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SBTi’s Version 2.0 Standard Pushes Companies to Net Zero: What Are the Key Updates?

Jennifer L
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0
SBTi’s Version 2.0 Standard Pushes Companies to Net Zero: What Are the Key Updates?

The Science Based Targets initiative (SBTi) has released a draft update of its Corporate Net-Zero Standard. This framework helps companies set and reach science-based emissions reduction targets.

The 132-page document, Corporate Net-Zero Standard Version 2.0, shares important updates. These changes focus on flexibility, accountability, and aligning corporate actions with global temperature goals.

The draft is open for public feedback until June 1, 2025, after which it will undergo further revisions before final approval. 

SBTi Chair Francesco Starace emphasized the importance of the net zero standard overhaul, noting:

“The draft standard addresses complex, emerging issues and lays the foundation to enable more companies to move further and faster towards net zero. Working hand-in-hand with stakeholders across the ecosystem to seek and consider a diverse range of views, we aim to produce a standard that is both rigorous and practical, and works for businesses and the planet. With a limited carbon budget left, this is more important than ever.” 

The Major Revisions in SBTi’s Net-Zero Standard

The new draft has several key changes. These include Scope 3 emissions accounting, carbon removal targets, and governance expectations.

SBTi draft corporate net zero standard
Source: SBTi

Stronger Requirements for Scope 3 Emissions

Scope 3 emissions, which cover indirect emissions from a company’s value chain, have long been a challenge for corporations. Over half of the companies surveyed by SBTi said Scope 3 is their biggest hurdle to reaching net zero. The updated draft proposes new rules for this emission:

  • Large companies, those earning over $450 million, must set Scope 3 targets. This rule applies no matter how much they contribute to total emissions.
  • Businesses should identify high-emission activities. These should account for at least 1% of their Scope 3 footprint or exceed 10,000 metric tons of CO₂ annually.
  • The old fixed-percentage rules for Scope 3 targets are gone. Now, there’s a flexible system that highlights high-impact emissions categories.
  • Companies need to use their influence to make sure top suppliers set net-zero targets. This can be done through commitments to cut emissions or by using procurement practices that align with net-zero goals.

This approach seeks to balance what is doable and what is ambitious. It helps companies focus on the biggest sources of emissions in their value chains.

New Approach to Carbon Removal Targets

The draft also sets carbon removal targets to help reduce residual emissions. Companies can add high-integrity carbon removal efforts to their path toward net zero. Three pathways are under consideration in the updated standard:

  1. Mandating carbon removal targets alongside emissions reduction commitments.
  2. Providing recognition for voluntary carbon removal efforts in corporate strategies.
  3. Allowing flexibility in how companies address their residual emissions.

This proposal shows a significant change. It aims to include more carbon removal solutions in corporate net-zero strategies. This shift could boost investment in technologies like direct air capture and nature-based solutions.

Tighter Governance and Monitoring

To enhance credibility and accountability, SBTi is introducing stricter governance measures:

  • Large companies must set net-zero targets within 1 year of commitment, down from the previous 2-year timeframe.
  • Organizations will be subject to random audits to verify compliance.
  • Companies should check their baseline emissions every year. They need to update their targets if big changes happen, such as mergers or acquisitions.
  • A formal climate transition plan must be published within 12 months of target validation.

These measures aim to prevent greenwashing and ensure that companies remain on track to meet their commitments.

What Is the Potential Impact on Carbon Markets?

The new SBTi standard will likely impact voluntary carbon markets, corporate sustainability plans, and rules.

SBTi outcomes
Source: SBTi

Potential Boost for Carbon Credit Markets

One of the most debated aspects of the revised standard is its evolving stance on carbon credits. SBTi is looking for new ways to include Beyond Value Chain Mitigation (BVCM) in offsetting Scope 3 emissions, even though its use is still limited. This idea lets companies fund emissions reduction projects beyond their own operations. These include reforestation or carbon capture.

If SBTi accepts specific high-integrity carbon credits, demand may rise. This could lead companies to fund big mitigation projects outside their immediate operations. However, concerns remain about ensuring the integrity and permanence of these credits.

Implications for Corporate Climate Strategies

The proposed changes mean companies can’t just focus on overall emissions targets anymore. They need to take a more strategic and data-driven approach to manage emissions. Businesses will need to keep in mind these things:

  • Improve supply chain transparency and engagement to meet stricter Scope 3 requirements.
  • Invest in renewable energy and zero-carbon electricity procurement.
  • Consider carbon removal projects earlier in their net-zero planning rather than treating them as a last resort.

Pressure on Regulators to Align Standards

As SBTi’s framework gets stricter, regulators might feel pressure to match their policies to the standard. This could lead to:

  • Stricter mandatory reporting requirements for large corporations.
  • Increased scrutiny of corporate climate claims and carbon offset use.
  • Greater integration of voluntary carbon market mechanisms into national and regional climate policies.
SBTi standard system
Source: SBTi

The Key Challenges and What Comes Next

The proposed updates are a step forward for corporate net-zero strategies, but challenges remain:

Balancing ambition and feasibility can be tough. Some businesses might find it hard to meet the new rules, especially when it comes to Scope 3 emissions tracking.

Ensuring high-integrity carbon removal. The effectiveness of proposed carbon removal targets depends on rigorous verification and permanence criteria.

Industry adaptation. Companies will need time and resources to adjust to the new reporting and compliance standards.

SBTi is currently accepting feedback from corporations, NGOs, policymakers, and other stakeholders until June 1, 2025. The team will publish a second draft after this consultation phase, and they expect to receive final approval by 2026.

Companies that set new near-term targets in 2025 and 2026 can use the current Corporate Net Zero and Near-Term Criteria methods. However, from 2027 onward, all targets must follow Version 2.0.

SBTi’s updated net zero standard marks an important step in corporate climate governance. The new framework seeks to speed up real climate action. It does this by strengthening Scope 3 requirements, adding carbon removal strategies, and boosting accountability.

The standard has challenges, but it can greatly impact corporate sustainability and global carbon markets. Businesses need to get ready for these changes so they can stay credible as part of the global move to net zero.

BYD’s 5-Minute EV Charging: A New Era for Electric Cars or Just Hype?

Jennifer L
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0
BYD’s 5-Minute EV Charging: A New Era for Electric Cars or Just Hype?

BYD, the Chinese electric vehicle (EV) giant, shocked the automotive world with its latest battery technology. The company announced a breakthrough that allows its new batteries to charge in just 5 minutes, adding 400 kilometers (249 miles) of driving range. This could solve one of the biggest problems for EV owners—long charging times. 

The innovation has made waves in the industry, boosting BYD’s stock and putting pressure on rivals like Tesla. How does this new development impact the market? Is it for real? Let’s uncover the truth. 

Charging Ahead: The Rise of BYD

BYD, which stands for “Build Your Dreams,” is one of the world’s largest EV manufacturers. The company produces both battery-electric and plug-in hybrid vehicles and has seen rapid growth in recent years. It has surpassed Tesla in global EV sales in 2024 and continues to expand its presence worldwide.

BYD vs Tesla EV sales

The latest advancement in fast-charging technology has put BYD ahead of the competition. The company’s new charging system allows EVs to be powered up in almost the same time it takes to fill a gasoline car. This breakthrough could encourage more people to switch from traditional cars to EVs.

BYD’s founder Wang Chuanfu remarked on this announcement, stating:

“To completely solve users’ anxiety over charging, our pursuit is to make the charging time for EVs as short as the refuelling time for fuel vehicles.”

How Does the New Battery Work?

BYD’s new battery can receive one megawatt (1,000 kilowatts) of power, significantly cutting charging times. This is possible because the battery has lower internal resistance, reducing heat buildup when charging at high power. The first BYD models to use this technology will be the Han L sedan and the Tang L SUV.

