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The shift to electric vehicles (EVs) is reshaping the automotive industry, creating unprecedented demand for critical metals. An EV contains 6x more critical metal than a conventional car, making metal resources the backbone of this electrification revolution.
For a typical 62.5 kWh battery-powered EV (NMC 811 composition), here’s the breakdown of key metals and their average raw costs as seen in the infographic (as of 2024):
Nickel: 43 kg, $764
Copper: 65 kg, $629
Graphite: 62.5 kg, $621
Lithium: 37 kg, $420
Aluminum: 80 kg, $204
Cobalt: 5 kg, $121
Manganese: 5.3 kg, $57
Among these critical metals, nickel plays a crucial role in battery energy density and performance. Compared to lithium, which primarily facilitates ion movement in batteries, nickel plays a larger role in boosting energy density and enabling longer-range capabilities in EVs.
While cobalt enhances battery stability and manganese improves safety, nickel is critical for maximizing storage capacity and performance. Thus, it is indispensable for high-energy-density batteries.
With 43 kg of nickel per EV, nickel represents the largest raw material cost at $764. As EV adoption accelerates, the demand for nickel and other metals will only grow, putting pressure on global supply chains.
The industry faces a balancing act: ensuring a steady supply of these materials while keeping raw material costs sustainable. This dynamic will define the pace and scale of EV adoption in the years to come. So, what does the nickel future look like in keeping with the electrification revolution?
Nickel’s Charge: Powering the EV Boom with Energy Density and Efficiency
Nickel is poised to thrive as the EV revolution accelerates, driven by the growing demand for high-energy-density batteries. Nickel-rich chemistries, such as NMC 811, dominate EV battery production due to their ability to boost range and efficiency.
By 2030, global EV sales are expected to exceed 50 million units annually, with batteries accounting for over 50% of nickel demand growth and requiring over 1.5 million metric tons of nickel, according to Benchmark Mineral Intelligence.
Moreover, global investment in nickel mining and processing could surpass $66 billion by 2030, underscoring the metal’s significance in meeting EV demand.
Benchmark further projects that by the same period, 85% of battery cell production capacity outside China will rely on high nickel-based chemistries. There would be a growing shift toward high-nickel formulations over time.
Consequently, nickel’s share of raw material costs in EV batteries will also rise, potentially impacting overall production expenses.
Tackling Uncertainties and Bridging the Gap
But wait, there’s a problem: supply-demand imbalances remain a concern due to significant variations in production forecasts. The difference between the highest and lowest projections amounts to nearly 60% of the current supply. This reveals the uncertainties in meeting future nickel demand, especially for EV batteries.
So to meet the escalating demand, significant investments in sustainable nickel mining and refining infrastructure are essential, ensuring a stable and cost-effective supply chain for the burgeoning EV market. Alaska Energy Metals Corp. (AEMC) is addressing these challenges head-on by leveraging Alaska’s rich nickel resources. The company focuses on strengthening the nickel supply chain with a low-carbon approach, supporting the EV market’s rapid growth.
As nations and automakers prioritize electrification, nickel remains at the core of the energy transition, driving innovation and market expansion.
Microsoft’s latest step toward sustainability is a groundbreaking partnership with Re.green, securing 3.5 million carbon credits over 25 years. This initiative focuses on restoring degraded land across Brazil, aiming to balance the soaring carbon emissions fueled by AI advancements.
As AI growth drives energy demands, the tech giant’s investment underscores its commitment to achieving carbon-negative goals by 2030. To achieve this goal, Microsoft has turned to renewable energy and carbon credits to mitigate its environmental impact.
However, the rapid growth of AI workloads and data centers poses challenges, raising concerns about the effectiveness of these strategies.
AI’s Growing Carbon Cost: Can Microsoft Keep Up?
The rise of generative AI has dramatically increased demand for data centers, the backbone of AI model training and deployment. These facilities are energy-intensive, housing thousands of servers that consume vast amounts of electricity.
Microsoft’s emissions have surged nearly 30% since 2020, largely due to indirect emissions from constructing and outfitting new data centers. These emissions, also known as Scope 3, represent more than 96% of the big tech’s total footprint.
Source: Microsoft
The company’s $80 billion investment in infrastructure expansion this year alone underscores the scale of AI-driven growth.
This trend is not unique to Microsoft. A study by Morgan Stanley estimates that global greenhouse gas (GHG) emissions from data centers will triple by 2030 due to generative AI.
Source: Morgan Stanley
Powering AI queries, which can consume 10x more energy than traditional queries, is straining energy grids and pushing tech giants’ sustainability promises out of reach.
Morgan Stanley projects that these energy-hungry facilities will emit 2.5 billion metric tons of CO₂ equivalent gases by 2030. U.S. data center expansion could increase emissions by 200 million metric tons annually, accounting for over half the global build-out.
Globally, a 200% growth in data centers may lead to an additional 400 million metric tons of CO₂ emissions. This highlights the environmental challenge of AI’s accelerating energy demands, pressuring tech companies like Microsoft to tackle it effectively.
In its quest to offset emissions, Microsoft has leaned heavily on carbon credits. One notable initiative is its partnership with Brazilian company Re.green, aimed at restoring degraded land by replanting native species.
Their latest agreement, signed in 2025, secures 3.5 million tons of carbon removal credits over 25 years. This deal builds on a 2024 agreement for 3 million tons of credits over 15 years. Combined, these contracts involve replanting 10.7 million seedlings across 16,000 hectares in Brazil.
Re.green specializes in ecological restoration and high-quality carbon offsets. Its partnership with Microsoft focuses on restoring 33,000 hectares across the Amazon and Atlantic forests. Since their collaboration began in May 2024, they’ve planted over 4.4 million native seedlings, covering 80 species, on 11,000 hectares of degraded land.
The recent initiative targets western Maranhão and eastern Pará in the Amazon, along with southern Bahia and Vale do Paraíba in the Atlantic Forest. It aims to enhance ecological balance by improving landscape connectivity, supporting species flow, genetic diversity, and processes like seed dispersal and pollination.
Re.green CEO Thiago Picolo hailed the collaboration as proof of the growing carbon credit market, stating,
“This collaboration serves as tangible evidence that this market not only exists but has significant potential for growth in Brazil.”
Notably, the Financial Times estimates the deal’s value at $200 million based on recent market analysis.
Carbon Credits and the Greenwashing Claims
While carbon credits are a popular tool for offsetting emissions, they have faced criticism. Detractors argue that such credits allow companies to continue emitting GHGs while outsourcing the responsibility of reduction.
Critics label this practice as “greenwashing,” a sentiment amplified by reports that Microsoft’s AI and cloud services have been marketed to fossil fuel industries to aid resource exploration.
