Google’s Carbon Emissions Fall, But AI Makes Its Net-Zero “Moonshoot” Goal Harder Than Ever

Jennifer L
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0
Google’s Carbon Emissions Fall, But AI Makes Its Net-Zero “Moonshoot” Goal Harder Than Ever

Google has reached another important climate milestone. Yet, the company says its biggest environmental goal is becoming more difficult to achieve.

In its 2026 Environmental Report, Google announced a 2% reduction in its operational greenhouse gas emissions (Scope 1 and market-based Scope 2) for 2025. This came even though the company saw its highest annual rise in electricity use.

At the same time, the company acknowledged that its long-term climate “moonshot” is facing growing pressure. This is due to artificial intelligence rapidly expanding demand for data centers, electricity, and construction materials.

The report marks an important shift in Google’s climate story. Kate Brandt, Chief Sustainability Officer at Google, remarked:

“While the path to achieving our climate ambitions will not be linear — given our AI infrastructure buildout is currently accelerating faster than the grid is decarbonizing — we remain focused on scaling abundant and affordable clean power globally and progressing technological innovations that drive down emissions across our operations and the broader industry.”

Cleaner Operations, Bigger Climate Challenge

For years, the company focused on reducing emissions from its own operations. Today, the bigger challenge lies outside its direct control. Supply-chain emissions are growing faster than operational emissions. This increase is mainly due to Google expanding its AI infrastructure and purchasing more servers, semiconductors, and other equipment.

“Our climate moonshot is getting harder,” Google said in the report. They point to these reasons:

  • rising electricity demand,
  • slow grid connections,
  • supply chain bottlenecks, and
  • limited availability of carbon-free energy in many regions.

The report highlights a broader trend across the technology industry. As companies rush to develop AI infrastructure, they discover that reducing emissions becomes tougher. This is true even as they invest heavily in clean energy.

Google’s operational progress remains significant.

The company reported combined Scope 1 and market-based Scope 2 emissions of about 2.9 million metric tons of CO₂e in 2025, down 2% from 2024. This is the second year of operational gains after a 12% drop in 2024. Google’s investments in clean energy and efficient data centers are showing real results.

However, the broader picture is more challenging.

Google ghg emissions 2019 to 2025
Data from Google 2026 Environmental Report

Google’s ambition-based emissions hit around 14.5 million metric tons of CO₂e in 2025. This is an 18% rise from last year and 81% higher than its 2019 baseline. About 80% of emissions came from Scope 3. This includes purchased goods, construction materials, transportation, and manufacturing in its global supply chain.

The biggest driver is AI.

Google’s data center footprint continues to expand to support products such as Gemini and other AI services. The company reported a 37% increase in electricity load year over year. Improvements in AI hardware and software helped control demand, keeping it from rising even more.

This reflects a growing challenge across the technology sector. The International Energy Agency (IEA) says that electricity demand from AI, data centers, and digital tools will increase rapidly in the coming years. This makes clean electricity a top priority for the industry.

Clean Energy Is Central to Google’s Climate Strategy

The tech giant continues to invest heavily in clean energy as electricity demand grows. In 2025, the company signed deals for over 12 GW of new clean energy. It also launched more than 25 projects, adding nearly 2 GW to the grids that power its operations. It also maintained its goal of matching 100% of its annual electricity use with renewable energy purchases.

Google clean energy portfolio
Source: Google

Google is investing in advanced geothermal, nuclear, and other carbon-free energy. This will help provide reliable power for AI data centers.

Its global data centers reached an average Power Usage Effectiveness (PUE) of 1.09. This makes them some of the most energy-efficient in the world. Google states that cleaner electricity grids are crucial. Efficiency alone can’t match the fast growth of AI.

google data center construction emissions intensity
Source: Google

RELATED: Google’s Wild AI Strategy: 500 MW Solar Deal and Potential SpaceX Orbital Data Centers

The Hardest Emissions Now Come From Google’s Supply Chain

Google’s biggest climate challenge is no longer running its offices or data centers. It is building them.

In 2025, Scope 3 emissions made up nearly 80% of Google’s total carbon footprint. Most came from purchased goods and services, capital equipment, and construction materials needed for AI infrastructure. The company says demand for servers, chips, networking equipment, and new data centers continues to grow as AI adoption accelerates.

Google 2025 ghg emissions by scope
Source: Google

To address this, Google is working directly with suppliers.

The company launched a Clean Energy Addendum. It asks key hardware suppliers to use 100% clean electricity by the end of 2029. Google estimates the program could cut up to 8 million metric tons of CO₂e. It also helps suppliers create cleaner manufacturing operations, and more than 75 of them have already signed the agreement.

The tech giant is also helping suppliers with clean electricity buying programs and financing tools. This is especially true in Asia, where many electronics makers still depend on fossil fuels for power.

The company states that cutting supply chain emissions needs teamwork across the whole tech sector, not just one company acting alone.

Carbon Removals: Can It Help Close the Gap?

Google acknowledges that clean electricity alone will not eliminate all emissions.

Some emissions from aviation, construction materials, and semiconductor manufacturing remain difficult to avoid. To address these, the company is investing in high-quality carbon removal solutions.

Its portfolio includes direct air capture, biochar, enhanced rock weathering, forest restoration, and nature-based carbon removal projects. Google states these technologies will help reduce emissions that can’t be eliminated by operational improvements alone.

At the same time, the company continues to strengthen its climate governance.

Google’s net-zero goal is backed by the Science Based Targets initiative (SBTi). It also reports its progress through well-known climate disclosure frameworks. The company states that transparent reporting is crucial. Investors, regulators, and customers want clear proof of corporate climate action.

Overall, the sustainability report showed a big 18% jump in greenhouse gas emissions from high energy use in AI data centers. But Wall Street is focusing on Alphabet’s 21.8% revenue growth and strong “Buy” ratings from investors.

Google GOOG stock price

Google’s Moonshot Reflects a Broader Industry Challenge

Google’s latest environmental report tells two stories at once.

On one hand, the company continues to reduce emissions from its own operations while expanding one of the world’s largest portfolios of clean electricity projects. Improvements in renewable energy procurement, efficient data centers, and supplier engagement show that meaningful progress is still possible.

On the other hand, AI is changing the scale of the challenge.

Building the infrastructure needed for the next generation of computing requires more electricity, more materials, and more complex global supply chains. These factors are making net-zero targets harder to achieve—not only for Google but for much of the technology industry.

The company’s experience highlights a broader shift in corporate sustainability. The climate conversation is no longer just about reducing emissions from day-to-day operations. It is increasingly about transforming entire value chains while supporting the rapid growth of AI and other digital technologies.

For Google, operational emissions are moving in the right direction. The harder task now is ensuring that the infrastructure powering the AI era can grow without leaving a larger carbon footprint behind.

ASEAN Could Unlock an $8.5 Billion Carbon Market Opportunity Through CORSIA

Saptakee S
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ASEAN Could Unlock an $8.5 Billion Carbon Market Opportunity Through CORSIA

The aviation industry is under pressure to cut emissions, and carbon credits are crucial in this effort. A recent report from Abatable suggests that Southeast Asia has a strong chance of benefiting. If the Association of Southeast Asian Nations (ASEAN) governments approve more carbon credits under the global offsetting scheme, the region could earn between US$1.6 billion and US$8.5 billion in the next decade.

ASEAN is already a vital source of carbon credits under the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA). However, much of its potential remains untapped. With the right policies, ASEAN can help airlines meet climate goals while attracting investment, creating jobs, and promoting sustainable development.

