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How BYD’s European Surge and Canada Deal Are Challenging Tesla’s EV Dominance

Saptakee S

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February 6, 2026

How BYD’s European Surge and Canada Deal Are Challenging Tesla’s EV Dominance

Chinese electric vehicle (EV) giant BYD is accelerating its global expansion, especially in Europe and Canada. In contrast, Tesla is losing ground across key markets. New sales data, policy shifts, and geopolitical deals suggest a major shift in the EV landscape.

This trend matters not just for automakers. It also impacts battery metals, supply chains, carbon markets, and the future of clean mobility.

BYD’s Germany Boom Marks Europe’s EV Shake-Up

BYD recorded a dramatic surge in German sales in January 2026. Bloomberg highlighted data from Germany’s Federal Motor Transport Authority (KBA) showing that BYD’s registrations jumped more than 10-fold from January 2025. The company sold only 235 vehicles in Germany last year, but recent data suggests sales likely exceeded 2,500 units.

Meanwhile, Tesla struggled. BYD more than doubled Tesla’s registrations in Germany during the same month.

Overall, car sales in Germany declined 6.6% to 193,981 vehicles in January. However, electric cars still accounted for 22% of new registrations, highlighting strong demand for EVs despite a weak auto market. This surge shows that BYD’s low-cost models and expanding lineup are gaining traction in Europe’s largest automotive market.

Significantly, the German numbers reflect a broader European trend. Throughout 2025, BYD recorded more than 200% year-on-year growth in many months. In December 2025 alone, its European registrations reached 27,678 units—up nearly 230%.

byd europe — Source: ElectricVehicles.com

Breakthrough in Spain

Spain emerged as another key battleground. BYD dominated the Spanish EV and plug-in hybrid market in January 2026.

The company registered 1,962 vehicles, a 64.6% year-on-year increase. It captured a 13.6% market share, leading both fully electric and plug-in hybrid segments.
Fully electric sales rose nearly 30% to 1,039 units, putting BYD ahead of Kia and Mercedes-Benz. Tesla ranked fourth, with only 458 fully electric vehicles sold.

Spain’s performance highlights BYD’s strategy of combining affordable EVs with hybrids to capture diverse buyers.

Notably, BYD also sold 1,326 battery-electric vehicles in the UK, marking a nearly 21% increase from the previous year.

MUST READ: BYD Overtakes Tesla as World’s Biggest EV Seller in 2025

Tesla’s European Sales Collapse Deepens

Tesla, on the other hand, saw sales decline every month in Europe during 2025. The trend continued into 2026. Its struggles were especially visible in Northern and Western Europe.

In five major European markets, Tesla’s registrations fell 44% year-over-year in January. This marked the third consecutive year of shrinking sales across the region.

Norway: Registrations collapsed by 88%, with only 83 vehicles sold.
Netherlands: Sales dropped 67%.
France: Registrations fell 42% to 661 vehicles, the lowest in over three years.
United Kingdom: Sales plunged more than 57% to just 647 vehicles.

Policy changes played a role. Norway reduced EV tax incentives starting January 1, which hurt Tesla demand. However, the scale of the decline surprised analysts.

Even in Sweden and Denmark, where Tesla saw sales rise by 26% and 3%, the total number of cars sold remains low. These minor gains do little to offset the sharp decline compared with two years ago.

Analysts believe that one key issue is Tesla’s aging lineup. The Model Y, once a top seller, is now over four years old, and buyers are looking for newer options. Although Tesla launched more affordable “Standard” versions of the Model Y and Model 3, these updates have not been enough to reverse the downward trend.

In the current scenario, Tesla is not only losing ground to Chinese brands. European automakers are also regaining market share. Volkswagen overtook Tesla in 2025 to become Europe’s top-selling EV brand. It sold around 274,000 units, compared to Tesla’s 235,000.

This shows Europe’s EV market is becoming more competitive, with local manufacturers and Chinese brands challenging Tesla’s early dominance.

Canada Opens the Door to Chinese EVs

Europe is not the only region where BYD is gaining ground. Prime Minister Mark Carney signed a landmark trade agreement with China on January 16, 2026. This deal allows Chinese-made EVs to enter the market at low tariffs.

So Canada will allow up to 49,000 Chinese EVs annually at a tariff rate of 6.1%. This marks a sharp reversal from the 100% tariff imposed in October 2024.

Also, the quota could rise to about 70,000 vehicles within five years. By 2030, at least half of imported Chinese EVs must be priced below CAD 35,000. In exchange, China agreed to reduce tariffs on Canadian canola seed, improving agricultural trade relations.

PM Carney said,

“At its best, the Canada-China relationship has created massive opportunities for both our peoples. By leveraging our strengths and focusing on trade, energy, agri-food, and areas where we can make huge gains, we are forging a new strategic partnership that builds on the best of our past, reflects the world as it is today, and benefits the people of both our nations.”

BYD Gains a Regulatory Edge in Canada

BYD holds a unique advantage in Canada. Its manufacturing facilities in Shenzhen and Xi’an are already approved for Canadian imports. This pre-clearance gives BYD a head start over rivals like NIO, XPeng, and Li Auto. However, other Chinese brands must wait for regulatory approvals or rely on slower case-by-case processes.

BYD also operates an electric bus assembly plant in Ontario, strengthening its local presence. Furthermore, affordable models like the Seagull and Dolphin, priced between $20,000 and $30,000, could qualify under Canada’s affordability requirements.

Political Backlash and U.S. Concerns

The Canada-China EV deal triggered political controversy. Ontario Premier Doug Ford initially urged Canadians to boycott Chinese EVs, warning the agreement could hurt domestic manufacturing.

Labor unions and automakers also expressed concern. They fear the deal could weaken North America’s automotive industry and strain U.S.-Canada trade relations.

As per reports, U.S. President Donald Trump threatened tariffs on Canadian goods if the deal moves forward, calling it a “disaster.” However, Canadian officials argue the agreement aligns with USMCA rules and will expand the EV market.

Analysts estimate Chinese EVs could capture around 23% of Canada’s EV sales in the first year, saving consumers about CAD 6,700 per vehicle.

Stock Market Snapshot: BYDDY vs TSLA

BYD’s (BYDDY) stock trades around $11.28 per share, with a market cap of roughly $102 billion. The stock is near the lower end of its 52-week range, reflecting margin pressures and geopolitical risks.

Tesla’s (TSLA) stock trades near $406 per share, with a market cap of about $1.35 trillion. Analysts expect a volatile 2026, with forecasts ranging widely depending on EV demand and margins.

Despite Tesla’s valuation premium, BYD’s rapid sales growth is reshaping investor sentiment.

The Bigger Picture: A Global EV Power Shift

BYD’s rapid rise shows how the EV industry is changing. Chinese automakers are using scale, government support, and efficient production to challenge Western rivals. At the same time, Tesla remains strong in technology, software, and brand recognition. Yet, price competition and shifting policies are reshaping the market.

In Europe, declining subsidies, along with Canada’s new trade rules and ongoing geopolitical tensions, are affecting EV adoption and corporate strategies. As BYD gains ground in Germany, Europe, and Canada, it signals a turning point in the global EV race. Tesla’s falling sales highlight the increasing pressure from both Chinese and European competitors.

For investors, policymakers, and climate advocates, these trends matter. They will influence battery supply chains, emissions targets, and the demand for carbon credits. The EV transition is no longer led by a single company—today, it has become a global contest for scale, affordability, and sustainable leadership.

LATEST: Tesla Reports First-Ever Annual Revenue Drop in 2025, Carbon Credit Sales Also Dip 28%

Walmart Hits $1 Trillion Milestone And Its Climate Footprint Just Got Bigger

Jennifer L

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February 6, 2026

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Walmart Hits $1 Trillion Milestone And Its Climate Footprint Just Got Bigger

Walmart has crossed a historic financial mark. It became the first traditional retailer to reach a $1 trillion market value, a level previously limited to technology and energy giants.

The milestone followed a strong move in the company’s share price. During recent trading in New York, Walmart’s stock rose by about 1.6% and hit an intraday high of around $126 per share.

That gain pushed the Bentonville, Arkansas-based retailer past the trillion-dollar threshold. Since the start of the year, Walmart’s stock has been up about 12%, far ahead of the S&P 500, which has gained less than 2% over the same period.

Investors have responded to Walmart’s steady revenue growth, digital expansion, and cost control. At the same time, the company has continued to expand its environmental and climate commitments. Given Walmart’s size, those efforts carry weight across global supply chains.

Big Targets for an Even Bigger Footprint

Walmart has set long-term climate targets that cover its own operations and its value chain. The company aims to reach zero greenhouse gas emissions across global operations by 2040, without using carbon offsets. It also plans to source 100% renewable electricity by 2035.

