Is the Voluntary Carbon Market Dead?

Jennifer L
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Is the Voluntary Carbon Market Dead?

The Voluntary Carbon Market (VCM) has been a vital tool for combating climate change, enabling organizations to offset emissions by funding projects that reduce or remove greenhouse gases (GHGs). Once viewed as a cornerstone for corporate sustainability efforts, the market is now at a critical juncture.

Challenges such as fraudulent practices, questionable project integrity, and waning buyer confidence have sparked concerns about its future. However, amid these setbacks lies an opportunity for transformation.

Is the VCM truly on its last leg, or is it evolving to meet the demands of a more discerning global audience?

A Look Back: The Voluntary Carbon Market’s Evolution

What Are Carbon Credits?

Carbon credits represent the reduction or removal of one metric ton of CO₂-equivalent emissions. They are typically achieved through projects such as renewable energy, reforestation, and sustainable agriculture.

These credits are often purchased by companies to offset emissions they cannot reduce internally, allowing them to claim progress toward carbon neutrality.

The VCM differs fundamentally from compliance markets, which are regulated by governments and operate on a cap-and-trade basis. The unregulated nature of the VCM has allowed it to thrive, providing flexibility for buyers and enabling the development of innovative project categories. However, this lack of regulation has also led to vulnerabilities in accountability and standardization.

Exponential Market Growth and Who Drives It

From its origins as a niche market, the VCM has grown exponentially. By 2022, it was valued at $2 billion, driven by rising corporate commitments to net-zero targets.

Projections estimate the market could balloon to up to $25 billion by 2030, representing a 15-fold growth from its current size. This expansion has been fueled by increasing pressure on businesses to address climate change and the growing adoption of sustainability frameworks.

voluntary carbon market value size
Chart from BCG

Initially, the VCM emerged as a voluntary alternative to compliance markets, allowing companies to take responsibility for emissions beyond regulated requirements. Over the years, major corporations like Microsoft, Google, and Starbucks have leveraged the VCM to achieve ambitious net-zero goals. 

Key participants in the VCM include:

  1. Project Developers – These entities create carbon credits through verified environmental projects.
  2. Consumers – Private companies, governments, and individuals purchase credits to offset emissions.
  3. Retail Traders and Brokers – They bundle and market credits to buyers.
  4. Third-Party Verifiers – Organizations like Verra and Gold Standard ensure projects meet stringent standards for emissions reduction. These also include carbon rating agencies that provide more transparency and authenticity to carbon projects. 

While plenty of companies operate in the VCM, some names stand out because of their major contributions to the space.

For example, Xpansiv operates the world’s largest voluntary carbon exchange through its CBL platform, offering transparent, efficient trading of carbon credits and renewable energy certificates. The platform connects over 1,000 verified projects and partners with major carbon standards like Verra and Gold Standard.

Xpansiv’s technology enables same-day settlement and reduces delivery risks, enhancing market accessibility and liquidity. It also bridges voluntary and compliance markets, facilitating products under programs like the Regional Greenhouse Gas Initiative (RGGI) and California Cap-and-Trade.

Another key player, Laconic Global, operates at the intersection of technology and the VCM, offering solutions that improve transparency and functionality. They utilize their proprietary SADAR™ Natural Capital Monetization (NCM) platform to provide real-time carbon market data, including live pricing, trade analysis, and portfolio valuation tools.

Finally, in the realm of carbon credit ratings, a London-based company, BeZero Carbon offers high specialization. It provides transparency and risk assessments for carbon markets through its BeZero Carbon Ratings. It evaluates the quality and risks of individual carbon credits, covering factors such as additionality, permanence, leakage, and policy risks.

These companies’ works are crucial to keeping the market alive and striving, despite mounting issues and challenges.

VCM’s Current Challenges and Setbacks

Integrity Under Scrutiny

The VCM has faced intense criticism for the questionable integrity of some projects. For example, certain REDD+ initiatives—aimed at reducing deforestation—have been accused of inflating baselines, leading to overestimated carbon savings. High-profile scandals, such as funds from Zimbabwe’s Kariba REDD+ project failing to reach local communities, have further eroded trust.

This scrutiny has translated into financial losses. In 2023, transaction volumes dropped by 56% from the previous year, and the market’s value plummeted to $723 million—a stark contrast to its 2021 peak of $2 billion.

VCM size, carbon credits traded value 2023
Chart from Ecosystem Marketplace

In effect, average credit prices fell to $6.53 per ton, a decline that reflects reduced buyer confidence. The chart below shows dampened market sentiment since 2021 when criticisms began, with number of credits demanded (retired) and produced (issued) decreased. 

voluntary carbon credit retired and issued 2023

Media coverage has amplified the market’s vulnerabilities, highlighting instances of greenwashing and low-quality credits. This negative attention has deterred corporate buyers, many of whom fear accusations of insincere climate action. Companies are increasingly seeking transparency and accountability in the credits they purchase, placing additional pressure on the VCM to reform.

Signs of Recovery: Building a Stronger Market

Better Standards, Better Confidence

Despite these challenges, the VCM is evolving. The introduction of integrity frameworks such as the Core Carbon Principles by the Integrity Council for the Voluntary Carbon Market (ICVCM) and the Claims Code by the Voluntary Carbon Markets Integrity Initiative (VCMI) aim to restore buyer confidence.

These initiatives emphasize project transparency, robust verification processes, and adherence to high environmental and social standards.

Standards organizations are addressing past shortcomings. Verra, for example, introduced revised baseline calculations for REDD+ projects in 2023, aimed at resolving overestimation issues. These updates signify a shift toward greater accuracy and accountability, which could help rebuild trust among stakeholders.

More Than Just Carbon: Focus on Co-Benefits

In 2023, 28% of VCM transactions involved projects offering co-benefits such as biodiversity conservation or alignment with Sustainable Development Goals (SDGs). This reflects a growing buyer preference for credits that deliver tangible environmental and social outcomes in addition to carbon reductions.

Why the VCM Still Matters

Amid all the setbacks, the long-term outlook for the VCM remains optimistic.

Echoing this outlook, Xpansiv’s COO Ben Stuart remarked that:

“Despite ongoing challenges in the Voluntary Carbon Market (VCM), recent indicators suggest continued growth and renewed signs of market confidence. Notably, total retirements have increased year-on-year from 2023 to 2024, signaling a steady commitment from existing participants and an increase in new stakeholders engaging with the market.”

He further noted that the VCM is gaining validation through various international frameworks, which is helping to address concerns about market integrity, highlighting:

Last month, at COP29, countries reached a landmark agreement on the adoption of Article 6.4… In parallel, the International Civil Aviation Organization (ICAO) has approved standards…At the national level, the VCM continues to gain traction, with countries such as South Africa, Japan, and Singapore incorporating the VCM into their domestic carbon schemes. These are renewed signs of market confidence…”

Projections indicate a compound annual growth rate (CAGR) of 31% from 2023 to 2028. Key drivers include global net-zero commitments, regulatory alignment under frameworks like the Paris Agreement, and technological advancements in carbon removal.

Technological innovations help the market bounce back as advanced data gathering and sophisticated technologies produce more transparent and reliable verification processes.

Carbon removal technologies, such as direct air capture, are gaining traction. These solutions, which physically extract CO₂ from the atmosphere, are increasingly favored for their clear and measurable impact.

DAC Projects in US, prosed DAC hubs

In 2023, removal credits commanded a 245% price premium over reduction credits, underscoring their value in meeting net-zero targets.

Emerging Trends in the VCM

Increased Demand for High-Quality Credits and Market Integration

Buyers are increasingly prioritizing quality over quantity, focusing on credits that are rigorously verified and offer co-benefits. The share of transactions from projects with co-benefits grew from 22% in 2022 to 28% in 2023, indicating a shift toward more impactful solutions.

Moreover, the VCM is becoming increasingly segmented, with distinct markets emerging for engineered solutions, nature-based projects, and co-benefit-driven initiatives. This differentiation allows buyers to tailor their investments to align with specific climate goals and organizational values.

More notably, as regulatory frameworks under Article 6 of the Paris Agreement are finalized, the boundaries between voluntary and compliance markets are becoming increasingly blurred. This integration offers opportunities for scaling the VCM while addressing systemic issues such as double counting and project accountability.

Remarking on this, CEO and Co-founder of Laconic, Andrew Gilmour, said that the VCM faces challenges like low volume, liquidity, and price discovery due to inadequate infrastructure.

However, institutional markets are thriving with innovative products like Sovereign Carbon, designed to meet global regulations, attracting corporate buyers with stringent compliance needs, unlike traditional voluntary carbon credits. Referring to this new product, Gilmour specifically highlighted that:

“This is the practical effect of the “convergence” of VCM and Article 6 markets that have been talked about – a swing away from the “wild-west” mentality of the VCM and towards a “buttoned-down” approach that embraces proven regulatory structures.”