CORSIA Is Creating a New Global Carbon Market for Aviation

Aviation has limited options for quickly cutting emissions, especially for long-haul flights. While sustainable aviation fuel (SAF) and cleaner aircraft will help over time, airlines will still depend on carbon credits to meet targets.

CORSIA allows airlines to offset emissions from international flights by buying high-quality carbon credits that meet ICAO’s strict rules. As more countries join and airline traffic recovers, demand for these credits is expected to rise sharply. This presents a significant opportunity for countries that can develop credible carbon projects.

CORSIA ASEAN
Source: Abatable

ASEAN Holds a Strong Position

CORSIA, set up by the International Civil Aviation Organization (ICAO), requires airlines to offset a portion of their emissions using approved carbon credits called CORSIA Eligible Emissions Units (CEEUs).

Currently, ASEAN contributes a small share of the global supply, but this could grow significantly.

The report categorizes ASEAN’s carbon credit supply into three groups:

  • CORSIA-eligible credits that airlines can use right away.
  • CORSIA-aligned credits that meet ICAO’s standards but need government approval.
  • Pipeline projects that could issue credits in the future.

Right now, ASEAN has four CORSIA-eligible projects in Cambodia and Laos. Together, they have issued 2.6 million eligible carbon credits, making up 7.1% of the global supply as of June 1, 2026.

Though this is only 1.3% of expected global demand during CORSIA’s First Phase, these projects have room to grow. If they continue operating, they could generate an additional 6 million to 20 million carbon credits by 2035.

  • At today’s prices, these credits are worth around US$26 million to US$59 million.
corsia carbon credits
Source: Abatable

Millions of Credits Are Waiting for Government Approval

The biggest opportunity lies in credits not yet approved.

Across ASEAN, 54 carbon projects already meet ICAO’s standards but lack the necessary Letter of Authorization (LoA) from their governments. Without this approval, airlines cannot use these credits for CORSIA compliance.

  • These projects have already issued 18.2 million carbon credits.

If governments authorize them in the next 18 months, these credits could enter the market and add an estimated US$182 million to US$419 million in value.

  • Furthermore, extending these projects through 2035 could yield another 5 million to 26 million eligible credits, providing airlines with more supply as demand rises.

Most of these projects are in Vietnam, Laos, and Thailand, which together account for over 90% of ASEAN’s CORSIA-aligned supply. Clean cookstove initiatives contribute 13.1 million credits from 35 projects, mainly in Vietnam.

Pipeline Projects Could Transform ASEAN Into a Global Supplier

The report suggests ASEAN’s long-term potential is much greater than its current supply. The region has around 100 pipeline carbon projects that could produce up to 302 million carbon credits by 2035 if authorized.

Combined with current eligible credits, ASEAN could potentially supply 348 million CORSIA-eligible credits over the next decade.

  • At current market rates, this could be worth between US$1.6 billion and US$8.5 billion.

This would significantly boost the global supply of aviation carbon credits as airlines face rising compliance demands.

However, governments must balance these exports with their climate commitments under Nationally Determined Contributions (NDCs). Authorizing credits may have limited effects on national climate targets, especially if projects yield reductions beyond existing policies.

Source: Abatable

Beyond Carbon Credit Sales

The opportunity extends beyond just selling carbon credits. It also includes strengthening ASEAN’s role in global carbon markets. Much of the CORSIA-eligible supply currently comes from Africa, with one project in Guyana providing nearly 68% of all eligible credits.

Expanding ASEAN’s project pipeline would diversify global supply and reduce reliance on a few regions. This could enhance market stability and give airlines more options for sourcing high-quality credits.

Demand for Carbon Credits Is Rising Rapidly

While supply is limited now, airline demand is expected to grow sharply over the next decade.

Globally, CORSIA demand is projected to reach between 201 million and 219 million carbon credits during its First Phase, then surge to between 1.25 billion and 1.78 billion credits in the Second Phase by 2035.

Europe is expected to be the largest demand source, but Asia and the Middle East will become increasingly important as more countries get involved.

In ASEAN, 39 airlines participate in CORSIA, though emissions data is available for only 26. These airlines are expected to need around 17 million to 18 million carbon credits in the First Phase.

By 2035, demand could rise nearly five to seven times, reaching as much as 118 million credits.

Three countries lead regional demand:

  • Singapore
  • Thailand
  • Indonesia

Together, they represent over 95% of ASEAN’s offset needs.

Four airlines—Singapore Airlines, Thai Airways, Scoot, and Garuda Indonesia—will likely account for about 75% of ASEAN’s total CORSIA demand, needing around 13 million credits in the First Phase and 65 million in the Second Phase.

This concentration means decisions by a few major airlines could significantly impact the regional carbon market.

Unlike many emerging carbon markets, ASEAN airlines have started buying eligible credits.

  • Singapore Airlines and Scoot retired 150,000 CORSIA-eligible credits from a clean cookstove project in Laos. This is the second-largest retirement of CORSIA credits by any airline globally, following Japan Airlines’ retirement of 250,000 credits.
  • Malaysia Aviation Group has also completed pilot transactions, showing growing interest in the region.

These early purchases help build market confidence and encourage developers to invest in new carbon projects.

AIRLINE
Source: Abatable

Supply Could Still Fall Behind Future Demand

Despite ASEAN’s potential, the report warns that the region may face a supply gap if new projects aren’t developed quickly.

Modeling shows that available supply could briefly exceed ASEAN airline demand in 2027, reaching around 8 million credits, slightly above the expected demand of 7.7 million tonnes.

However, from 2028 onward, airline demand will keep rising, eventually hitting 18.9 million tonnes by 2035. Meanwhile, annual supply will stay around 8 million credits through 2030 before declining as existing projects reach the end of their crediting periods.

Without new investments and project approvals, ASEAN’s supply would only cover about 60% of aviation demand by 2035.

The outlook varies by country.

Singapore and Thailand are expected to remain net buyers, hosting large international airlines but having limited domestic CORSIA-eligible supply. In contrast, Vietnam and Laos are set to become net suppliers, while Cambodia, Indonesia, and the Philippines could balance both demand and supply by expanding domestic carbon projects.

ASEAN Corsia credit demand and supply
Source: Abatable

Carbon Markets Could Deliver Broader Economic Benefits

Beyond aviation compliance, expanding CORSIA participation could yield broader economic and social benefits for ASEAN.

Many current projects focus on distributing clean cookstoves, improving energy efficiency, and conserving forests. These efforts reduce indoor air pollution, lower fuel costs, enhance public health, and create new income for local communities.

The report says that current and future CORSIA projects might create about 32,000 direct jobs in the region over the next ten years. This could also draw in new private investment for sustainable development.

Outlook: ASEAN Has the Building Blocks to Become a Carbon Market Leader

ASEAN already has the projects, growing airline demand, and favorable conditions to become a leading supplier of aviation carbon credits. However, seizing this opportunity requires government action.

Faster approvals for current projects and ongoing investment in new initiatives will influence how much of the US$1.6 billion to US$8.5 billion opportunity ASEAN can capture. Clear policies that connect international trade with national climate goals will also play a key role.

As CORSIA enters its next phase and airline demand grows, ASEAN has a chance to boost its carbon markets and low-carbon economy. If countries act quickly, the region could become a key hub for high-quality aviation carbon credits. This move could bring lasting environmental, economic, and social benefits.

Bitcoin Price Falls Below $60K, But Its Biggest Story Is the Green Revolution in Mining

Jennifer L
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0
Bitcoin Price Falls Below $60K, But Its Biggest Story Is the Green Revolution in Mining

Bitcoin is back in the spotlight after a sharp price drop. After climbing above $126,000 late last year, the world’s largest cryptocurrency has fallen below $60,000, losing more than half its value.