These targets apply to Scope 1 and Scope 2 emissions. Scope 1 includes direct emissions from company operations. Scope 2 covers emissions from purchased electricity. Walmart’s strategy includes improving energy efficiency, switching to low-impact refrigerants, and electrifying parts of its vehicle fleet.

walmart emissions WMT stock — Source: Walmart

Most of Walmart’s emissions sit outside its direct control. Like many large retailers, the bulk of its footprint comes from suppliers, logistics, and product use. To address this, Walmart launched Project Gigaton in 2017. The program set a goal to avoid, reduce, or remove one billion metric tons of greenhouse gas emissions from the global value chain by 2030.

Walmart gigaton project goals — Source: Walmart

Progress Made, Deadlines Slipping

Walmart’s reporting shows clear progress in several areas.

On clean power, the company said that nearly half of its global electricity use now comes from renewable sources. This includes on-site generation and long-term power purchase agreements tied to wind and solar projects. These steps move Walmart closer to its 2035 renewable energy target.

On emissions, Walmart has reduced Scope 1 and Scope 2 emissions by about 18% compared with its 2015 baseline. During this time, the company cut carbon intensity by 45%. This means it emits less for each unit of business activity.

Project Gigaton has also delivered results. Walmart announced it hit its one-billion-ton emissions reduction goal six years early, 1.19 billion metric tons of CO₂e. Over 5,900 suppliers joined in. They helped cut down on energy use, packaging, transportation, and waste.

Walmart project gigaton progress — Source: Walmart

Still, the path to net zero is not smooth. Walmart has admitted that it probably won’t meet its interim goals. These include reducing Scope 1 and 2 emissions by 35% by 2025 and 65% by 2030, based on 2015 levels. The company has pushed those timelines further out as it faces technical and operational limits.

Where Most Emissions, and Leverage, Live

Supply chains remain Walmart’s biggest climate challenge. In retail, Scope 3 emissions often account for the vast majority of total emissions. Industry research shows that for large retailers, supply chain emissions can make up as much as 90% to 98% of total carbon output.

Project Gigaton targets this gap. It asks suppliers to set goals in six areas, including energy, waste, packaging, agriculture, and logistics. Many suppliers focus on energy efficiency and renewable power, while others work on sustainable sourcing and transport optimization.

With that initiative, emissions intensity in Scope 3 has dropped by about 6.2% since 2022. This shows progress in lowering the carbon intensity of the wider supply chain.

Beyond emissions, Walmart has expanded work on waste reduction and responsible sourcing. The company promotes circular economy practices, aims to cut food waste, and supports sustainable agriculture across key commodities. These efforts link climate goals with land use, water, and biodiversity outcomes.

Transport innovation:

Walmart is investing in new technologies to reduce emissions in transport and logistics. They are focusing on heavy-duty electric vehicles and hydrogen fuel cell forklifts. This comes as transportation emissions have recently increased because Walmart decided to bring more fleet operations in-house.

RELATED: Walmart (WMT) Expands EV Charging and Boosts Renewable Energy in Its Net-Zero Playbook

Refrigerant upgrades:

The retailer is replacing high-impact refrigerants with lower global warming potential systems. This effort contributed to a 2.4% decrease in refrigerant emissions in 2024, aided by preventive maintenance and specialized technician training.

Packaging challenges and circularity:

Walmart is working to increase recycled content in private-brand packaging. In 2024, recycled content in plastic packaging reached 8%, up from prior years, although it remains below the company’s 2025 goal of 20%. Efforts also include recycling and reuse programs for cardboard and other materials.

When Growth Multiplies the Climate Test

Walmart’s financial scale helps explain both its influence and its difficulty. In its latest fiscal year, the company generated more than $680 billion in revenue, making it the largest retailer in the world.

That scale means even small efficiency gains can lead to large absolute emissions cuts. But it also means that business growth can offset progress if demand rises faster than efficiency improves. Areas such as refrigeration, trucking, and cold-chain logistics remain hard to decarbonize quickly.

Technology limits also play a role. Some low-carbon solutions are still costly or not available at scale. These constraints have slowed progress toward interim targets, even as long-term goals remain in place.

Still, the retail giant continues to work on its sustainability actions spanning energy, supply chains, packaging, climate intensity, and innovation.

A Trillion-Dollar Reminder of Climate Responsibility

Walmart’s rise to a $1 trillion market value highlights how financial performance and sustainability planning now move side by side. The company has invested heavily in clean energy, supplier engagement, and efficiency. It has also been open about where progress has fallen short.

For the wider retail sector, Walmart’s experience offers a clear lesson. Large climate commitments can drive change, but execution takes time, capital, and coordination across thousands of partners. Success depends not only on targets, but on steady delivery and transparent reporting.

As Walmart continues to grow, its climate strategy will remain under scrutiny. The company’s size ensures that progress, delays, and course corrections all carry global impact. In that sense, Walmart’s trillion-dollar milestone is not just a financial marker; it is also a reminder of how closely corporate scale and environmental responsibility are now linked.

READ MORE: Walmart and Kellanova Partner for Regenerative Rice Farming in Arkansas

India Puts $2.2 Billion for Carbon Capture in 2026-2027 Budget

Jennifer L

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February 5, 2026

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India Puts $2.2 Billion for Carbon Capture in 2026-2027 Budget

India is preparing a major public funding push for carbon capture, utilization, and storage, also known as CCUS. In the Union Budget for 2026–27, the government set out a plan to support CCUS with a proposed outlay of ₹20,000 crore over the next five years. That is ₹200 billion, which is about US$2.2 billion.

The budget document places the measure under efforts to improve long-term energy security and stability. It also describes CCUS as a scheme with that ₹20,000 crore outlay.

The amount matters because CCUS is expensive and hard to scale. A clear budget line signals that India wants to move beyond small pilots and research projects. It also shows the government is looking for options to reduce emissions in industries that are difficult to clean up quickly.

The plan comes as India faces a practical challenge. The country is building large amounts of renewable energy, but parts of the economy still rely on high-emitting industrial processes.

Cement, steel, refineries, chemicals, and thermal power remain central to growth. These sectors often cannot cut emissions to near zero with renewables alone, at least not in the short term. This is where the government sees a role for carbon capture.

From Policy Papers to Pipes and Storage

The budget measure points to CCUS as a way to raise “technology readiness” and expand end-use applications. In plain terms, that means the government wants more projects that move from study to real equipment in real plants. It also suggests the plan will target large emitting sectors where capture and storage could, in theory, reduce emissions without shutting down existing production too quickly.

India’s Ministry of Petroleum and Natural Gas has already described CCUS as an area where it is working to build a practical strategy and encourage collaboration across the oil and gas sector. That includes planning for how to implement capture, transport, use, and storage options in India’s energy system.

This new budget funding could connect to that effort in two ways.

First, it can reduce early financial risk for companies. Carbon capture equipment adds cost. It also adds operating needs, such as energy use, maintenance, and monitoring. Without support, many firms delay investment because they do not see a near-term return.
Second, it can help build shared infrastructure. CCUS is not just one machine, and it often needs pipelines, compressors, monitoring systems, and long-term storage sites. Shared infrastructure can lower costs when several plants connect to the same transport and storage network.

The budget document does not yet list every rule, incentive rate, or eligibility condition in the public summary. But the stated five-year outlay sets a clear ceiling for public support and signals that the government expects a pipeline of projects, not a single pilot.

MUST READ: What is Carbon Capture and Storage? Your Ultimate Guide to CCS Technology

Why India is Looking at Carbon Capture Now

India has set a long-term goal of net-zero emissions by 2070. That pledge has shaped policy planning across power, industry, fuels, and carbon markets.

In a 2022 press release on a national CCUS policy study, the government highlighted India’s climate direction, including steps toward net zero by 2070 and the need to cut emissions in hard-to-abate sectors.

Mission 2070 for India net zero goal — Source: WEF

In late 2025, India also released a national R&D roadmap for CCUS through the Department of Science and Technology. The roadmap aims to guide coordinated action and speed up technology deployment, with a focus on hard-to-abate sectors such as cement, steel, and power.

These moves show a pattern. India is building the “soft” parts of a CCUS system first—research priorities, policy frameworks, and coordination. The budget outlay is a step toward the “hard” parts—real projects and infrastructure.

There is also an external trade pressure. Many Indian exporters expect stricter carbon rules in major markets. Policies such as the European Union’s carbon border measures have pushed firms to look for ways to reduce the emissions tied to their products.

CCUS is one option that can reduce emissions at the facility level, especially in cement, steel, and refining, where process emissions are hard to remove.

