant advancement at the intersection of technology, environmental stewardship, and economic strategy within the Canadian trucking industry. The initiative highlights the innovative capabilities of companies in the sector. More importantly, it establishes a new benchmark for how the sector can effectively address carbon tax challenges and environmental compliance.

Oxford Revises Principles for Net Zero Aligned Carbon Offsetting

Jennifer L
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Oxford Revises Principles for Net Zero Aligned Carbon Offsetting

A team of Oxford University researchers has released an updated version of the flagship guidance on credible and net zero-aligned carbon offsetting. First published in 2020, this guidance for high-integrity carbon credits has been widely adopted by hundreds of organizations.

The revised ‘Oxford Offsetting Principles‘ offer clarifications to the original text, incorporating the latest scientific findings while warning that the vast majority of offsetting approaches are not delivering on their promises. 

They call for a significant course correction in carbon markets, emphasizing the need for offsetting that align with efforts to reach the Net Zero scenario. 

Unveiling the Flaws: Why Current Offsetting Approaches Fall Short 

Injy Johnstone, Research Associate at the Oxford Sustainable Finance Group in the Smith School of Enterprise and the Environment, highlights the shortcomings of current offsetting approaches saying:  

“The vast majority of current offsetting approaches are not getting us any closer to net zero emissions, and trust in the concept of ‘offsetting’ has been so badly damaged that some organizations are moving away from using the term at all.”

This situation prompted the revised version of the guidance. It provides essential guide for entities to develop offsetting strategies that truly contribute to achieving net zero emissions by 2050 or sooner. 

Amid mounting pledges to reach net zero, companies have increasingly turned to purchasing carbon credits to offset their carbon footprint. However, the market is currently facing significant challenges and increased scrutiny.

Carbon price have plummeted immensely. NGEO (Nature-Based Carbon Offsets) price steeply declined by 81% in trading in December last year. This sharp decline reflects the current breakdown in carbon offset markets and the erosion of confidence in them.

As companies grapple with the imperative to reduce their environmental impact, addressing the challenges facing carbon markets becomes increasingly urgent. This is where the updated Oxford carbon offsetting guidance comes in very handy. 

The guide focuses on four key elements for credible net zero aligned-offsetting, explained in details below.

The Updated Oxford Offsetting Principles

Principle #1: Cut emissions as a priority, ensure the environmental integrity of credits, and regularly revise as best practice evolves.

This principle, outlined in the figure below, presents a decision tree for users considering carbon offsetting. It’s important to note that these approaches are not strictly mutually exclusive or sequential. 

Oxford offsetting principle #1
Principle 1 decision tree

Organizations have the flexibility to pursue multiple strategies, prioritizing emissions reduction efforts while also supporting high-integrity, net zero-aligned offsetting projects. Strategies can be continuously updated and refined as new solutions emerge. 

Principle #2. Transition to carbon removal offsetting for any residual emissions by the global net zero target date

Relying solely on carbon credits from avoidance or reduction projects is inadequate as a long-term strategy to achieve net zero. Any remaining residual emissions at the net zero target date must be counterbalanced by carbon removals. 

The second principle emphasizes that it’s imperative for organizations to explicitly define their carbon removal targets and regularly reassess them to align with actual progress in emission reduction efforts.

Oxford offsetting principle 2
Illustrative IPCC Pathways. Adapted from Figure 3.7 from IPCC WG3, showing different scenarios for meeting net zero in which emphasis is on negative emissions (IMP-Neg), renewables (IMP-Ren), or lowering demand (IMP-LD). These demonstrate that the global demand for offsetting capacity is much smaller in scenarios that maximise demand reduction and renewables. This is important because the global capacity for effective and affordable net zero-aligned removal and storage capacity is limited and uncertain, which raises concerns about well-resourced emitters taking up the available supply

Principle #3. Shift to removals with durable storage to compensate residual emissions  

The third principle underscores the critical importance of storing carbon in a manner that ensures permanence and minimizes reversal risk.