COP29: A Turning Point for Carbon Markets

The 2024 COP29 in Baku proved pivotal for the future of carbon markets, especially after the uncertainty surrounding the potential re-election of Donald Trump. Despite this looming challenge, the outcomes at COP29 gave a much-needed boost to the climate conversation, particularly following the disappointing results at COP28.

Progress on Article 6.2 and Article 6.4

Article 6 negotiations remained a focal point, with texts on both Article 6.2 and 6.4 evolving through the first week. After extensive deliberations, the final texts were ratified late on the second Saturday of the conference. These decisions provided much-needed clarity and a clear framework for the implementation of carbon markets, marking a significant step forward after COP28’s lack of progress.

methodologies under Article 6.4

One of the most significant achievements was the establishment of clear rules for the transfer and tracking of carbon credits under Article 6.2. This mechanism, which allows for carbon credit trade between countries, is expected to drive substantial investment in climate action, particularly in developing nations.

A Historic Milestone for Carbon Markets

The final adoption of the Article 6 texts was hailed as a historic milestone for climate finance. These decisions provide developers, investors, and countries with much-needed certainty regarding how carbon credits are created and traded. The text’s adoption also set a path for the effective scaling of carbon markets, intending to contribute $300 billion in funding for climate initiatives by the end of the decade.

Despite some pushback from carbon market skeptics, who argue that the system could provide a lifeline for the fossil fuel industry, the global community remains optimistic. The new rules aim to ensure greater transparency, reduce double counting, and enhance the accountability of carbon credits.

The next major milestone for Article 6 is expected in 2025 when the Supervisory Body for Article 6.4 meets to discuss further refinements. By then, the geopolitical landscape may have shifted, with a new US president potentially influencing the direction of international climate negotiations.

According to some accounts, 2025 will be the “moment of reckoning” for the VCM. Yet, given the past criticisms and current market challenges, the market has to overcome some major hurdles to move forward, as recommended by market experts.

Barriers to Address for Sustained Growth

  1. Regulatory Alignment: Clearer rules are needed to integrate voluntary and compliance markets seamlessly.
  2. Market Liquidity: Addressing the low liquidity of certain credit types is essential for maintaining market functionality.
  3. Trust and Transparency: Rebuilding buyer confidence through improved verification processes and independent oversight is crucial.
  4. Education: Buyers and the public need greater awareness of the nuances of carbon credits to combat misconceptions and rebuild trust.

Looking Ahead: Is the VCM Dead?

While the VCM has faced undeniable setbacks, it is far from dead. Instead, it is undergoing a critical transformation, driven by the need for enhanced quality and transparency. If integrity initiatives gain traction, the VCM could emerge stronger and more impactful.

Tommy Ricketts, CEO and Co-Founder of BeZero Carbon, perfectly highlighted this, saying that:

“Carbon markets are restructuring after a turbulent couple of years. Carbon ratings, insurance, and accounting are working together to raise the bar for carbon credit quality…Market actors must recognize carbon credits for what they are: valuable but imperfect mechanisms to channel finance towards climate action. Bolstering the market for credits means buyers and market players must lean on the tools that exist to manage this risk.”

The market’s challenges underscore the importance of vigilance, innovation, and collaboration. As stakeholders refine frameworks and methodologies, the VCM holds the potential to bridge the gap between climate ambition and action, giving corporations and individuals the right tools to fight climate change. 

Green AI Explained: Fueling Innovation with a Smaller Carbon Footprint

Saptakee S
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Green AI Explained: Fueling Innovation with a Smaller Carbon Footprint

As artificial intelligence (AI) continues to transform industries and unlock new opportunities, its environmental impact is also a matter of concern. While AI holds immense potential to combat climate change, it paradoxically contributes to the problem it aims to solve. The computational intensity of AI training and deployment leaves a significant carbon footprint. So, what’s the responsible way to savor the benefits of AI without worsening the climate crisis? The answer is Green AI.

So, What Is Green AI?

Green AI is a movement and an innovation that seeks to balance technological advancement with environmental sustainability. Green AI, also referred to as Sustainable AI or Net Zero AI, encompasses practices to reduce the carbon footprint of artificial intelligence technologies. Unlike traditional approaches, Green AI integrates sustainability into every stage of the AI lifecycle, from research and development to deployment and maintenance.

Furthermore, understanding the differences between conventional AI and Green AI is key to addressing this growing challenge.

Traditional AI vs. Green AI: A World of Difference

Traditional AI focuses on achieving unmatched accuracy in tasks like language translation, image recognition, and autonomous driving. While its applications are groundbreaking, this accuracy comes at a cost. Training large-scale AI models often require enormous computational resources, consuming vast amounts of energy.

For example, a nature.com study revealed the carbon footprint of training a single big language model is equal to around 300,000 kg of carbon dioxide emissions. This could be quantified as equivalent to 125 round-trip flights between New York and Beijing, a quantification that laypersons can visualize.

Thus, conventional AI overlooks energy efficiency. It also increases costs for businesses and excludes smaller players from entering the AI landscape. The worst outcome is the damage done to the environment from its carbon footprint, suppressing its potential to mitigate climate change.

In contrast, Green AI prioritizes energy-efficient practices. By focusing on sustainable development and deployment of AI systems, it seeks to minimize environmental harm without compromising innovation. Green AI introduces efficiency as a key metric alongside accuracy. It also advocates solutions that deliver high performance while conserving resources.

AI Powering Innovation but at What Cost?

We projected this study from ScienceDirect to understand the energy appetite of AI solutions. AI is growing rapidly, with bigger data needs and more complex models. However, this doesn’t always lead to equally big improvements in accuracy. While large language models (LLMs) like ChatGPT drive innovation, they come with significant environmental costs. Let’s dig deeper…

AI’s Growing Energy Appetite

The same report explains training GPT-3, for instance, consumed 1287 MWh of electricity and emitted 550 tons of carbon dioxide—comparable to flying 33 times between Australia and the UK.

The energy required for AI isn’t just during training. Using systems like GPT-3 also carries a hefty price. In January 2023 alone, GPT-3 processed 590 million queries, consuming energy equivalent to that of 175,000 people. On a smaller scale, each ChatGPT query uses as much power as running a 5W LED bulb for over an hour.

Fig: CO2 equivalent emissions for training ML models (blue) and of real-life cases (violet). In brackets, the billions of parameters adjusted for each model.

carbon emissions Green AI ML modelsSource: ScienceDirect

Deloitte’s recent report, “Powering Artificial Intelligence: A study of AI’s environmental footprint”, revealed the following findings:

  • Between 2021 and 2022, data centers accounted for 98% of Meta’s additional electricity use and 72% of Apple’s between 2022 and 2023.
  • AI adoption will fuel data center power demand, likely reaching 1,000 terawatt-hours (TWh) by 2030, and potentially climbing to 2,000 TWh by 2050.
  • This will account for 3% of global electricity consumption, indicating faster growth than in other uses like electric cars and green hydrogen production.

AI Data Centers: Energy Efficient or Energy Waste?

Data centers are the backbone of AI training and deployment, often referred to as the “cloud.” However, they rely on physical infrastructure for computing, processing, storing, and exchanging data. They require massive power and contribute heavily to the energy consumption of tech companies.

Different types of data centers have unique energy demands. Basic computer rooms handle simple tasks, while mid-size and large-scale enterprise data centers manage more complex operations. Hyperscale data centers, owned by tech giants have maximum hardware density and handle massive computational workloads, consuming the most energy.

Within this category, AI hyperscale data centers are emerging as a distinct segment. These centers are specifically built for generative AI and machine learning tasks, requiring high-performance GPUs for model training and inference.

This results in higher server power usage and the need for advanced cooling systems, further increasing energy consumption. Smaller data centers often lack the capacity for these high-demand workloads, driving the growth of AI-focused hyperscale facilities.

Fig: Data centers’ electricity consumption by server type and scenariosdata centers AI energy consumption

But as they expand, a critical question remains: How sustainable are AI hyperscale data centers in the fight against climate change?

Well, this is where the demand for Green AI garners importance.

Why Green AI Matters?

The environmental cost of AI is no longer a hypothesis, it is palpable all around. Even blockchain technologies like cryptocurrency mining have demonstrated how unchecked digital innovation can lead to unsustainable energy consumption.

Coming straight to the topic, Green AI holds the promise of reversing this trend. For example, AI-powered tools can optimize supply chains, reduce waste, and improve energy grid efficiency. If developed responsibly, AI could become the key driving force behind the global effort to achieve carbon neutrality.

Thus, by combining innovation with sustainability, Green AI can meet the growing demand for computational power while reducing its impact on the environment.

Core Principles of Green AI

This means leveraging AI solutions that are not only effective in optimizing energy use in applications but are also inherently low-energy consumers. It’s crucial to balance AI’s benefits with its environmental impact. It means AI should support sustainability goals and not worsen the problems that it aims to solve. 