Investors have responded to weaker economic conditions. Higher interest rates, profit-taking, and a lower appetite for risk also played a role. While much of the attention is on Bitcoin’s price, another shift is taking place behind the scenes.

The Bitcoin mining industry is becoming cleaner.

For years, Bitcoin faced criticism for its high electricity use and carbon emissions. Environmental groups compared its energy use to that of whole countries. This raised concerns about whether the cryptocurrency can fit into a low-carbon future.

Bitcoin price
Source: Binance

Today, that picture is changing.

Many mining companies are investing in renewable energy. They are capturing methane that would otherwise go into the atmosphere. This helps support power grids and improve energy efficiency. These efforts aren’t removing Bitcoin’s environmental footprint.

However, they do lessen its impact. Governments, investors, and businesses are now focusing more on sustainability and net-zero emissions.

Bitcoin’s Energy Appetite Remains Massive

Bitcoin remains one of the world’s most energy-intensive digital networks. According to the Cambridge Centre for Alternative Finance, Bitcoin mining consumes electricity on a national scale. Demand changes with mining activity but remains among the highest of any digital infrastructure systems.

The International Energy Agency (IEA) notes that cryptocurrency mining, data centers, and artificial intelligence are among the fastest-growing sources of global electricity demand.

Mining relies on specialized computers that solve complex mathematical problems to secure the Bitcoin network. As Bitcoin’s value grew over the last ten years, companies added more machines. This also raised electricity demand.

However, electricity use tells only part of the story. The environmental impact also depends on where that power comes from.

After China banned commercial Bitcoin mining in 2021, many miners relocated. They moved to places like the United States, Canada, Iceland, Norway, Paraguay, and other parts of Latin America. Many of these locations offer cleaner electricity or abundant renewable energy, helping lower the industry’s carbon intensity.

Renewables Are Rewriting Bitcoin’s Energy Mix

Bitcoin mining is steadily shifting toward cleaner energy.

The latest Cambridge Digital Mining Industry Report shows that 52.4% of the electricity used by miners comes from sustainable sources. This includes renewables and nuclear power. Hydropower, wind, and solar account for much of that supply.

bitcoin electricity by source
Source: Cambridge Centre for Alternative Finance

Natural gas remains the largest single fuel source because many miners use excess gas that would otherwise be flared at oil fields. This marks a major shift from several years ago, when coal supplied much of the industry’s electricity.

Today, miners increasingly build operations where electricity is affordable, reliable, and cleaner. Hydropower supports mining in Canada, Paraguay, and Scandinavia, while wind and solar continue to attract miners in Texas and other parts of the United States. Nuclear energy is also emerging as another source of carbon-free electricity.

Some companies generate electricity from landfill gas and agricultural biogas. This helps reduce methane emissions that would otherwise enter the atmosphere.

These changes do not make Bitcoin carbon neutral, but they are lowering the emissions linked to every Bitcoin mined.

Methane: From Waste Gas to Digital Gold

One of the industry’s fastest-growing sustainability strategies focuses on methane. Methane traps about 80 times more heat than carbon dioxide over a 20-year period, making it one of the most powerful greenhouse gases.

Some Bitcoin miners use mobile data centers to turn methane into electricity. This helps stop methane from escaping from oil wells, landfills, or wastewater facilities.

Companies including MARA Holdings, Crusoe Energy, and Upstream Data have helped pioneer this approach in North America.

The process cuts methane emissions while generating electricity for Bitcoin mining. Studies show that burning methane can help the climate. This is important because methane has a much stronger warming effect in the short term.

Methane-powered mining is still a small part of the industry. But analysts expect it to grow. Energy producers want new ways to cut emissions and use stranded gas resources.

Bitcoin annual carbon emissions to 2100
Source:

The Biggest Bitcoin Miners Are Going Green

Many of the world’s largest Bitcoin mining companies now see sustainability as part of their long-term strategy.

MARA Holdings, the world’s largest publicly traded Bitcoin miner by market value, is expanding its use of landfill gas, methane capture, and renewable electricity. The company has also invested in technologies that convert stranded natural gas into electricity instead of flaring it.

CleanSpark continues to grow its U.S. operations by acquiring energy-efficient facilities powered by lower-carbon electricity. The company says cleaner energy helps reduce operating costs while supporting long-term growth.

Riot Platforms works with the Electric Reliability Council of Texas (ERCOT) through a demand response program. During periods of high electricity demand, Riot can temporarily reduce mining operations and return power to the grid. This helps improve grid reliability while creating another source of revenue.

bitcoin mining companies going green

Other miners are following similar strategies. Iris Energy powers its facilities mainly with hydroelectric energy in Canada. Bitfarms also relies heavily on hydropower across Canada and South America.

TeraWulf gets most of its electricity from nuclear and hydro sources. Meanwhile, Hut 8 is growing its energy-efficient mining and digital setup across North America.

Together, these companies show how access to cleaner and more reliable electricity is becoming a competitive advantage.

Can Bitcoin Help Stabilize the Power Grid?

Bitcoin miners were once seen only as major electricity users. Today, some utilities view them as flexible energy consumers that can help balance the power grid.

Unlike factories or hospitals, Bitcoin mining operations can shut down within minutes when electricity demand spikes. This allows miners to reduce consumption during heat waves, storms, or other periods of grid stress.

In Texas, some mining companies join demand response programs. They temporarily shut down equipment when electricity demand is high. This allows more power to flow to homes and businesses.

Mining can also support renewable energy projects. Wind and solar farms often produce more electricity than the grid needs during certain hours. Instead of wasting that excess power, miners can use it until demand increases. This improves project economics while reducing wasted renewable energy.

Now, some analysts say Bitcoin mining is a flexible industrial load. It can support renewable energy rather than compete with it.

The Green Transition Is Far From Complete

Despite this progress, Bitcoin’s environmental concerns are still evident:

  • Bitcoin mining still uses large amounts of electricity, and coal-powered operations continue to produce high emissions.
  • Electronic waste is growing as older mining machines are replaced with newer, more efficient models.
  • Inconsistent sustainability reporting makes it harder for investors to compare environmental performance, increasing the need for clearer disclosures.

Bitcoin’s Future May Depend on More Than Price

Bitcoin’s recent drop below $60,000 has renewed attention on the cryptocurrency market. Yet, its biggest long-term story may be unfolding beyond price charts.

In recent years, the industry has moved toward cleaner electricity and renewable energy. It focuses on reducing methane and integrating more closely with power grids. At the same time, new mining equipment has become more energy efficient, helping lower electricity use per unit of computing power.

Challenges remain, but sustainability is becoming an important factor in how mining companies compete for investment and future growth.

As governments, investors, and businesses continue pursuing net-zero goals, Bitcoin’s environmental performance is likely to receive as much attention as its market value. The next phase of the industry’s growth may depend not only on the price of Bitcoin, but also on how successfully it reduces its environmental footprint.

Copper Under Pressure as Ferrari, BMW, and Tesla Embrace Cheaper Aluminum Wiring

Saptakee S
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0
Copper Under Pressure as Ferrari, BMW, and Tesla Embrace Cheaper Aluminum Wiring

The automotive industry is quietly reshaping one of its oldest engineering standards. After relying on copper wiring for nearly two centuries, leading automakers are increasingly replacing it with aluminum, particularly in electric vehicles (EVs).

According to Reuters, Ferrari and BMW have expanded the use of aluminum wiring in their latest models, joining Tesla and several Chinese EV manufacturers. The move is driven by a combination of lower costs, lighter weight, and growing concerns over copper supply constraints.

While copper remains the preferred conductor for many automotive applications, rising prices and tightening supplies are pushing manufacturers to rethink their material choices. Analysts now believe this trend could gradually reshape global demand for both metals over the coming decade.