Recognizing the inherent risk of carbon unintentionally released back into the atmosphere, any strategy aimed at achieving net zero emissions must acknowledge and address this risk accordingly. Different forms of carbon storage, including biological and geological methods, exhibit varying characteristics depending on their deployment and management.

The figure below presents an example of a Net Zero Aligned Offsetting Portfolio. It provides an illustrative breakdown of the proportion of various project types useful to address residual emissions from 2020 to 2050. 

Oxford offsetting principle #3This depiction reflects what an outcomes-based portfolio on the path to net zero could look like, not a current market representation.

Principle #4. Support the development of innovative and integrated approaches to achieving net zero 

This last principle underscores the importance of proactively stimulating the development of carbon removals. This principle emphasizes that actors should not solely rely on offsetting via carbon credits but should explore a range of levers to drive progress in this area. 

It advocates for entities to signal and commit today to procuring carbon removals to offset residual emissions. This may involve advanced market commitments or other mechanisms aimed at fostering the development/deployment of carbon removal technologies. 

Large companies are investing in various carbon removal projects to help scale it up. Tech giants, like Microsoft, Amazon, and Apple, are in the frontline, pre-purchasing carbon removal credits to develop novel CDR methods.

Nature and Governments Have Roles to Play 

The revision also underscores the important role of nature-based solutions as part of carbon removal approaches. It calls for mitigation efforts to extend beyond organizational net zero targets. 

Overall, the revised Oxford Offsetting Principles offer a comprehensive framework for offsetting strategies grounded in the latest scientific evidence. The authors further emphasize the urgent necessity for regulatory intervention. 

They assert that governments, standard setters, and other stakeholders must swiftly implement regulations to guide the market away from low-quality credits and low-integrity offsetting strategies. This regulatory action is crucial to ensuring the integrity and effectiveness of carbon offsetting practices to meet global climate goals.

Carbon Market Momentum: CIX’s $22M Raise and Bain & Company’s Climate Leadership

Jennifer L
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Carbon Market Momentum: CIX’s $22M Raise and Bain & Company’s Climate Leadership

As the world grapples with the urgency of climate action, two significant developments in the voluntary carbon market (VCM) signal a positive shift towards sustainability. With Climate Impact X securing substantial funding and Bain & Company earning a prestigious carbon integrity claim, the momentum for carbon market integrity and climate leadership is substantial.

Leading the Charge in Carbon Credit Market Confidence

Temasek-backed carbon exchange Climate Impact X (CIX), a global marketplace for carbon credits, received a fresh capital injection of S$30 million or over US$22 million.

The funding round was led by Mizuho Financial Group with S$20 million. It is also joined by Chartered Bank, DBS Bank, and the Singapore Exchange (SGX).

At the core of CIX’s operations lies its commitment to fostering confidence in the carbon credit market. Founded in 2021 by a coalition including DBS Bank, SGX, Standard Chartered, and Temasek’s GenZero, CIX has swiftly emerged as a leading figure in this arena.

With a suite of services encompassing the CIX Marketplace, CIX Auctions, CIX Exchange, CIX Intelligence, and CIX Clear, the organization is dedicated to catalyzing transactions, facilitating price discovery, and enhancing liquidity for carbon credits.

Since its inception, Singapore-based CIX has made remarkable progress. It has notably surpassed the trading and clearance of over 1 million tonnes of carbon credits through its exchange. 

The carbon trading company also specializes in standardized spot contracts and specific carbon projects. It has facilitated transactions totaling more than 2 million tonnes of carbon credits across its platforms to date.

In July 2022, CIX partnered with Nasdaq to help scale up the global carbon market. Their partnership enables CIX to leverage Nasdaq’s technology to power its spot exchange for quality carbon credits. 

Bain & Company Driving Climate Leadership

In the U.S., Bain & Company has made history by becoming the first organization to achieve a ‘carbon integrity platinum claim’ under the VCMI standard’s CCP. 