Energy Efficiency

Green AI encourages the design of algorithms and models that consume less energy. Researchers can achieve this by developing lightweight models or installing techniques like pruning, quantization, and model distillation, which reduce computational requirements.

Hardware Optimization

Using energy-efficient hardware, such as GPUs with higher FLOPS per watt or specialized Tensor Processing Units (TPUs), can significantly cut AI’s energy consumption. Parallelizing tasks across multiple cores also helps reduce training times and emissions, though excessive cores may increase energy use disproportionately.

Another technique is edge computing which means processing data locally to avoid energy-intensive transmissions to cloud or data centers and optimizing resources for IoT (The Internet of Things) devices. Together, these strategies enable powerful AI performance with a smaller environmental footprint.

Data Center Optimization

Adopting renewable energy sources for powering data centers and AI operations is a significant milestone of Green AI. Companies like Google and Microsoft are already leading the charge by transitioning their cloud services to run on clean energy.

To make data centers more energy-efficient, researchers have created algorithms and frameworks that balance server loads, optimize cooling systems, and allocate resources more effectively. All these processes are included in data center optimization that cuts down energy use and emissions.

Transparency and Accessibility

Green AI promotes transparency in reporting the environmental costs of AI projects. Standardized metrics for energy consumption and emissions can help developers and organizations make informed decisions about their AI strategies.

Some of the tools that are used to estimate the carbon footprint of AI technologies are CarbonTracker, CodeCarbon, Green algorithms, and PowerTop.

Additionally, by lowering computational barriers, Green AI fosters inclusivity. Smaller organizations and researchers gain access to advanced tools without burdening themselves with high environmental and financial costs.

Fig: Achievable electricity demand reduction through energy savings, “High adoption” scenarioGreen AI energy reduction

Policies Driving Green AI

The United Nations’ Sustainable Development Goals (SDGs) highlight the need for a sustainable future. Goals like Affordable and Clean Energy and Industry, Innovation, and Infrastructure are driving the rise of Green AI. Industry leaders are rethinking data center designs and operations to lower energy consumption and environmental impacts. This shows their eagerness to demonstrate proactive efforts toward sustainability.

While Green AI initiatives are mostly industry-led, some regions are implementing supportive policies. These range from monitoring low-impact data centers to stricter regulations for areas where grid stability is at risk. Thus, balancing these policies can encourage sustainable practices without moving operations to less regulated regions.

Notable policies include:

  • European Code of Conduct for Data Centers (EU DC CoC)
  • Energy Efficiency Directive (EED)
  • Singapore Green Data Centre Roadmap

China has also introduced measures like the Three-Year Action Plan on New Data Centres, while the U.S. lacks federal-level regulations specific to data centers.

Policymakers can amplify these efforts by co-developing standards with industry leaders. Collaborative strategies ensure data centers meet climate goals without compromising growth or grid stability.

Green AI demonstrates that with the right policies and innovations, the tech industry can lead the way to a more sustainable future.

Green AI Takes the Spotlight at COP29

As world leaders convened in Baku, Azerbaijan, for COP29, discussions pointed to the role of AI in promoting environmental sustainability. A Deloitte-hosted panel brought together experts from NVIDIA, Crusoe Energy Systems, EON, and the International Energy Agency (IEA) to explore strategies for reducing AI’s environmental footprint.

Josh Parker, senior director of legal–corporate sustainability at NVIDIA, said,

“We see a very rapid trend toward direct-to-chip liquid cooling, which means water demands in data centers are dropping dramatically right now.”

According to NVIDIA, designing data centers while keeping energy efficiency at the highest priority right from the beginning is very much essential. As AI demands grow, sustainable infrastructure will be critical. Parker highlighted that current data centers are becoming outdated and inefficient.

He added, accelerated computing platforms are 10X more efficient than traditional systems for running workloads. This creates a significant opportunity to cut energy consumption in existing infrastructures.

Accelerated Computing: A Path to Green AI

Parker once again emphasized that accelerated computing represents the most energy-efficient platform for AI and many other applications. Over the past few years, energy efficiency for accelerated computing has improved dramatically, with a 100,000x reduction in energy consumption.

  • In just the last two years, energy use for AI inference tasks dropped by 96%, with systems becoming 25x more efficient for the same workload.

Accelerated computing uses GPUs to process tasks faster and more efficiently than traditional CPUs. By handling multiple tasks simultaneously, GPUs reduce the energy required for AI workloads. It’s one of the techniques that come under hardware efficiency and data center optimization.

Furthermore, NVIDIA emphasized the need for energy-efficient infrastructure in data centers. Innovations like liquid-cooled GPUs are transforming cooling methods. Unlike traditional air conditioning, direct-to-chip liquid cooling consumes less power and water while maintaining effective temperature control.

The Bottom Line

Deloitte’s findings have adeptly showcased AI’s potential in driving climate-neutral economies. Green AI strategies focus on minimizing environmental impact by improving hardware design and increasing the use of renewable energy.

Industry leaders are spearheading these efforts, highlighting the effectiveness of sustainable computing practices. The shift toward accelerated computing and energy-efficient design is paving the way for AI to support global climate goals.

As we face a climate crisis, the integration of Green AI principles is no longer optional—it is essential. By redefining how AI solutions are developed, we can harness their power for good while minimizing their environmental toll. The road ahead demands collective effort, innovation, and accountability. Last but not least, Green AI is not just a technological imperative but a moral responsibility to ensure a greener future. 

Key Sources:

  1. A review of green artificial intelligence: Towards a more sustainable future – ScienceDirect
  2. AI at COP29: Balancing Innovation and Sustainability | NVIDIA Blog

Sweden’s Nuclear Evolution: Samsung C&T and Kärnfull Next Partner for SMRs

Saptakee S
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Sweden’s Nuclear Evolution: Samsung C&T and Kärnfull Next Partner for SMRs

Construction giant Samsung C&T has recently joined forces with Swedish energy company Kärnfull Next. Under this collaborative agreement, both companies will jointly develop small modular reactor (SMR) campuses under the Swedish SMR program. The announcement was made during the Korea-Sweden Strategic Industry Summit in Seoul on December 5.

Se-Chul Oh, CEO of Samsung C&T noted,

“We are proud to partner with Kärnfull Next. By combining our experience in global nuclear projects with their expertise in project development, we are confident that we can help meet Sweden’s future energy needs.”

Kärnfull Next Expanding SMRs Across Southern Sweden

Kärnfull’s partnership with Samsung C&T furthers its commitment to advancing innovative energy solutions. This partnership will accelerate the development of SMR campuses under Kärnfull Next’s Re:Firm South program, which focuses on establishing carbon-free, dispatchable energy solutions in southern Sweden.

Furthermore, this partnership bolsters the initiative by incorporating expertise in design, licensing, environmental assessments, and SPV project financing. Together, the companies will focus on efficient construction and ensuring minimal environmental impact.

Driving Economies of Scale

Kärnfull Next has conducted extensive pre-feasibility studies since 2022, evaluating municipalities for their SMR potential. The company aims to expand its scale by establishing multiple SMR parks under the same program. This approach streamlines technology selection, construction partnerships, power purchase agreements (PPAs), and financing.

Valdemarsvik Municipality was announced as a new candidate site for Kärnfull Next’s SMR initiative. Located on Sweden’s southeastern coast in Östergötland, the site can potentially host four to six small light water reactors, generating 10–15 terawatt-hours (TWh) of clean electricity annually. Notably, last year Sweden’s entire nuclear fleet produced 47 TWh last year.

SMR campuses, under the Re:Firm South program, will co-locate at least two reactors to ensure reliable, clean power. These facilities will supply nuclear energy to the national grid and cater to energy-intensive operations, such as AI data centers across the Nordics, through direct or indirect PPAs.

PROJECT OVERVIEW – FROM IDEA TO OPERATIONS

Kärnfull NextSource: Kärnfull Next

A New Path Toward Fossil-Free Energy

Kärnfull Next envisions SMR technology to fuel Sweden’s clean energy future. By combining direct energy sales with SMR-generated electricity, the company enhances accessibility to full-scale fossil-free power. This model not only meets increasing energy demands but also pushes nuclear energy as vital to the nation’s sustainability goals.

Most importantly what they seek to achieve is- minimizing costs, carbon emissions, and environmental footprint.

Christian Sjölander, CEO and co-founder of Kärnfull Next.

“With a global leader like Samsung C&T at our side, providing expertise in areas like project financing and advanced construction, we are taking the next step toward making SMRs a reality, contributing to Sweden’s goal of new nuclear power by 2035. Their experience and scale provide invaluable resources to transform our vision into action.”

The collaboration between Kärnfull Next and Samsung C&T will initiate the first project to start construction by the late 2020s.