Microsoft is not alone in this scrutiny. A report highlights how major cloud providers, including Microsoft, Amazon, and Google, lack transparency in their carbon emissions data.
From 2020 to 2022, Google, Microsoft, Meta, and Apple’s company-owned data center emissions were likely 7.62 times higher than reported, according to a Guardian analysis. This discrepancy stems from using renewable energy certificates (RECs), which allow companies to claim renewable energy use even if the energy isn’t consumed onsite.
Source: Guardian
RECs enable firms to report “market-based” emissions, which are significantly lower than “location-based” emissions—those directly produced at data centers.
Without RECs or carbon offset credits, Microsoft’s and other tech giants’ true emissions reveal a troubling trend. If these big tech companies were a single country, their combined 2022 emissions would rank 33rd globally, between the Philippines and Algeria. This highlights the environmental impact of growing data center demands and raises concerns about transparency in emissions reporting.
Balancing Innovation with Sustainability: Microsoft’s Challenge
Microsoft’s dual focus on AI innovation and sustainability highlights the tension between technological advancement and environmental responsibility. The company’s significant investments in infrastructure and carbon credits underscore its commitment to addressing these challenges.
However, the rapid pace of AI development risks outstripping these efforts, making it difficult to achieve carbon-negative goals by 2030. While initiatives like carbon credits and renewable energy investments are steps in the right direction, the rising energy demands of AI underscore the need for systemic change.
Achieving climate goals will require not only financial investments but also a commitment to transparency and accountability. As Microsoft navigates this complex landscape, its approach will shape the future of sustainable innovation in technology.
Last year in December, Verra achieved a significant milestone when the United Nations International Civil Aviation Organization (ICAO) approved its Verified Carbon Standard (VCS) Program for the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA). This approval extended the program’s eligibility from CORSIA’s Pilot Phase (2021–2023) to its First Phase (2024–2026), marking a major advancement for Verra and the voluntary carbon market.
Following this achievement, Verra released its CORSIA Label Guidance document on January 20, 2025. This document provides clear instructions for project proponents on how to request CORSIA labels for eligible Verified Carbon Units (VCUs), ensuring a smoother and more transparent process.
Source: Verra
Ensuring Compliance with ICAO Guidance
CORSIA operates as a global market-based mechanism to cap international aviation emissions at 2020 levels. Countries and airlines participate voluntarily in the Pilot Phase (2021–2023) and First Phase (2024–2026), with mandatory participation beginning in 2027.
Under CORSIA, aircraft operators must monitor, report, and offset emissions exceeding their allowable share. These offset requirements are reconciled over three-year compliance periods. ICAO defines the scope of eligibility for credits, considering factors such as:
Credit type
Activity type
Vintage year
Sustainable development reporting
Assurance of no double-claiming
This scope is published twice a year in the CORSIA Eligible Emissions Units document.
Simplifying Verra’s CORSIA Label Guidance for Carbon Offsetting
Verra’s milestone with the UN’s ICAO approval of its VCS Program marks a significant step forward for sustainable aviation and the voluntary carbon market. In the following content, we have simplified the process for easy understanding.
Key Requirements for Eligible VCUs
To meet CORSIA’s standards, VCUs with vintages of 2021 onward must carry specific labels. Here’s what’s required:
Article 6 Authorized Label: VCUs must include an Article 6 Authorized – International Mitigation Purposes label to qualify for CORSIA obligations.
CORSIA Eligible Label: This label indicates that the VCU meets all criteria for retirement within CORSIA’s pilot or first phase.
Assurance of No Double Claiming: Verra prevents double claiming by requiring proof of a corresponding adjustment or a signed CORSIA Accounting Representation. This must come from an entity ensuring double-claimed VCUs are addressed and include insurance backed by a Verra-approved product.
How to Obtain CORSIA Labels
Project proponents can request CORSIA labels when submitting a VCU issuance request or at any time after that through the Verra Registry. They need to navigate the “Additional Certifications” section on the project’s Verification Summary page.
Verra will approve or reject CORSIA label requests based on the guidance provided. Once approved, CORSIA labels are publicly displayed on the Verra Registry under the “Additional Certifications” section in the “VCUs” tab.
Purpose of Labels
Verra offers multiple labels to streamline compliance with CORSIA requirements. Each label serves a specific purpose:
CORSIA Eligible Label: Confirms that the VCU can be retired for CORSIA compliance within a specified phase.
Article 6 Authorized Label: Indicates the host country’s authorization for using the mitigation outcomes under CORSIA obligations.
CORSIA Scope Label: Identifies that the mitigation falls within CORSIA’s eligibility scope for a particular phase. However, this label alone does not make a VCU eligible for retirement.
For VCUs with vintages of 2021 onward, the CORSIA scope label must be replaced with a CORSIA-eligible label to qualify for retirement under CORSIA.
Source: Verra
Automatic Updates for Existing VCUs
VCUs labeled during CORSIA’s pilot phase will automatically update to show the new label designations. This keeps existing credits aligned with the latest CORSIA requirements. As a result, project proponents won’t face any extra administrative work.
Avoiding Double Counting: Verra’s Core Principle
The guidance also emphasizes Verra’s commitment to transparency. It ensures mitigation outcomes from 2021 onward are not double-claimed. This means VCUs cannot be counted by both aircraft operators and the countries where the reductions occur.
To achieve this, Verra verifies that VCUs retired under CORSIA do not count toward a host country’s climate goals or Nationally Determined Contributions (NDCs). This process is supported by Article 6 authorization, which allows the host country to approve the international use of these VCUs. Verra also enforces corresponding adjustments to ensure the country’s emissions records accurately reflect this approval.
In cases where corresponding adjustments aren’t applied, Verra requires compensation assurances for VCUs used toward CORSIA obligations. This safeguard guarantees compliance even if the host country withdraws or alters its authorization.
This approach shows Verra’s commitment to trust and credibility in carbon markets. These measures also boost transparency and help the aviation sector meet its climate goals while sticking to international commitments.
Source: Statista
A Step Toward Sustainable Aviation
Verra’s CORSIA Label Guidance is updated periodically to align with ICAO’s evolving standards on credit eligibility and other criteria. Users must always refer to the latest version to ensure they meet current requirements.
With this update, Verra is streamlining compliance for project proponents and supporting global efforts to reduce aviation emissions. By ensuring transparency and preventing double claiming, Verra upholds carbon market integrity. This supports aviation’s climate goals and paves the way for a more sustainable future in international aviation.
In a move that sparked global controversy, President Donald Trump has again withdrawn the United States from the Paris Agreement on climate change. This decision, announced immediately after his second-term inauguration, has sent shockwaves through international climate circles.