A global consultancy firm Bain & Company is the first organization to make a Carbon Integrity Platinum Claim. The Claim is the highest Claim of the Voluntary Carbon Market Integrity Initiative (VCMI) standard’s Claims Code of Practice (CCP).

The Claims Code enables companies to make Carbon Integrity Claims, showcasing their commitment to climate action. These claims come in three tiers – Silver, Gold, and Platinum – allowing companies and non-state actors to demonstrate their efforts in surpassing science-aligned emissions reductions. 

VCMI Carbon Integrity Claims type

Leveraging high-quality carbon credits, making a claim signifies a proactive contribution to climate action critical for net zero emissions.

The prestigious claim signifies Bain’s commitment to offsetting its greenhouse gas emissions by purchasing and retiring high-quality carbon credits. The credits are equivalent to or exceeding 100% of the company’s remaining emissions.

In achieving this platinum claim, Bain & Company demonstrates significant internal decarbonization efforts and substantial investment in high-integrity carbon credits.

The VCMI, one of the two primary ‘meta-standards’ in the VCM, aims to become the leading benchmark for market demand. The CCP sets out four key criteria for companies with emission reduction targets and carbon credit procurement strategies.

Redefining Carbon Credit Quality

Mark Kenber, executive director of VCMI, hails Bain’s achievement as a crucial step in promoting integrity within the VCMI. He specifically said:

“Their role as a first mover paves the way for other companies to step up, and demonstrates true climate leadership. This… shows how corporate decarbonization and the use of VCMs can complement each other to accelerate the transition to net zero.”

In response, Sam Israelit, Chief Sustainability Officer at Bain & Company, underscores the company’s commitment to reducing its climate impact. The consultancy expert aims to slash scope 1 and 2 emissions by 30% and reduce business travel emissions by 35% per employee by 2026.

High-quality credits, as defined by VCMI, adhere to the Integrity Council for Voluntary Carbon Markets (IC-VCM)’s Core Carbon Principles (CCP). These principles were introduced to establish a comprehensive quality threshold for carbon credits and restore investor confidence amid price volatility and negative media coverage. 

The ICVCM is currently reviewing carbon credit categories and programs, with results expected soon. Earlier this month, the carbon standard setter announced plans to assess more than 100 carbon credit methodologies for adherence to its CCPs.

In the interim, companies making VCMI claims can either retire credits eligible under the International Civil Aviation Organization’s CORSIA offset scheme or disclose their due diligence processes aligned with all 10 core carbon principles.

The infusion of funds into Climate Impact X and Bain & Company’s pioneering carbon integrity claim underscores the growing momentum in the voluntary carbon market towards transparency, credibility, and climate action. These developments herald a promising future where businesses are pivotal in driving meaningful emissions reductions and environmental stewardship.

The Carbon Countdown: AI and Its 10 Billion Rise in Power Use

Jennifer L
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The Carbon Countdown: AI and Its 10 Billion Rise in Power Use

In a frenzied race against a looming carbon time bomb, tech behemoths are grappling with the environmental ramifications of their sprawling data centers worldwide. These data centers, essential for powering today’s digital infrastructure, have emerged as greedy consumers of energy, particularly as the demand for artificial intelligence (AI) continues to skyrocket. 

As AI becomes increasingly integral to various industries, the energy demands of data centers are exploding. This, in turn, calls for urgent action to mitigate their massive environmental footprint.

AI’s Energy Appetite: Unleashing Data Center Emissions 

Between 2010 and 2018, there was an estimated 550% increase globally in the number of data center workloads and computing instances.

Data centers and transmission networks collectively contribute up to 1.5% of global energy consumption. They emit a volume of carbon dioxide comparable to Brazil’s annual output. 

Hyperscalers like Google, Microsoft, and Amazon have committed to ambitious climate goals, aiming to decarbonize their operations. Hyperscalers are large-scale, highly optimized, and efficient facilities. 

However, the proliferation of AI poses a huge challenge to these objectives. The energy-intensive nature of graphics processing units (GPUs), essential for AI model training, magnifies the strain on energy resources. 