For comparison, Tesla’s superchargers can provide enough power in 15 minutes for about 172 miles (277 km) of driving. Other Chinese competitors, such as XPeng and Zeekr, offer 5C and 5.5C charging systems that add about 280–342 miles (450–550 km) of range in 10 minutes. BYD’s new battery outperforms them all, making it the fastest-charging battery available.

BYD and others charging time
Source: Bloomberg

Market Impact: Tesla vs. BYD – Can Elon Musk Keep Up with China’s EV Giant?

This breakthrough has had an immediate impact on the stock market. After the announcement, BYD’s Hong Kong-listed shares jumped by 4.1%, reaching a record high. 

Investors think BYD’s new tech will boost its market position. It may also attract more customers who worry about charging their EVs.

Meanwhile, Tesla’s shares fell by nearly 5% following BYD’s announcement. The news has led many to question whether Tesla, once the leader in EV technology, can keep up with BYD’s rapid advancements. 

BYD stock vs tesla stock price

BYD and Tesla are in an intense battle for EV market dominance. While Tesla remains a global leader, BYD has surpassed it in key areas.

In Q4 2024, BYD sold 1.52 million vehicles, tripling Tesla’s sales. The company’s low costs and vertical integration give it a big advantage. This lets it make EVs profitably for less than $25,000 each. Tesla, on the other hand, still struggles with maintaining profit margins, especially as it relies heavily on China for sales.

The Chinese carmaker is also expanding rapidly into international markets, aggressively pushing into Europe and emerging markets. Its next-generation hybrid systems and ultra-fast charging technology further strengthen its competitive position. 

While Tesla still dominates in the U.S., BYD’s lower production costs and new battery advancements could help it gain further market share globally. As both companies continue to innovate, the EV race is far from over.

BYD’s Charging Network Expansion

To support its new ultra-fast charging technology, BYD plans to build more than 4,000 megawatt “flash-charging stations” across China. These stations will allow drivers to take full advantage of the five-minute charging capability.

The company hasn’t announced when the rollout will be finished. Still, it’s clear that BYD is putting a lot of money into infrastructure for its new battery technology.

Challenges and Limitations

Despite the excitement, there are some challenges to consider. Ultra-fast charging requires a lot of power, which could put pressure on electricity grids. Also, installing high-powered charging stations costs a lot. Many places still lack the needed infrastructure.

Another potential issue is battery health. Charging a battery at such high speeds could reduce its lifespan over time. However, BYD has stated that its new battery is designed to handle frequent fast charging without significant degradation.

This battery technology achievement is very significant to the increased adoption of EVs, considering that this clean tech transport is essential to achieving net zero and other climate goals. 

Beyond Speed – The Environmental Impact of EVs and Carbon Credits

Electric vehicles play a crucial role in reducing greenhouse gas (GHG) emissions. In 2021, plug-in EVs, including all-electric and plug-in hybrid models, prevented approximately 5.5 million metric tons of carbon dioxide (CO₂) emissions in the United States. This reduction is equivalent to removing over 1.1 million gasoline-powered cars from the road for a year.

GHG emissions of EV vs gasoline car
Source: EPA

The positive impact of EVs has grown annually. By 2023, the increased adoption of EVs contributed to an 11% decrease in CO₂ emissions from new vehicles, lowering the average to 319 grams per mile—a historic low.

Carbon credits further support emissions reduction by allowing companies to offset their GHG emissions. Automakers can buy these credits to meet environmental rules. This helps boost investment in clean energy and sustainable practices. 

Honda and Suzuki joined Tesla’s CO₂ emissions pool in 2025. They did this to meet the European Union’s strict CO₂ reduction rules. This move shows how carbon credits help companies comply and work together in the industry. BYD also teamed up with other carmakers in the EU for carbon credit pooling. 

EVs cut CO₂ emissions and carbon credits help companies hit their environmental goals. This speeds up the shift to cleaner transport. With more reduction in charging times, BYD’s breakthrough further helps slash the carbon pollution of the mobility sector. 

The Future of EV Charging

The introduction of ultra-fast charging technology is a major milestone in the EV industry. It addresses one of the biggest concerns for consumers—charging time. If BYD can successfully implement this technology on a large scale, it could drive higher adoption of EVs worldwide.

With countries pushing for stricter emissions regulations and phasing out gasoline cars, advancements like this could accelerate the transition to electric transportation. Other automakers will likely try to catch up, leading to further innovations in battery technology.

As the EV competition heats up, all eyes are on Tesla and other automakers to see how they respond. One thing is clear—BYD is shaping the future of electric mobility.

U.S. Copper Crisis: Can Freeport-McMoRan Secure ‘Critical’ Status for the Energy Metal?

Saptakee S
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0
U.S. Copper Crisis: Can Freeport-McMoRan Secure ‘Critical’ Status for the Energy Metal?

Copper is essential for any modern technology. It powers electrical grids and supports clean energy. It’s also used in electronics and vehicles. The U.S. relies a lot on foreign copper supplies. This raises big concerns about supply security.

Recently, President Donald Trump ordered an investigation into possible tariffs on copper imports. These tariffs might help U.S. mining by making domestic copper cheaper. But they could also increase costs for EVs and renewable energy.

U.S. Faces a Critical Minerals Challenge

S&P Global found that the U.S. has major challenges in securing critical minerals. Robert Friedland, founder of Ivanhoe Mines, warned that depending on foreign sources puts the country in a “dangerous position.”

At CERAWeek, he noted that Wall Street’s focus on quick profits is driving investments away from mining. Developing a new mine takes decades, but only a few have been built lately.

Friedland also suggested a U.S. sovereign wealth fund for domestic mining. This would be like the funds China and Japan have.

Top mining leaders, such as Elias Scafidas from Rio Tinto, say Western companies struggle with long-term funding. Investors hesitate to back mining projects. This is mainly because these projects take too long to become profitable.

critical minerals
Source: IEA

Rising Copper Demand Exposes U.S. Supply Gaps

According to the National Mining Association, China controls the supply of 30 out of 44 key minerals. In 2024, the U.S. depended entirely on imports for 12 of the 50 minerals designated as critical in the government’s 2022 list. It also relied on foreign sources for more than half of another 28 minerals.

u.S. CRITICAL MINERALS
Source: NMA
  • As per USGS, In 2024, the copper production of U.S. mine production was an estimated
    1.1 million tons, a decrease of 3% from that in 2023. Arizona accounted for ~ 70% of domestic output. Copper was also mined in Michigan, Missouri, Montana, Nevada, New Mexico, and Utah.

The Center for Strategic and International Studies (CSIS) highlights that the global push for net-zero emissions by 2050 is set to double copper demand by 2035. The key force would be AI-driven demand.

  • AI data centers alone are expected to consume up to 200,000 metric tons of copper per year from 2025 to 2028, potentially creating a 2.6-million-metric-ton shortfall by 2030.

BHP projects copper demand will grow by 2.6% annually through 2035, surpassing 50 million metric tons per year by 2050. This outpaces the 1.9% annual growth seen between 2006 and 2021.

BHP COPPER
Source: Wood Mackenzie

S&P Global also revealed that to boost domestic production, the U.S. Department of Energy recently announced $500 million in funding for mining and processing. However, experts believe this is far from enough. Without major changes, the U.S. risks falling further behind in securing its mineral supply.

Despite soaring demand, the copper supply chain faces major obstacles. Labor shortages, strict environmental regulations, and rising costs are slowing production. Experts warn that without faster permitting and increased investment, the U.S. could struggle to secure its mineral supply chains.

Freeport-McMoRan Pushes for Critical Status to Boost U.S. Copper

Amid this copper conundrum, Arizona-based Freeport-McMoRan Inc, a leading global metals company aims to have copper labeled as a critical mineral.