Samsung C&T: Pioneering Nuclear Export Projects

Samsung C&T has an outstanding history in global nuclear energy projects making it a leader in this clean energy space. The company’s collaboration with Korea Electric Power Corporation was crucial for the construction and infrastructure development of Barakah, showcasing its expertise in advanced project execution.

Notably, the Barakah Nuclear Power Plant in the UAE is one of the largest commercial nuclear facilities in the world. The plant, with a capacity of 5,600 MW, marked South Korea’s first successful nuclear export project. The facility utilizes APR1400 reactors, an advanced light water reactor technology offering 1,400 MW output and a 60-year operational lifespan.

Another milestone as a nuclear infrastructure developer is its active involvement in Romania’s NuScale SMR project, contributing to the design, procurement, and construction stages of SMRs.

Moving ahead, Samsung C&T is spreading its wings across Europe, leveraging its experience in nuclear energy to establish recycling systems for critical materials. This effort aligns with the rising demand for lithium, nickel, and cobalt due to the EV boom. The company aims to secure environmentally sustainable sources for these metals, further strengthening its presence in the European market.

Net Zero Goals: Carbon Neutral by 2050

Samsung C&T aims to achieve carbon neutrality by 2050. The company’s strategy includes 100% renewable energy adoption and a 58% reduction in greenhouse gas emissions by 2030, compared to 2018 levels. As per its sustainability report,

  • In 2023, the company aimed for 174,381 tCO2e in greenhouse gas emissions, with an actual output of 176,443 tCO2e. For 2025, it plans to reduce emissions further to 147,796 tCO2e.

Source: Samsung C&T

Samsung C&T’s advanced expertise in nuclear energy construction makes it an ideal partner to drive Kärnfull Next’s SMR initiatives in Sweden. Overall, this collaboration will not only accelerate the development of future SMR campuses but also play a crucial role in decarbonizing Sweden’s data centers in the future.

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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Gold Emissions Trends: Who Are the Top 3 Low Emitters?

Saptakee S
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0
Gold Emissions Trends: Who Are the Top 3 Low Emitters?

Gold mining is not only energy-intensive but is also challenging. Miners weigh various factors like geology, ore grades, depth, and transport distances which could potentially turn into challenges as well. However, as the world is transitioning to sustainability, gold fields are significantly considering reliable energy supply and management not just for power operations but also for reducing emissions.

The gold mining industry as a whole has a clear path to decarbonization that aligns with the Paris Agreement. They aim to cut absolute emissions by 50% and net emissions by 30% on their journey to net zero by 2050.

S&P Global Commodity Insights recently launched a gold emissions curve that showed, in 2024 emissions were lower than the 2021 baseline. It revealed:

“329 primary gold mines emitted greenhouse gases at an average rate of 792 kilograms of CO2 equivalent per paid ounce of gold (kgCO2e/oz Au) produced, 39 kgCO2e/oz Au. The emissions are lower than in 2021.”

Gold emissions

Tackling Scope 1 and Scope 2 Gold Emissions

The report further illustrated that Since 2021, Scope 1 and Scope 2 emissions per ounce of gold produced have steadily declined. The overall progress was a result of renewable adoption for electricity generation, operational improvements, and technological upgrades in on-site operations. In this regard, many gold mining companies turned to power purchase agreements and carbon offsets in their decarbonization strategy,

However, addressing Scope 1 emissions still remains a challenge. This is because they are related directly to mining operations like equipment use, fuel consumption, and diverse on-site processes.

  • Scope 1 emissions increased by 0.68 million metric tons of CO₂ equivalent between 2021 and 2023.

Conversely, scope 2 emissions are easier to mitigate and have shown remarkable improvements. They are associated with purchased electricity, heating, cooling, and steam, and have shown notable improvements.

  • In 2023, Scope 2 emissions accounted for 39% of total emissions, down from 41% in 2021.
  • Scope 2 emissions dropped by 1.32 million metric tons with the 2021 baseline despite the increase in gold production by 2.1 million ounces.

Gold emissions

Top 3 Low Emitter Gold Mines 

Lundin Gold’s Fruta del Norte

Lundin Gold Inc., based in Vancouver, British Columbia, is a Canadian mining company with a strong focus on sustainability and efficiency. The company 100% owns the Fruta del Norte gold mine in southeast Ecuador, which has been producing gold since late 2019.

Known for its low carbon emissions, high-grade output, and cost efficiency, Fruta del Norte is among the most environmentally responsible and productive gold mines globally. In 2023, it achieved an impressive production of 481,274 ounces of gold, making it one of South America’s largest gold producers.

The company holds 28 metallic mineral concessions and three construction material concessions in Ecuador’s Zamora Chinchipe province. As per its sustainability report,

  • Lundin Gold maintains an industry-leading greenhouse gas (GHG) emissions intensity of just 0.08 tCO2e per ounce of gold produced. This makes the miner a top low-carbon gold producer.

The mine is powered by Ecuador’s national grid, which sources 81% of its energy from renewables. This is how it achieves significantly lower Scope 2 emissions.Lundin Gold emissionSource: Lundin Gold

Centerra Gold Inc.

In 2023, Centerra Gold Inc. achieved a 77% drop in emissions intensity at its Öksüt mine, despite production suspension in 2022 due to mercury detection. They resumed operations in 2023 and sold higher gold ounces after resuming operations in June 2023. A mercury abatement system was installed to restart the mine. This led to the production of 195,926 ounces of gold—the highest since 2020- and consequently, it cut down emissions.

As per their sustainability report,

  • Global Scope 1 emissions totaled 107,384 metric tons of CO₂e in 2023. The company’s two main operating mines, Mount Milligan and Öksüt, accounted for 90,655 metric tons.

Mount Milligan reduced emissions by 7% due to shorter haulage distances and optimized pit sequencing, while Öksüt achieved a 21% decrease from temporary mining interruptions and improved haulage cycles.

  • Global Scope 2 emissions totaled 33,790 metric tons of CO₂e in 2023, with 13,185 metric tons from Mount Milligan and Öksüt.

Despite a 7% rise in electricity use, emissions remained stable through efficient energy use. Notably, Scope 3 emissions, with purchased goods and services contributed to more than 50%.Centerra-Gold emissions

Source: Centerra-Gold

The company uses the Greenhouse Gas Protocol for emissions reporting and is exploring cost-effective decarbonization pathways to cut Scope 1 and Scope 2 emissions in the coming years. Additionally, it is evaluating opportunities to reduce scope 3 emissions.

Agnico Eagle Mines Ltd.

The Canada-based gold mining company, is the world’s third-largest gold producer, with operations in Canada, Australia, Finland, and Mexico. In 2023, the company achieved significant progress in reducing its emissions, particularly with its Kittila mine, which halved its Scope 2 emissions intensity. They achieved this by sourcing all of its grid electricity from zero-emission sources.

Agnico Eagle Mines Ltd. gold emissionsSource: Agnico Eagle

In total, Agnico Eagle produced 3.44 million ounces of gold in 2023, and all 11 of its active operations outperformed the industry average for emissions per ounce of gold produced.

The company’s total Scope 1 and 2 emissions in 2023 were 1,337,000 tCO₂e, a 3% reduction from 2022 and a 5% decrease from the 2021 baseline.

The mining giant has robust plans to upgrade its technological innovation, decarbonization efforts, and its Energy and Greenhouse Gas Management Strategy. Its dedication to sustainability and emissions reduction underscores its leadership in responsible gold production.low emissions gold mines

Other Players

For 2023, PJSC Polyus has fully offset its Scope 2 emissions since 2021 by sourcing renewable energy and acquiring carbon-free electric energy certificates from H2 Clean Energy LLC to cover 72,000 metric tons of CO₂e in 2023.

Additionally, Kinross Gold Corp. reduced its Scope 2 emissions intensity by 31% and Barrick Gold’s Nevada operations significantly cut 197,000 metric tons in 2023 with the 2020 baseline.

These reductions primarily came from renewable energy sources like hydroelectric and power purchase agreements to buy energy credits from solar power plants.

On the flip side, Sibanye Stillwater had the highest emission footprint… 

The S&P Global report also highlighted that among all gold mines, South African mines have record-high emissions. And Sibanye Stillwater’s Cooke operation topped the list. It recorded a massive amount of 9,980 kg CO₂e per ounce of gold in 2023. The mine relies heavily on electricity from South Africa’s coal-based grid and processes low-grade historic tailings through two plants, Cooke and Ezulwini.

Outside South Africa, Pueblo Viejo in the Dominican Republic ranked second, with 3,236 kg CO₂e per ounce of gold in 2023, indicating a 25% rise from 2022. Emissions intensity increased due to a 22% drop in production, lower head grades, and reliance on diesel-powered plants.

Gold’s Role in a Sustainable Future

Gold plays a key role in modern technologies and the shift to a low-carbon economy. Its inclusion in investment portfolios also boosts resilience against climate risks, solidifying its status as a sustainable asset in global finance.