The withdrawal shifts the global balance in climate action as well as raises questions about the second-biggest emitter’s role in addressing one of the most pressing challenges of our time. With fossil fuel policies dominating Trump’s second term, will this setback jeopardize global decarbonization goals?
What is the Paris Agreement and What is America’s History with It?
The Paris Agreement, signed in 2015, is a landmark international pact aimed at limiting global warming to below 2°C, with efforts to keep it to 1.5°C. The agreement is non-binding, meaning nations aren’t legally required to cut their climate emissions. Instead, each country sets its own emissions targets and strategies for achieving them.
The United States played a pivotal role in shaping the Paris Agreement, signing it in 2015 under President Obama. The country pledged to reduce greenhouse gas emissions by 26-28% below 2005 levels by 2025.
To meet these goals, policies like the Clean Power Plan and federal investments in clean energy were introduced. However, in 2017, President Trump announced the country’s withdrawal, citing economic concerns.
Despite rejoining under President Biden in 2021, progress has been inconsistent. Notably, the U.S. committed $3 billion to the Green Climate Fund. But it only delivered $1 billion, leaving a funding gap for developing nations.
U.S. Withdrawal Shakes Global Climate Action: What’s at Stake?
The United States is the second-largest carbon emitter globally, behind China, contributing about 15% of the world’s total GHG emissions. Its participation in the Paris Agreement has always been crucial for global climate efforts.
Source: Geeksforgeeks
Trump’s executive order declared the U.S.’s withdrawal effective immediately, bypassing the standard one-year notice period required under the agreement. This swift exit has left many nations scrambling to adjust their strategies, particularly those that depended on U.S. leadership and funding.
Under President Biden, the country committed to reducing its emissions by 50-66% by 2035 and achieving net-zero emissions by 2050. These ambitious goals were a cornerstone of the global push toward sustainable development.
The withdrawal halts progress on these targets and eliminates billions of dollars in climate financing for developing countries. These funds were vital for supporting vulnerable nations in their fight against rising sea levels, extreme weather events, and other climate impacts.
Notably, U.S. emissions fell only 0.2% last year despite Biden’s $1.6 trillion climate agenda.
Trump’s pro-fossil-fuel stance threatens to reverse these modest gains, raising concerns about long-term environmental and economic impacts.
While the Paris Agreement is nonbinding, its symbolic and practical importance cannot be overstated. It has driven global investments in renewable energy, encouraged technological innovation, and fostered international collaboration. Since its adoption, wind and solar energy have grown exponentially, and clean energy investments have nearly doubled compared to fossil fuels.
However, global emissions remain far from the reductions needed to meet climate targets—the U.S. withdrawal risks undermining this fragile progress at a critical juncture.
Interestingly, multibillionaire Elon Musk, who is a Trump cheerleader once posted on X in 2017 during Trump’s first exit:
“Climate change is real. Leaving Paris is not good for America or the world.”
Trump’s Fossil Fuel Agenda: A Step Forward to “Energy Dominance”, But a Step Backward for Climate Goals
Central to Trump’s decision is his administration’s prioritization of fossil fuels. During his second inaugural address, he declared a “national energy emergency” and emphasized the need to increase oil and gas production.
“We will drill, baby, drill,” he proclaimed, signaling a sharp pivot from the clean energy policies of the previous administration.
Trump’s energy policies aim to dismantle regulations that limit fossil fuel development and expand domestic production. This approach includes reopening federal lands for drilling, rolling back environmental protections, and halting incentives for renewable energy.
Critics argue that these policies reflect a short-term focus on economic growth at the expense of long-term environmental sustainability.
Remarkably, an analysis suggests that U.S. greenhouse gas emissions would be 28% below 2005 levels by 2030 if Trump wins a second term and rolls back Biden’s policies, falling short of the 50-52% target.
Under a Biden reelection, emissions would drop to around 43% below 2005 levels. Biden’s policies like the Inflation Reduction Act provided tax incentives for renewable energy projects and set ambitious standards for vehicle emissions and energy efficiency. Trump’s rollback of these policies could slow the adoption of green technologies and jeopardize the U.S.’s position as a leader in clean energy innovation.
In Trump’s scenario, U.S. emissions in 2030 would be about 1GtCO2e higher than under Biden, adding around 4GtCO2e cumulatively by 2030. These extra emissions would result in global climate damages exceeding $900 billion using the EPA’s carbon cost of $230 per tonne.
Resistance at Home
Coalitions of U.S. states, cities, and businesses are stepping up, vowing to meet climate targets despite federal inaction. The U.S. Climate Alliance, representing 24 states, pledges to cut emissions by 66% by 2035.
The America Is All In coalition, co-chaired by former Biden administration officials, represents states that account for nearly 60% of the U.S. economy. Gina McCarthy, the coalition’s co-chair highlighted these subnational actors’ vow to uphold the Paris Agreement’s targets, saying:
“By leaving the Paris Agreement, this administration has abdicated its responsibility to protect the American people and our national security…But rest assured, our states, cities, businesses, and local institutions stand ready to pick up the baton of U.S. climate leadership and do all they can — despite federal complacency — to continue the shift to a clean energy economy.”
Global Repercussions: A Ripple Effect on Climate Action
The international response to Trump’s withdrawal has been overwhelmingly negative. Climate advocates, scientists, and world leaders have condemned the decision, calling it an abdication of responsibility.
This is particularly concerning ahead of the COP30 climate talks in Brazil, where nations are expected to review and strengthen their commitments under the Paris Agreement.
Globally, Trump’s decision could embolden other nations to scale back their climate ambitions. Countries heavily dependent on fossil fuels may see the U.S. withdrawal as a justification for delaying their transitions to renewable energy. Additionally, the absence of U.S. leadership could undermine trust and cooperation in international climate negotiations, making it more difficult to achieve collective action.
As the world faces unprecedented climate challenges, the need for decisive action has never been greater. Trump’s withdrawal highlights the fragile balance between economic interests and environmental responsibility. While some estimates and projections exist, the real effects of Trump’s fossil fuel agenda remain to be seen and the world is on watch.
The world of climate tech investment witnessed a significant transformation in 2024, primarily driven by the AI boom. This reshaping was about emerging technologies and sectors traditionally linked to energy and infrastructure. However, funding seems to be waning.
Funding Declines, But AI Powers New Opportunities in Climate Tech
According to PitchBook data, venture capital (VC) investment in climate tech declined globally for the third consecutive year.
Funding dropped from $25.9 billion in 2022 to $19.7 billion in 2023, and further to $17 billion in 2024, reflecting a 34% decrease over two years.