CEO Kathleen Quirk said at the CERAWeek by S&P Global conference,

“Having the incentives and clarity around those would be a big plus for the domestic copper industry. People are understanding more what copper is used for and its importance in our economy. It’s just a matter of time before it’s classified as a critical mineral.”

She also highlighted that this move could unlock $500 million yearly in tax credits under the Inflation Reduction Act.

Notably, Freeport reported a 3.1% drop in fourth-quarter earnings, falling to $5.72 billion due to lower copper and gold production. The revenue decline highlights ongoing supply issues and market uncertainty in the U.S.

To stay competitive, Freeport is pushing for policy changes to strengthen its global position. The company plans to boost U.S. copper production. This includes developing the Lone Star mine in Arizona that could add 100,000 metric tons each year.

Resource Nationalism and Global Trade Tensions

Countries rich in minerals like cobalt, lithium, and copper are gaining control over their resources. In the past five years, 47 countries have made mining rules stricter. This includes 17 major producers.

copper

According to the Resource Nationalism Index, the number of high-risk countries has jumped from 22 in 2016 to 38 today. Chile and Peru supply 35% of the world’s copper. Recently, they increased government involvement, which creates uncertainty for miners.

                   Copper Production by Country 2025

copper producers
Source: world population review

Resource control is also fueling global tensions. The U.S.-China trade war has grown stronger. China is now limiting exports of gallium, germanium, and antimony. In response, the U.S. is ramping up domestic mining and even considering resource acquisitions like Greenland.

Meanwhile, the European Union is working to reduce its dependence on China. It recently passed the Critical Raw Materials Act to boost local production and recycling of key minerals. As global alliances shift, securing critical minerals has never been more important.

Can the U.S. Sustain? 

Goldman Sachs predicts U.S. copper imports could surge by 50% to 100% in the coming months as buyers rush to secure supply ahead of potential tariffs.

Currently, the May 2025 U.S. copper price is trading at $756 per metric ton above the global benchmark on the London Metal Exchange (LME). This increase follows Trump’s. investigation into potential tariffs aimed at boosting domestic copper production.

The expects a 25% import tax by the end of the year, a move backed by Trump. If that happens, copper imports could jump, adding 200,000 to 300,000 metric tons to U.S. stockpiles by the third quarter.

  • Currently, the U.S. reserves have 95,000 metric tons, but they could grow to 300,000-400,000 tons of copper inventories by the end of the year. It could account for half of the world’s available supply.

Meanwhile, experts warn of a global copper shortage of 180,000 metric tons in 2025. This is due to growing demand for electrification, China’s economic boost, and slow mine production.

Copper import U.S.
Source: Copper’s Updated Critical Mineral Supply Chain Calculations October 2024

Copper is More Critical than Ever

Copper is more critical than ever, but securing enough remains a challenge. The U.S. Geological Survey lists lithium, nickel, and 48 other minerals as critical.

The Energy Act of 2020 highlights copper’s role in every defined use of a critical mineral. It is essential for national security, powering industries from AI data centers to military operations.

Copper prices and global supply are already under pressure. Tariffs and mineral policies will shape the future. With the growing demand for clean energy and AI, a stable supply is more important than ever. However, as U.S. import reliance keeps rising, and much of the world’s copper production is concentrated in geopolitically sensitive regions

Thus, adding copper to the 2025 Critical Minerals list would help. It would drive green energy investment, cut energy costs, and strengthen U.S. industries. Lastly, companies like Freeport are only supporting a strong domestic copper supply.

Northvolt’s Bankruptcy: How Does It Impact Europe’s Battery Industry?

Jennifer L
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0
Northvolt’s Bankruptcy: How Does It Impact Europe’s Battery Industry?

Northvolt, once seen as Europe’s best hope for a strong battery industry, has filed for bankruptcy in Sweden. The company, which aimed to create the “world’s greenest battery,” struggled to meet its ambitious goals. This marks a major blow to Europe’s efforts to compete in the global electric vehicle (EV) battery market.

Why Did Northvolt Fail?

Northvolt faced many challenges that led to its downfall. Here they are: 

  1. Production Problems: The company failed to scale up production at its Skellefteå gigafactory as planned. Instead of reaching 16 GWh, it only managed 1 GWh. This shortfall led BMW to cancel a $2 billion battery supply contract in June 2024.
  2. Financial Struggles: Northvolt raised over $14 billion, including a $5 billion loan for factory expansion. However, rising costs and no new investment made it hard to keep operations going.
  3. Changing Market Conditions: Demand for EVs in Europe has slowed. S&P Global recently lowered its 2025 EV market share forecast for Europe from 27% to 21%. As carmakers rethink their electrification plans, the demand for batteries has dropped. 
  4. Geopolitical and Economic Factors: The company faced high capital costs, geopolitical instability, and supply chain disruptions. These issues created additional hurdles for the company.
  5. Leadership Challenges: The company lost investor confidence after its chairman stepped down due to health reasons, weakening its leadership structure.
S&P battery market share by region
Source: S&P Global

What Happens to Northvolt’s Assets?

A Swedish court-appointed trustee will handle the bankruptcy process. The court will decide how to sell Northvolt’s business and settle its debts. As of now, no buyers have come forward to take over the company’s factories or assets.

Northvolt’s Swedish workforce of 5,000 people, mostly based in Skellefteå, faces uncertainty. The Swedish engineering trade union expects at least 650 of its members to lose their jobs.

Northvolt’s bankruptcy has hit Skellefteå hard. This small town in northern Sweden is home to its main factory. Dubbed the “Northvolt-effect,” the company’s presence revitalized the town, which invested heavily in infrastructure due to the economic boom.

The battery maker was the largest employer in the town with 40,000 residents, with 3,000 workers. The bankruptcy threatens local economic stability, prompting authorities to seek government support.

Sweden’s Deputy Prime Minister, Ebba Busch, has urged the European Union to amend its clean-tech funding rules to help Northvolt attract a new owner. She stressed that expanding EU funding to current battery makers is vital for Northvolt’s survival. Busch further noted that:

“If the EU Commission keeps on only supporting newcomers within the battery sector, then the ‘clean industrial deal’ on European soil will be in the hands of China… [the region’s strong dependence on China for green tech import].”

Impact on Europe’s Battery Industry

Northvolt’s collapse is a major setback for Europe’s battery sector. The company had been a key player in Europe’s gigafactory plans, with two major projects:

  • Northvolt Ett – A factory in Skellefteå, Sweden, which was Europe’s third-largest gigafactory by capacity in 2024.
  • Northvolt Drei – A planned gigafactory in Germany with a 60 GWh capacity.
northvolt expansion projects
Source: Reuters

Northvolt’s factories will make up 13% of Europe’s battery production planned for 2030. Its bankruptcy may boost Europe’s dependence on Asian battery makers. This includes LG Energy Solution from South Korea and China’s CATL, the biggest battery producers in Europe.

Let’s look at the bigger picture and see how this failure fits in.

Global and European Battery Market Trends

The global battery market is growing fast. This growth is mainly due to more people buying EVs.

In 2024, worldwide EV sales increased by 25%, reaching 17 million units. Global annual battery demand has now exceeded one terawatt-hour (TWh) for the first time. EVs make up 85% of this demand.

global EV sales 2024
Source: EVBoosters

One key development was the decline of average EV battery pack prices below $100 per kilowatt-hour (kWh). This is considered a crucial milestone for cost parity between EVs and gasoline cars.

The price drop was driven by lower raw material costs—lithium prices have fallen 85% since their 2022 peak—along with advances in battery technology and manufacturing efficiencies.