The gold mining industry is aligning with sustainability goals by cutting its carbon footprint while increasing production. This balance highlights better energy efficiency, cleaner technologies, and improved operational strategies.

Why the U.S. Military Moves Toward Nuclear to Power Its Bases in 2030s

Jennifer L
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Why the U.S. Military Moves Toward Nuclear to Power Its Bases in 2030s

As the world works towards using more clean energy, nuclear power is becoming an important part of the solution. It provides a steady, carbon-free source of energy, which is especially useful in remote areas or places where other green energy sources may not work well. In this context, the U.S. military is now looking into using nuclear energy to power its domestic bases in the 2030s. 

Powering Up: How Microreactors Are Transforming Military Energy Resilience

The US Army, Air Force, and Navy are planning to build small nuclear reactors to ensure a reliable, carbon-free energy supply for their bases. This strategic move reflects the military’s commitment to sustainability and energy independence while supporting national security in a rapidly changing energy landscape.

Army’s Microreactor Ambitions

The U.S. Army is taking significant steps to deploy microreactors—compact nuclear units with capacities of 3 to 5 MW—at its installations by the early 2030s. 

Several microreactor designs are under development in the U.S., offering portable energy solutions for remote areas, both commercial and residential needs, and military bases.

According to the U.S. DOE’s Office of Nuclear Energy, these small reactors stand out due to three key features: factory fabrication, transportability, and self-adjustment.

Rachel Jacobson, Assistant Secretary of the Army for Installations, Energy, and Environment, emphasized the advantages of these reactors during the American Nuclear Society’s (ANS) winter meeting. Jacobson said that:

“Microreactors operate autonomously and can thrive in environments that challenge other carbon-free energy sources.” 

what is a nuclear microreactor
Infographic from the US DOE’s Office of Nuclear Energy

The Army issued a solicitation in June, receiving over 40 expressions of interest. An interdisciplinary team, supported by the Idaho National Laboratory, is narrowing the proposals to a shortlist of 10 finalists. These will present their solutions in a competitive “Shark Tank”-style review.

Delayed Air Force Projects

The U.S. Air Force is also focusing on microreactors, particularly at Eielson Air Force Base in Alaska. The project aims to supplement the base’s coal-fired power plant with a 5 MW microreactor. 

However, delays due to legal and administrative hurdles have pushed the timeline, making it unlikely to meet the Congressional deadline of 2027.

In 2025, the Air Force plans to issue a new Notice of Intent (NOI) to award the project contract. Following this, the environmental review and Nuclear Regulatory Commission (NRC) licensing processes will begin.

The Air Force is also eyeing nuclear power for bases in Texas and Utah. A potential reactor at Joint Base San Antonio could support local energy needs, while a power purchase agreement may bring nuclear energy to Hill Air Force Base in Utah.

Navy’s Energy Resilience Strategy

As for the U.S. Navy, it is leveraging civilian-owned and operated nuclear plants to bolster energy resilience at its bases. Walter Ludwig, Chief of Staff for the Deputy Assistant Secretary of the Navy for Energy, noted that the Navy faces substantial infrastructure challenges in power generation, transmission, and distribution.

To address this, the Navy is considering long-term power purchase agreements with utilities operating nuclear units. These agreements aim to ensure a consistent power supply while maintaining a direct link for resilience.

In October, the Navy issued a request for information on nuclear options at seven bases but asked for assessments across all installations. The response has been robust, with over 40 submissions currently under expert review.

So, Why Nuclear Power?

Since the 1940s, the United States has been at the forefront of nuclear energy innovation, using nuclear reactors to power national defense reliably. With the world’s largest nuclear-powered navy, the U.S. and its military benefit from a robust commercial nuclear industry and a shared nuclear supply chain. 

Nuclear plants and fuel facilities are essential components of U.S. infrastructure, supporting the missions of the U.S. Navy, the Department of Defense (DoD), and the Department of Energy (DOE). Advanced reactors are also key to future national defense strategies. 

Moreover, the Pentagon, backed by Congress, is exploring microreactors for domestic bases for carbon-free energy sources independent of the grid. 

Through the DoD’s Project Pele, mobile nuclear reactors are being considered for deployment at over 750 global bases. This initiative focuses on leveraging advanced nuclear technology to meet growing energy demands. 

US military global bases

In this regard, nuclear energy offers several advantages for military installations:

  • Energy Independence: Microreactors reduce reliance on external grids, providing a reliable, autonomous power source.
  • Operational Resilience: These reactors can function in extreme environments, ensuring uninterrupted power for critical operations.
  • Carbon-Free Operations: Nuclear power aligns with the Department of Defense’s sustainability goals, reducing greenhouse gas emissions.

From the Largest Emitter to Carbon-Free Military Future

The U.S. military is a major emitter of carbon and the world’s single largest institutional petroleum consumer for its operations.   

Research reveals that the U.S. military has generated over 1.2 billion metric tons of greenhouse gases (GHG) since 2001—more than entire countries like Denmark and Portugal. The Pentagon alone accounts for 56% of federal GHG emissions, according to the White House.

US military carbon emissions

A huge portion of these emissions comes from military operations, such as transporting personnel and equipment, alongside energy usage for its extensive property portfolio.

In response, the U.S. Army unveiled a climate plan targeting a 50% reduction in net GHG emissions by 2030 (compared to 2005 levels) and achieving net zero emissions by 2050.

Some efforts are underway to address environmental impact, but the challenge of balancing security needs with climate goals persists. Global climate talks highlighted the need for military emissions to be incorporated into net zero commitments. 

This shift is prompting calls for greater accountability for the U.S. DoD in addressing its carbon emissions. Nuclear is one option that the military sees as a viable solution. 

The U.S. military’s move toward nuclear power represents a transformative step in achieving energy resilience and sustainability. With projects in the pipeline across the Army, Air Force, and Navy, these efforts could redefine how military installations power their operations, setting a precedent for large-scale, carbon-free energy adoption through nuclear energy.

Vale Base Metals Boosts Nickel: Completes Underground Mining of Voisey’s Bay Project in Canada

Saptakee S
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Vale Base Metals Boosts Nickel: Completes Underground Mining of Voisey’s Bay Project in Canada

Vale Base Metals, one of the world’s largest producers of high-grade nickel has wrapped up the US$2.94 billion Voisey’s Bay Mine Expansion Project in northern Labrador. This milestone transforms the mine from open-pit to underground operations, significantly boosting nickel production to 45,000 tons per year (45 ktpy).

Vale’s Underground Mines Drive Mineral Expansion

Vale announced on December 3 that the expansion includes two new underground mines—Reid Brook and Eastern Deeps. These mines will provide nickel concentrate for Vale’s Long Harbour Processing Plant in Newfoundland. Notably, it is one of the lowest-emission nickel processing facilities in the world as its production aligns with sustainable practices.

The company’s net-zero goals include:

  • Reduce emissions (scope 1 and 2) by 33% by 2030 and carbon neutral by 2050;
  • Reduce net emissions (scope 3) by 15% by 2035.

Apart from nickel, the expansion will deliver 20 ktpy of copper and 2.6 ktpy of cobalt which are essential for industries like defense, battery electric vehicles (BEVs), and clean energy infrastructure. Voisey’s Bay, a significant supplier to the United States, strengthens its role in the critical minerals supply chain. Full production ramp-up is expected by the second half of 2026.

Shaun Usmar, CEO of Vale Base Metals, the critical minerals subsidiary of Vale SA said,

“The successful completion of the Voisey’s Bay expansion demonstrates our commitment to unlocking the value of our endowment and delivering responsibly produced nickel to global markets.”

nickel

Boosting Jobs and Economic Growth

Along with critical mineral expansion and supporting the economy the project has created immense job opportunities. It has given direct employment to 1,100 workers at Voisey’s Bay. This figure has jumped from 600 before the expansion. Furthermore, at the peak of the construction phase, it engaged 3,400 direct and indirect employees.

The transition supports Vale’s goal of creating shared value for Newfoundland and Labrador through job creation, procurement, and partnerships.

CEO Usmar added,

“Ensuring local economic benefits from Voisey’s Bay remains a key priority for the company, and we are proud of the collaborative relationship we have with Indigenous Partners, Innu Nation & Nunatsiavut Government, on whose traditional lands the Voisey’s Bay complex is located.”

Vale has emphasized its commitment to fostering local economic benefits. Collaborating with Indigenous partners, including the Innu Nation and the Nunatsiavut Government, the company ensures that the project respects and benefits traditional landowners.

Lastly, Usmar also assured that,

“ Voisey’s Bay entered production in 2005 and, with the completion of the expansion project, will continue to be an important engine of economic growth in Newfoundland & Labrador and provide low-carbon, high-purity nickel for many years to come.”