According to the International Energy Agency (IEA), training a single AI model consumes more power than 100 households in a year.

Per another source, the amount of computing power needed for AI training is doubling every 6 months. Fifty years ago, that happened every 20 months, as seen in the chart below. 

amount of compute, FLOP, to train AI system

More alarmingly, in just over a decade, the computing power used for AI model development has increased by a staggering factor of 10 billion. And it would not slow down.

Industry estimates forecast that power use can go up to 13% by 2030 while the share of global carbon emissions would be 6% for the same year.

data centers carbon footprint

The Cost of AI: Balancing Power and Progress

The climate risks posed by AI-driven computing are profound, with Nvidia CEO Jensen Huang highlighting AI’s significant energy requirements. Jensen projected a doubling of data center costs within 5 years to accommodate the expanding AI ecosystem.

For instance, compute costs for training advanced AI models like GPT-3,  boasting 175B parameters, and potentially GPT-4 are predictably substantial. The final training run of GPT-3 is estimated to have ranged from $500,000 to $4.6 million. 

Training GPT-4 could have incurred costs in the vicinity of $50 million. However, when factoring in the compute required for trial and error before the final training run, the overall training cost likely exceeds $100 million.

On average, large-scale AI models consume approximately 100x more compute resources than other contemporary AI models. If the trend of increasing model sizes continues at its current pace, some estimates project compute costs to surpass the entire GDP of the United States by 2037.

According to computer scientist Kate Saenko, the development of GPT-3 emitted over 550 tons of CO2 and consumed 1,287 MW hours of electricity. In other words, these emissions are equivalent to those generated by a single individual taking 550 roundtrip flights between New York and San Francisco.

Not to mention that such figures account for the emissions directly associated with developing or preparing the AI for use. Other sources of emissions are not included. 

Solutions to Reduce Data Center Carbon Footprints 

To mitigate data center emissions, industry players have pursued various strategies, including investing in renewable energy and using carbon credits. 

While these initiatives have yielded some progress, the escalating adoption of AI requires additional measures to achieve meaningful emission reductions.

Google’s load-shifting strategy exemplifies a promising approach to addressing this challenge. It synchronizes data center operations with renewable energy availability on an hourly basis.

By deploying sophisticated software algorithms, Google identifies regions with surplus solar and wind energy on the grid and strategically ramps up data center operations in these areas. 

  • The logic behind the approach is simple: Reduce emissions by upending the way data centers work. 

The tech giant has also initiated the first initiative to align the power consumption of certain data centers with zero-carbon sources on an hourly basis. The goal is to power the machines with clean energy 24/7.

Google’s data centers are powered by carbon-free energy approximately 64% of the time, with 13 regional sites achieving an 85% reliance on such sources and seven sites globally surpassing the 90% mark, according to Michael Terrell, who spearheads Google’s 24/7 carbon-free energy strategy.

Cirrus Nexus actively monitors global power grids to identify regions with abundant renewable energy. Then they strategically allocates computing loads to minimize carbon emissions. By leveraging renewable energy sources and optimizing data center operations, significant reductions in carbon emissions were achieved. 

The company was able to cut computing emissions for some workloads and the clients by 34%. It uses cloud services offered by Amazon, Microsoft, and Google. 

Navigating the AI-Driven Energy Crisis

In recent years, both Google and Amazon have experimented with adjusting data center usage patterns. They do it both for their internal operations and clients using their cloud services. 

Nvidia offers another solution to this AI-driven power crisis – green computing accelerated analytics technology. It can slash computing cost and carbon footprints by up to 80%. 

Implementing load shifting necessitates collaboration between data center operators, utilities, and grid operators to mitigate potential grid disruptions. Still, this strategy holds immense promise in advancing sustainability goals within the data center industry.