Pre-seed and seed rounds were particularly slow last year, dropping from 246 deals to 152 deals in the U.S. For climate-tech startups, raising a seed deal is a particularly tough ask, especially for hardware businesses requiring substantial capital expenditure before reaching a pilot product.
Climate tech remains a risky area for investment, even when money is cheap. The sector took heavy blows in 2024, including Northvolt, a lithium EV battery developer that raised $9 billion in equity and convertible debt, spiraling into bankruptcy in November. Universal Hydrogen, a startup developing a fully hydrogen-powered plane, also ran out of cash.
However, despite this decline, certain subsectors thrived. AI-driven data centers and their associated technologies emerged as pivotal drivers of growth, drawing substantial interest and funding from investors.
Sightline Climate’s review of 2024 climate tech trends highlighted that energy and building technologies, particularly those tied to AI data centers, bucked the declining investment trend.
The energy sector saw a 12% increase in funding, reaching $9.4 billion, while building technologies grew by 10% to $2.7 billion. This surge was driven by the anticipated rise in energy consumption due to AI operations.
Generative AI models, like ChatGPT, consume nearly 10 times more energy per query compared to a standard Google search. To support such energy-intensive operations, data centers are predicted to increase their power demand by 2.4% annually until 2030. This energy requirement reverses a decade-long trend of flat growth.
Billions Flowing into Cleaner Data Centers
As AI technologies grow, so does the demand for cleaner and more sustainable data centers. Leading tech companies, including Google, Amazon, and Microsoft, have set ambitious emissions targets, creating opportunities for innovative climate tech solutions.
Kim Zou, CEO of Sightline Climate, highlighted that AI’s rapid rise presents both challenges and opportunities. Emerging clean power solutions, like nuclear and geothermal energy, as well as energy-efficient data center technologies, are now in the spotlight. Zou specifically highlighted that:
“On one hand, we’re seeing unprecedented load growth coming onto an already constrained grid. On the other hand, AI-led demand is driving momentum for emerging clean firm power solutions…”
In 2024, several notable investments reflected the urgency to meet AI’s growing energy needs sustainably, including:
Crusoe Energy’s $600 Million Raise
Crusoe Energy, originally focused on cryptocurrency mining, now provides vertically integrated AI services, including data centers optimized for clean energy. This December 2024 deal marked the largest climate tech investment of the year.
Amazon’s $500 Million Bet on X-Energy
Amazon partnered with X-Energy to deploy over 5 gigawatts of nuclear power projects in the U.S. by 2039. This capacity would represent about 10% of the additional energy needed to support U.S. data center growth through 2030, according to Goldman Sachs estimates.
Form Energy’s $405 Million Round
Form Energy developed an iron-based battery capable of storing power for up to 100 hours—20 times longer than most current systems. This innovation supports utilities in managing energy demand surges and the variability of renewable sources like wind and solar.
Scala’s $500 Million Investment
Scala, a Brazilian data center provider emphasizing clean energy, also secured a significant deal in September 2024. The company exemplifies a global push toward sustainable AI infrastructure.
Chart from Trellis
Climate Tech Beyond Data Centers
While data centers dominated the climate tech landscape, other sectors also experienced notable advancements. In transportation, electric vehicle (EV) technologies continued to attract significant investment.
Companies working on EV battery recycling and efficiency saw increased funding, driven by a growing focus on the circular economy. Additionally, startups specializing in grid management solutions gained traction, addressing the challenges of integrating renewable energy sources into existing power networks.
In agriculture, innovations aimed at reducing methane emissions and improving soil health gained momentum. Technologies such as precision farming tools and methane-reducing feed additives drew investor interest, aligning with global efforts to lower greenhouse gas emissions from the agricultural sector.
The Role of AI in Shaping Investment Trends
AI’s influence extends beyond its direct impact on data centers. Venture capitalists are increasingly leveraging AI-driven analytics to identify promising climate tech startups. Predictive models and machine learning tools help investors assess risks and returns, enabling more informed decision-making in a complex and evolving market.
AI is also driving innovation within climate tech itself. Startups are using AI to optimize renewable energy systems, enhance energy storage technologies, and improve carbon capture methods. These advancements not only attract funding but also accelerate the deployment of climate solutions on a global scale.
Per Pitchbook data, VC investments in startups surged by nearly 30% in 2024, driven largely by the booming AI industry. Leading firms like Greycroft and Kleiner Perkins are doubling down on AI despite rising valuations.
Corporate venture capitalists (CVCs), in particular, are increasingly focusing on AI, with AI-related financings rising from 22.5% in 2021 to 31.9% in 2024.
However, climate-tech deals are declining, even as awareness grows about the need for clean energy investments. This is crucial to meet the energy demands fueled by AI’s rapid growth, highlighting a shift in industry priorities as AI takes center stage in the venture capital landscape.
A Future Fueled by Innovation
Clean energy investors anticipate challenging months ahead for startups as the energy industry adapts to Donald Trump’s administration. With uncertainty around project financing and regulations, some VCs are advising companies to delay fundraising efforts until the landscape becomes clearer.
Investors are now focusing on scalable solutions that address both immediate and long-term needs. From energy-efficient data centers to breakthroughs in battery technology, the innovations emerging today will shape the future of climate tech.
With billions of dollars flowing into transformative projects, the intersection of AI and climate tech offers a glimpse into a future where technology and sustainability go hand in hand.
President Trump announced a major $500 billion private investment to boost artificial intelligence (AI) infrastructure in the U.S. He spoke at the White House, stressing the need to keep AI advancements in America to stay ahead of competitors like China. This ambitious initiative, called Stargate, is a joint venture of tech giants like OpenAI, SoftBank, and Oracle.
The White House was studded with top leaders like SoftBank CEO Masayoshi Son, OpenAI’s Sam Altman, and Oracle’s Larry Ellison. They joined Trump to discuss the venture’s potential to transform the industry.
Stargate AI Initiative Takes Off
The Stargate Project will deploy $500 billion over the next four years, with an immediate commitment of $100 billion. This investment will be used to build new AI infrastructure for OpenAI in the United States.
According to Trump, Stargate can generate over 100,000 American jobs almost immediately. He described this as a vital step toward re-industrializing the nation and ensuring strategic capabilities for national security.
As Trump firmly believes in making America great again, he asserted once again, saying.
“What we want to do is keep it in this country. “China is a competitor, and we need to build this infrastructure here, fast. Emergency declarations will help us make this happen. These companies will have the support they need to produce the energy and resources required to complete this project quickly.”
The venture highlights the President’s strong commitment to strengthening the U.S. economy. Collaborating with prominent industry leaders, will only foster innovation, create jobs, and advance technology.