At the same time, India still needs to expand its energy supply for growth. That includes reliable power for industry and cities. A CCUS program can fit into this reality because it aims to cut emissions without requiring an immediate shutdown of existing assets.

A Tool for Tough Emissions, Not a Silver Bullet

CCUS works in three main steps. First, a plant captures carbon dioxide from flue gases or industrial streams. Second, it compresses and transports the CO₂. Third, it stores the CO₂ underground or uses it in products such as fuels, chemicals, building materials, or enhanced oil recovery.

In practice, storage is the main constraint. Projects need suitable geology, injection tests, monitoring systems, and long-term rules on liability. Without proven storage, capture alone does not deliver lasting emissions cuts. Below is India’s carbon storage capacity shown in a geological map:

India CCUS geological structure — Source: India’s Ministry of Petroleum and Natural Gas

Globally, CCUS remains far below the scale required in net-zero scenarios. The International Energy Agency (IEA) estimates that global carbon capture capacity reached just over 50 million tonnes of CO₂ per year as of early 2025. This is up modestly from earlier years but still far below the levels needed in most net-zero climate pathways.

In its Net Zero pathway, capture rises to 1,024 Mt by 2030 and 6,040 Mt by 2050. As of early 2025, only just over 50 Mt per year of capture capacity is operating worldwide.

carbon capture capacity by 2030 IEA — Source: IEA

The IEA reports that even if all planned projects move forward, global capture capacity will only hit about 430 Mt per year by 2030. The planned storage capacity is around 670 Mt. This gap explains why the IEA stresses faster storage development and shorter project lead times.

India has been laying the groundwork for this challenge. A draft 2030 CCUS roadmap linked to the oil and gas sector compiles early estimates of national storage potential.

It identifies deep saline aquifers as the largest category, with about 291 gigatonnes (Gt) of estimated capacity. It mentions potential storage of 97–316 Gt in basalt formations, 3.5–6.3 Gt in coal reservoirs, and around 1.2 Gt in oil fields for CO₂-enhanced oil recovery. These figures reflect theoretical or early-stage estimates and still require site-level validation.

india carbon capture potential — Estimated CO₂ storage capacity across India’s sedimentary basins (Gt). Source: India’s Ministry of Petroleum and Natural Gas data

CCUS is most relevant in hard-to-abate sectors where emissions come from chemistry, not just fuel use. Cement is a clear example. Even with clean power, roughly half of cement emissions come from the calcination process itself. Steel also poses challenges, as the sector emits high carbon.

Costs remain a key barrier. The IEA estimates capture costs of $15–25 per tonne of CO₂ for high-purity industrial streams. In contrast, more diluted streams, like cement or power generation, cost $40–120 per tonne. Transport, injection, and long-term monitoring add further costs and complexity.

These limits explain why CCUS is not a replacement for renewables, efficiency, or electrification. India’s policy shows that the government views CCUS as a helpful tool. It can cut emissions in tough sectors, but only if storage, regulation, and project delivery happen quickly.

Where the Money Goes Will Matter Most

The headline figure—₹20,000 crore over five years—sets the scale. What matters next is how the money is used.

Project selection will shape outcomes. A focus on a few large hubs could support shared CO₂ transport and storage. A scattered approach may fund pilots but limit infrastructure build-out.

Sector priorities also matter. Budget signals point to power, steel, cement, refineries, and chemicals—all high-emitting industries with large and, in some cases, concentrated CO₂ streams.

Rules will be just as important as funding. India is developing an Indian Carbon Market under the Carbon Credit Trading Scheme. Companies will need clarity on whether captured and stored CO₂ can earn credits and under what standards.

Storage readiness remains a final test. Proven sites, test drilling, and long-term monitoring will be essential to move from plans to scale. If these pieces align, public funding could accelerate real deployment. If not, it may support pilots without delivering deep emissions cuts.

For now, the budget line makes one point clear. India is putting real public funding behind carbon capture, and it is doing so with an amount large enough to change corporate planning in several heavy industries.

READ MORE: NTPC Partners with Rosatom and EDF, Sparking a Nuclear Energy Revolution in India

DOE’s Nuclear Fuel and Fusion Partnership Signals a New Era for U.S. Power Markets

Saptakee S

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February 5, 2026

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DOE’s Nuclear Fuel and Fusion Partnership Signals a New Era for U.S. Power Markets

The United States is moving fast to rebuild its nuclear fuel supply chain, revive dormant facilities, and accelerate next-generation nuclear technologies. These efforts come as electricity demand surges from artificial intelligence (AI), data centers, and industrial electrification.

Recent announcements from the U.S. Department of Energy (DOE) show a coordinated push to strengthen uranium enrichment, revive legacy nuclear infrastructure, and deepen international collaboration on fusion power. Together, these developments highlight how nuclear energy is becoming central to U.S. energy security, economic competitiveness, and climate goals.

Hanford’s FMEF Gets a Second Life in the Nuclear Fuel Cycle

The DOE Office of Environmental Management announced a new partnership with American nuclear fuel company General Matter to explore the reuse of the Fuels and Materials Examination Facility (FMEF) at the Hanford Site in Washington State.

FMEF is a 190,000-square-foot facility originally built to support the Liquid Fast Breeder Reactor Program. However, it never operated in a nuclear role and has been idle since 1993 under surveillance and maintenance status.

Under the new lease, General Matter will evaluate the facility for potential upgrades, conduct site characterization, and engage local communities and stakeholders. The goal is to determine whether the facility can be returned to service for advanced nuclear fuel cycle technologies and materials research.

Reviving FMEF could help the U.S. rebuild critical infrastructure that was lost after decades of underinvestment in nuclear fuel production. It also fits into the Trump administration’s broader agenda to expand domestic energy production and reduce reliance on foreign nuclear fuel services.

General Matter CEO Scott Nolan said:

“Rebuilding America’s nuclear fuel capabilities is critical to strengthening our nuclear industrial base, reducing our reliance on foreign providers and lowering energy costs for utilities and consumers. We thank our partners in Hanford and the Department of Energy for supporting us in the development of a stronger, more secure nuclear fuel supply chain built here in the United States.”

General Matter’s Role in Rebuilding U.S. Uranium Enrichment

The Hanford project complements General Matter’s plans to develop a uranium enrichment facility at the former Paducah Gaseous Diffusion Plant in Kentucky. Construction is expected to begin in 2026, with enrichment operations targeted before the end of the decade.

This privately funded facility aims to supply fuel for commercial nuclear reactors, national security reactors, and research institutions. It is part of a broader effort to restore U.S. uranium enrichment capacity, which has declined sharply over the past few decades.

As part of the lease agreement, General Matter will receive at least 7,600 cylinders of uranium hexafluoride (UF6). Reprocessing this material could save U.S. taxpayers about $800 million in avoided disposal costs while providing a reliable domestic feedstock for reenrichment.

General Matter was also selected in October 2024 as one of four companies to provide enrichment services for establishing a U.S. supply of high-assay low-enriched uranium (HALEU). HALEU is a key fuel for advanced reactors and small modular reactors (SMRs), which are expected to play a major role in future power systems.

READ MORE: General Fusion’s Nasdaq Listing Pushes Fusion Energy Into the Market Spotlight

U.S.–Japan Fusion Partnership Marks a New Era of Cooperation

In another major development, the DOE and Kyoto Fusioneering (KF) announced a landmark partnership to advance fusion power technology and reduce commercialization risks.

The collaboration centers on breeding blanket systems, which produce tritium fuel needed for fusion reactors. A key project is UNITY-3, a next-generation fusion testing facility planned at Oak Ridge National Laboratory (ORNL). This facility will validate breeding blanket performance using realistic neutron environments and component designs.

The partnership also includes Idaho National Laboratory and Savannah River National Laboratory. Together, they will leverage KF’s UNITY-1 and UNITY-2 facilities in Japan and Canada to test thermal systems, tritium fuel cycles, and non-nuclear components.

This coordinated approach aims to systematically increase technology readiness levels and accelerate the path toward commercial fusion power. The initiative has already gained strong industry support, with multiple U.S. fusion companies endorsing the program.

DOE officials described fusion as a transformational opportunity for the energy sector and a critical pillar for long-term competitiveness. The partnership also strengthens U.S.–Japan strategic ties in clean energy and advanced technology.

AI, Data Centers, and Electrification Drive Nuclear Demand

Rising electricity demand is a key driver behind the renewed interest in nuclear power. AI workloads, cloud computing, electric vehicles, and industrial electrification are pushing power consumption to record levels.

According to the U.S. Energy Information Administration (EIA), total U.S. electricity consumption is expected to increase from 4,198 billion kilowatt-hours (kWh) in 2025 to about 4,256 billion kWh in 2026. This steady growth reflects expanding data centers, manufacturing, and population-driven demand.