As the demand for AI soars, addressing the energy requirements of data centers is paramount to mitigating carbon emissions. Innovative strategies such as load shifting offer a pathway towards achieving carbon neutrality while ensuring the reliability and efficiency of data center operations in an increasingly AI-driven landscape.

Indigo Ag Sets Record with Third Carbon Crop, Sequestering Over 163K Tons of CO2

Jennifer L
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Indigo Ag Sets Record with Third Carbon Crop, Sequestering Over 163K Tons of CO2

Indigo Ag, a pioneer and trusted ally in sustainable agriculture, has announced the successful completion of its third carbon crop, solidifying its position as an industry leader in carbon programs. 

With 163,048 carbon credits produced, Indigo Ag stands as the sole company to accomplish three carbon harvests at scale. The program demonstrates continued growth, marked by year-over-year increases in the number of participating farmers, fields filed, and credits generated.

Harvesting Hope: Farmers Lead the Charge in Carbon Sequestration 

According to the Environmental Protection Agency, agriculture is responsible for releasing 10% of the U.S. greenhouse gas emissions in 2021. But the sector also has the means to remove and sequester those planet-warming emissions.

Crops, grasses, and other plants play a crucial role in sequestering CO2 from the air and with effective soil carbon capture and farming practices, they have the capacity to effectively draw down CO2.

The following chart illustrates the potential of various carbon farming practices in cutting emissions by decade until 2050.

carbon farming practices reducing emissions projection

Since its launch in 2019, farmers engaged in Indigo Ag’s carbon program have sequestered or abated nearly 300,000 metric tons of carbon dioxide. The corresponding carbon credits are rigorously verified and issued by the Climate Action Reserve, one of the leading carbon registries globally. 

Each metric ton of sequestered CO2 generates one carbon credit.

To date, farmers participating in Indigo Ag’s sustainability initiatives, Carbon and Sustainable Crops, have collectively earned over $12 million. Payments for the third carbon crop are scheduled for March 2024.

Indigo’s carbon farming program offers companies seeking a market-based approach to capture and store carbon in soils, a credible, nature-based climate solution. The generated credits represent the efforts of farmers who have embraced Indigo’s climate-friendly farming practices, known as regenerative farming. Examples include planting cover crops and reducing soil tillage.

  • The program is serving 5.5 million enrolled acres, 2,000 enrolled farmers, and issued 133,000 carbon credits.  

Dean Banks, CEO of Indigo Ag, remarked:

“Our record-breaking third carbon crop reinforces that farmers can earn money and have a real and measurable impact leveraging agricultural soil as one of the world’s largest carbon sinks.”

Indigo’s latest batch of credits signifies the sequestration or abatement of 163,048 metric tons of CO2 by U.S. farmers across 28 states. The growth of Indigo’s carbon program emphasizes the increasing adoption of sustainable farming practices, with remarkable year-over-year increases: 

  • 333% surge in new acres, 
  • 297% rise in new fields, and 
  • 215% uptick in new grower participation.

Furthermore, Indigo collaborates closely with its expanding network of over 25 agribusiness partners to provide unique insights and support growers in advancing their transition to sustainable practices.

how Indigo ag carbon farming program works

In September last year, the U.S.-based company raised +$250 million led by Flagship Pioneering. The goal of the funding was to further grow Indigo’s sustainable agriculture programs and bolster farmers’ revenues with carbon credits. 

Indigo Ag’s Carbon Credits Gaining Traction

The company has broadened its network of carbon credit buyers by partnering with Watershed. It’s an enterprise climate platform that assists companies in measuring, reporting, and acting on their emissions to allocate credits to their corporate clientele.

Industry analysts predict that corporate demand for high-quality carbon credits will continue to surge. BloombergNEF’s (BNEF) report suggests that restoring trust in the market could encourage companies to buy billions of carbon credits annually. This can potentially increase prices to $238 per ton and bring market value to over $1 trillion yearly by 2050. 

In this case, Indigo Ag foresees its soil carbon credit commanding higher prices in future crop cycles. 