China continues to dominate global battery production, accounting for over 75% of all batteries sold in 2024. Chinese battery prices dropped by almost 30% last year. They are over 30% cheaper than European batteries and 20% cheaper than North American ones.

Northvolt’s bankruptcy raises concerns about Europe’s ability to compete in this rapidly growing battery market. It also highlights the urgent need for stronger domestic production and investment in energy storage solutions.

European Battery Storage Market

The battery energy storage system (BESS) market in Europe is set to grow significantly. Projections indicate that the EU’s BESS capacity could reach 60 gigawatts (GW) by 2030—a 6-fold increase from 2023 levels. This means an annual growth rate of about 25% over the next seven years.

Key trends shaping Europe’s battery storage sector include:

  • Long-Duration Energy Storage – With the growth of renewable energy, the need for storage that lasts hours or even days is rising.
  • Vehicle-to-Grid (V2G) Integration – More EVs mean chances for bidirectional charging. This lets vehicles send power back to the grid.
  • Green Hydrogen Integration – Batteries are now used more with green hydrogen production. This helps to improve how electrolyzers work.

Advanced Battery Chemistries – Lithium-ion is still the leader, but research on solid-state and flow batteries is picking up speed.

Lessons from Northvolt’s Bankruptcy: What This Failure Means for the Industry

There are three key lessons to be learned from the Swedish battery maker that other companies must take note:

Ambition vs. Reality. Northvolt wanted to manage many parts of the battery supply chain. However, this was too hard for a startup. Other European battery makers are now avoiding this model.

Need for Stable Investment. Building a battery industry requires a long-term financial commitment. Northvolt’s failure shows the need for strong, consistent backing from investors and governments.

Market Demand Matters. The slowdown in EV sales made Northvolt’s plans unsustainable. Companies must be flexible and adapt to changing market conditions.

What Comes Next After Northvolt?

Northvolt’s bankruptcy is a significant blow to Europe’s green energy ambitions. It underscores the difficulty of building a homegrown battery industry. While this is a setback, it also offers lessons for future companies. 

Despite Northvolt’s failure, Europe still aims to build a strong battery sector. Other companies may attempt to fill the gap, but they will need careful planning and stable financial support.

Europe must rethink its battery strategy, strengthen investments, and develop partnerships to remain competitive against China and South Korea. The future of Europe’s battery sector will depend on strategic planning, supportive policies, and technological innovation.

Carney Scraps Carbon Tax—Can Canada Reduce Emissions Without It?

Saptakee S
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0
Carney Scraps Carbon Tax—Can Canada Reduce Emissions Without It?

On March 14, 2025, Prime Minister Mark Carney announced the end of Canada’s federal consumer carbon tax, effective April 1. This move marks a major shift in the country’s climate strategy. While the government insists it’s still committed to cutting emissions, the big question remains—how will Canada meet its climate goals without a direct tax on consumers?

Let’s take a closer look at Canada’s carbon tax battle, its impact on citizens, and what it means for the country’s climate goals.

No More Carbon Tax! What’s Carney Really Up To?

Canada launched its carbon pricing system in 2019 under Prime Minister Justin Trudeau. The goal was to cut emissions by charging businesses and consumers for pollution. This encouraged a shift away from fossil fuels.

B.C.’s 2025 budget estimated that the consumer carbon tax would bring in about $2.8 billion. Out of this, around $1 billion would be given back to the public through the Climate Action Tax Credit.

However, rising fuel costs and inflation frustrated many Canadians. They saw the tax as an extra burden. To ease the strain, the government scrapped the consumer carbon tax.

  • The carbon price started at CAD 20 per ton in 2019 and increased annually, reaching CAD 80 per ton in 2024. It was set to climb to CAD 170 per ton by 2030.

carbon price Canada

News agency National Post highlighted Carney’s statements. He said,

“We have already taken a big decision as this cabinet because this is a cabinet that’s focused on action, it’s focused on getting more money in the pockets of Canadians, it’s focused on building this economy.”

Politics played a big role in scrapping the tax. Conservative leader Pierre Poilievre made it a key promise, saying it raised costs for families and raised inflation. However public opinion was divided. Some saw the tax as costly and ineffective, while others believed it helped reduce emissions.

The Political Battle Over Carbon Pricing

The heat of a political showdown is already palpable. Pierre Poilievre wants to go further. He vows to eliminate all carbon pricing, including taxes on big polluters. He argues the policy hurts businesses and workers, making Canada less competitive.

Reuters reports that Conservatives claim the carbon tax fuels inflation. But the tax is revenue-neutral, and about 80% of Canadians get more in rebates than they pay.

The Wall Street Journal covered Poilievre’s campaign-style event at a steel plant near Ottawa. He warned that Carney’s government might raise industrial emissions taxes to make up for lost consumer carbon tax revenue.

“The combination of Trump’s tariffs and Carney’s carbon taxes would be a disaster for the workers. Workers would lose wages, consumers would pay more money, and jobs would leave Canada, making us even more dependent on the Americans, just like Trump wants.” said Poilievre

He also vowed to repeal all carbon pricing measures if elected, saying,

“Technology, not taxes, is the best way to fight climate change and protect our environment.”

Carnie also defended his action saying cutting the consumer tax doesn’t mean abandoning emissions goals. Heavy polluters will have to still pay. His proposal shifts costs to industries while funding green programs like EV rebates and home energy upgrades.

Carbon Tax Cut: Relief for Households, Concerns for Climate

Even within the Liberal Party, concerns grew over the carbon tax’s impact. In 2023, the government removed the tax on home heating oil, recognizing that lower-income families were struggling. With an election coming up, cutting the consumer tax may have been a strategic move to win back voter support.

Carney said,

“Based on the discussion we’ve had and consistent with a promise that I made and others supported during the (Liberal) leadership campaign, we will be eliminating the Canada fuel charge, the consumer fuel charge, immediately.”

The removal of the consumer carbon tax brings some immediate changes for Canadian households.

  • Fuel prices will drop, making gasoline, diesel, and home heating more affordable.
  • Propane and natural gas will no longer be taxed.
  • Households that received Canada Carbon Rebate payments will get their final installment in April 2025.

For many Canadians, these savings are a relief amid the rising cost of living. However, climate advocates worry that fossil fuel use could increase without financial incentives to cut emissions.

Big industries like steel will still pay carbon fees, and government rebates for EVs, heat pumps, and home energy upgrades will continue. Some provinces, like British Columbia and Quebec, may also keep their carbon pricing systems.

Canada Carbon tax
Source: formzero

Can Canada Reach Its Climate Goals Without the Carbon Tax?

Canada aims to cut emissions by 40-45% from 2005 levels by 2030 under the Paris Agreement and reach net-zero by 2050. The Canadian Climate Institute estimated that the carbon tax would have reduced emissions by 8-14% by 2030. Without it, new policies will be needed to stay on track.

The consumer carbon tax covered emissions from transportation and buildings. While the tax is gone, government rebates for EVs and home upgrades will continue to help cut emissions in these sectors.

Carney says this change is part of a bigger plan to fight climate change and keep Canada’s economy strong. He has suggested other ideas, like better clean energy incentives and tougher rules for big polluters. Meanwhile, Poilievre wants to replace carbon taxes with expanded tax credits for green technology.

Canada net zero
Source: Canada Government

One thing is clear, Canada’s carbon tax may be changing, but the country’s climate policies will remain a key political battleground. The bottom line is simple—if it benefits both citizens and the climate, it’s a win.

Why Geothermal is the Hot Ticket to Low-Carbon Data Centers?

Saptakee S
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0
Why Geothermal is the Hot Ticket to Low-Carbon Data Centers?

Geothermal energy has great potential, but it has been underused for years. Although it’s been available for over a century, its global impact has been limited. New drilling and resource management technologies, many from the oil and gas sector, are now lowering costs and tapping into deeper reservoirs.