Nuclear power remains a critical source of reliable baseload electricity. EIA forecasts that nuclear generation will remain stable through 2026, accounting for roughly 18% to 19% of total U.S. electricity generation. While renewables such as solar and wind are growing rapidly, nuclear continues to provide round-the-clock power that complements intermittent clean energy sources.

This reliability is especially important for AI data centers, which require constant power and cannot rely solely on variable renewable generation.

Uranium Production and Fuel Cycle Challenges

Despite strong policy support, the U.S. nuclear fuel sector faces significant challenges. Domestic uranium production has been volatile, highlighting the difficulty of rebuilding a mining industry after decades of decline.

EIA highlighted that, in the third quarter of 2025, U.S. uranium concentrate production totaled 329,623 pounds of U3O8, a 44% decline from the previous quarter. This drop underscores the need for sustained investment and policy support to stabilize domestic supply.

Beyond mining, the U.S. must also expand conversion, enrichment, and fuel fabrication capacity. Much of the global enrichment market is dominated by foreign suppliers, including Russia, Europe, and China. Rebuilding domestic capabilities will require large capital investments and regulatory approvals.

Trump Targets Massive Nuclear Expansion

U.S. policy is increasingly aligned with nuclear expansion. The United States currently operates 96 nuclear reactors with a total gross capacity of about 102 gigawatts, according to the World Nuclear Association.

In May 2025, President Donald Trump signed executive orders targeting 400 gigawatts of nuclear capacity by 2050. The policy includes uprates at existing reactors, construction of new large reactors by 2030, and major investments in fuel cycle infrastructure.

The strategy also emphasizes domestic supply chains for uranium mining, enrichment, fuel fabrication, and waste management. Building these supply chains is seen as critical for energy security, especially as geopolitical tensions affect global uranium and enrichment markets.

Analysts expect SMRs and advanced reactors to play a growing role, particularly for industrial facilities, hydrogen production, and large data centers seeking long-term power contracts.

Fusion and Advanced Reactors: Long-Term Game Changers

While traditional nuclear reactors are expanding, fusion and advanced fission technologies represent the long-term future of the sector.

Fusion promises abundant, low-waste energy, but it remains technologically complex and expensive. The DOE-Kyoto Fusioneering partnership aims to close key technology gaps and accelerate commercialization timelines.

Advanced fission reactors, including fast reactors and SMRs, are closer to deployment. These designs offer improved safety, lower costs, and flexibility for industrial applications. They also require new fuel types such as HALEU, reinforcing the importance of domestic enrichment capacity.

Why This Matters for US Nuclear Infrastructure

The U.S. push to revive nuclear infrastructure, expand enrichment, and accelerate fusion reflects a strategic shift in energy policy. Nuclear power is becoming a cornerstone of the digital economy and clean energy transition.

For investors, these developments could reshape uranium markets, nuclear technology companies, and infrastructure spending. Rising electricity demand from AI and electrification could support long-term growth in nuclear capacity, even as renewables continue to scale.

With AI, data centers, and electrification driving record electricity demand, nuclear power is emerging as a strategic asset for reliable, low-carbon energy. Policy support is strong, but rebuilding the full nuclear fuel cycle will require sustained investment, regulatory reform, and public acceptance.

In conclusion, the DOE’s recent partnerships with General Matter and Kyoto Fusioneering highlight a coordinated effort to rebuild the U.S. nuclear ecosystem—from mining and enrichment to advanced reactors and fusion research.

FURTHER READING: DOE’s $2.7 Billion Push for Uranium Enrichment Rebuilds U.S. Energy Security

Elon Musk’s SpaceX Eyes Solar Data Centers in Space to Power the AI Boom

Jennifer L

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February 5, 2026

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Elon Musk’s SpaceX Eyes Solar Data Centers in Space to Power the AI Boom

SpaceX has asked US regulators to approve a new satellite system that would act like a large, space-based computing network. Several outlets report that SpaceX filed a request with the US Federal Communications Commission (FCC) for an “orbital data center” constellation. This could include up to one million satellites in low Earth orbit, powered mainly by solar energy and connected using laser links.

The idea is simple. Instead of building more data centers on land, SpaceX would place computing hardware in orbit and run it on sunlight. The system would then handle heavy computing tasks, including AI workloads, without drawing electricity from local grids on Earth.

AI Is Pushing Power Systems to the Edge

The scale is what makes the proposal unusual. Today, there are roughly 15,000 satellites in orbit, and reports say more than 9,600 are active Starlink satellites. A one-million-satellite “data center” network would be far larger than anything proposed so far.

However, the “one million” figure appears in reporting tied to the FCC filing, but regulators have not yet approved the plan. Several analysts and engineers quoted in coverage also treat the number as a maximum request, not a final build plan.

The FCC filing stated:

“By directly harnessing near constant solar power with little operating or maintenance costs, these satellites will achieve transformative cost and energy efficiency while significantly reducing the environmental impact associated with terrestrial data centers.”

SpaceX’s proposal arrives during a period of fast growth in computing demand. The International Energy Agency (IEA) estimates that data centers consumed about 415 terawatt-hours (TWh) of electricity in 2024. This is roughly 1.5% of global electricity use. Demand has grown by around 12% each year for the last five years.

Older IEA work also highlighted how quickly demand can rise. One IEA scenario noted that data centers consumed 460 TWh in 2022. In a worst-case situation, this could exceed 1,000 TWh by 2026. The increase depends on trends in AI, crypto, and efficiency.

This demand growth has significant effects on power systems. Utilities, cities, and local communities often push back when new large data centers arrive. The concerns include higher power demand, water use for cooling, and land use. Thus, SpaceX and Elon Musk have framed space-based computing as a way to reduce pressure on Earth’s power grids.

That is where renewables enter the story. Globally, clean energy investment is already rising fast. The IEA said total global energy investment exceeded US$ 3 trillion in 2024, with around US$ 2 trillion going to clean energy technologies and infrastructure. BloombergNEF reported that clean energy investment reached $2.3 trillion in 2025.

Why Space Looks Tempting for Energy-Hungry AI

Space has one obvious advantage: sunlight is steady above the clouds. Solar panels in orbit can receive strong sunlight for long periods, depending on their orbit and design.

SpaceX’s pitch, as described in reporting, leans on that idea: a solar-powered platform in orbit could run without fuel deliveries and without drawing power from Earth’s grid.

Orbital compute could also reduce “latency” for some tasks in theory. If a user needs fast responses across large regions, satellites can route data without depending on ground networks in certain cases. SpaceX already uses laser links across Starlink satellites for routing. That experience may be part of the logic for a computing-focused network.

Space also avoids some land-based constraints. On Earth, data centers need large sites, grid connections, and cooling systems. SpaceX and supporters argue that orbit may reduce some land and water issues, at least in principle.

Recent market analysis shows the orbital data center market is set for quick growth. This is due to the rising demand for AI computing and energy limits on Earth. Analysts expect the orbital data center market to rise from around US$ 1.77 billion in 2029 to nearly US$ 39.1 billion by 2035, a compound annual growth rate of about 67.4%.

The surge comes from several factors. These include prototype satellite launches, solar-powered compute ideas, and interest from companies like Google, Nvidia, and SpaceX.

MUST READ: Tech Giants Like NVIDIA and Google Eye Space to Power AI with Orbital Data Centers

However, the advantages offered by space do not remove the biggest engineering problems.

The Hard Parts: Physics, Maintenance, and the Messy Reality of Orbit

A major challenge for computers in space is waste heat. Computer chips turn much of their electricity into heat. On Earth, air and water systems carry heat away. In space, there is no air. Objects mainly lose heat through radiation, which can require large radiator surfaces.

That is why experts have raised doubts and concerns, including:

Heat management: Space is a vacuum, not a cooling system. Hardware can trap heat, so large radiator systems are needed to release waste heat at scale.
Maintenance limits: Data center hardware fails often. In orbit, repairs are difficult and costly, and sending crews is not yet practical today.
Orbital congestion: A very large satellite network would raise collision risks and space debris concerns, including the risk of cascading failures known as Kessler syndrome.
Cost and launches: Building and deploying systems at this scale would require massive launch capacity and very high upfront costs, even with low-cost rockets.

These constraints do not mean orbital data centers are impossible. But they explain why most experts treat this as an early-stage concept rather than a near-term build plan.

A Signal of Stress in the AI–Energy Equation

Even if SpaceX never launches a million satellites, the proposal highlights a key issue. The AI boom is driving up electricity demand. Energy planners are now looking for new ways to supply and use energy more efficiently.