The ag tech firm is currently one of the only companies providing corporations with high-integrity soil carbon credits on the voluntary carbon market (VCM). This enables them to secure future buyer commitments with purchase prices ranging from $60 to $80 or more, depending on delivery time. 

The forward price curve will result in increased earnings for the participating farmers over time, Banks further added. 

Growing Green: Indigo Expands Carbon Program

Indigo is expanding its eligibility criteria for the 5th carbon crop, covering the 2023-24 planting season. It is also currently open for farmer enrollment.

Part of the expansion is adding more eligible crops for its sustainability programs, including hemp, perennial and annual alfalfa, millet, collard greens, and four perennial legumes. This offers farmers additional options for program eligibility, alongside existing crops such as corn, soy, and cover crops.

Furthermore, Indigo is collaborating with industry partners to streamline data importation and entry processes for farmers. It works whether they are importing data from spreadsheets or their FSA 578 insurance forms. Product enhancements include historical data validation and the capability to spread out carbon harvests.

More details on the fourth carbon crop will be shared in early 2025 when credits are slated for delivery.

Indigo Ag’s success in completing its third carbon crop marks a big step forward for sustainable farming. By helping farmers fight climate change and earn money, the company is making agriculture greener and more profitable. 

Nikola’s $230M Raise in Q4 and the Hydrogen Revolution

Jennifer L
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Nikola’s $230M Raise in Q4 and the Hydrogen Revolution

As the world seeks to reduce carbon emissions and fight climate change, hydrogen emerges as a promising alternative in the global shift towards clean energy solutions. In this context, Nikola Corporation’s advancements in hydrogen represent a significant step in driving the transition within the transportation sector.

Nikola Corporation, a prominent player in zero-emissions transportation and energy supply and infrastructure solutions under the HYLA brand, has released its financial results and business updates for the fourth quarter and full year ending December 31, 2023.

Driving Toward a Hydrogen-Powered Future with $230M Raise in Q4

The reported achievement underscores Nikola’s market-leading position, highlighting the quality of its products and the success achieved by its fleet operations. In July last year, the company received a total of $58.2 million to bolster its hydrogen infrastructure.

Here are the company’s Q4 and full year 2023 remarkable results:

  • Successfully delivered the first production hydrogen fuel cell electric truck available in North America.
    • Delivered 35 hydrogen fuel cell electric trucks in Q4, resulting in no finished goods inventory at the end of Q4.
    • Witnessed 225 additional voucher requests submitted in California for hydrogen fuel cell electric trucks from October 2023 through January 31, 2024, all attributed to Nikola.
  • Launched the first HYLA modular refueling station in Ontario, California, and announced a partnership with FirstElement Fuel in Oakland, California, providing fleets with fueling solutions in both Northern and Southern California.
  • Raised $230.3 million during Q4, ending the year with $464.7 million of unrestricted cash, the highest since Q4 2021.

Looking forward to 2024, the company’s focus is on optimizing revenue and costs within its business. They commit to securing more modular refueling sites and scaling up the production of their hydrogen fuel cell electric trucks.  

Investing their resources in the direction of hydrogen appears to be a strategic move for the company. 

Hydrogen Fueling the Green Revolution

Amidst the urgent need to reduce carbon emissions worldwide, there’s a surge in innovations focusing on alternative energy sources. Hydrogen stands out among these alternatives, particularly for providing a cleaner option in the transportation sector.

Unlike fossil fuels, which emit planet-warming gases, hydrogen fuel offers the potential to be 100% clean. In hydrogen fuel cell electric vehicles (FCEVs), hydrogen combines with pure oxygen in specialized cells, with the only resulting by-product being water.

Projections also highlight the significant role that hydrogen fuel will play in the coming decades. Experts anticipate that the global hydrogen market will soar to about $231 billion by the year 2030. Low-carbon hydrogen production could significantly reach 38 million metric tons per annum by the same period. 

McKinsey & Company estimated that the total hydrogen production capacity announced by companies by 2030 jumped by 40% as seen below.

clean hydrogen production announced by 2030

Nikola believes that they have introduced the first production Class 8 hydrogen fuel cell truck to the North American market. 