These innovations could make geothermal a crucial part of future energy systems, especially for the proliferating data centers.

Data Centers’ Power Hunger: The Next Energy Crisis?

Data centers have seen a sharp rise in electricity use in recent years, starting from a small base. A December 2024 report from Lawrence Berkeley Lab (LBL) found that data center power demand grew by 20-25% each year in the early 2020s. Their share of total U.S. electricity use rose from about 2% in 2020 to around 4.5% in 2024.

  • By 2028, data centers will consume between 325 and 580 TWh of electricity, accounting for 6.7% to 12% of total U.S. energy use.
data center emissions
Source: Lawrence Berkeley Lab

Tech giants like Amazon, Microsoft, and Meta are expanding quickly. This growth pushes utilities and policymakers to find sustainable energy solutions.

Geothermal Energy’s Role in Low-Carbon Future

Geothermal energy harnesses Earth’s heat to produce electricity with minimal emissions. Unlike wind and solar, which depend on weather, geothermal plants run at over 90% capacity. This ensures a stable power supply.

According to EIA, geothermal power plants create electricity without burning fuel, leading to very low pollution. They emit 97% less sulfur and 99% less carbon dioxide than similar fossil fuel plants.

These plants use scrubbers to remove hydrogen sulfide from natural reservoirs. They then inject the used steam and water back into the earth. This process helps renew the resource and reduces emissions.

The U.S. DOE revealed that,

  • By 2050, geothermal energy can avoid up to 516 million metric tons (MMT) of CO₂ equivalent emissions. This is comparable to removing 6 million cars from the road per year.
Geothermal emissions
Source: DOE

Geysers and fumaroles in places like Yellowstone National Park are protected by law and are national treasures.

Enhanced Geothermal Systems (EGS): The Next Big Power Play for Data Centers

The U.S. has about 4 GW of geothermal capacity, mainly in California and Nevada. Traditional geothermal taps into naturally occurring steam or hot water. Next-gen geothermal tech, called Enhanced Geothermal Systems (EGS), uses advanced drilling. This method taps into heat from deep rock layers. This expands its potential beyond the Western states.

EGS provides a great solution to rising energy needs and helps reduce greenhouse gas emissions. By deploying EGS at data centers, companies can generate clean and reliable power. This makes geothermal a viable option for sustainable growth.

Large-scale data centers run by Amazon, Microsoft, and other tech giants will need about 27 GW of power by 2030. Of this, 15-17 GW could come from geothermal facilities built at hyperscale data centers.

  • With strategic placement near optimal geothermal sites, energy costs could drop by up to 45%.

In a broader scenario, geothermal could supply at least 15% of power in 20 out of 28 key data center hubs. Most geothermal potential lies in the western U.S., but cities like Northern Virginia, Chicago, Columbus, and Memphis also have promise. Only Atlanta and New York City have limited potential for on-site geothermal.

geothermal energy
Source: Rhodium report

Direct Cooling: A Smart Energy Solution

Geothermal can also cool data centers effectively. AI-driven facilities generate excessive heat, increasing the need for advanced cooling systems. Instead of relying on electric methods like adiabatic or liquid cooling, geothermal can directly manage temperatures. Here’s how:

  • Geothermal heat pumps use underground pipes to cool IT components efficiently.

  • Geothermal absorption chillers use low-grade heat to create cooling through evaporation.

  • Shallow aquifers offer another way to access stable underground temperatures for cooling.

By reducing the need for deep drilling, these methods lower costs and minimize water use—an advantage in water-scarce regions.

The Future of Geothermal Power

An NREL report predicts geothermal will make up 1.94% of U.S. generating capacity by 2035 and 3.94% by 2050. Geothermal energy runs steadily. Its impact on clean energy is much greater when we look at total electricity generation.

geothermal
Source: NREL

According to DOE, the U.S. grid will need 700-900 GW of extra firm capacity by 2050. Next-gen geothermal could provide 90-300 GW. In many decarbonization plans, solar PV and onshore wind are key players. Battery storage and natural gas provide backup support.

geothermal Energy
Source: DOE

Despite its low carbon potential, geothermal cooling isn’t widely used due to high upfront costs. Tax credits and utility incentives help data centers save energy and cut emissions. Some companies are investing in it. However, more research is needed. This will help improve efficiency and tackle issues like heat buildup in certain climates.

On a positive note, DOE revealed that costs could drop to $60-70/MWh by 2030. The U.S. Department of Energy’s Enhanced Geothermal Shot™ aims for $45/MWh by 2035.

Tech Giants Invest in Geothermal Energy

Major tech companies are investing in geothermal. In June 2024, Alphabet teamed up with NV Energy. They secured 115 MW of geothermal power from Fervo Energy.

A few months later, Meta partnered with Sage Geosystems. They aimed to supply geothermal power to data centers located east of the Rocky Mountains. This marked a first for the region. Data centers will pay a 20% premium for green energy over standard rates.

This analysis shows that geothermal energy could transform data center power and cooling. With support from innovation and policy, it offers a reliable, low-emission option. As demand grows, it drives the industry toward sustainability.

China Revives Its Carbon Credit Market: Price Swings & Future Outlook

Saptakee S
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China Revives Its Carbon Credit Market: Price Swings & Future Outlook

China has reopened its voluntary carbon credit market after eight years. This has caused sharp price swings. A Bloomberg report showed that the new China Certified Emission Reduction (CCER) credits rose to 107.36 yuan ($14.82) per ton.

This price was 21% higher than mandatory carbon allowances. However, it then fell to 72.81 yuan, a 17% discount.

The price shifts reflect strong initial demand and a limited credit supply. In the first five days, traders exchanged 911,000 tons of credits. That’s almost three times the volume of China’s mandatory emissions market.

china carbon credits
Source: Bloomberg

Understanding the CCER Program

China’s Certified Emission Reduction (CCER) program is key to the country’s carbon market. It allows companies to trade carbon credits, supplementing the Emissions Trading System (ETS). CCER allows firms to create and sell carbon credits voluntarily.

However, this is different from the ETS, which sets limits on emissions. This approach promotes investments in clean energy and emission reduction projects.

The Ministry of Ecology and Environment (MEE) manages the CCER program. Project operators and verification agencies maintain transparency. On January 23, 2024, China’s voluntary carbon market saw its first transaction. China National Offshore Oil Corporation (CNOOC) bought 250,000 tons of carbon credits.

CCER credits fall into two categories:

  • Emission allowances: Government-allocated quotas that companies must follow.

  • Certified carbon credits (CCER credits): Tradeable credits from emission reduction projects.

The program helps industries reduce emissions, manage carbon credits, and trade them for financial gain. High-emission sectors can offset quotas, while low-emission industries can trade credits and enhance their reputation. Renewable energy companies can use carbon credit revenue to improve profits.

A New Beginning for CCER Credits

The CCER program started in 2012 to reward projects that cut greenhouse gas emissions. China paused it in 2017 because of worries about project approvals. In 2024, the Ministry of Ecology and Environment revived the program.

It now focuses on four areas: afforestation, solar thermal power, offshore wind power, and mangrove restoration. This effort aims to promote green projects and help China meet its carbon neutrality goals.

Notably, the China Beijing Green Exchange (CBGEX) believes China’s carbon market will expand significantly because of financialization. The estimated quota is 7 to 8 billion tons. Annual trading volumes could exceed 10 billion tons. Transaction values might top RMB 1 trillion (US$140 billion).

China’s Carbon Emissions: 2025

China’s emissions surged in 2023, putting the country off track from its goal of reducing carbon intensity by 18% under the 14th Five-Year Plan (2021-25). To stay on course for its 2060 carbon neutrality target, CO2 emissions must now drop by 4-6% by 2025.

china carbon emissions
Source: Carbon Brief

Expanding the Carbon Credit Market

The Bloomberg report further revealed more details about China’s expansion of its carbon credit market.