SEE MORE: AI Drives a Transformative Wave in Global Data Centers – and Energy Is the Real Bottleneck

The IEA’s data shows the scale of the challenge. With data centers already at about 415 TWh in 2024, even modest growth adds large new loads to power systems.

On the supply side, the global investment trend favors clean energy. The IEA expects clean energy technologies and infrastructure to take over US$ 2 trillion of global investment in 2025, larger than total spending on oil, gas, and coal.

This sets up two parallel paths:

First, most near-term data center growth will stay on Earth. That means grids, renewables procurement, storage, and efficiency standards will do the bulk of the work.
Second, a smaller group of companies may test space-based power or computing systems.

Beyond SpaceX, several other firms are exploring solar-powered orbital computing. Starcloud has already launched a satellite with an NVIDIA GPU to test high-performance computing in orbit, backed by seed funding and solar panel grids to power large data loads.

Axiom Space plans to send orbital data center modules to the ISS by 2027, while Google’s Project Suncatcher aims to power AI workloads via solar satellites. China’s ADA Space is developing a constellation of thousands of AI-enabled satellites.

SpaceX’s filing has also drawn attention to other efforts and interest in space-based energy and computing concepts, even if the timelines remain uncertain.

For now, its proposal highlights how quickly the search for new computing and energy models is expanding beyond Earth. Orbital data centers remain early in development, but they reflect growing interest in pairing constant solar power with high-density computing at scale.

As launch costs drop and space technology improves, orbital systems may become a good alternative to ground-based data centers. This is especially true for energy-heavy tasks. The idea signals a longer-term shift in how and where digital infrastructure may be built.

READ MORE: Orbital Data Center Guide: Everything You Need to Know About This Next-Gen Space Computing Technology

EU Sets Global Benchmark for Permanent Carbon Removals and Carbon Farming

Saptakee S

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February 5, 2026

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EU Sets Global Benchmark for Permanent Carbon Removals and Carbon Farming

The European Union (EU) has taken a major step toward climate neutrality. The European Commission adopted the first certification methodologies under the Carbon Removals and Carbon Farming (CRCF) Regulation. These rules define how projects that permanently remove carbon dioxide from the atmosphere can be verified and certified across Europe.

Wopke Hoekstra, European Commissioner for Climate, Net-Zero and Clean Growth, stated,

“The European Union is taking decisive action to lead the global effort in carbon removals. By establishing clear, robust voluntary standards, we are not only fostering responsible and climate action within Europe but also setting a global benchmark for others to follow. This is a vital step toward achieving our climate neutrality targets and ensuring a sustainable future.”

Why Certification Is Critical for Carbon Markets

Carbon removals are key to meeting climate goals. Even with big emission cuts, some sectors will still release greenhouse gases, and removals can offset them.

Trust is crucial. Without clear rules, companies could overstate their climate claims, investors may hesitate, and policymakers risk losing confidence. The CRCF methodologies solve this by defining how to measure removals, ensure permanence, and manage risks. This builds credibility and reduces greenwashing.

The CRCF Regulation creates the EU’s first voluntary system to certify carbon removals, carbon farming, and carbon storage in bio-based products. It sets clear rules for what counts as a verified tonne, how to keep it permanent, and how to handle risks.

By turning carbon removals into a structured market, the framework supports innovation, attracts investment, and strengthens the EU’s path to net zero by 2050.

Progress towards achieving climate targets in the EU-27

Three Carbon Removal Technologies Covered

The news release revealed that the Commission selected three carbon removal pathways for the first certification methodologies. These technologies are mature and can scale in the near term.

Direct Air Capture with Carbon Storage (DACCS)

DACCS removes CO₂ directly from ambient air. Machines capture CO₂ and store it underground in geological formations. This approach is highly permanent because the CO₂ stays locked away for thousands of years.

DACCS is expensive today, but it has strong long-term potential. Clear certification rules could accelerate private investment and government support.

Biogenic Carbon Capture and Storage (BioCCS)

BioCCS captures CO₂ from biomass-based processes, such as bioenergy plants. Since plants absorb CO₂ as they grow, capturing and storing emissions can result in net negative emissions.

This pathway could help industries decarbonize while producing energy or materials.

Biochar Carbon Removal (BCR)

Biochar is a stable form of carbon produced by heating biomass in low-oxygen conditions. When applied to soil, biochar can store carbon for centuries and improve soil health.

This method links climate mitigation with agriculture and soil restoration.

From Policy Design to Real Project Deployment

With the certification framework in place, carbon removal projects can now apply for EU certification. This marks a shift from rule-setting to real-world implementation.

Certification schemes must apply for recognition by the European Commission. The Commission will assess them using a standardized protocol that checks compliance with EU climate rules and audit standards.

Once certified, projects can issue verified carbon removal credits. These credits could attract corporate buyers, governments, and financial institutions that want high-quality climate offsets.

SEE MORE: The Carbon Credit Market in 2025 is A Turning Point: What Comes Next for 2026 and Beyond?

Upcoming Rules for Carbon Farming and Bio-Based Construction

The Commission plans two additional delegated regulations by 2026. These will expand the CRCF framework beyond industrial carbon removals.

One regulation will cover carbon farming practices such as improved agricultural methods, agroforestry, peatland rewetting, and afforestation. These rules could allow farmers and foresters to earn payments for storing carbon, helping them diversify income and adopt resilient practices.

Another regulation will cover carbon storage in bio-based construction materials. This will help building owners prove the carbon storage performance of buildings and encourage the use of circular bioeconomy materials in construction.

EU Buyers’ Club and Funding Support

To jumpstart the voluntary carbon removal market, the Commission announced an EU Buyers’ Club. This initiative will connect buyers with certified carbon removal projects and help create early demand.

The EU is also exploring ways to mobilize public and private finance. Existing funding tools such as the European Innovation Council and the Innovation Fund already support innovative carbon removal technologies.

Together, policy support and financing could accelerate the deployment of carbon removal solutions across Europe.

Governance, Audits, and Transparency

The CRCF framework builds on earlier EU rules that define certification bodies, audit procedures, and governance structures. Certification schemes must meet strict requirements for quantification, permanence, and sustainability.

The methodologies were developed with input from the Carbon Removal Expert Group. All preparation documents and meeting recordings are publicly available, which improves transparency and trust.

This governance structure aims to ensure environmental integrity while keeping administrative complexity manageable.

Carbon Removals and the EU’s Net Zero Strategy

The EU’s goal of climate neutrality by 2050 is legally binding under the European Climate Law. Carbon removals play a critical role in reaching this target because some emissions are hard to eliminate.

The CRCF framework aligns with the European Green Deal and the EU’s commitments under the Paris Agreement. It also supports the EU’s long-term climate strategy submitted to the United Nations.

Emissions Trends Highlight the Challenge Ahead

Recent data shows the difficulty of balancing economic growth and emissions reduction. EU greenhouse gas emissions reached about 900 million tonnes of CO₂-equivalent in the first quarter of 2025, up 3.4 percent from the previous year. During the same period, GDP grew by 1.2 percent.

This shows that economic activity can still drive emissions upward, even with climate policies in place. The EU Emissions Trading System has helped reduce emissions from power and industry by 51 percent since 2005. However, aviation emissions have rebounded close to pre-pandemic levels.

The EU aims to cut ETS-covered emissions by 62 percent by 2030 compared to 2005. Carbon removals will complement these policies and help close the remaining gap to net zero.

Fig: Historical and projected emissions from stationary installations covered by the EU Emissions Trading System in the European Economic Area

What This Means for Industry and Investors

The CRCF methodologies create a structured market for carbon removals. This could attract startups, large companies, and institutional investors. To summarize:

Certified carbon removals provide high-quality offsets for net-zero strategies and reduce reputational risk for companies.
Clear rules reduce uncertainty and improve project evaluation for investors.
The framework provides a scalable tool for responsibly managing negative emissions for policymakers.

Despite progress, challenges remain. Carbon removal technologies are still expensive and require large infrastructure investments. Long-term liability for stored CO₂ remains complex and requires legal clarity. Demand for carbon removals is still uncertain, especially outside voluntary markets.

However, the CRCF framework provides a strong foundation for addressing these issues and building a credible market.

Final Take: A Global Benchmark for Carbon Removals

The EU’s move positions it as a global leader in carbon removal governance. Only a few regions have such detailed certification rules. Other countries may adopt similar frameworks, and global standards could emerge.

Just as the EU shaped global carbon markets before, the CRCF could now steer global carbon removal strategies. The new certification rules mark a turning point. If implemented well, they could become a key climate policy tool this decade.

READ MORE: EU Carbon Prices Hit Highest Since August 2023: What Causes The Surge?