Source: Market.us
What’s Inside Stargate’s Collaboration and Leadership
SoftBank and OpenAI will take the lead in Stargate. SoftBank will oversee financial responsibilities and OpenAI will manage operations. Masayoshi Son will serve as chairman, bringing his visionary leadership to the table.
Japantimes reported Son’s exuberance during the announcement. He said,
“This is not just for business. This will help people’s lives. This will help solve many, many issues, difficult things that otherwise we could not have solved with the power of AI. This is the beginning of our golden age.”
The initial equity funders in Stargate are SoftBank, OpenAI, Oracle, and Abu Dhabi-based AI investment firm MGX. They will initially invest $100 billion. Additionally, Arm, Microsoft, NVIDIA, Oracle, and OpenAI are crucial technology collaborators.
The partnership builds on long-standing relationships, such as the collaboration between OpenAI and NVIDIA dating back to 2016 and OpenAI’s more recent ties with Oracle and Microsoft.
OpenAI’s continued use of Microsoft’s Azure platform will further enhance its ability to train cutting-edge models and deliver innovative AI solutions.
Beyond its economic and technological implications, Stargate represents a strategic asset for national security. With this initiative, Trump highlighted the need to safeguard the U.S. and its allies by pushing America to the top in the AI race.
Larry Ellison’s AI Promise: Texas Leads the Charge
Stargate is already making strides, with 10 data centers under construction in Texas. More sites are being evaluated across the U.S. for additional campuses, signaling a nationwide expansion.
Larry Ellison revealed that the Texas facilities would serve as the launchpad for Stargate’s vision. He spoke about the transformative impact of this technology on various sectors, saying.
“AI holds incredible promise for every American.”
Sam Altman’s Vision for AI’s Potential
Sam Altman, called Stargate “the most important project of this era.” During the announcement, he emphasized AI’s groundbreaking potential to address critical challenges, particularly in healthcare. Altman further shared his optimism about AI’s ability to revolutionize medicine, stating,
“As this technology evolves, we will see diseases cured at unprecedented rates.”
He emphasized how AI can greatly improve lives and address global issues. Altman also noted this project could create hundreds of thousands of jobs, aiming to establish a new industry in the US and drive innovation further.
Apart from boosting industries, Stargate seeks to tackle real-world challenges by empowering creative minds to explore innovative AI applications. It also focuses on advancing healthcare, improving lives, and bringing lasting benefits to people worldwide.
CarbonCredits earlier reported that promoting American AI exports and growing the domestic industry is a key focus for 2025. This will drive significant investments. President Trump’s 2019 executive order emphasized the importance of opening global markets for U.S. AI while safeguarding critical technologies. Since then, generative AI has rapidly advanced, with China’s growing AI dominance fueling intense competition between the two nations.
According to Grand View Research, the U.S. generative AI market, valued at $4.06 billion in 2023, is projected to grow at an impressive CAGR of 36.3% from 2024 to 2030, highlighting its immense potential and global impact.
As the year began, Microsoft announced an $80 billion investment in artificial intelligence, with over half of it dedicated to building cutting-edge data centers across the United States. Alongside Microsoft, tech giants like Meta, Google, and Amazon are also heavily investing in domestic AI and data infrastructure.
These investments are only fueling the nation’s ambition to lead the global AI race. Well, this is just the beginning and 2025 looks like a year of American AI’s golden era with massive projects like Stargate.
Alaska Energy Metals Corporation (AEMC), the mining junior with offices in Anchorage and Vancouver is ready to take advantage of the U.S. policy shift that promises Alaska’s prosperous future. The recent Executive Order, titled “Unleashing Alaska’s Extraordinary Resource Potential”, under President Trump is a significant win for minerals and mining industries in Alaska, including AEMC.
This directive aims to unlock the vast untapped resources of the state, with direct implications for AEMC’s flagship project, the Nikolai Project Eureka deposit, which holds critical metals such as nickel, copper, cobalt, and more.
AEMC President & CEO Gregory Beischer commented:
“A new era has dawned in Alaska. The new administration is aware of the country’s vulnerability to metal supply chain disruption. It is taking concrete steps to help Alaska achieve its potential to help with economic and national security for the country.”
Thus, the timing couldn’t be better for Alaska Energy Metals. With an unwavering commitment to sustainability, environmental stewardship, and long-term value generation for shareholders, AEMC is ready to capitalize on the newly favorable regulatory landscape.
Executive Order Set to Transform Alaska’s Resource Development Landscape
President Trump’s Executive Order directly supports Alaska’s economy and strategic goals. Apart from mining and natural resources, it promises to benefit oil and gas in that region.
Alaska has long been recognized as having abundant untapped mineral reserves, and this new policy emphasizes the importance of tapping into those resources for the benefit of the nation.
The order lays the groundwork for the U.S. to fully harness Alaska’s vast lands and resources, boosting national energy independence and securing the supply chains of vital minerals for industries like electric vehicles, renewable energy, and defense.
Among the key initiatives outlined in the order, the government seeks to:
Develop national stockpiles of critical and strategic metals.
Maximize resource production on both federal and state lands in Alaska.
Promote the production of liquid natural gas (LNG) from the North Slope oilfields.
Reopen the regulatory process for critical infrastructure projects, including the Ambler road, which would provide access to previously inaccessible mineral-rich areas in the northwestern part of the state.
For AEMC, these policy shifts are particularly significant, as they directly support the company’s goal of becoming a leading source of strategic metalsthat are essential to North America’s energy and security future.
Notably, the company’s primary focus is the Nikolai Project, ideally located in Interior Alaska, an area rich in critical materials and close to existing transportation and power infrastructure.
Let’s explore this project in detail.
Alaska Energy Metals: Ready to Lead the Charge in Strategic Energy Metals
Alaska Energy Metals flagship Nikolai Project Eureka deposit hosts large-scale, bulk tonnage reserves of several vital elements, including nickel, copper, cobalt, chromium, iron, platinum, palladium, and gold
AEMC’s Eureka deposit is a standout polymetallic resource, boasting over 3.9 billion pounds of nickel in the Indicated category and 4.2 billion pounds in the Inferred category. The deposit’s sheer scale highlights its importance in the company’s portfolio.
Source: AEMC
Advances Exploration with ESG Focus
Recently, AEMC shared exciting updates from its 2024 inaugural exploration drilling program at the Canwell claim block, located approximately 30 kilometers northeast of the nickel-rich Eureka deposit. The Canwell area is home to three notable prospects: Emerick, Odie, and Upper Canwell, each presenting significant exploration potential.