Vale Bolsters Global Nickel Supply

This expansion enhances Vale’s Canadian operations by reducing unit costs in its nickel segment and securing a stable supply of critical minerals. These resources are sourced responsibly from a trusted jurisdiction. They are then shipped globally for further application in defense systems, clean energy projects, and electric vehicles.

Nickel’s Long-Term Demand Stays Strong

Nickel is valuable for global energy transition, economic security, and industrial independence. This shiny metal is used in manufacturing stainless steel, batteries, and alloys for equipment, transport, buildings, and power generation.

CarbonCredits reported earlier that demand for battery-grade nickel is projected to grow significantly by the end of the decade due to rising electric vehicle (EV) adoption. However, the nickel market faced more volatility and uncertainty in November 2024, according to S&P Commodity Insights data. It is largely attributed to macroeconomic and political developments following Donald Trump’s U.S. presidential election victory. 

Despite current challenges, the long-term outlook for battery nickel remains strong. Although weak demand and expanded supply have pulled nickel prices to their lowest levels since 2020, demand for battery-grade nickel is projected to grow 27% year-on-year in 2024.

nickel demand

Amid all these challenging market conditions, an emerging player is targeting U.S. nickel independence. Alaska Energy Metals Corporation (AEMC) is leading efforts to support the U.S. energy transition through its flagship Nikolai project in Alaska. The site holds a significant resource of nickel, copper, cobalt, and platinum group metals. And the Canadian Nickel Junior is sourcing them sustainably.

Thus, companies like Vale and AEMC will play a significant role in reducing U.S. reliance on imports with robust exploration plans for nickel and other critical minerals. 

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

Carboncredits.com receives compensation for this publication and has a business relationship with any company whose stock(s) is/are mentioned in this article.

Additional disclosure: This communication serves the sole purpose of adding value to the research process and is for information only. Please do your own due diligence. Every investment in securities mentioned in publications of carboncredits.com involves risks that could lead to a total loss of the invested capital.

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Meta Invests in 4 Big U.S. Solar Projects to Power its Growing Energy Needs

Jennifer L
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Meta Invests in 4 Big U.S. Solar Projects to Power its Growing Energy Needs

Meta Platforms, the company behind Facebook, Instagram, and WhatsApp, is making huge strides in clean energy to meet the growing demands of its data centers while staying environmentally friendly. 

Recently, Meta announced a deal to purchase green credits from four massive solar energy projects in the U.S. This move reinforces the world’s largest social media company’s commitment to sustainable operations. 

Solar Power Meets Social Media: Meta’s Bold Clean Energy Play

Meta’s agreement is with Invenergy, a Chicago-based energy developer, to support projects that will generate 760 megawatts of solar power. This amount of energy is enough to supply around 130,000 homes. 

The projects will connect to the power grid between 2024 and 2027 and will be located in Ohio, Texas, New Mexico, and Arkansas.

Instead of directly using the electricity, Meta will purchase clean energy credits. These credits represent the environmental benefits of renewable energy and allow Meta to offset its carbon emissions.

These green or clean energy credits are officially called renewable energy certificates or credits (RECs). They are market-based instruments certifying ownership of one megawatt-hour of electricity generated from renewable sources like solar, wind, or hydropower.

RECs represent the clean energy attributes of renewable electricity but are distinct from buying electricity itself. Businesses often buy RECs with their electricity to verify renewable energy use. 

  • In 2023, the global REC market was valued at nearly $13.71 billion in 2023 and is projected to reach $127 billion by 2023.

renewable energy certificate market 2033

These renewable credits are created when one megawatt-hour (MWh) of electricity is generated from a renewable energy source and delivered to the power grid. In the case of the Meta and Invenergy deal, 760 credits will be generated from the solar projects. 

Urvi Parekh, Meta’s head of global energy, highlighted the importance of this partnership, stating, 

“These projects will help us continue our commitment to support all of our operations with 100% clean energy.”

By buying clean energy credits, Meta is not just offsetting its emissions but also driving demand for renewable energy. These credits encourage the development of more green energy projects, helping transition the U.S. energy grid away from fossil fuels.

However, this approach also means that Meta’s operations don’t directly rely on renewable energy but rather on the broader market’s clean energy contributions. This strategy allows the company to support sustainable energy development without waiting for renewable energy to reach every location it operates in.

From Data to Decarbonization: Meta’s Sustainability Push

Meta’s operations, especially its data centers, consume vast amounts of electricity as the company scales up to handle the increasing demands of social media, artificial intelligence (AI), and virtual reality. 

Data center power demand alone will skyrocket by 2030, as shown in the chart below.

data center power demand 2030

By investing in those solar energy projects through renewable energy credits, Meta offsets the emissions caused by its power consumption. It will also support the development of clean energy infrastructure in the U.S.

This solar deal is just one part of Meta’s larger effort to minimize its environmental impact while growing its business. The company has already made several other significant investments in clean energy:

  • Other Solar Projects: Meta has agreements with additional solar energy initiatives to ensure sustainable operations.
  • Geothermal Energy: Earlier this year, Meta partnered with a geothermal startup to explore using underground heat for clean power.
  • Nuclear Energy Proposals: In a forward-thinking move, Meta has invited proposals from nuclear energy developers for 1 to 4 gigawatts of new nuclear capacity in the U.S. by the early 2030s.

Meta views nuclear energy as a potential solution for meeting the robust energy demands of technologies like AI while maintaining its commitment to sustainability. The social media giant shared this in a recent blog post:

“We are taking an open approach with this RFP so we can partner with others across the industry to bring new nuclear energy to the grid.” 

Solar Energy’s Role in Meta’s Environmental Commitment

As technology companies like Meta, Google, Apple, and Microsoft grow, their energy needs are skyrocketing. Data centers, which process vast amounts of information, are among the most energy-intensive facilities. Companies must find ways to ensure their growth doesn’t come at the expense of the planet.

Solar power offers a viable, scalable, and environmentally friendly solution to meet these growing needs while aligning with sustainability commitments. Notably, solar power generation capacity is projected to grow fourfold by the end of the decade. 

solar capacity by 2030

The solar energy projects Meta is backing not only help meet this need but also set an example for other corporations. These efforts are crucial to advancing the tech titan’s renewable energy technologies, reducing carbon footprints, and combating climate change.

Meta has long promised to power all its operations with 100% clean energy, a goal it has steadily pursued through deals like this one. Moreover, the company’s dedication to sustainability is evident in its impressive progress toward slashing carbon emissions. 

Since 2021, the company has successfully cut its total emissions by an astounding 16.4 million metric tons of CO2e, showcasing the significant impact of its renewable energy initiatives.

In 2023 alone, Meta reported net emissions of 7.4 million metric tons of CO2e, adhering to the Greenhouse Gas Protocol to ensure transparency and accountability. Through its renewable energy purchases, the tech company managed to slash operational emissions by 5.1 million tons of CO2e. 

meta GHG emissions 2023

Additionally, by leveraging RECs, the company addressed Scope 3 emissions related to fuel use, consumer hardware, and remote work. Overall, it helps reduce Meta’s value chain emissions by 1.4 million tons of CO2 equivalent during the same year.

Clean Energy for Green Goals

Meta’s strategy to meet its ambitious climate goals includes reducing Scope 1 and 2 emissions by 42% by 2031 compared to 2021 levels. Additionally, the company requires two-thirds of its suppliers to adopt science-based emissions targets by 2026. 

Meta also aims to maintain Scope 3 emissions at or below 2021 levels by 2031. These targets highlight the company’s proactive approach to curbing its carbon footprint.

As the world increasingly shifts toward renewable energy, Meta’s proactive measures underscore its role in promoting sustainability. This solar deal, combined with its other green energy initiatives, not only supports Meta’s clean energy goals but also contributes to broader efforts to reduce reliance on fossil fuels.

The Bottled Truth: Coca-Cola’s New 2035 Environmental Goals Face Sustainability Backlash

Jennifer L
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The Bottled Truth: Coca-Cola’s New 2035 Environmental Goals Face Sustainability Backlash

The Coca-Cola Company, which produces billions of bottles and cans each year, announced a new set of environmental goals for 2035, reflecting shifts in its approach to sustainability. These new targets revise earlier commitments across packaging, water stewardship, and carbon emissions. It marks a recalibration of the company’s long-term environmental strategy.

While some objectives remain steadfast, others have been scaled back or removed altogether. As such, Coca-Cola has come under fire from environmental groups for scaling back its carbon emissions and other sustainability commitments.

Here are the company’s new sustainability targets, as outlined in its updated environmental goals.

Climate Action: A New Approach to Carbon Emissions

The beverage giant has set a goal to reach net zero by 2050, while Coca-Cola in Europe has a more ambitious target of achieving it by 2040.

The company has revised its climate targets. Its previous goal was to cut absolute carbon emissions by 25% by 2030, based on a 2015 baseline. The Science-Based Targets initiative (SBTi) classified this target as aligned with a 2°C global warming trajectory.