Copper vs. Aluminum: Rising Prices Are Changing the Equation

Copper has long been the industry standard because of its superior electrical conductivity, durability, and flexibility. However, economics are increasingly working against it.

As we have seen and read before, copper prices had climbed to nearly $15,000 per metric ton earlier this year. Supply shortages and soaring demand from clean energy projects, power grids, data centers, and electric vehicles supported it.

copper prices
Sourced from Reuter’s report

In contrast, aluminum currently trades at roughly $3,100 per metric ton, making it nearly four times cheaper. The price difference has become difficult for manufacturers to ignore, especially as EV production continues to scale.

aluminum prices

However, apart from lower prices, the shiny white metal offers three major financial and engineering advantages:

  • It is approximately 3.3 times lighter than copper.
  • It costs roughly one-quarter as much as copper.
  • Lower vehicle weight can improve driving range and overall energy efficiency.

The tradeoff is conductivity. Aluminum carries electricity less efficiently than copper, requiring cables with a larger cross-sectional area to deliver the same electrical performance. Engineers must also carefully design connectors because aluminum naturally forms an oxide layer that can reduce electrical contact quality if not properly managed.

Despite these challenges, advances in cable design and manufacturing have made aluminum increasingly practical for selected automotive applications.

Ferrari and BMW Expand Aluminum Wiring Across New Models

Reuters reported that Ferrari began using aluminum power cables in its 296 hybrid sports car last year before extending the technology to additional vehicles, including the newly launched Luce, the company’s first fully electric model.

According to Ferrari communications executive Dario Esposito, switching materials reduced total wiring weight by as much as 20%. Esposito told Reuters that performance and not cost was the primary motivation behind Ferrari’s decision.

The company already relies heavily on aluminum in vehicle bodies, chassis, and engines, making wiring a natural extension of its lightweight engineering strategy.

BMW has followed a similar path, although its transition began much earlier.

The German automaker first introduced aluminum conductors in the BMW 1 Series in 2011. Since then, the company has gradually expanded their use across hybrid and electric vehicles.

Today, BMW incorporates significant amounts of aluminum wiring in both high- and low-voltage systems within its latest eDrive electric vehicle platform introduced last year.

Reuters also cited an industry source indicating that Stellantis has recently started replacing copper wiring with aluminum in some applications, although the company declined to comment.

China Is Accelerating the Shift

China appears to be moving even faster.

Chinese government encouraged manufacturers to substitute copper with aluminum in a March 2025 policy paper. The recommendation reflects broader concerns over securing long-term supplies of critical industrial metals while lowering manufacturing costs.

SMM View

According to Shanghai Metals Market (SMM), the policy reflects China’s long-term strategy to transform its aluminum industry through greater recycling, resource efficiency, and green innovation.

  • SMM believes the target of producing 15 million metric tons of recycled aluminum annually is both realistic and strategically significant.

The consultancy noted that expanding recycled aluminum production will help meet growing demand from sectors such as electric vehicles, renewable energy, and advanced manufacturing while reducing reliance on primary aluminum.

It will also help ease supply constraints created by China’s cap on primary aluminum production, supporting a more sustainable and circular aluminum industry over the long term.

Tesla Sets a Benchmark for Chinese EV Makers 

Several Chinese EV makers have already adopted aluminum wiring.

Tesla also pioneered many of these design choices. It introduced aluminum wiring in the Model Y in 2019 and expanded its use in the Cybertruck. Woychowski noted that Tesla’s engineering decisions have become important benchmarks for Chinese automakers, many of which closely study the company’s manufacturing techniques.

The timing is significant.

China’s highly competitive EV market continues to experience intense price pressure, leaving manufacturers searching for every possible cost reduction. At the same time, lighter vehicles offer longer driving ranges without increasing battery size, creating an additional incentive for aluminum adoption.

Reuters also reported that approximately 85% of electrical busbars—the components connecting EV batteries to vehicle systems—are still made from copper, suggesting considerable room for future substitution.

Lightweight Design Supports EV Efficiency

Weight reduction has become one of the most valuable engineering strategies for electric vehicles.

Unlike conventional gasoline cars, every kilogram removed from an EV can contribute to improved efficiency, longer driving range, or smaller battery requirements.

This broader industry trend is also reflected in research from DUCKER Research and Consulting. Its report, Aluminum Content in Passenger Vehicles (Europe), projects average aluminum content per passenger vehicle will increase from 205 kilograms in 2022 to approximately 256 kilograms by 2030.

The report estimates aluminum usage will continue growing, supported primarily by electrification, battery housings, electric drive systems, high-voltage components, and large structural castings.

According to the study, reducing vehicle weight remains essential for improving driving range while lowering battery-related costs.

As manufacturers pursue greater efficiency, aluminum is becoming increasingly attractive across multiple vehicle systems beyond body structures.

Aluminum in vehicles
Source: Ducker; *CPV of 179 kg in EA study 2019 as second set of OE wheels was included

Copper Demand Faces Growing Pressure

The increasing use of aluminum is beginning to influence global metals markets.

Reuters reported that analysts at JPMorgan expect aluminum substitution to affect approximately 2% of global copper demand this year.

  • Looking further ahead, the bank outlined a scenario in which aluminum could replace about 6% of annual copper demand by 2030 if adoption continues across transportation, power infrastructure, and manufacturing.
  • Reuters further highlighted that Chinese consultancy Zhuochuang estimates that 25% to 30% of copper components, measured by metal volume, could shift to aluminum across the automotive, power, and home appliance industries by 2030.

Although these percentages may appear modest, they represent substantial volumes within the world’s largest industrial metal markets.

Copper demand is simultaneously being supported by renewable energy installations, electricity transmission upgrades, artificial intelligence infrastructure, and rapidly expanding data centers.

As a result, substitution may help alleviate supply pressures rather than eliminate demand altogether.

Copper Still Holds Important Advantages

Despite growing momentum behind aluminum, copper is unlikely to disappear from automotive manufacturing.

Copper continues to outperform aluminum in several critical areas.

Its higher electrical conductivity allows manufacturers to use thinner cables while delivering greater power. Copper also offers superior flexibility, making it better suited for compact spaces, repeated movement, and demanding electrical systems.

For these reasons, aluminum is expected to remain concentrated in applications where weight savings outweigh conductivity advantages.

These include:

  • High-voltage EV cables
  • Long-distance power runs
  • Battery connection systems
  • Applications where reducing vehicle mass delivers measurable efficiency gains

Meanwhile, copper will likely continue dominating compact electronics, high-performance circuits, and systems requiring maximum reliability.

A Gradual Transition, Not a Complete Replacement

The growing adoption of aluminum wiring reflects a broader transformation occurring throughout the automotive industry.

Manufacturers are balancing performance, cost, material availability, and sustainability while responding to rapidly changing supply chains.

Reuters’ reporting suggests this is no longer an isolated experiment. Instead, aluminum is becoming an increasingly mainstream engineering solution across global automakers—from premium brands like Ferrari and BMW to mass-market EV manufacturers in China.

Even so, the transition is expected to remain selective rather than universal. Copper’s superior electrical performance ensures it will continue playing a central role in vehicle electrification.

Instead of replacing copper entirely, aluminum is emerging as a complementary material that helps manufacturers reduce costs, lower vehicle weight, and manage growing pressure on global copper supplies.

As EV production accelerates worldwide, the balance between these two metals could become one of the defining material trends shaping the next generation of electric mobility.