In addition to these efforts, AEMC has achieved substantial progress at its flagship Nikolai Project in central Alaska. The 2024 drilling program successfully extended the higher-grade core zone by 600 meters to the southeast. This expansion uncovered coarse-grained magmatic sulfides, unveiling a promising new exploration target. These advancements mark a major milestone for AEMC as it continues to strengthen its exploration activities and uncover the region’s vast resource potential.
AEMC also owns the Angliers – Belleterre project in western Quebec. The company believes that sourcing materials requires excellent environmental care, technological innovation, carbon reduction, and smart management of people and finances. AEMC works hard to earn and keep the public’s trust. They take action on these areas and believe strong ESG performance starts with leadership and shows in real results.
The U.S. government’s new commitment to resource development in Alaska creates a favorable regulatory environment for AEMC to move forward with its plans to expand its mining potential for crucial resources like nickel.
Exciting Opportunities for Alaska’s Economic Growth
Trump’s renewed focus on Alaska’s resource development is expected to have wide-ranging benefits, not only for AEMC but for the state’s economy as a whole. The policy changes aim to create jobs, boost investment, and revitalize local communities by unlocking access to vast mineral resources in the region.
For instance, the reopening of the regulatory process for infrastructure projects, such as the Ambler road, is crucial for facilitating access to some of the most promising mineral deposits in Alaska’s northwestern region. And for AEMC, this means enhanced opportunities for mineral expansion and growth.
In addition to streamlining transportation, the new infrastructure could also improve energy access, particularly if the North Slope oilfields’ potential for liquid natural gas production.
As Alaska gains national recognition for its resource potential, AEMC is confident its projects will boost national security, and energy independence, and deliver strong value for shareholders. The company is focused on sustainable development and responsible environmental practices, ensuring long-term success.
Disclosure: Owners, members, directors, and employees of carboncredits.com have/may have stock or option positions in any of the companies mentioned: AEMC.
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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.
The recent exit of Canadian and U.S. banks from the Net-Zero Banking Alliance (NZBA) initiative highlights growing tensions between climate commitments and political pressures. With banks like TD, BMO, and Scotiabank prioritizing independent strategies, the financial sector faces mounting challenges in balancing sustainability goals with fossil fuel financing.
The NZBA initiative was established in 2021 to align global financial institutions with the Paris Agreement’s goals. With over 100 members representing nearly 40% of global banking assets, the alliance focused on reducing financed emissions, encouraging green investments, and increasing transparency.
These measures were designed to mobilize the financial sector’s efforts toward a low-carbon economy. Sustainable financing is critical in this journey by enabling investments in renewable energy, carbon capture technologies, and reforestation projects.
However, the recent departure of major banks from the NZBA threatens to undermine collective action, raising questions about the alliance’s future and the overall momentum toward net zero.
Balancing Green Goals and Fossil Fuel Financing: The Sustainability Dilemma
In a significant blow to the NZBA, five major Canadian banks—TD Bank, Bank of Montreal (BMO), National Bank of Canada, Canadian Imperial Bank of Commerce (CIBC), and Scotiabank—announced their exit. This exodus highlights the growing tension between political realities and sustainability commitments.
Despite leaving the alliance, these major banks reiterated their dedication to decarbonization and achieving net zero by 2050. Let’s get to know each of the bank’s climate goals and strategies.
TD Bank
TD Bank said it would continue working independently on its climate strategy, leveraging its expertise to support sustainable investments. The bank has already committed over $100 billion in sustainable finance initiatives and aims to achieve net zero emissions in its operations by 2030.
However, critics argue that TD’s significant funding for oil sands and fossil fuel projects undermines its climate claims. Between 2020 and 2023, TD Bank ranked among the top global financiers of fossil fuel expansion, allocating billions to high-emission projects. This dual approach raises questions about the bank’s sincerity in addressing climate change.
Bank of Montreal
BMO emphasized its ongoing efforts to support clients in transitioning to a low-carbon economy. The bank’s Climate Institute and its $330 billion sustainable finance goal by 2025 underscore its commitment to reducing emissions.
Source: BMO website
The bank has also been active in funding renewable energy projects, including large-scale wind and solar developments across North America. However, like its peers, BMO faces scrutiny for its continued investments in high-carbon industries, which critics argue contradict its net zero ambitions.
Canadian Imperial Bank of Commerce (CIBC)
CIBC highlighted its progress in climate risk management and financing renewable energy projects. In 2023 alone, the bank allocated $45 billion to sustainability-linked loans and green bonds.
CIBC’s partnerships with green technology firms have further bolstered its image as a climate-conscious institution. Nonetheless, its position as a major lender to oil and gas companies casts doubt on its overall impact on reducing emissions.
National Bank of Canada
NBC stated it remains focused on aligning its financing activities with sustainability goals while meeting evolving regulatory standards. The bank has supported projects that advance clean energy and sustainable infrastructure. It has also invested in carbon offset programs to mitigate the environmental impact of its loan portfolio and reach the net zero goal, with the following interim targets.
Source: NBC website
Scotiabank
Scotiabank reaffirmed its dedication to financing decarbonization efforts, particularly in the oil and gas sector. It recently launched the Scotia Climate Change Transition Fund to provide capital for businesses adopting greener practices.
The fund focuses on sectors like renewable energy, green manufacturing, and sustainable agriculture. Remarking on its exit, Scotiabank spokesperson Katie Raskina stated in an email:
“…[We] will continue to finance the transition and support our clients in implementing their sustainability strategies — this is the most important role that we can play.”
Despite these efforts, Canadian banks remain some of the largest financiers of fossil fuels. Data from 2024 shows TD Bank, RBC, BMO, and CIBC among the top 10 global financiers of oil, gas, and coal projects, which poses challenges to their sustainability narratives.
Royal Bank of Canada (RBC) is now the only major Canadian bank still in the alliance, although its leadership has hinted at reconsidering membership. CEO Dave McKay recently stated that exiting NZBA would not diminish the bank’s climate commitments.
RBC has allocated over $500 billion toward sustainable finance and pledged to achieve net zero emissions by 2050. However, RBC’s role as a top lender to the fossil fuel industry has drawn widespread criticism, making it a focal point for climate activists.
The U.S. Banks’ Departure and a Growing Trend
The NZAM also saw a wave of exits from U.S. banking giants in late 2023 and early 2024. Goldman Sachs, Morgan Stanley, Citigroup, Bank of America, and Wells Fargo are among the notable names that departed the alliance.
These exits coincide with Donald Trump’s return to the presidency and intensified political opposition to climate finance. Republican-led states, such as Texas, have filed lawsuits against banks and asset managers, accusing them of prioritizing climate goals over economic interests.
While these banks have distanced themselves from the NZBA, they continue to pursue independent sustainability strategies. For example, Morgan Stanley and Citigroup have committed to achieving net zero emissions by 2050, with interim targets for 2030.