  • Coca-Cola 2030 carbon emissions reduction goalThe updated 2035 goal, however, no longer includes an absolute emissions reduction target. Instead, Coca-Cola aims to reduce Scope 1, 2, and 3 emissions in line with a 1.5°C trajectory, using 2019 as a baseline. 

While this change aligns with more ambitious climate scenarios, it lacks specific percentage reductions previously outlined. This shift raises questions about Coca-Cola’s commitment to ambitious climate action, especially as the 2015 Paris Agreement calls for significant reductions to limit global warming.

As stated in the company’s 2023 environmental update, Coca-Cola has made progress in reducing its absolute carbon emissions based on original targets:

  • 8% decline in absolute emissions against a 2015 baseline.
  • Systemwide renewable electricity use up 24% in 2023, from 21% in 2022.

Below is the company’s greenhouse gas emissions for three years. Both Scopes 1 and 2 have decreased in 2023 compared to 2021. But Scope 3 emissions (value chain emissions) have increased.

Coca-Cola GHG carbon emissions

Packaging Goals: A Shift in Focus

In 2023, Coca-Cola’s operations generated nearly 6 million tonnes of packaging. These include 137 billion plastic bottles and 74 billion aluminum and steel cans, according to company data. This is why the company must focus on this sustainability area.

Packaging has been a cornerstone of Coca-Cola’s sustainability efforts, particularly through its 2018 “World Without Waste” initiative. This program set ambitious goals:

  • Ensuring all packaging is 100% recyclable by 2025,
  • Using at least 50% recycled content by 2030, and
  • Collecting a bottle or can for every one sold by 2030.

In 2022, Coca-Cola added a goal for 25% of its beverages to be sold in refillable containers globally.

In its latest update, Coca-Cola reported significant progress toward making all packaging recyclable, with 90% already meeting this standard. However, the company acknowledged falling short on other packaging goals.

  • The recycled content target has been reduced from 50% by 2030 to a new range of 35%-40% by 2035. Similarly, its collection goal has been adjusted to 70%-75% by 2035, down from 100% by 2030.

The company also removed its goal for refillable packaging, explaining that it will focus on areas with existing infrastructure for reusable containers. Instead, Coca-Cola plans to prioritize increasing recycled content in primary packaging and improving collection rates.

Its revised efforts will center on two key pillars:

  • “Design,” which involves creating packaging that is fully recyclable, and
  • “Partner to Collect,” emphasizing advocacy for well-designed collection systems and investments in local recycling infrastructure.
coca-cola collection
Image from Coca-Cola website

RELATED: Apple’s iPhone 16 Slashes Carbon Footprint by 30%

The soda manufacturer also made significant changes in its water use and agricultural sourcing.

Water Stewardship: A Broadened Commitment

Water management remains a critical component of Coca-Cola’s sustainability framework. The company reaffirmed its commitment to replenish more than 100% of the water used in its finished products globally, a milestone it has consistently achieved since 2015.

  • Additionally, Coca-Cola expanded its focus on water in high-risk locations. Previously, the goal was to return 100% of water used in 175 high-risk sites by 2030.

Now, the target encompasses all high-risk locations—more than 200 sites—by 2035. This broader commitment reflects the company’s growing emphasis on supporting local ecosystems and communities where water resources are under stress.

Agriculture and Sustainable Sourcing

  • Coca-Cola has removed its goal to source 100% of its priority agricultural ingredients according to its Principles for Sustainable Agriculture.

Despite this, the company pledged to continue working with suppliers and third-party stakeholders to advance sustainable sourcing practices. Efforts will focus on reducing water use, lowering emissions, preventing deforestation, and conserving high-risk areas in its supply chain.

From Ambition to Adjustment: A Strategic Recalibration

Coca-Cola considered these adjustments a strategic recalibration based on decades of sustainability work, assessments of progress, and emerging challenges. In its press release, the company acknowledged the complexity of these issues and the need for more efficient resource allocation to deliver meaningful impact.

Bea Perez, Coca-Cola’s Executive Vice President and Global Chief Communications, Sustainability & Strategic Partnerships Officer, emphasized the importance of collaboration in addressing these challenges.

“We remain committed to building long-term business resilience and earning our social license to operate through our evolved voluntary environmental goals. These challenges are complex and require us to drive more effective and efficient resource allocation and work collaboratively with partners to deliver lasting positive impact.”

Yet, critics argue the adjustments undermine progress in combating pollution and climate change. Moreover, advocacy groups call on the company to uphold stronger environmental standards.

Revised Targets, Renewed Criticism: What’s Next for Coca-Cola?

Coca-Cola’s retreat comes at a time when global negotiations on reducing plastic pollution face significant hurdles. Talks for the world’s first legally binding UN treaty on plastics recently stalled, reflecting broader challenges in tackling the plastics crisis.

Environmental organizations have strongly criticized Coca-Cola’s revised carbon emissions, packaging, and water management goals. Oceana’s Matt Littlejohn labeled the new approach “short-sighted” and warned it could exacerbate the flood of single-use plastics entering waterways and oceans.

Further, Coca-Cola’s softened sustainability stance coincides with growing legal pressures on beverage companies for their plastic waste. In October 2024, Los Angeles County sued Coca-Cola and PepsiCo for misleading claims about the recyclability of their products, arguing that most plastics cannot be disposed of without harmful environmental effects.

The controversy arising from this environmental update underscores the tension between corporate sustainability promises and the practical challenges of implementing them. Coca-Cola’s revised goals reflect a more cautious approach, but the backlash highlights the growing demand for bold action in addressing global environmental and sustainability crises.

Rio Tinto and Imperial College London Launch $150 Million Partnership to Power the Energy Transition

Saptakee S
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Rio Tinto and Imperial College London Launch $150 Million Partnership to Power the Energy Transition

Rio Tinto, recently announced that it has teamed up with Imperial College London to launch the Rio Tinto Centre for Future Materials. It’s a groundbreaking initiative to accelerate the development of sustainable techniques and technologies for delivering materials crucial for the energy transition.

Rio Tinto Boosts UK’s Clean Energy Ambitions

UK’s Business Secretary Jonathan Reynolds said,

“This investment is a major vote of confidence in the UK and will help us find new sustainable ways to deliver our renewable energy transition, supporting our ambition to become a clean energy superpower. Bringing together academic innovation and industry is vital to secure our vital supply of critical minerals, and create the economic growth our country needs.”

Coming to the funding, the mining giant has invested $150 million into the research center over the next decade, bringing top researchers and industry experts together in one platform. Its goal is to transform the way materials are sourced, processed, used, and recycled to make them more environmentally, economically, and socially sustainable.

The initiative aligns with the UK Government’s vision to establish the country as a “clean energy superpower,” as outlined in its recent Industrial Strategy Green Paper. The UK recognizes clean energy industries as a driving force for economic growth. This is significant particularly because renewable energy demands increased production of essential metals and minerals.

Thus, this initiative received “a major vote of confidence in the UK” from the UK Government.

Revenue of the leading mining companies headquartered in the United Kingdom (UK) in 2023UK mining companies Rio TintoSource: Statista

Rio Tinto Chief Executive, Jakob Stausholm, said,

“Innovative partnerships between industry and academia are critical for the world to meet the deeply physical and complex challenge of the global energy transition. The Rio Tinto Centre for Future Materials should become a global hub for investment and collaboration that will ultimately create the conditions for technological breakthroughs.”

He further added that innovation has been in Rio Tinto’s DNA since its founding in London over 150 years ago. He emphasized the company’s continuous efforts to improve how it delivers the materials essential for the world. The partnership with leading research institutions, spearheaded by Imperial College London, will play a key role in advancing this ambition.

What’s Rio Tinto Centre for Future Materials’ Mission? 

Professor Hugh Brady, President of Imperial College London, said:

“The Rio Tinto Centre for Future Materials will co-create and fund research programmes that empower diverse, interdisciplinary teams to deliver innovative and transformative solutions with environment, society, and governance at their core. This work will transform the ways we extract, process, and reuse critical resources to make them more environmentally, economically and socially sustainable.

The clean energy industry, an engine of economic growth, is rightly at the heart of the government’s Industrial Strategy. Imperial – with its strong disciplinary foundations, highly collaborative culture, passion for innovation, and proven convening power – is well placed to support those ambitions.”

Delving deeper into the collaboration, The Rio Tinto Centre for Future Materials will serve as a global hub for innovation, connecting Imperial College London with four leading academic institutions: the University of British Columbia, the University of California, Berkeley, the University of the Witwatersrand, and the Australian National University. This network will address urgent challenges in the materials supply chain needed for the energy transition.