Brookfield and Bloom Energy Scale AI Data Center Power Partnership to $25 Billion, Sending BE Stock Upward

Jennifer L
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0
Brookfield and Bloom Energy Scale AI Data Center Power Partnership to $25 Billion, Sending BE Stock Upward

The artificial intelligence (AI) industry has seen one of its largest energy infrastructure partnerships. Brookfield Asset Management and Bloom Energy have expanded their strategic partnership from $5 billion to $25 billion. The fivefold increase will finance and deploy on-site power systems for AI data centers across the United States.

The companies say the agreement will speed up the delivery of electricity to hyperscale facilities facing long waits for grid connections.

The deal reflects a growing problem across the technology sector. AI data centers are using electricity faster than ever. Utilities are struggling to keep up with the growing need for generation and transmission capacity.

Many tech companies are now skipping long waits for new grid connections. Instead, they are investing in on-site power systems that can be set up quickly. More broadly, the partnership shows how energy infrastructure is becoming a key part of the AI economy.

A Bigger Partnership for AI Infrastructure

The new agreement allows Brookfield and Bloom Energy to finance and deploy up to $25 billion in power projects. This is a big jump from their original $5 billion partnership.

Brookfield’s infrastructure financing skills mix with Bloom Energy’s fuel-cell tech. This helps deliver electricity to large data centers faster than usual utility connections.

Bloom says its Energy Server systems can be installed within months instead of waiting years for new transmission infrastructure. That speed has become increasingly important as AI developers race to add computing capacity.

power system comparison fuel cell bloom energy

The partnership also supports Brookfield’s broader AI strategy. This year, the company started a $100 billion AI Infrastructure Fund. It will invest in data centers, renewable energy, power generation, transmission, and digital infrastructure.

Sikander Rashid, Head of AI Infrastructure at Brookfield, remarked:

“Scaling this partnership further strengthens Brookfield’s position as one of the leading global AI infrastructure investors, capable of delivering end-to-end solutions, from electrons to tokens, for some of the world’s most sophisticated customers.”

These investments will give customers reliable electricity all day, every day. At the same time, utilities are expanding the grid.

Power Demand Is Reshaping AI Infrastructure

AI is driving a sharp rise in electricity demand, putting growing pressure on power grids worldwide.

The International Energy Agency (IEA) predicts that electricity use in data centers will more than double by 2030. It will reach around 945 terawatt-hours (TWh), mainly due to AI driving this growth.

A United Nations University report says AI data centers might use as much electricity by 2030 as Pakistan, Bangladesh, and Nigeria combined—almost three times their total use. AI now accounts for about 20% of data center electricity demand, and that share could double by the end of the decade.

Ai energy use vs 3 nations

As demand grows, many utilities find it hard to connect new data centers. This is due to limited transmission capacity, old infrastructure, and lengthy permitting processes. McKinsey estimates that global demand for data center capacity might triple by 2030. This change will need hundreds of billions of dollars in new investment.

Developers face challenges that push them to find faster power solutions. These include on-site generation, battery storage, microgrids, nuclear power, geothermal energy, and fuel cells. The shift is creating new opportunities for companies that can deliver reliable and scalable electricity for AI infrastructure.

Fuel Cells Offer a Faster Solution

Bloom Energy believes its fuel-cell technology can help meet that demand. Unlike conventional power plants, Bloom’s solid oxide fuel cells generate electricity through an electrochemical process instead of combustion.

The systems mainly use natural gas today, but they can also run on biogas. They are designed to support hydrogen as supplies become more common.

Fuel cells provide steady electricity no matter the weather. This makes them ideal for AI data centers that run all day.

Another advantage is speed. New transmission lines and big power plants can take years to build. In contrast, modular fuel-cell systems can be installed much faster. This allows data centers to begin operating while permanent grid upgrades are still underway.

Bloom has grown in the AI market by partnering with companies like Oracle, Equinix, and American Electric Power. These firms need dependable electricity for high-performance computing.

The systems mainly use natural gas, but they create fewer air pollutants than traditional combustion generators. They can also support renewable energy as power grids work to reduce carbon emissions.

Brookfield Is Building AI’s Energy Backbone

The Bloom Energy partnership is part of Brookfield’s broader AI infrastructure strategy.

This year, the company started a $100 billion AI Infrastructure Fund. It will invest in power generation, transmission networks, data centers, fiber infrastructure, and digital connectivity. These investments support the rapid growth of AI while addressing one of its biggest challenges—access to reliable electricity.

Brookfield estimates that AI infrastructure will require trillions of dollars in global investment over the coming decades. As demand grows, electricity has become a key factor in where and how new data centers are built.

Brookfield trillion dollar AI infrastructure

The company also owns one of the world’s largest renewable power portfolios through Brookfield Renewable. Its hydroelectric, wind, solar, storage, and distributed energy assets offer over 46 gigawatts (GW) of installed renewable power. Plus, the development pipeline tops 200 GW.

Brookfield has also committed to reaching net-zero greenhouse gas emissions across its operations by 2050. It keeps investing in renewable energy, energy storage, carbon capture, and grid upgrades to support that goal.

Bloom Expands Beyond Fuel Cells

AI has become an increasingly important growth market for Bloom Energy.

The company positions its solid oxide fuel cells as a cleaner alternative to conventional diesel backup generators. Bloom claims its systems create almost no particulate pollution. They also lower nitrogen oxide and sulfur oxide emissions much more than combustion-based technologies.

Beyond AI, Bloom continues expanding its hydrogen and carbon capture businesses. Its fuel cells already operate on biogas and are designed to transition to hydrogen as supplies increase.

The company has made solid oxide electrolyzers. They create hydrogen more efficiently than traditional electrolysis systems. These technologies support broader efforts to reduce industrial emissions while improving long-term energy resilience.

Investors Bet on AI Power Infrastructure

The expanded partnership also drew attention from investors. Bloom Energy’s shares climbed after the announcement. Investors saw the fivefold increase as a clear sign of strong demand for AI power infrastructure.

Bloom Energy BE stock price

Analysts noted that the agreement boosts Bloom’s role in a fast-growing energy market. It also gives long-term financing support through Brookfield.

The deal also suggests that distributed power systems will be more important, while developers keep facing delays in getting grid connections.

The Next AI Race Is About Electricity

Artificial intelligence is reshaping not only the technology sector but also global energy markets. Brookfield’s new $25 billion deal with Bloom Energy shows a key trend: reliable electricity is now as crucial as advanced chips and cloud computing.

As AI data centers continue to grow, developers will need power solutions that can be deployed quickly and operate around the clock. Fuel cells, renewable energy, battery storage, and modernized power grids are all expected to play important roles.

For Brookfield, the partnership strengthens its position in one of the fastest-growing infrastructure markets. For Bloom Energy, it expands opportunities in the rapidly growing AI sector.

More broadly, the agreement shows that the next phase of AI growth will depend not only on computing power, but also on the energy infrastructure needed to support it.

Airlines Face a $127 Billion Carbon Credit Bill as CORSIA Supply Tightens

Jennifer L
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Airlines Face a $127 Billion Carbon Credit Bill as CORSIA Supply Tightens

The global aviation industry is facing a new climate challenge. Airlines might soon face challenges in getting enough quality carbon credits to follow international emissions rules. This could lead to an extra $127 billion in costs over the next ten years.

An MSCI Carbon Markets analysis, as first reported by Financial Times, warns of a carbon credit shortage. This shortage under the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) could drive prices near $100 per metric ton by 2035. That would be a big jump from current levels. It could raise compliance costs for airlines around the world.

Why CORSIA Is Reshaping Aviation’s Climate Strategy

The warning comes as international air travel continues to recover. The International Air Transport Association (IATA) predicts that global passenger numbers will surpass 5.2 billion in 2025. Airline revenues are also expected to exceed $1 trillion. More flights also mean more emissions, increasing demand for high-quality carbon credits.