TotalEnergies Inks Deal with SWM for 10-Year, 800 GWh Renewable Energy Deal

Jennifer L

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February 4, 2026

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TotalEnergies Inks Deal with SWM for 10-Year, 800 GWh Renewable Energy Deal

TotalEnergies signed a 10-year deal to supply 800 GWh of renewable electricity to SWM International. SWM is a big paper maker in France. The contract began in January 2026 and will cover electricity for three industrial sites over a decade. This deal marks another step in TotalEnergies’ push to expand its clean power business and help heavy industries reduce carbon emissions.

Under the agreement, TotalEnergies will deliver renewable electricity with a stable output profile, also known as clean firm power. This means SWM will receive low-carbon electricity that meets its energy needs around the clock. The supply will come from around 50 megawatts (MW) of renewable energy assets that TotalEnergies already has in France.

SWM says the deal will provide about half of its electricity needs in France and strengthen its plan to cut Scope 1 and Scope 2 emissions by 2033. The long-term contract also gives SWM better cost predictability and support for its decarbonization goals.

Giuliano Scilio, SWM’s Vice President and Chief Information Officer, stated in the release:

“For an energy-intensive industry like ours, this isn’t just an environmental milestone; it’s a strategic investment that gives us cost predictability and strengthens our ability to offer customers genuinely sustainable solutions.”

TotalEnergies’ Clean Energy Strategy

TotalEnergies has been expanding its renewable power business in recent years. The company blends renewable sources, like solar and wind, with flexible assets. These include gas turbines and storage.

This way, the oil giant provides customized clean energy solutions for industrial and corporate clients. These solutions are known as “Clean Firm Power.” They provide stable, low-carbon electricity that meets demand all day long.

As of late October 2025, TotalEnergies had more than 32 gigawatts (GW) of installed gross renewable electricity capacity. The company plans to hit 35 GW by the end of 2025. By 2030, it aims to generate over 100 terawatt-hours (TWh) of net electricity. This will include renewable and flexible power sources.

This clean power offering is part of a broader shift within TotalEnergies. The company is moving beyond its traditional oil and gas business to build a diverse portfolio of energy solutions. These include renewables, low-carbon hydrogen, biofuels, and electricity contracts. They help industrial clients meet climate goals while keeping operations reliable.

Big Deals, Big Impact

The SWM deal adds to the clean power contracts TotalEnergies has signed with big companies.

The chart shows TotalEnergies’ clean power deals from 2020 to 2026. Between 2020 and 2022, no large renewable contracts were publicly announced. Deals started increasing in 2023 with 850 GWh, then grew sharply in 2024 and 2025. Data for 2026 includes only this SWM deal.

In November 2025, TotalEnergies signed a 10-year deal to provide 610 GWh of renewable electricity to Data4. This contract begins in January 2026 and supports a European data center operator in Spain. This energy comes from wind and solar farms in Spain. It shows the rising need for clean power in digital infrastructure.

The oil major also signed a renewable electricity deal with Saint-Gobain. This agreement covers 875 GWh over five years, starting in 2026. It supports industrial decarbonization in France.

In December 2025, the company made a 21-year renewable power deal with Google. This agreement will provide 1 terawatt-hour (1 TWh) of certified renewable energy from a solar plant in Malaysia. This deal supports Google’s data-centre energy needs and renewable targets in Southeast Asia.

SEE MORE: Google Signs Solar Deals with TotalEnergies and Shizen Energy in Malaysia to Power Data Centers with Clean Energy

Taken together, these contracts show TotalEnergies’ growing role as a supplier of long-term clean energy to major corporate and industrial customers.

Why This Deal Matters for Industry Decarbonization

Long-term renewable power contracts like the SWM deal are important for several reasons:

Emission reductions:

Renewable power deals help companies reduce their Scope 1 and Scope 2 greenhouse gas emissions. Scope 1 covers direct emissions from operations. Scope 2 includes emissions from purchased electricity.

By securing renewable electricity, SWM expects to cut these emissions significantly on its way to net‑zero goals. In the SWM case, the clean power deal covers about half of its electricity needs and supports its target to reduce emissions by 2033.

Growing corporate demand:

Global corporate demand for clean energy continues to rise. In 2024, companies worldwide signed record volumes of renewable power purchase agreements (PPAs), with around 68 GW of deals announced. This was about 29% growth from the year before. Data centers, manufacturers, and heavy industries are some of the largest buyers of renewable energy.

Stable costs:

Long‑term contracts provide predictable power costs. They help companies plan budgets and capital spending. This is important where electricity prices change quickly or where energy costs are a large part of total expenses.

Clean energy growth:

Such power deals support more solar, wind, and low‑carbon energy on the grid. Across the world, renewable capacity is growing fast. In 2024, renewables accounted for nearly all new power installed, with solar and wind making up about 96% of new capacity. This expansion helps reduce reliance on fossil fuels.

renewable capacity additions 2024 — Source: World Economic Forum

Reliable power:

Clean firm power mixes renewable generation with flexible resources. This approach helps keep the electricity supply steady even when the sun isn’t shining or the wind isn’t blowing. TotalEnergies designs its contracts this way so heavy industrial users can run without interruptions.

The Growing Market for Clean Power

The market for renewable energy and long-term power contracts continues to grow worldwide. Corporate procurement of renewable energy via power purchase agreements (PPAs) hit record highs recently. The surge came from strong corporate climate commitments. It also rose due to higher electricity demand from data centers and industry.

In 2024, global corporate renewable power purchase agreements reached 68 GW of capacity. Big energy users, such as tech firms, manufacturers, and utilities, want to match their electricity use with clean energy. This growth reflects that demand.

corporate PPAs S&P Global — Source: S&P Global Commodity Insights

By 2030, analysts expect renewable generation capacity to top 5,000 GW globally. That’s more than double the levels seen in 2024. Countries and companies are investing in clean energy to hit climate targets and boost energy security.

In this climate landscape, energy companies such as TotalEnergies are becoming integrated power suppliers. Their business model seeks to meet the growing corporate demand for stable, low-carbon electricity. Long-term clean power deals boost investment in new renewable projects. They also provide steady revenue for energy producers.

Providing Clean, Reliable Power to Users Globally

TotalEnergies’ 10-year, 800 GWh renewable electricity deal with SWM shows the company’s growing role in clean energy. The deal will help SWM cover half of its electricity needs with low-carbon sources. This supports its decarbonization goals through 2033.

TotalEnergies’ strategy mixes renewable energy with flexible assets. This approach provides clean, reliable power to industrial users globally. As renewable capacity grows and corporate demand increases, such long-term supply agreements will likely play a larger role in the global energy transition.

READ MORE: Google and TotalEnergies Unlock Carbon-Free Future for Ohio Data Centers with 15-Year Solar Deal

China Adds Power 8x More Than the US in 2025, with $500B Energy Build-Out in a Single Year

Jennifer L

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February 4, 2026

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China Adds Power 8x More Than the US in 2025, with $500B Energy Build-Out in a Single Year

China closed 2025 with its largest annual expansion of the energy system on record. Investment surged past a symbolic threshold. Power capacity grew at a pace rarely seen in any major economy. Together, the numbers point to a system still in rapid build-out, with renewables at the center and grids struggling to keep up.

By the end of January 2026, the National Energy Administration (NEA) announced that China’s investment in major energy projects topped 3.5 trillion yuan in 2025, or nearly US$500 billion. This marks an almost 11% rise from the previous year and is the first time China’s annual energy investment has hit that level.

This spending surge coincided with another milestone. By the end of 2025, China’s total installed power generation capacity reached 3.89 terawatts (TW), up 16.1% year on year. No other country added capacity at a comparable scale during the year.

$500B Flows Across the Energy System: Power, Grids, and Security

The NEA described 2025 as a year of broad-based energy investment. Spending increased not only in clean energy but also in grids, coal, and energy security projects.

Renewables absorbed a large share of new capital. China added more than 430 gigawatts (GW) of new wind and solar capacity during the year. This pushed combined installed wind and solar capacity beyond 1.8 TW for the first time. Solar and wind now account for nearly half of China’s total installed power capacity.

Investment in onshore wind rose especially fast. The NEA said spending on key onshore wind projects jumped by almost 50% compared with 2024. Developers focused on large inland bases and projects tied to long-distance transmission lines.

Solar continued to expand at an even faster pace. By the end of 2025, China’s installed solar capacity reached 1.20 TW, up 35.4% from a year earlier. This followed another strong year in 2024 and confirmed China’s position as the world’s largest solar market by a wide margin.

Wind capacity also grew quickly. Total installed wind power reached 640 GW, a 22.9% increase from 2024. Growth came from both onshore projects and steady additions offshore.

At the same time, investment did not shift entirely away from conventional energy. The NEA said spending also increased in coal power, hydropower, and coal mining, reflecting ongoing concerns about power reliability and supply security.