In California, Nikola holds an impressive 99% share of all hydrogen fuel cell electric tractor HVIP vouchers requested between 2023 and January 2024. The number of requests for their fuel cell truck surpasses those for all other truck OEMs combined. This includes both battery and hydrogen fuel cell electric trucks during the same period. 

The promising future of hydrogen and its emission regulation compliance, particularly in California, motivated truckers to embrace this zero-emission technology. Many trucking companies believe that it brings advantages for long-haul trips and quick refueling. Plus, hydrogen-powered trucks can move heavier loads because they don’t need large batteries. 

Powering up the Hydrogen Economy

What further ignites the growing demand for hydrogen is the implementation of the largest and most aggressive investment taken by the US government for climate, the $369 billion Inflation Reduction Act of 2022.

The IRA has caused a significant shift in hydrogen economics, particularly impacting green hydrogen. This type of hydrogen, produced through the process of electrolysis using renewable electricity and water, has now become cost-competitive with its natural gas-derived counterpart.

Under the Act’s provisions, production tax credits are offered for a duration of 10 years to “clean hydrogen” production facilities. These incentives are structured based on the carbon capture rates during the production process.

Initially, the incentives start at $0.60 per kilogram (kg) for hydrogen produced with a carbon capture rate that exceeds half of the emissions from the Steam Methane Reforming (SMR) process, subject to meeting workforce development and wage requirements. But as the carbon capture rates increase, the value of the production tax credit rises to $1.00/kg. Eventually, for hydrogen produced with minimal to no emissions, the production tax credit reaches $3.00/kg.

IRA’s clean hydrogen production tax credits
The carbon capture rate estimates assume an emissions rate of 9.00 kg CO2e / kg H2 from producing gray hydrogen. Source: Utility Drive

Alongside the IRA is the bipartisan Infrastructure Investment and Jobs Act that helps the U.S. unleash clean energy. The latter law provided a $7 billion grant to seven regional clean hydrogen hubs (H2Hubs) under the Department of Energy. 

The program is part of a strategic move to accelerate the deployment of clean hydrogen across the country. 

Collectively, the 7 chosen hydrogen hubs will cut about 25 million metric tons of carbon dioxide from end-users annually. They will share the cost of developing the network, located in carbon-producing centers, including Appalachia, the Gulf States, and the Midwest. Read more about them here.

In California, Nikola hydrogen infrastructure brand HYLA seeks to establish a comprehensive zero-emission transportation solution to help fleets achieve their climate goals. The company recently unveiled the opening of its inaugural HYLA modular refueling station in Ontario, California. 

The initiative enables fleets to use the refueling station that facilitates freight transport between Southern and Northern California. The HYLA team plans to secure 9 additional fueling sites across the state throughout 2024. 

Indian Government Announces Massive New Green Hydrogen Project

Dal B
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Indian Government Announces Massive New Green Hydrogen Project

A massive new green hydrogen project was announced by the Indian Government. India’s National Green Hydrogen Mission is another decarbonization strategy to become energy-independent by 2047 and achieve net zero by 2070.

The mission was approved by the Union Cabinet on 4th January 2023, with a budget allocation of ₹ 19,744 crore. The ultimate objective of the Mission is to make India the Global Hub for the production, usage, and export of Green Hydrogen and its derivatives.

Before moving on to the current scenario of monetary investments and the use of green hydrogen in transport pilot projects, we will examine what this comprehensive plan looks like for the coming years.