CORSIA is the world’s first global market-based system designed to reduce emissions from international aviation. The International Civil Aviation Organization (ICAO) created a rule that requires airlines to offset emissions growth on eligible international routes. They must do this by buying approved carbon credits.

The program entered its first compliance phase in 2024 and will expand over the coming years as more countries participate. More than 120 nations have committed to CORSIA, making it one of the world’s largest international carbon markets.

CORSIA compliance requirements abatable
Source: Abatable

CORSIA is different from the broader voluntary carbon market (VCM). It only accepts credits from programs that follow strict standards. These include environmental integrity, permanence, transparency, and independent verification. ICAO has approved only a limited number of carbon credit standards and methodologies.

As a result, airlines cannot simply buy the cheapest credits. They must compete for a much smaller pool of eligible credits, increasing the risk of shortages as demand grows.

MSCI Carbon Markets says the market might get tight after 2027. This is when more airlines will need to comply, and demand will rise.

A Growing Gap Between Supply and Demand

The expected shortage is not caused by a lack of carbon projects. Instead, too few projects meet CORSIA’s eligibility requirements.

The VCM has issued billions of carbon credits over the past two decades. However, many older credits do not qualify under ICAO’s stricter rules. At the same time, developers need years to create, validate, verify, and register new projects before credits can reach the market.

CORSIA eligible carbon credits supply
Source: MSCI

MSCI estimates this imbalance could leave airlines competing for a limited supply of eligible credits throughout the 2030s. Under its tighter supply scenario, compliance costs could reach $127 billion between 2024 and 2035.

The report predicts that CORSIA-approved credits might reach nearly $100 per metric ton by 2035. This is much higher than the current prices in the wider voluntary carbon market.

Some airlines face greater exposure than others. Long-haul international carriers like Emirates, Qatar Airways, and United Airlines will likely need the most eligible credits. This is due to their vast global networks.

  • Emirates could face $8 billion in compliance costs, followed by Qatar Airways ($6 billion) and United Airlines ($5 billion), per FT report.

The challenge comes as many airlines are already dealing with higher fuel costs, aircraft shortages, and growing investments in sustainability.

Aviation’s Climate Challenge Continues to Grow

The pressure reflects aviation’s broader emissions challenge.

According to the International Energy Agency (IEA), aviation accounts for around 2% of global energy-related carbon dioxide emissions. Yet, it remains one of the fastest-growing transport sectors because passenger demand continues to outpace efficiency gains.

The Air Transport Action Group (ATAG) estimates that in 2024, commercial aviation emitted around 942 million metric tons of CO₂. This is nearly back to pre-pandemic levels. Without stronger climate action, emissions could keep rising over the coming decades.

Airline aviation sector ghg emissions 2024 IATA
Source: IATA

The industry has responded with ambitious climate goals. Through IATA, airlines have committed to reaching net-zero emissions by 2050. To reach that target, we need better aircraft, sustainable aviation fuel (SAF), operational upgrades, hydrogen and electric planes, and carbon removal.

Most experts agree that carbon credits will still be vital during the transition. This is especially true for emissions that we can’t eliminate yet.

Sustainable Aviation Fuel Cannot Close the Gap Alone

The aviation industry sees sustainable aviation fuel as its biggest long-term tool for cutting emissions. Depending on the feedstock and production method, SAF can reduce lifecycle greenhouse gas emissions by up to 80% compared with conventional jet fuel.

However, supply remains well below demand.

According to IATA, SAF production reached about 2.4 million metric tons in 2025, or roughly 2.5 billion liters. Despite rapid growth, it will supply only about 0.7% of global jet fuel demand this year.

SAF production
Source: ICAO

The industry aims to expand production much faster. Under IATA’s net-zero roadmap, SAF could deliver about 65% of aviation’s emissions reductions by 2050. Reaching that goal will require hundreds of billions of dollars in investment and a major expansion of production capacity worldwide.

Until then, airlines will continue relying on carbon credits to offset emissions that cannot yet be avoided. That is why analysts expect demand for high-quality credits to remain strong over the next decade.

Higher Credit Prices Could Reshape Carbon Markets

Growing CORSIA demand could affect the broader carbon market. In recent years, voluntary carbon markets have struggled with low prices and concerns about credit quality. Many lower-quality credits traded for only a few dollars per metric ton as buyers became more selective.

CORSIA could help reverse that trend.

CORSIA carbon credit supply, demand, and prices
Source: Allied Offsets

ICAO only accepts credits that meet strict environmental standards. This gives developers a strong reason to create high-quality carbon removal and avoided-emissions projects. These projects can then qualify for compliance markets.

This change could boost investment in several areas:

  • Reforestation,
  • Afforestation,
  • Direct air capture (DAC),
  • Bioenergy with carbon capture and storage (BECCS),
  • Improved soil carbon, and
  • Other lasting carbon removal projects.

Market analysts expect buyers to continue prioritizing quality over low prices. That trend is already visible as companies pay premiums for credits backed by stronger verification and long-term climate benefits.

Higher prices could help project developers. This change can improve project economics and make it easier to fund carbon removal technologies that have had trouble attracting investment.

The Aviation Transition Will Require More Than Offsets

Carbon credits alone will not solve aviation’s climate challenge. Airlines need to invest in:

  • Fuel-efficient aircraft,
  • Sustainable aviation fuel,
  • Operational improvements, and
  • Future technologies like hydrogen and electric aircraft, when possible.

Governments will also need to support SAF production, modernize air traffic systems, and encourage investment in low-carbon aviation infrastructure. Even so, carbon markets will remain an important bridge during the transition.

The growing shortage of CORSIA-eligible credits reflects a broader shift across global carbon markets. Buyers are no longer looking for the cheapest offsets. They increasingly want credits that meet higher standards for quality, transparency, and measurable climate impact.

For airlines, this means climate compliance is becoming more complex and more expensive. For the carbon market, it signals a move toward higher-value credits backed by stronger environmental integrity.

If current projections prove correct, the next decade will not be defined by how many carbon credits are available. Instead, it will depend on how many truly high-quality credits the market can deliver.

Groundwork BioAg Issues First Verra Verified Soil Carbon Credits in U.S. Milestone

Jennifer L
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Groundwork BioAg Issues First Verra Verified Soil Carbon Credits in U.S. Milestone

Groundwork BioAg has issued its first verified carbon credits. This is a big step for soil-based carbon removal in the United States under its Rootella Carbon® program.

The company issued 19,568 Verified Carbon Units (VCUs) after independent verification by SCS Global Services. The process used Verra’s Verified Carbon Standard (VCS) and the VM0042 Improved Agricultural Land Management method. The carbon credits have already secured multiple purchase agreements, moving the project from development into commercial delivery.

This is the first U.S. project verified under Verra’s VM0042 method. It’s also the first commercial-scale carbon removal program using mycorrhizal fungi. These naturally occurring soil fungi help plants capture more carbon and store it underground.

Groundwork says its program delivers 100% carbon dioxide removal rather than avoided emissions. It shares up to 70% of net carbon credit revenue with farmers. This creates a financial incentive for them to improve soil health and remove carbon from the atmosphere.

Groundwork BioAg CEO Alon Werber commented:

“This first-of-its-kind issuance represents the holy grail of CDR: scalable, durable, verifiable. We fully intend to disrupt the global CDR market, which delivered a total of 2 MtCO2e last year. In contrast, Rootella Carbon is set to deliver half that amount in the next two years alone.”