However, their withdrawal underscores a broader challenge: balancing climate ambitions with political and financial pressures.
What Does This Mean for Global Climate Financing?
The departures from NZBA highlight a troubling trend that may hinder global progress toward net zero. These exits risk fragmenting efforts within the financial sector, which could delay the mobilization of the trillions of dollars required to combat climate change.
As shown in the chart, the world needs $7.4 trillion annually through 2030 under the 1.5°C net-zero scenario. The banking sector has a critical role in ensuring that this amount reaches the right climate projects and initiatives.
Source: Climate Policy Initiative
Unified alliances like NZBA provide a framework for accountability, collaboration, and standardization, which are essential for large-scale impact. However, political resistance, legal challenges, and the perception of overregulation have created significant barriers.
The exits also send mixed signals to stakeholders, including investors and policymakers, about the financial sector’s commitment to sustainability. Yet, the growing demand for green bonds, renewable energy financing, and decarbonization technologies presents opportunities for banks to demonstrate leadership.
By prioritizing transparency, innovation, and partnerships, financial institutions can continue to play a pivotal role in driving the global transition to a sustainable future.
On January 20, 2025, America witnessed another significant event: President Donald Trump’s inauguration in Washington, D.C. The ceremony marked the beginning of his four-year term, echoing his well-known slogan “Make America Great Again.”
In a bold move, Trump announced the U.S. withdrawal from the Paris Agreement. This decision initiated a major shift in the nation’s energy and climate policies. His “America First” energy strategy focuses on boosting fossil fuel production, rolling back regulations, and reducing government oversight. Supporters see this as a way to enhance energy independence and foster economic growth. However, critics warn it could lead to severe environmental damage and a loss of global leadership.
Exiting the Paris Agreement: A Signal to the World
President Donald Trump signed an executive order on Monday to withdraw the US from the Paris climate agreement. It signaled a huge setback for global efforts to combat climate change. This decision mirrors his 2017 move to pull the U.S. out of the same accord.
The Paris Agreement, formed in 2015, seeks to limit global temperature rise to 2.7°F (1.5°C) above pre-industrial levels. The fallback goal is to stay below 3.6°F (2°C). Countries set their emission reduction targets, which are expected to become more ambitious over time.
As reported by AP News, along with an executive order, Trump signed a letter to the United Nations, officially stating his intent to exit the agreement. The accord requires nations to cut greenhouse gas emissions from fossil fuels like coal, oil, and natural gas. In contrast, the Biden administration proposed reducing U.S. emissions by over 60% by 2035 as part of its climate strategy.
Trump’s decision further isolates the U.S. from key global allies. It raises concerns about the international community’s ability to tackle climate change without American leadership.
Biennial Transparency Report: Net Greenhouse Gas Emissions
Trump Declares National Energy Emergency: Drilling and Deregulation
One of Trump’s most controversial moves was declaring an “energy emergency”. Trump said,
“The inflation crisis is caused by overspending and massive and escalating energy prices that is why I also declare a national energy emergency. America will be a manufacturing nation again and we will have something that no other manufacturing nation will ever have, the largest amount of oil and gas that any country on earth has and we are going to use it,”.
The White House stated that the U.S. lacks enough energy supply and infrastructure to meet its needs. It stressed the importance of reliable, affordable energy for industries, defense, and everyday life. High energy prices, worsened by past policies, hurt low- and fixed-income families the most.
The statement warned that foreign adversaries exploit U.S. energy weaknesses, targeting infrastructure and manipulating global markets. Energy security is crucial for protecting Americans and stabilizing the economy. A strong domestic energy supply reduces reliance on foreign sources and ensures national security.
Notably, the Trump administration has promised to reduce energy prices as a measure to combat high inflation.
Unleashing Alaska’s Resource Potential
Alaska holds a special place in Trump’s energy strategy and broadly in American energy dominance. In Alaska, Trump issued an executive order to lift restrictions on oil drilling in the Arctic National Wildlife Refuge (ANWR). Beyond opening the ANWR to drilling, Trump’s policies focus on expanding resource extraction across the state, including mining and natural gas projects.
The administration argues that Alaska’s resources are vital for national security and economic growth. He also plans to fast-track permits for energy projects, claiming that lengthy bureaucratic processes hinder economic growth.
However, these actions face significant opposition. Environmental activists warn that increased drilling could accelerate climate change, particularly as the Arctic warms at twice the global average. Indigenous groups, too, are voicing concerns about the impact on their cultural heritage and traditional practices.
Targeting Renewable Energy, Embracing Fossil Fuels Again
Trump’s agenda does not favor renewable energy. S&P Global reported that federal leasing for wind power development will be abolished. This means rolling back to traditional energy sources. The administration believes that renewables are not cost-effective and that their subsidies distort energy markets.
This stance could stall progress in the rapidly growing renewable energy sector. Over the past decade, wind and solar power have become more competitive, creating thousands of jobs. Industry leaders worry that removing federal support will slow innovation and weaken the United States’ position in the global clean energy race.
Meanwhile, states like California and New York have pledged to continue their investments in renewables. California, for example, has vowed to continue its aggressive climate policies, including a ban on gas-powered car sales by 2035.
source: EIA
Rolling Back EV Push and Emissions Rules
Electric vehicles (EVs) have been at the forefront of climate solutions. However, Trump plans to repeal federal tax credits for EVs and reverse energy efficiency mandates. These rollbacks aim to reduce government intervention in the auto industry and encourage consumer choice.
Reuters recently reported that the Biden administration’s goal of having 50% of new vehicles sold in the U.S. be electric by 2030 was non-binding but had gained support from automakers across the globe.
Trump’s executive order halts the $5 billion fund for EV charging stations and proposes ending state waivers, including California’s 2035 gasoline car ban. The order also directs the EPA to reconsider stricter emissions rules that require automakers to increase EV sales to 30-56% by 2032.
A Setback for Clean Transportation?
The motive is simple i.e. reducing EV sales requirements and challenging efforts to expand electric vehicle adoption. It also clearly indicates a shift away from Biden’s climate-focused policies, signaling a renewed push for fossil fuel reliance and less government intervention in the automotive industry. The debate over these policies will likely continue, with legal and market forces shaping the future of America’s vehicle market.
Critics argue that this approach favors gasoline-powered vehicles, delays the transition to cleaner transportation, and can potentially increase carbon emissions. Automakers, who have already invested heavily in EV production, face uncertainty about future regulations. Meanwhile, countries like China and Germany continue to dominate the EV market, leaving the U.S. at risk of falling behind.