Grid construction remained a priority, particularly projects designed to move electricity from resource-rich western regions to demand centers in the east. Private companies played a larger role in this expansion.

The NEA reported that private-sector investment in major energy projects rose to almost 13% year-on-year. Much of that capital flowed into solar manufacturing, wind development, and coal-related infrastructure.

MUST READ: How China’s $180B Clean-Tech Investments Transform the Global South

China’s Capacity Additions in Gigawatt Chunks

China’s investment surge translated into record growth in installed capacity. At the end of 2024, total power capacity stood at about 3.35 TW. One year later, it had risen to 3.89 TW. This implies net additions of roughly 540 GW in a single year.

That figure reflects capacity from all sources, including renewables, coal, gas, nuclear, and hydropower. While the NEA does not publish a single “net additions” number, the difference between year-end totals shows the scale of expansion.

Solar alone accounted for a large share of this growth. Industry data based on official statistics indicate that China added roughly 315 GW of new solar capacity in 2025. Wind additions added another large block, pushing combined wind and solar growth above 430 GW.

This pace of construction is historically unusual. Even during earlier phases of China’s renewable boom, annual additions were far smaller. The 2025 figures show that China is now building new power capacity at a speed measured in hundreds of gigawatts per year, not tens.

By contrast, capacity growth in many other major economies has slowed due to permitting delays, grid constraints, and financing challenges. China’s ability to add large volumes of capacity in a short time reflects its centralized planning, domestic manufacturing base, and strong state-backed financing.

READ MORE: China’s One Month Lithium Battery Energy Storage Installations Beat America’s One Whole Year

China vs. the United States: A Scale Gap That Keeps Widening

The scale of China’s 2025 build-out becomes clearer when placed in an international context.

In the United States, the Energy Information Administration (EIA) projected about 63 GW of new utility-scale generating capacity additions for 2025 across all technologies. This includes solar, wind, gas, battery storage, and other sources.

China’s wind and solar additions alone, at more than 430 GW, were roughly six to seven times larger than total expected US utility-scale additions for the year. If total net capacity growth is used instead, China’s increase of about 540 GW would be more than eight times the US figure.

China vs United States power capacity additions 2025 — Sources: China NEA, US EIA

These comparisons depend on definitions and data sources. China’s numbers are based on year-end installed capacity totals, while the US figure is a forward-looking projection of new builds. Even so, the gap in scale remains large under most reasonable comparisons.

What stands out is not only the size of China’s additions, but their composition. Renewables drove most of the growth. Solar capacity in China alone now exceeds the total installed power capacity of many advanced economies.

When Building Faster Than the Grid Can Absorb

Rapid capacity growth has consequences. One clear signal appeared in power plant utilization data.

In 2025, power plants with a capacity of 6,000 kilowatts and above recorded an average utilization of 3,119 hours. This was 312 hours lower than in 2024. Lower utilization suggests that capacity is growing faster than electricity demand or grid flexibility.

Several factors explain this trend. Wind and solar output vary by weather and time of day. Coal and hydropower plants remain in the system to provide stability, even when renewables generate strongly. In addition, grid bottlenecks can prevent power from reaching where it is needed.

The NEA has repeatedly pointed to grid expansion as a priority. In 2025, major investments went into ultra-high-voltage transmission lines, regional interconnections, and grid digitalization. These projects aim to reduce curtailment and improve the system’s ability to absorb renewable power.

Still, the utilization figures show the challenge ahead. As capacity continues to rise, grid management and market reform will play a larger role in determining how efficiently new assets are used.

Growth First, Optimization Next

China’s 2025 energy data tell a consistent story. Investment reached a new high. Capacity expanded at a historic pace. Renewables dominated new additions, but conventional power and grids remained part of the strategy.

The numbers also show a system in transition rather than completion. Record build-out has brought new pressures, especially on utilization and grid integration. These issues are likely to shape energy policy decisions in the years ahead.

For now, what stands out most is scale. With energy investment approaching $500 billion and annual capacity additions measured in hundreds of gigawatts, China continues to expand its power system faster than any other country. The 2025 data confirm that this expansion is no longer an exception, but an established pattern.

FURTHER READING: How China’s Carbon Market Is Fueling Asia’s Biggest Climate Finance Opportunity

Amazon, eBay & Etsy Back Tesla Semis: A New Playbook for Zero-Emission Freight

Jennifer L

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February 4, 2026

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Amazon, eBay & Etsy Back Tesla Semis: A New Playbook for Zero-Emission Freight

A new initiative involving Amazon, eBay and Etsy is helping bring Tesla electric trucks into real freight operations. The Center for Green Market Activation (GMA), a nonprofit group, is planning a pilot program. This project aims to put about 40 all-electric Tesla Semi trucks on the road between Dallas and Houston. The goal is to reduce emissions from freight transport by using cleaner heavy-duty vehicles.

Under the plan, companies pay for “environmental attribute certificates” (EACs). These certificates represent the emissions savings from electric trucks.

Buyers can use the certificates to reduce their reported Scope 3 emissions. This applies even if they don’t directly use the trucks. All charging for the electric trucks is planned to be covered by renewable energy certificates to support clean power use.

Let’s explore why major online companies are taking part in this system, how Tesla’s Semi vehicles fit in, and what this could mean for decarbonizing freight transport in the United States and even beyond.

Why Freight Is the Next Big Climate Battleground

Heavy-duty freight trucks, especially long-haul Class 8 trucks, are a major source of carbon emissions. Traditional diesel trucks burn fossil fuels and produce large amounts of greenhouse gases (GHGs) and air pollutants. They accounted for about 25% of all transport-related CO₂ emissions.

Road freight accounts for a sizeable share of transportation sector emissions worldwide. Recent studies show that decarbonizing road freight is tough. Electric options are few, charging stations are still growing, and initial costs are high.

Electric heavy trucks such as the Tesla Semi offer a zero-tailpipe emissions alternative. The Tesla Semi is a battery-electric Class 8 truck designed for freight hauling. It features a battery pack of around 850–900 kWh and an estimated range of about 500 miles (~800 km) per charge on a single route.

The truck uses three electric motors and can operate at around 1.7–2 kWh per mile, making it competitive with diesel trucks over long distances. Planned volume production is expected to begin in 2026.

Using electric trucks like the Semi can cut carbon emissions from freight transport. They may also lower operating costs in the long run. Electricity can cost less per mile than diesel fuel. Also, electric drivetrains have fewer moving mechanical parts, which can cut maintenance costs.

This is crucial as the transport sector needs to adopt zero-emission vehicles much faster to cut emissions by 15% by 2030, per the International Energy Agency Net Zero scenario. This includes electric and hydrogen fuel-cell heavy-duty trucks. To make this happen, more countries must set strong fuel-efficiency rules for heavy trucks and align these standards across regions.

heavy duty truck emissions net zero iEA — Source: IEA

However, electric freight truck adoption faces barriers. Electric heavy trucks are still new, and less than 1% of new heavy-duty trucks in the U.S. are electric. The charging infrastructure for heavy trucks is limited. Also, electric vehicles cost more than regular diesel ones.

What Is Book and Claim? Decarbonizing Freight Without Owning a Truck

The pilot program with Amazon, eBay, and Etsy uses a book-and-claim system. A book-and-claim system divides the environmental benefits of a low-emission product from its physical delivery. It lets companies support decarbonization, even if they can’t use low-emission vehicles directly.

In this case, the environmental attribute certificates represent the emissions savings from operating electric trucks instead of diesel trucks. Participating companies purchase these EACs. They then “retire” them, meaning no one can use the certificate again. This reduction counts toward their climate goals or Scope 3 emissions targets.

This approach is similar to how renewable energy certificates work for electricity. A company can buy certificates for renewable energy generation. This is true even if the actual electricity it uses comes from the grid. The certificates allow buyers to claim the environmental benefits.

RELATED: Building Cleaner: Microsoft and Carbon Direct Launch EAC Guide for Concrete and Steel

Book-and-claim can help scale decarbonization efforts by aggregating demand from many buyers. This pooled demand helps both truck makers and service providers. They have a better reason to invest in electric fleets and charging stations, even if single buyers can’t use trucks on their own routes.

Experts say a clear book-and-claim system with strict rules can help decarbonize transportation. It ensures that emissions savings aren’t double-counted.

How the Pilot Program Works: Miles, Megawatts, and CO₂ Savings

The pilot program is run by the Center for Green Market Activation. This nonprofit aims to speed up climate solutions in supply chains. Under the program:

Roughly 40 all-electric trucks are expected to operate on the Dallas-Houston freight route.
The trucks will collectively travel up to 7 million miles per year.
The trucks save about 60,000 metric tonnes of CO₂ equivalent compared to diesel fleets. This is over the multi-year contracts with buyers.