Professor Mary Ryan, Vice Provost (Research and Enterprise) at Imperial College, highlighted the critical role of innovation in achieving electrification goals. She explained that scaling up electrification requires rethinking the technology and economics behind the materials supply chain. The Centre will spearhead cutting-edge, industry-focused research while encouraging groundbreaking, systems-level approaches central to Imperial’s strategy.

The First Step: Overcoming the Copper Challenge

Professor Mary Ryan explained that the Centre’s initial focus will be to address the problem of global shortage of copper which is a significant obstacle to electrification. Copper is indispensable for electricity generation, storage, and transmission, yet more copper is needed in the next decade than was mined in the past century. Current supplies fall short of meeting this growing demand.

Research efforts will explore sustainable methods to extract and recycle copper. Key initiatives include:

  • Extracting copper from fluids in the Earth’s crust.
  • Utilizing microorganisms to harvest metals from rocks with minimal copper content.
  • Optimizing waste recovery from old mining sites.

A strong emphasis will also be placed on ESG considerations, ensuring that solutions align with the interests and well-being of native communities.

This ambitious program aims to redefine how critical materials are sourced and utilized, paving the way for sustainable electrification and a greener future.

Unleashing Imperial College London’s Science for Humanity Strategy

Imperial College London’s Science for Humanity strategy makes it a pioneer in tackling climate change, biodiversity loss, and pollution. As part of this effort, the college is launching four Schools of Convergence Science, including one focused solely on sustainability, to create innovative research communities.

The Rio Tinto Centre for Future Materials aligns with Imperial’s Transition to Zero Pollution (TZP) initiative. This program goes beyond zero carbon goals, targeting all forms of human-induced pollution.

TZP fosters interdisciplinary research, combining science, engineering, health, systems thinking, and policymaking to create comprehensive solutions.

Imperial College has expanded its global reach with the opening of Imperial Global USA in San Francisco. This new hub strengthens partnerships with governments, organizations, and collaborators worldwide, reinforcing its commitment to sustainability and innovation.

                                             Copper Outlook: IEAcopper iea Source: IEA

Rio Tinto and Sumitomo Metal Mining Strike Deal for Copper-Gold Project in Western Australia

In another recent announcement, Rio Tinto and Sumitomo Metal Mining (SMM) signed a Term Sheet for a joint venture to develop the Winu copper-gold project in Western Australia’s Great Sandy Desert. This collaboration marks a significant step toward unlocking the potential of Winu, a low-risk, long-life deposit discovered by Rio Tinto in 2017. Located near Rio Tinto’s Pilbara iron ore operations, Winu holds substantial promise for expansion beyond its initial development.

Strategic Investment and Partnership Terms

Under the Term Sheet, SMM will acquire a 30% equity stake in the Winu project for $399 million. This includes a $195 million upfront payment and $204 million in deferred considerations tied to specific milestones and agreed adjustments. Rio Tinto will continue as the managing partner, overseeing project development and operations.

The agreement also includes exclusivity provisions for finalizing a binding Definitive Agreement by the first half of 2025. Additionally, Rio Tinto and SMM have entered a letter of intent to establish a broader strategic partnership, exploring collaboration in copper, base metals, and lithium.

Rio Tinto remains committed to working closely with the Nyangumarta Traditional Owners, advancing Project Agreement negotiations to ensure their involvement. The company also plans to submit an Environmental Review Document under the EPA Environmental Impact Assessment framework and complete a pre-feasibility study for Winu by 2025. This study will focus on an initial processing capacity of up to 10 million tonnes per annum (mtpa).

As we have seen copper production remains a bright spot in Rio Tinto’s portfolio, with output forecast to reach 780-850kt in 2025.

Meta Bets Big on Nuclear Power and $10B on AI Data Center to Meet its Sustainability Target

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Meta Bets Big on Nuclear Power and $10B on AI Data Center to Meet its Sustainability Target

Meta is making a bold move toward clean energy innovation by embracing nuclear power. On December 3, the company announced its plan to collaborate with nuclear power developers to meet growing electricity demands and achieve its artificial intelligence (AI) and environmental goals.

The social media giant announced in its press release,

“Our aim is to add 1-4 GW of new nuclear generation capacity in the U.S. to be delivered starting in the early 2030s. We are looking to identify developers that can help accelerate the availability of new nuclear generators and create sufficient scale to achieve material cost reductions by deploying multiple units, both to provide for Meta’s future energy needs and to advance broader industry decarbonization.”

This strategic decision highlights how nuclear energy will support future technology and sustainability needs.

Meta’s Collaborative Approach to Nuclear Development

To put this in perspective, a typical U.S. nuclear plant produces about 1 GW of electricity. As electric grids and AI infrastructure expand, energy demand will inevitably rise.

This is why Meta plans to bet big on nuclear power to boost electric grids with reliable, low-carbon energy sources. Subsequently, the company will release a request for proposals (RFP) to attract nuclear energy developers who will support its AI and sustainability goals.

They are precisely looking for developers to fast-track new nuclear generators that can lower costs through scalable deployment. Meta will work closely with its partners who will be responsible for designing, financing, building, and operating the nuclear plants with a long-term and strategic approach.

Meta plans to engage in nuclear projects right from the initiation stage to tackle challenges and create agreements crafted according to the needs of the technology. However, this is not something new, they have followed the same strategy and have achieved success with renewable energy. Notably early partnerships led to innovative and mutually beneficial contracts.

Why Meta Wants to Invest in Nuclear?

Meta has always been an advocate for renewable energy adoption, having matched its global operations with 100% clean and renewable energy since 2020.

To date, the company has secured over 12,000 MW of renewable energy contracts, spanning solar, wind, and battery storage projects. Recently, it added geothermal energy to its portfolio.

However, nuclear energy offers a unique opportunity. Unlike solar and wind, nuclear power provides consistent energy output regardless of weather conditions. Meta considers this as crucial for ensuring grid reliability due to rising AI workloads and surging energy demands from data centers.

Yet, nuclear projects are significantly different. They are more capital-intensive, involve longer development timelines, and face stringent regulatory hurdles. Despite these challenges, their extended operational lifespan and potential to reduce carbon emissions make them an attractive option for long-term energy planning.

Additionally, as they look ahead to partnerships across multiple projects and locations, this approach will enable strategic deployment. Furthermore, the RFP process will help Meta address these opportunities carefully and thoughtfully, ensuring all factors are considered.

meta US nuclear energy

Meta Partners with Entergy on $10B AI Data Center Infrastructure Boost

Following its announcement about its nuclear endeavors, Meta unveiled plans to invest $10 billion in constructing its largest AI data center in Richland Parish, Louisiana. This hyperscale facility will handle massive data processing demands essential for advanced digital infrastructure and AI workloads.

To power this enormous facility sustainably, Meta has partnered with utility provider Entergy. Together, they aim to match the data center’s electricity use with 100% clean and renewable energy. Entergy plans to enhance its grid with clean, efficient power plants and will contribute at least 1,500 MW of new renewable energy through its Geaux Zero program.

Meta is also committed to supporting local communities. The company has pledged up to $1 million annually to Entergy’s “The Power to Care” program, which assists low-income ratepayers. Entergy Louisiana will match this contribution, amplifying its impact.

Kevin Janda, Meta Director of Data Center Strategy said,

“Meta is building the future of human connection and the technology that makes it possible. And this data center will be an important part of that mission. “Richland Parish in Louisiana is an outstanding location for Meta to call home for a number of reasons. It provides great access to infrastructure, a reliable grid, a business-friendly climate, and wonderful community partners that have helped us move this project forward. We’re thrilled to be a new member of the Richland Parish community and are committed to investing in its long-term vitality.”

Data center energy Meta

Meta’s Impressive Emissions Reductions in 2023

According to Meta’s latest sustainability report, Since 2021, Meta has slashed its overall emissions by a staggering 16.4 million metric tons of CO2e through renewable energy efforts.

In 2023, Meta reported net emissions of 7.4 million metric tons of CO2e, adhering to the Greenhouse Gas Protocol for transparency. Once again through renewable energy procurement, the tech titan cut operational emissions by 5.1 million tons of CO2e.

They used renewable energy certificates to tackle Scope 3 emissions linked to fuel use, consumer hardware like Meta Quest headsets, and remote work. This reduced value chain emissions by 1.4 million tons of CO2e in 2023 alone.

 Here’s how the company is delivering on its climate commitments:

  • Reduce Scope 1 and 2 emissions by 42% from 2021 levels by 2031.
  • By 2026, two-thirds of suppliers are expected to adopt science-based emissions targets.
  • Keep Scope 3 emissions at or below 2021 levels by 2031.

meta emissions

Source: Meta

These milestones reflect Meta’s ongoing approach to shrinking its carbon footprint.

As Meta scales its AI capabilities and data infrastructure, sustainability remains a core priority. By combining renewable energy, nuclear power, and community support, Meta is setting a new standard for sustainable innovation in the tech industry.

See how other tech giants are turning to nuclear to sustain their AI and data center expansion plans:

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