Why Soil Carbon Could Be a Climate Superpower

The launch happens as demand for high-quality carbon removal credits keeps rising. This demand exceeds supply, sparking interest in scalable and scientifically proven climate solutions.

Healthy soils store more carbon than the atmosphere and all vegetation combined. The Food and Agriculture Organization (FAO) says better soil management boosts carbon storage. It also improves food production and helps farms resist droughts.

Soil carbon projects use natural biological processes. This is different from engineered carbon removal technologies, which need big industrial facilities. They can also be expanded across millions of acres of farmland with relatively low infrastructure costs.

However, soil carbon has faced questions about permanence because stored carbon can be released if farming practices change.

Groundwork says its use of mycorrhizal fungi helps address this issue. Fungi turn carbon into mineral-associated organic matter (MAOM). This stable soil carbon can stay stored for centuries or even thousands of years, according to studies.

According to the company, its Mycorrhizal Carbon™ system can remove between 1.5 and 3.5 metric tons of CO₂ per acre each year (4–9 metric tons per hectare). That’s around five times more than the benchmarks for many regenerative farming practices. This includes cover crops and no-till farming.

Rotella carbon program groundwork bioag
Source: Groundwork Bioag

SEE MORE: Verra Greenlights Record 3 Million Soil Carbon Credits From Mexico Grasslands

Groundwork’s Rapid Expansion Across Farmland

Groundwork’s carbon program has expanded quickly over the past three years. Farmland enrolled in Rootella Carbon has grown from about 9,000 acres in 2023 to more than 700,000 acres across the U.S. Midwest and the Canadian Prairies.

The company estimates that there are around 450 million acres of reduced-tillage farmland in North and South America.

  • Its broader agricultural business is also growing. In 2025, Rootella® mycorrhizal inoculants were used on 5.5 million acres globally across 23 commercial markets.

The program creates a new source of income for farmers while improving crop productivity and soil quality. Participating growers receive most of the proceeds from carbon credit sales, rewarding long-term stewardship of agricultural land.

Verra states that the project demonstrates its VM0042 methodology. This method can support strong, science-based carbon accounting for managing agricultural land. Standardized measurement will be essential as soil carbon markets continue to grow.

Groundwork Bioag soil carbon credit program rootella

Why High-Quality Soil Carbon Credits Matter

Corporate buyers want carbon removal projects that offer long-term storage. They also seek projects that meet strict verification standards.

Groundwork says Rootella Carbon stands out because it generates carbon removal credits rather than avoided-emissions credits. It’s mycorrhizal fungi that also help form mineral-associated organic matter, one of the most stable forms of soil carbon. Unlike surface organic matter, it binds carbon to soil minerals, helping keep it stored much longer.

The project is verified under Verra’s VM0042 methodology. This adds credibility as buyers want more transparency and better carbon credits.

Another advantage is cost. Engineered carbon removal technologies such as direct air capture can cost several hundred dollars per metric ton. Nature-based approaches cost less and boost soil health, water retention, biodiversity, and crop resilience. They can’t replace engineered solutions, but they can quickly increase the supply of high-integrity carbon credits.

  • The global soil and agricultural carbon credit market is worth $4.2 billion today. It is expected to grow to $11.3 billion by 2034, with an annual growth rate of 11.58%.
soil carbon credit market
Source: Research Intelo

On voluntary registries, agricultural credits account for around 100 million metric tons of CO2e. They trade at a baseline carbon price of $4 to $6 per metric ton. This price is influenced by new Greenhouse Gas Protocol balance sheet rules and institutional capital, like Mirova’s recent $30 million allocation.

Industry leaders are shifting to high-quality, tech-verified removals. Key players include aggregators like Indigo Ag and Soil Capital, while major funders such as Bayer and Rabo Carbon Bank also play a role. New measurement methods from registries like Verra are pushing credit prices up. They now range from $5 to over $25 per ton. This trend is making soil carbon a key asset class.

Farmers Become Central to Carbon Removal

Groundwork’s model places farmers at the center of the carbon market. The company shares up to 70% of net carbon credit revenue. This gives growers a strong financial reason to boost soil health while farming as usual.

This reflects a broader shift in agriculture. More farmers are using regenerative practices. They are adopting reduced tillage, cover crops, and biological soil treatments. These methods help improve yields and lower costs. Carbon markets offer another source of income that can help support these changes.

Healthier soils also provide benefits beyond carbon removal. They boost biodiversity, cut erosion, enhance water retention, and support food security. This makes the projects appealing to companies aiming for wider sustainability goals.

A New Model for Nature-Based Carbon Removal

Groundwork BioAg’s first issuance marks an important step for agricultural carbon markets.

The project proves that it’s possible to measure soil carbon removal accurately. It can be verified independently and marketed under a top carbon standard. This could strengthen confidence in nature-based carbon credits as buyers demand greater transparency and integrity.

Challenges remain. Soil carbon projects need to show they last over time. They must measure well and perform consistently in various climates and farming systems. Strong monitoring and independent verification will remain essential as the market grows.

Still, Groundwork’s early success suggests biological solutions can become an important part of the global carbon removal portfolio. The company blends science-based soil management with financial incentives for farmers. This model supports agriculture and promotes climate action.

As demand for high-quality carbon removal grows, projects like Rootella Carbon can boost supply. They also make farmland more valuable in the battle against climate change.

Amazon Backs Brazil-based GranBio to Turn Wood Waste into Sustainable Aviation Fuel

Saptakee S
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Amazon Backs Brazil-based GranBio to Turn Wood Waste into Sustainable Aviation Fuel

Amazon is boosting its clean energy investments by focusing on sustainable aviation fuel (SAF). The company has invested in Brazil-based biotechnology firm GranBio. This partnership aims to speed up the development of technology that turns forestry waste and construction debris into low-carbon aviation fuel.

Global airlines face a challenge: the supply of SAF is limited. Demand is rising, but production is not keeping pace with the industry’s net-zero goals. By backing GranBio, Amazon hopes to create a fuel pathway that helps its own transportation network and benefits the wider aviation sector.

Amazon Bets on Next-Generation SAF to Cut Transport Emissions

This investment is part of Amazon’s climate strategy, known as The Climate Pledge. The goal is to achieve net-zero carbon emissions by 2040.

Transportation is a major source of emissions for Amazon. While electric delivery vehicles are expanding, aviation and long-haul freight still need liquid fuels. Thus, sustainable aviation fuel is key to Amazon’s decarbonization efforts.

amazon carbon emissions
Source: Amazon

Sustainable Aviation Buyers Alliance

Amazon has taken steps to promote SAF adoption. It co-founded the Sustainable Aviation Buyers Alliance (SABA) and helped launch the SAFc Registry. This registry boosts transparency about emissions reduction claims and encourages broader SAF use.

Additionally, it has increased its use of cleaner fuels. In 2024, it procured 3.7 million gallons of blended sustainable aviation fuel, reducing emissions from its air cargo operations.

Investing in Technology

Beyond buying fuel, the retail giant is also investing in technologies that can increase future SAF supply. The company supports innovations that cut emissions across transportation, buildings, and packaging.

By investing in GranBio’s technology, Amazon aims to create fuel supplies that support its operations and enhance availability in the aviation industry.

Andreas Marschner, Amazon’s vice president of Worldwide Operations Sustainability, said,

“Aviation needs lower-carbon fuel, and the supply isn’t there yet,” said  “GranBio’s technology can change that by turning waste materials into drop-in fuels. By investing now, we show the demand for solutions that can benefit the whole industry. That’s how we speed up this transition—together.”

GranBio Turns Waste Wood Into Drop-In Aviation Fuel

GranBio specializes in turning low-value biomass into renewable transportation fuels, avoiding food crops and vegetable oils.