Amazon, eBay, and Etsy have joined the initiative by purchasing EACs. They will retire the certificates to support their own climate goals and reduce their reported Scope 3 logistics emissions.

All charging for the electric trucks is backed by renewable energy certificates. This means the electricity for powering the truck comes from clean energy, which reduces the carbon footprint of truck operation.

Groups in similar schemes often use book-and-claim. This helps decarbonize sectors with few low-emission options. For instance, sustainable aviation fuel certificates gather demand from airlines and corporate buyers. This helps scale the use of clean fuel.

Why Big Brands Are Buying Clean Freight

Big firms more often set climate goals for their whole value chain, which includes transport emissions. Many emissions are Scope 3. This includes indirect emissions from things like freight transport, business travel, and product use.

Reducing Scope 3 emissions is hard. Companies usually don’t control the sources that create these emissions directly.

Book-and-claim allows companies to access low-emission transport options even if they can’t run them. When companies pool demand, they send a stronger message to manufacturers and carriers. It shows there’s a real market need for clean freight solutions.

Electric trucks, like the Tesla Semi, draw attention because they provide a cleaner option than diesel trucks. They also keep the same freight capacity and range.

Moreover, companies aiming for net-zero and science-based targets are growing. So, the demand for low-emission freight services is likely to increase.

In addition, broader sales of electric heavy vehicles, not just Tesla’s Semi, are rising globally. In China alone, for example, registrations for hybrid and electric trucks reached over 231,000 units in 2025. This was a large increase from the previous year. This trend reflects growing production and adoption of electric freight vehicles worldwide.

Electric heavy trucks need to become as affordable as diesel trucks to scale widely, according to Bloomberg. Even so, the electric truck market is expected to grow fast, accounting for about 18% of truck sales.

Stronger emissions rules, rising demand for clean freight, and more truck models are driving this growth. In China, electric trucks could make up around 50% of new truck sales by 2028. This shows how quickly the market is changing as costs fall and charging networks expand.

A Blueprint for Scaling Zero-Emission Freight

The new pilot connects Amazon, eBay, Etsy, and Tesla Semi trucks, offering an innovative way to reduce carbon in freight transport. Electric heavy-duty trucks, like the Tesla Semi, are nearing mass production, while global sales of electric freight trucks are also rising. Thus, solutions that mix corporate demand, smart accounting, and clean tech could help cut transportation emissions.

This pilot could provide a model for how large buyers and logistics providers work together to accelerate the shift to low-carbon freight systems.

READ MORE: Marks & Spencer and Schneider Electric Partner to Cut Supply Chain or Scope 3 Emissions

ExxonMobil (XOM) Earnings Dip in 2025, Yet Cash Flow, Dividends, and Low Carbon Strategy Remain Robust

Saptakee S

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February 3, 2026

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ExxonMobil (XOM) Earnings Dip in 2025, Yet Cash Flow, Dividends, and Low Carbon Strategy Remain Robust

ExxonMobil closed 2025 with strong profits, robust cash generation, and massive shareholder payouts. However, weaker crude prices and soft chemical margins weighed on earnings. The company still reinforced its narrative of being a leaner, more technology-driven oil major with growing exposure to lower-carbon opportunities.

For the full year, ExxonMobil reported $28.8 billion in earnings, down from $33.7 billion in 2024. Despite the decline, the company distributed $37.2 billion to shareholders, highlighting its commitment to capital returns. The results underline Exxon’s strategy: maximize cash from advantaged assets while gradually scaling low-carbon investments.

CEO Darren Woods said the company is structurally stronger than a few years ago, with disciplined capital allocation and resilient earnings power. He also emphasized a long runway of profitable growth through 2030 and beyond.

Exxon’s Financial Performance: Lower Earnings, Strong Cash Flow

ExxonMobil delivered fourth-quarter 2025 earnings of $6.5 billion, or $1.53 per share. Excluding special items, earnings rose to $7.3 billion, or $1.71 per share. The company generated $12.7 billion in operating cash flow and $5.6 billion in free cash flow during the quarter.

For the full year, cash flow from operations reached $52.0 billion, while free cash flow totaled $26.1 billion. ExxonMobil said its operating cash flow has grown at roughly 10% annually since 2019, outperforming many peers.

However, earnings declined due to weaker oil prices, softer chemical margins, higher depreciation, and rising growth-related expenses. Lower interest income also affected results. These headwinds were partly offset by higher production, structural cost savings, and strong refining margins.

Capital Efficiency Drive Competitive Edge

Cash capital expenditures reached $29.0 billion in 2025, including acquisitions. Exxon expects to spend $27–$29 billion in 2026, signaling continued investment in upstream growth and energy infrastructure.

As per analysts, Exxon Mobil (XOM) is a strong dividend stock with steady cash flow and high oil production. The company returned billions to shareholders through dividends and buybacks, making it attractive to income investors.

However, XOM stock depends heavily on oil prices and faces long-term risks from climate policies and weaker chemical margins. Overall, Exxon is a stable value stock, but not a high-growth play.

Upstream: Record Production and Advantaged Assets

ExxonMobil’s upstream segment generated $21.4 billion in earnings in 2025, down from $25.4 billion in 2024. Lower oil prices and reduced volumes from divestments weighed on performance. Higher depreciation also impacted earnings.

However, the company achieved its highest production in more than 40 years, reaching 4.7 million oil-equivalent barrels per day. Production surged to 5.0 million oil-equivalent barrels per day, with the Permian reaching 1.8 million and Guyana nearing 875,000 barrels per day.

Additionally, it also advanced several major projects.

The Yellowtail project in Guyana started early and under budget.
The Bacalhau offshore Brazil project launched in the fourth quarter.
Golden Pass LNG completed mechanical work, with first cargoes expected in early 2026.

Energy Products: Refining Margins Boost Profits

The Energy Products segment earned $7.4 billion in 2025, up $3.4 billion from 2024. Higher refining margins, cost savings, and asset sales drove the growth. However, the refining business remained resilient.

Chemicals: Weak Margins and Impairments

The Chemical Products segment struggled, with earnings falling to $800 million, down $1.8 billion from 2024. Weak margins, impairment charges, and higher spending weighed on results.

The China Chemical Complex ramp-up added costs, though high-value product sales hit records. Q4 saw a $281 million loss. Despite challenges, Exxon expanded chemical capacity and launched two advanced recycling facilities, processing over 250 million pounds of plastic waste annually.

PREVIOUSLY: ExxonMobil (XOM) Q3 Earnings Beat: Will AI and Innovation Secure Dividends in a Climate-Conscious Era?

$30 Billion Low-Carbon Strategy: CCS, Hydrogen, and New Materials

ExxonMobil continues to position itself as a major player in carbon capture, hydrogen, and lower-emission fuels. The company plans to invest up to $30 billion in lower-emission technologies between 2025 and 2030.

Management said rising carbon prices would make these investments more attractive and could significantly boost cash flow in the Low Carbon Solutions business. Exxon aims to scale projects in hydrogen, CO₂ storage, and industrial clusters to become a partner of choice for large emitters.

The company also emphasized its core strengths in subsurface engineering, large-scale project execution, and existing infrastructure as competitive advantages in the energy transition.

Methane and Air Emissions: Progress with Economic Logic

ExxonMobil reported significant progress on methane and air emissions. The company has reduced methane intensity by more than 60% since 2016 and targets 70–80% reductions by 2030.

Management framed methane reduction as both an environmental and economic opportunity. Keeping methane in the system increases gas sales and reduces losses. Exxon also noted methane’s high warming potential compared to CO₂, reinforcing the need for tighter controls.

Total reportable air emissions (VOCs, SOx, NOx) dropped about 25% from 2016 to 2024, even as throughput increased to record levels.

Long-Term Outlook: Oil Cash Funds the Transition

ExxonMobil believes demand for decarbonization solutions will rise significantly through 2050. The company expects carbon pricing and net-zero policies to drive capital toward carbon capture and hydrogen over time.

However, Exxon’s strategy remains pragmatic. The company will continue to maximize returns from oil, gas, and refining while gradually scaling low-carbon businesses. Management argues that each update to global net-zero scenarios increases the importance of lower-carbon solutions but does not change its core assessment of energy demand.

All in all, ExxonMobil’s 2025 results show a company balancing two worlds. On one hand, it remains a cash-generating oil and gas powerhouse with record production and industry-leading shareholder returns. On the other hand, it is cautiously expanding into low-carbon technologies without sacrificing profitability.

READ MORE: ExxonMobil’s $20B Low-Carbon Bet in 2030 Plan: Big Emissions Cuts, Bigger Oil Production

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