India’s Plan to Take a Quantum Leap in the Green Hydrogen Race

To become the world’s largest producer and exporter of green hydrogen in the world, India has set forth a series of milestones. As per data from Govt. of India’s Ministry of New and Renewable Energy they include:

  • The Mission aims to establish capacities to produce at least 5 Million Metric Tonne (MMT) of Green Hydrogen annually by 2030, with the potential to reach 10 MMT per annum through expansion of export markets and international partnerships.
  • The initial budget for the mission will be Rs 19,744 crore. From this Rs 17,490 crore will be allocated for the SIGHT program, Rs 1,466 crore for pilot projects, Rs 400 crore for R&D, and Rs 388 crore for other mission components.
  • Kick-off global demand to nearly 100 million metric tonnes (MMT) for Green Hydrogen and its derivatives, like green ammonia by 2030. The target is to capture 10% of the global market with an annual export demand of about 10 MMT of Green Hydrogen/Green Ammonia.
  • The decarbonization target is to mitigate 50 MMT per annum of CO2 emissions with the implementation of the Green Hydrogen initiatives charted under the Mission.
  • Replace fossil fuel with green hydrogen and its derivates to reduce f ₹1 lakh crore in fossil fuel imports by the year 2030 and enhance India’s energy security.

An examination of the industrial sectors that would drive demand for green hydrogen in the future are shown in the growth graph below.

green hydrogen indiaRevving Up Sustainability: Transport Sector Emerges as the Prime Hub for the Green Hydrogen Revolution

The Ministry of New & Renewable Energy (MNRE) recently released guidelines for a program aimed at backing pilot projects centered on utilizing green hydrogen as a fuel for four-wheelers, buses, long-haul trucks, and heavy-duty vehicles. The technology uses fuel cell-based and internal combustion engine-based propulsion techniques.

The iron and steel sector and the shipping sector would be bolstered under the Green Hydrogen Mission to undertake the pilot projects. The important features of this project are:

  • Pilot Projects through the Ministry of Ports, Shipping and Waterways (MoPSW) to drive green hydrogen innovation with Rs. 115 Crore Budget by 2025-26.
  • Inaugurating green hydrogen in maritime for use in piloting maritime propulsion, passenger ferries, boats and cruising, and refueling of ships. Testing technical feasibility, economic viability, and effectiveness in real-world operations.
  • The Ministry of Steel and designated Implementing Agencies will oversee pilot projects in the Steel and Iron Sector, aiming to substitute fossil fuels and feedstock with green hydrogen and its derivatives.
  • The program will also fund projects exploring innovative hydrogen applications to cut carbon emissions during the iron and steel manufacturing process.

As stated by the MNRE, the initiative will be executed with a total budget allocation of Rs 496 crore until the fiscal year 2025-26. Such a huge budget means primary focus on pilot projects in the transport sector and building hi-tech infrastructure to manufacture green hydrogen and installing hydrogen refueling stations wherever required.

green hydrogen india

India’s Strategic Edge: Powering the Global Energy Shift with Distinct Advantages

Currently, China is the largest producer and consumer of green hydrogen followed by the US. But India’s ambitious green hydrogen goals would certainly make it a strong player in the race for more production.

More insight into the distinct advantages India has over other hydrogen superpowers give weight to these goals:

  • That the government foresees a substantial decrease in the costs of renewable energy and electrolyzers paves the way for highly cost-effective use of green hydrogen in passenger and commercial vehicles in the coming years

This could enable India to achieve the world’s lowest green hydrogen production costs, potentially hitting USD 0.75 per kilogram by 2050. This further adds an edge to India’s green hydrogen export market.

India holds rich and vast sources of renewable energy with global giants like Reliance Industries (RIL), GAIL India Ltd., Adani Group, NTPC (National Thermal Power Corporation Limited), Indian Oil Corporation (Indian Oil), and Larsen and Toubro (L&T) owning most if not nearly all of the assets and resources to firmly lead the green hydrogen revolution.

Green Hydrogen is likely to play a critical role in India’s energy transition. Moreover, shifting to green hydrogen aligns India with global climate leaders such as the US and EU. India’s 2030 pledge under the terms of the Paris Agreement to reduce greenhouse gas emissions will eventually empower the country to make it a global hub for production, usage and export of Green Hydrogen and its derivatives.

To Read More About India’s National Green Hydrogen Mission Click Here

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