  • China approved nine new projects expected to supply 9.5 million tons of carbon credits in 2025.

These projects include seven deepwater offshore wind farms and a solar thermal plant. Key state-owned companies leading these initiatives are China Three Gorges Corp, State Power Investment Corp, China Energy Investment Corp, and China General Nuclear Power Corp.

China’s national carbon market, launched in 2021, initially covered power utilities. However, low liquidity and oversupply kept prices below European levels. It plans to include steel, aluminum, and cement producers by the end of 2025, expanding coverage to a larger share of national emissions.

BloombergNEF analyst Layla Khanfar explained that the market activity picked up a bit in February after a slow start. However, supply and demand are still lower than in early 2023.

Strengthening ETS to Counter CBAM Impact

China is a top exporter of CBAM-liable goods. From 2026 to 2040, it will likely ship about 868.94 million metric tons of these commodities, according to a forecast from S&P Global Commodity Insights. Iron and steel account for 42% of these exports, cement 8%, and aluminum 6%.

The country’s ETS (launched in 2021) now covers 40% of emissions and is set to expand to 8 billion tons. Major 2024 reforms include stricter allowance banking rules, a shorter compliance cycle, and the addition of CBAM-affected industries.

Clear Blue Market forecasted that the China Emissions Allowance (CEA) price, averaging 98 yuan (€13) in 2024, is projected to reach 100 yuan (€13) in 2025 and 200 yuan (€25) by 2030, with a market deficit expected by 2026.

China carbon credits price
Source: Clear Blue Market

To meet CBAM regulations, China requires factories emitting over 26,000 tons of CO₂ annually to verify emissions data. Thus, China is challenging the EU’s CBAM at the WTO while reinforcing its ETS to align with global carbon pricing.

China is expanding carbon credits. The above-explained actions show a global push to regulate emissions. However, price volatility and economic concerns remain challenges. As carbon prices rise and regulations tighten, businesses must adapt to remain competitive. Lastly, the effectiveness of carbon markets in reducing emissions will be closely monitored.

UEC Reports Stellar $49.8M Revenue as Net-Zero Uranium Strategy Gains Momentum

Jennifer L
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UEC Reports Stellar $49.8M Revenue as Net-Zero Uranium Strategy Gains Momentum

Uranium Energy Corp (UEC) is making big strides in the uranium industry. With strong financial results, strategic acquisitions, and a growing focus on sustainability, the company is positioning itself as a leader in clean energy.

In the second quarter of the fiscal year 2025, UEC reported impressive revenue, expanded its domestic uranium production, and strengthened its commitment to net-zero emissions. Here’s a closer look at how UEC is shaping the future of nuclear energy.

Strong Financials Fuel UEC’s Growth

UEC generated a revenue of $49.8 million from selling 600,000 pounds of U₃O₈ (uranium ore concentrate) at an average price of $82.92 per pound. This resulted in a gross profit of $18.2 million. 

Additionally, UEC maintained an inventory of 1,356,000 pounds of U₃O₈, valued at $97.3 million based on current market prices. The uranium company has strong liquidity, holding $214 million in liquid assets and no debt. This positions the company well for future growth and stability in operations.

The company’s President and CEO remarked on their financial results, saying:

“This quarter, UEC achieved significant milestones in production ramp-up, acquisitions, sales and construction across our project pipeline…Financial strength remains a cornerstone of our growth strategy, with over $214 million(4) in liquid assets and zero debt as of January 31, 2025. Our strong balance sheet, combined with the low capital intensity of ISR operations, provides the capability to accelerate production growth in a rapidly tightening uranium market.”

UEC is boosting U.S. uranium production through the following initiatives:

Christensen Ranch and Irigaray Processing Plant. UEC has restarted the Christensen Ranch In-Situ Recovery (ISR) Mine. It’s located in Wyoming’s Powder River Basin. Uranium-loaded resin is now on the way from the Christensen Ranch Satellite Plant to the Irigaray Central Processing Plant. This plant can produce 4.0 million pounds of U₃O₈ each year.

Burke Hollow ISR Mine is growing in Texas. Right now, 32 workers are on the job. This expansion aligns with UEC’s strategy to enhance domestic uranium production.

UEC bought Rio Tinto’s Wyoming uranium assets. This includes the Sweetwater Plant, which can process 3,000 tons per day. It has a licensed capacity of 4.1 million pounds of U₃O₈ each year. This acquisition strengthens UEC’s position in the uranium market.

Roughrider Project. UEC’s Roughrider Project in Saskatchewan, Canada, shows great economic promise. The project is among the lowest 15% in global production costs.

In addition to its robust financial performance, UEC is positioned to benefit from the growing interest in Small Modular Reactors (SMRs), which offer significant advantages over traditional large-scale nuclear plants. SMRs are smaller, scalable, and faster to build, making them ideal for flexible power generation. They require less capital upfront, have shorter construction times, and can be strategically located near electricity demand centers, reducing transmission losses and infrastructure costs.

Several countries, including Canada and the United States, are actively investing in SMR technology, aiming to expand clean energy capacity and reduce reliance on fossil fuels. As a key uranium supplier, UEC will play a crucial role in providing the necessary fuel for these reactors, supporting a stable energy transition and enabling countries to meet ambitious climate goals.

Net-Zero Uranium: UEC’s Sustainability Roadmap

The demand for uranium is outpacing primary production, with a 1-billion-pound supply gap projected by 2040, according to UEC. As 31+ countries pledge to triple nuclear energy capacity by 2050, the push for uranium intensifies.

uranium demand and supply UEC
Source: UEC

In the U.S., government policies favor domestic uranium production, banning Russian imports and funding nuclear technology. Additionally, big tech companies, driven by rising data center electricity demands, are turning to nuclear power for clean energy solutions.

global pledge to triple nuclear energy
Source: UEC

UEC, as America’s largest uranium supplier, is positioned to benefit from this shift, ensuring a stable domestic supply amid increasing reliance on nuclear energy for net-zero goals (1.5C Pathway).

Nuclear Power Req in 2050 - CC (1)

Commitment to Net-Zero and Emissions Reduction

Uranium Energy Corp is focused on achieving net-zero carbon emissions across its U.S. ISR operations. In 2023, the company remained CO₂ neutral from its operations for the second consecutive year. The company has also conducted a decarbonization study for its Texas ISR facilities to align with this goal.

UEC has expanded its Scope 1 and Scope 2 emissions measurements to cover all operational locations, ensuring comprehensive tracking of its environmental impact. A decarbonization strategy for its Wyoming facilities is also in progress.

  • In 2023, the company reported total greenhouse gas (GHG) emissions of 2,711.86 tCO₂e, with Wyoming contributing the most (1,475.23 tCO₂e). Scope 1 emissions totaled 1,343.77 tCO₂e, while Scope 2 reached 1,368.09 tCO₂e.
UEC GHG emissions 2023
Source: UEC

The company is also looking at new carbon-reduction technologies. This will help it cut down emissions even more.

Sustainable Mining Practices

UEC uses In-Situ Recovery (ISR) mining. This method is eco-friendly – it cuts down on surface disturbance and uses less water and energy. This approach avoids blasting and moving waste rock. So, it leads to lower emissions and less harm to the environment than traditional mining methods.

The ISR process greatly cuts greenhouse gas emissions. This is better than open-pit or underground mining. Traditional uranium mining methods release higher levels of CO₂ due to the heavy use of diesel-powered equipment and the need for extensive land excavation.