Suzanna Massingue, a low-carbon transportation analyst at S&P Global explained that Trump has repeatedly criticized EVs, targeting the Biden-era EV tax credit and the shift toward electrification. Removing this tax credit would hurt the U.S. EV industry and delay cost parity with gas-powered cars.
source: EIA
The Paradox of America’s Progress Under Trump’s Rule
President Trump’s “America First” energy strategy represents a paradox in U.S. climate policy. On one side, it focuses on boosting economic growth, energy independence, and creating jobs through fossil fuel expansion. On the other side, critics warn that this approach could harm the environment and hurt the country’s global leadership in tackling climate change.
The Anti-Trump group believes that by prioritizing deregulation and fossil fuels, the administration is aiming for short-term economic benefits. Moreover, legal challenges already exist, with environmental groups preparing to fight in court. They argue that many of Trump’s policies violate laws that protect the environment and public health.
In conclusion, America’s energy future seems uncertain at this moment. Legal battles, market shifts, and state policies will all play an important role in determining America’s carbon footprint. Most significantly, Trump’s withdrawal from the Paris Agreement has sparked significant criticism. But how much America will truly benefit from this approach– only time will tell!
The recent merger talks between two mining giants—Glencore and Rio Tinto—signal a major shift in the global market. The merger, though now discontinued, was a strategic move aimed at creating a powerhouse focused on electric metals crucial to the global low-carbon economy.
These metals, including copper, nickel, and cobalt, are key components in the development of electric vehicles (EVs), renewable energy infrastructure, and other clean technologies that are central to the global energy transition.
The Strategic Merger Discontinued: But Climate Commitments Persist
Glencore and Rio Tinto recently engaged in months-long merger talks, signaling a shift in Rio’s previously cautious approach to mega-deals. A decade after Rio rejected Glencore’s proposal, the mining giants revisited discussions amidst an industry-wide push for consolidation in energy transition metals.
Changes in leadership, strategy, and market dynamics—alongside pressure from BHP’s bold moves—catalyzed these talks. Although the discussions are currently inactive, Rio’s openness to Glencore highlights evolving priorities as both companies adapt to global decarbonization demands.
The news fuels speculation of an impending wave of mergers and acquisitions across the mining sector.
The potential merger between Glencore and Rio Tinto is more than just asset consolidation. It is also about positioning both companies at the forefront of the green energy revolution.
The focus was on strengthening their leadership in the production of essential transition metals like copper and nickel. These metals are vital for EV batteries, renewable energy storage, and electrified transportation networks. As the world moves towards electrification, ensuring a sustainable, reliable supply of these metals is important.
Both companies share a commitment to the goals of the Paris Agreement. Together, they pledged to reduce their carbon emissions and ensure that their efforts to supply clean energy solutions won’t contribute to the environmental challenges they seek to address.
Glencore’s Commitment to Electric Metals and Decarbonization
Glencore has long been a leader in mining and is heavily invested in producing metals crucial for the transition to a low-carbon future. The company focuses on metals like copper, nickel, and cobalt, which are integral to the electrification of the world’s infrastructure.
With the global rise in electric vehicle production and the expansion of renewable energy sources, Glencore’s strategic approach centers on securing a stable and sustainable supply of these key transition commodities.
A standout focus is on nickel, which is used extensively in EV batteries. As the demand for EVs continues to surge, Glencore has committed to increasing its nickel production.
In its 2024-2026 Climate Action Transition Plan (CATP), Glencore outlined ambitious plans to achieve net-zero Scope 1 and 2 emissions by 2050. The plan incorporates a range of strategies aimed at reducing emissions across its operations while ensuring the continued availability of critical metals, with the following target based on 2019 baselines:
2026: 15% reduction in Scope 1, 2, and 3 CO₂e emissions by end-2026.
2030: 25% reduction by end-2030 (new interim target added based on stakeholder feedback).
2035: 50% reduction by end-2035.
Source: Glencore
Glencore’s net-zero emissions strategy prioritizes reducing emissions while using carbon credits for residual emissions, aligned with the Paris Agreement. As seen below, the mining giant’s footprint in 2023 has increased from 2022 but is 22% less than 2019 levels.
Source: Glencore
Glencore’s approach to decarbonization extends beyond just emissions reduction. It is also focused on transitioning its entire industrial portfolio to support the global energy transition. The company has committed to a holistic decarbonization strategy that includes reducing its combined Scope 1, 2, and 3 emissions.
Similarly, Rio Tinto has long recognized the importance of electric metals in the global transition to clean energy. The company has significantly ramped up its production of copper and lithium—two metals that are pivotal for EV batteries and renewable energy storage.
The world’s second-largest metals and mining corporation also aims to reach net zero emissions by 2050, with this roadmap:
Source: Rio Tinto
In January 2025, Rio Tinto announced the establishment of a standalone lithium division, following its $6.7 billion acquisition of Arcadium Lithium. This move solidified Rio Tinto’s position as the 3rd-largest global producer of lithium vital for the development of high-capacity batteries.
The company’s strategy is aimed at meeting the accelerating demand for electric metals as more countries commit to electrification.
Like Glencore, Rio Tinto has committed to ambitious decarbonization goals. The company aims to reduce its Scope 1 and 2 emissions by 15% by 2025 and by 50% by 2030.
Source: Rio Tinto
To achieve these targets, Rio Tinto has pledged $5–6 billion in decarbonization initiatives, focusing on energy transition efforts, renewable energy adoption, and advancements in clean technologies for mining processes.
In 2023, the company spent $425 million on decarbonization projects, including transitioning mining equipment to renewable energy sources and repowering its aluminum operations. For the same year, the miner’s Scope 1 and 2 emissions totaled 32.6 Mt CO2e, a 6% reduction from the 2018 baseline of 34.5 Mt CO2e and slightly below the adjusted 2022 figure of 32.7 Mt CO2e.
Source: Rio Tinto
The company’s emissions abatement projects outpaced growth from higher production, leading to a minor decrease on a like-for-like basis. However, emissions were slightly higher than the actual 2022 total of 32.3 Mt CO2e due to recent acquisitions of additional equity.
Future Prospects: Meeting the Rising Demand for Clean Energy Materials
Although merger talks between Glencore and Rio Tinto were ultimately discontinued in January 2025, both companies remain key players in the global mining and energy transition sectors. Their strategies continue to strengthen their positions in the electric metals market.
The merging of their expertise and resources would have allowed them to combine their mining operations and expertise. This could have given them an edge in the low-carbon energy transition.
Looking forward, both Glencore and Rio Tinto will continue to focus on expanding their portfolios of electric metals and achieving their decarbonization and net-zero targets. As more countries and industries pivot to sustainable energy, these companies will be critical in ensuring a steady supply of the metals required for a low-carbon world.
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