By using ISR technology, UEC is able to cut CO₂ emissions, making uranium extraction cleaner and more sustainable. The company is exploring alternative energy sources. It looks at solar and wind to power its mining operations, aiming to reduce carbon impact.

Carbon Offsets and Renewable Energy Investments

To further reduce its carbon footprint, Uranium Energy Corp has invested in carbon credits to offset emissions. In 2023, the company neutralized all its corporate emissions. This totaled 2,712 metric tons of CO₂ equivalent (tCO₂e). They achieved this by buying carbon credits from the A-Gas Voluntary Emission Reduction Program in Texas.

This initiative helps prevent the release of used hydrofluorocarbons (HFCs), which are significantly more damaging to the environment than CO₂. Supporting this program lets UEC reclaim and destroy harmful gases. This way, they don’t get released into the atmosphere.

In addition to carbon offsets, UEC has also invested in Renewable Energy Certificates (RECs) for its Palangana ISR site in Texas. These certificates help create clean energy. This reduces the company’s dependence on fossil fuels.

UEC is committed to lowering its environmental impact. It does this by combining carbon offsetting with renewable energy purchases in its sustainability strategy. This approach supports responsible uranium production.

Nuclear Power’s Role in a Low-Carbon Future

UEC plays a key role in the transition to clean energy by supplying uranium for nuclear power, a low-carbon alternative to fossil fuels. Nuclear energy supplies 55% of the U.S.’s carbon-free electricity. This cuts emissions like taking 107 million gas cars off the road each year.

The company is aligned with global net-zero commitments, including the COP28 pledge to triple nuclear energy capacity by 2050. UEC has also begun evaluating a net-zero mine design for its Roughrider Project, further integrating sustainability into its operations.

Uranium Energy Corp’s strong financial performance, strategic acquisitions, and commitment to sustainability highlight its leadership in the uranium sector. UEC focuses on clean energy, cutting emissions, and responsible mining. This puts them in a strong position to help the world shift to a low-carbon future. 

For real-time insights into uranium pricing, visit our Live Uranium Pricing page.

Meta, Google, and Amazon Join Global Pledge to Triple Nuclear Energy by 2050

Saptakee S
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Meta, Google, and Amazon Join Global Pledge to Triple Nuclear Energy by 2050

The Large Energy Users Pledge was announced on March 12 at the CERAWeek energy conference in Houston, Texas. Big companies like Google, Amazon, and Meta have joined a pledge to triple nuclear energy use by 2050.

These tech giants have teamed up with Dow, Allseas, OSGE, and Occidental to push for more nuclear power. This is the first time major businesses outside the nuclear sector have publicly supported such a big nuclear expansion.

The pledge started in September 2023 and already has support from 31 countries, 14 major global banks, and 140 nuclear industry companies.

Nuclear Energy: A Reliable and Scalable Solution

Sama Bilbao y León, Director General of the World Nuclear Association (WNA), said,

“The unprecedented support announced today by some of the world’s most influential companies to at least triple global nuclear capacity by 2050 sends a clear signal to accelerate policy, finance and regulatory changes that enable the rapid expansion of nuclear power. The global shift towards more nuclear highlights this is the only way we’ll deliver the abundant firm clean energy required to power growth and innovation in technology, a host of other industries and the entire economy.”

The pledge highlights nuclear energy’s benefits like:

  • Offering stable and reliable power 24/7.
  • Not affected by weather conditions like wind or solar.
  • Helps industries reduce costs and offers a steady supply of heat for factories and chemical plants.

Other notable companies who have also joined the nuclear pledge are Allseas, Bureau Veritas, Carbon3Energy, Clean Energy Buyers Alliance, Core Power, Dow, Fly Green Alliance, Lloyd’s Register, Occidental, OSGE, and Siemens Energy.

The WNA expects even more businesses to sign the pledge soon. Industries like maritime, aviation, chemicals, and hydrocarbons are showing more interest in nuclear energy.

Dow Energy & Climate Business Vice President Edward Stones said,

“Energy is the lifeblood of global manufacturing and therefore investing and expanding access to clean, reliable, cost-competitive nuclear energy is critical to industrial progress. Dow considers nuclear energy, especially the promising technology of advanced small modular nuclear, to be a long-term competitive source of safe, firm and clean energy.”

The Large Energy Users Pledge

The pledge highlights nuclear power’s role in energy security and economic growth. It calls for a stronger, more reliable energy system with nuclear alongside other clean energy sources.

Here’s a snapshot of the pledge.

nuclear pledge
Data Source: World Nuclear Association

Big energy users want to triple nuclear power by 2050 to meet rising energy needs and help economies grow. Their strategy also includes new reactors, including small modular reactors (SMRs) and advanced designs.

How Is Nuclear Power Shaping Global Energy Consumption?

Nuclear energy has been a critical part of the world’s power supply for decades. Today, it provides about 10% of global electricity, with over 400 reactors operating in more than 30 countries.

Some countries, such as France, depend on nuclear power for over 70% of their electricity. The United States and China are also increasing their nuclear capacity. They want to rely less on fossil fuels.nuclear

Compared to fossil fuel plants, nuclear power plants operate at a higher capacity factor. This means they produce electricity more efficiently and consistently.

While coal and natural gas plants may run at about 50–60% capacity, nuclear plants often reach 90% or higher. This makes nuclear energy one of the most reliable sources of electricity in the world.

However, some countries are rethinking their nuclear investments. Germany, for example, closed its last nuclear plants in 2023. But now, rising energy costs and supply worries have sparked talks about restarting nuclear programs.

nuclear energy global

Why Tech Giants Want to Invest in Nuclear?

In 2023, nuclear power plants worldwide generated around 2,600 terawatt-hours (TWh) of electricity. As electricity demand continues to rise, countries are prioritizing nuclear energy as a reliable solution.

Countries such as the USA and China are leading nuclear expansion efforts, with multiple reactors under construction. It’s for the same reason that big companies like Google, Meta, Microsoft, Amazon, and Oracle are making this shift toward nuclear to reach their net-zero goals.

Explaining further, the growth of artificial intelligence (AI) is driving up energy use in data centers. Right now, they make up about 2% to 3% of total U.S. power consumption. This number could reach 9% by 2030. This rise is putting pressure on current power systems. As a result, tech giants are looking for new energy sources to meet their increasing demands.

To tackle these challenges, they are looking at nuclear energy, especially small modular reactors. The SMRs can be placed near data centers, ensuring a steady energy supply and reducing environmental impact.

More significantly, one of the biggest advantages of nuclear power is that it is a low-carbon energy source. Unlike coal and natural gas, nuclear reactors do not produce greenhouse gas emissions during operation.

  • According to the International Energy Agency (IEA), nuclear energy prevents over 2 billion metric tons of CO2 emissions annually. This makes nuclear power an essential tool in the fight against climate change.

Google’s SMR Investments

Google is looking at nuclear energy to help meet its 2030 net-zero emissions goal, says CEO Sundar Pichai. The company is investing in clean energy, including solar and small modular nuclear reactors (SMRs).

In 2023, Google’s greenhouse gas (GHG) emissions reached 14.3 million tCO2e. This was a 13% increase from the previous year and a 48% jump from 2019. Emissions have been rising since 2020.

google emissions

Thus, Google made a deal with Kairos Power in October 2025. They plan to build several SMRs to power AI data centers. The first reactor could be running this decade, depending on approvals. More reactors are expected by 2035. This move helps Google lower its carbon footprint while meeting the energy needs of its growing AI operations

Meta Bets on Nuclear for Reliable Clean Energy

Meta has been using 100% renewable energy for its global operations since 2020. Now, the company is exploring nuclear power to meet rising energy demands and support its AI and environmental goals.

Meta’s Urvi Parekh, Head of Global Energy, noted,

“As global economies expand, the need for a reliable, clean, and resilient energy supply is paramount. Nuclear energy, with its ability to provide continuous power, can help meet this rising demand. We’re excited to join alongside this multi-organisational effort with the Tripling Nuclear Pledge to reiterate our commitment to nuclear energy.”

On December 3, Meta announced plans to work with nuclear power developers. The company believes that nuclear energy provides a steady power supply unlike solar and wind energy, making it crucial for grid stability and AI workloads.

Since 2021, Meta has cut emissions by 16.4 million metric tons of CO2e through renewable energy. In 2023, its net emissions were 7.4 million metric tons.

meta carbon emissions nuclear
Source: Meta

In 2023 alone, the company’s renewable energy initiatives helped cut operational emissions by 5.1 MMTCO2e, while value chain emissions were reduced by 1.4 MMTCO2e. Thus, Meta is optimistic about hitting its net-zero target by adding nuclear energy to its clean energy portfolio.

Amazon’s SMR Strategy

Amazon is adding nuclear power to supply carbon-free energy to AWS data centers and is investing over $52 billion across three U.S. states as part of its massive data center expansion.

The company has signed three key deals to explore and build small modular reactors (SMRs). AWS CEO Matt Garman believes SMRs can provide scalable and reliable power for growing data needs.

In 2023, Amazon’s carbon footprint was nearly 69 million metric tons of CO2—lower than its 2021 peak but still significant.

Amazon carbon emissions
Source: Amazon

AWS is working to reduce emissions, betting on SMRs. They hope nuclear could be a game changer, offering a sustainable energy source for the future.

Amazon Web Services’ Brandon Oyer, Head of Americas Energy and Water, said,

“Accelerating nuclear energy development will be critical to strengthening our nation’s security, meeting future energy demands, and addressing climate change. Amazon supports the World Nuclear Association’s pledge, and is proud to have invested more than USD1 billion over the last year in nuclear energy projects and technologies, which is part of our broader Climate Pledge commitment to be net-zero carbon by 2040.”

Global Investment in Nuclear Energy: 2050 Forecast

Notably, global investment in nuclear energy is set to rise. Right now, it’s about $65 billion each year. As per IEA, by 2030, it could hit $70 billion with current policies. Nuclear capacity is expected to grow by over 50% to nearly 650 GW by 2050.

nuclear energy investment

Amazon, Meta, Google, and other companies that have joined the pledge are aware that even with better energy use, industries will still need a lot more power. However, nuclear projects require high upfront costs, long development times, and strict regulations. Despite these challenges, their long lifespan and low carbon emissions make them a strong choice for long-term energy planning.

TSMC Dominates AI Chip Market with Record Sales—But Can It Tackle Its Rising Emissions?

Saptakee S
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TSMC Dominates AI Chip Market with Record Sales—But Can It Tackle Its Rising Emissions?

Taiwan Semiconductor Manufacturing Company (TSMC), the largest semiconductor foundry in the world, reported strong revenue growth in the first two months of 2025. The company earned NT$553.3 billion (US$16.81 billion), a 39.2% increase from last year. This growth is driven by the high demand for AI chips, especially from NVIDIA.

AI Demand Fuels TSMC Revenue Growth

In February 2025, TSMC’s revenue hit NT$260.01 billion, up 43.1% compared to last February. This marks the highest sales for February ever. However, it was an 11.3% drop from January 2025. Analysts expect revenue to rise in March, possibly exceeding NT$266.7 billion. This aligns with TSMC’s first-quarter sales goal of NT$820 billion to NT$846.24 billion.

tsmc revenue
Source: TSMC

As the main manufacturer of AI chips globally, TSMC is key to the tech industry. Its major clients include AMD, Apple, ARM, Broadcom, MediaTek, Qualcomm, and Nvidia. The growth of AI applications has increased chip demand, boosting TSMC’s expansion.

Massive U.S. Expansion Plans

The chip giant recently revealed it is expanding its U.S. operations with a $100 billion investment. This builds on its earlier $65 billion promise in Phoenix, Arizona. Now, the total is $165 billion. The expansion adds three new semiconductor plants, two packaging facilities, and a big R&D center. This marks the largest foreign direct investment in U.S. history.

The expansion can potentially create tens of thousands of high-tech jobs. It aims to generate over $200 billion in economic output in the next decade. Furthermore, the company can also strengthen its ties with top U.S. AI and tech firms like Apple, Nvidia, AMD, Broadcom, and Qualcomm.

However, a major challenge for TSMC in 2025 is the potential for U.S. tariffs on chip imports. Making news, TSMC’s CEO, C.C. Wei, met with former President Donald Trump at the White House. They talked about the investment and possibly addressed tariff concerns.

TSMC’s Path to Net Zero 

TSMC has a clear roadmap to reach net-zero emissions by 2050. It launched Taiwan’s first Renewable Energy Joint Procurement Model. This model encourages suppliers to adopt low-carbon practices.

To support these efforts, TSMC released its first Climate and Nature Report in 2024. The company focuses on tech growth and caring for the environment. This way, it helps create a greener future.

TSMC prioritizes sustainability through eco-efficiency initiatives. In 2023, it reported a 31% rise in unit GHG emissions per wafer but is committed to cutting overall emissions.

Rising Emissions

  • Scope 1 and 2 emissions rose from 11,558,554 tonnes CO₂e in 2022 to 11,783,418 tonnes CO₂e in 2023, marking a 1.9% increase year-over-year.
  • Scope 3 emissions increased from 7,429,158 tonnes CO₂e in 2022 to 7,616,655 tonnes CO₂e in 2023.
  • Unit GHG emissions per 12-inch wafer mask layer grew by 31%, exceeding the 9% target set from the 2020 baseline.
scope emissions TSMC
Source: TSMC

Global Energy Conservation with Advanced Technologies

In 2023, TSMC implemented 822 energy-saving measures, saving 830 GWh of electricity and cutting NT$590 million in carbon costs through internal pricing.

Additionally, Taiwan’s Industrial Technology Research Institute (ITRI) estimates that TSMC’s innovations will boost global energy savings from 16.9 billion kWh in 2020 to 235.4 billion kWh by 2030.

More significantly, the company leads in energy-efficient semiconductor technology. Smaller, more efficient chips help devices use less power. With such innovations, TSMC leads in smarter manufacturing and industry-wide efficiency.

TSMC
Source: TSMC

Sustainability Goals and Achievements

  • Purchased 2,592 GWh of renewable energy, covering all overseas operations (11.2% of total use).
  • Promotes closed-loop systems to recycle chemicals and packaging, making manufacturing more sustainable and energy-efficient.
  • Increasing renewable energy usage in new 3nm fabs to over 20% and aiming to reach 60% across all operations by 2030.
  • Replacing coal with cleaner natural gas and adopting carbon capture technologies to cut emissions. Lowering transportation emissions through greener logistics.
  • Targeting 100% renewable energy globally by 2040—10 years ahead of schedule. It’s using low-carbon energy sources like wind and solar power while optimizing power consumption for greater efficiency.
  • Reducing unit water consumption by 30% while boosting reclaimed water use by 60%.
tsmc sustainability
Source: TSMC

Protecting Biodiversity

TSMC is committed to protecting biodiversity. The company seeks zero deforestation and no net loss, aiming for a positive environmental impact by 2050. It’s creating action plans as per the Science-Based Targets Network (SBTN) to protect nature and reach net-zero emissions.

In 2024, it launched the Eco-Plus program in Taichung and continues to assess environmental risks and opportunities.

TSMC’s strong financial performance in early 2025 shows the rising demand for AI chips and its significance in the semiconductor industry. Despite a slight rise in emissions, it remains focused on emissions reduction and renewable energy adoption as part of its long-term sustainability strategy.

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