Its process uses waste materials often discarded, like tree branches, crop residues, and construction waste. Much of this material ends up in landfills or increases wildfire risks.

Now, GranBio breaks down woody biomass to release carbon stored in plant fibers. It converts that carbon into fuel molecules identical to those found in conventional petroleum fuels.

The process yields renewable diesel, renewable gasoline, and sustainable aviation fuel that can be used in current aircraft engines and fuel infrastructure without changes. These drop-in fuels make it easier to cut emissions in sectors where electrification is tough.

GranBio’s method also generates heat as a byproduct, reducing external energy needs and boosting efficiency.

saf
Source: SkyRNG

Why Waste Biomass Could Become a Valuable Fuel Source

GranBio’s production relies on low-carbon feedstocks like forestry and agricultural residues, not food crops.

This approach has several benefits. It doesn’t compete with farmland for food and lowers production costs. It also promotes forest management, nature conservation, and rural economies.

The carbon released when its sustainable aviation fuel is burned is biogenic, meaning it comes from recently grown plants rather than fossil fuels.

GranBio has years of experience with agricultural residues. Over the past decade, it has developed systems for harvesting, storing, transporting, and processing biomass, creating a supply chain specifically for advanced biofuel production.

Lowest Carbon Footprint SAF Available without costly Carbon Capture

granbio SAF
Source: GranBio

Turning Old Paper Mills to SAF Biorefineries

GranBio plans to revive closed pulp and paper mills across the U.S. over the next decade.

The company aims to convert these mills into advanced biorefineries that produce sustainable aviation fuel from waste biomass. This could cut construction costs and bring jobs back to communities once reliant on the paper industry. It also utilizes existing sites with transport networks and skilled workers.

This strategy would not only speed up production but also support local economies.

GranBio’s ETJ pathway achieves the lowest carbon footprint of competing ETJ technologies. Our process solves for net zero, here’s how:

granBio saf
Source: GranBio

Global SAF Supply Still Falls Far Short of Demand

Despite growing investments, sustainable aviation fuel remains a tiny fraction of global jet fuel use.

  • The International Air Transport Association (IATA) predicts worldwide SAF production will hit about 2.4 million tonnes by 2026, just 0.8% of total aviation fuel demand. Airlines are expected to spend around $4.3 billion on SAF this year.

IATA Director General Willie Walsh said 2026 is expected to be another disappointing year for SAF production. He noted that SAF will account for only 0.8% of airline fuel use, warning that weak government policies and limited support from oil companies are making it harder to achieve the aviation industry’s 2050 net-zero goals. He further added that stronger incentives are needed to build a viable SAF market.

Industry forecasts show slower-than-expected market growth.

  • According to the SkyNRG 2026 Outlook, projected global SAF demand for 2030 has dropped from 15.5 million tonnes last year to 12.8 million tonnes. This equals 3.6% of global jet fuel demand, down from the expected 4.5%.
SAF demand
Source: SkyNRG

Geopolitical tensions, trade issues, and energy security concerns are reshaping SAF development approaches. Europe focuses on demand guarantees and risk-sharing policies. The U.S. relies more on financial incentives, while Asia is rapidly increasing production through policy support.

The industry faces strong competition for traditional SAF feedstocks, such as used cooking oil and animal fats. As these supplies decrease, focus is turning to advanced biofuel technologies and synthetic eSAF pathways that use plentiful non-food biomass.

Amazon’s investment in GranBio shows this shift. By backing technology that converts waste into sustainable aviation fuel, the company thinks waste-based feedstocks can boost SAF supplies. This can lower aviation emissions and help the industry reach its long-term climate goals.

Microsoft and RBC Buy North America’s First Verified Direct Air Capture (DAC) Carbon Credits From Canada’s Deep Sky

Jennifer L
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Microsoft and RBC Buy North America’s First Verified Direct Air Capture (DAC) Carbon Credits From Canada’s Deep Sky

The direct air capture (DAC) industry has reached an important turning point in North America. Deep Sky, a Canadian carbon removal developer, has issued the continent’s first certified DAC carbon credits. This shows that a leading climate technology is advancing from pilot projects to commercial use.

Deep Sky Alpha in Alberta generated the first credits, where carbon dioxide was captured from the air and stored underground for good. Isometric, an independent carbon registry, verified the removals via its Direct Air Capture Protocol. Then, it issued credits for Microsoft and the Royal Bank of Canada (RBC), which are part of long-term purchase agreements already announced.

The credits also became the world’s first DAC credits carrying the Core Carbon Principles (CCP) label issued through Isometric. The first delivery may have a small carbon removal volume, but its importance goes well beyond the credits issued.

Deep Sky CEO Alex Petre said in an interview:

“This shows ⁠Canada is building, is taking the risks, and it puts us on the map for innovation in carbon removal… People really want this to work because they continue to sign contracts. However, very few projects have actually been delivered.”

Deep Sky Is Building Canada’s Carbon Removal Future

For years, the carbon removal industry has announced billion-dollar investments and large future purchase agreements. Few projects, however, have actually delivered verified carbon credits. Deep Sky has now crossed that gap, showing that permanent carbon removal can move from promise to verified supply.

The milestone also strengthens Canada’s position in one of the fastest-growing climate technology sectors. Unlike most DAC developers that rely on a single capture technology, Deep Sky has adopted a different strategy.

The Montreal-based company describes itself as the world’s first technology-agnostic carbon removal project developer. It combines several DAC technologies in one place and then tests which one works best in real conditions. After that, it deploys the top performer at a commercial scale.

Its flagship facility, Deep Sky Alpha, located near Innisfail, Alberta, moved from project design in late 2024 to commissioning in 2025. In about 18 months, it injected atmospheric CO₂ underground. This created North America’s first certified DAC credits.

Deep Sky Alpha DAC
Source: Deep Sky

The pilot facility can capture roughly 3,000 metric tons of CO₂ annually while serving as a testing ground for several leading DAC companies. Even more, the company has much bigger ambitions.

Deep Sky aims to build about 100 carbon removal facilities in Canada. They will use the country’s plentiful renewable electricity and geological storage. Plus, they’ll tap into Canada’s carbon management know-how. Commercial projects are expected to scale toward one million tons of CO₂ removal per year per site over time.

That long-term vision could position Canada as a major supplier of durable carbon removal credits.

Why Delivering Credits Matters More Than Selling Them

Carbon removal has attracted record corporate investment over the past three years. Microsoft, Google, Stripe, Shopify, JPMorgan Chase, and Frontier have signed purchase agreements. These deals are worth hundreds of millions of dollars, which aim to finance new removal technologies. Yet, many contracts involve future deliveries that may not begin for several years.

Deep Sky’s announcement is different because the credits have already been produced, independently verified, and issued. The project was certified under Isometric’s Direct Air Capture Protocol, which requires developers to:

  • account for all project emissions,
  • verify net carbon removal, and
  • demonstrate permanent underground storage through long-term monitoring.

The certification process gives buyers more confidence. It ensures that each credit stands for one metric ton of CO₂ permanently removed from the atmosphere. The first deliveries also begin Deep Sky’s previously announced carbon removal agreements running through 2034.

Microsoft and RBC were among the company’s founding buyers. Their initial agreement included 10,000 tonnes of carbon removal. They also have options to buy up to one million more tonnes from Deep Sky’s future projects.

RBC Director, Brian Hong, noted:

“This is exactly the kind of action our climate strategy is designed to advance: climate solutions that are scientifically measurable with the potential to scale. Deep Sky has moved with remarkable speed to bring this project to life, and the fact that it’s happening in Alberta—a region central to Canada’s energy future—makes it even more meaningful.”

Deep Sky has since grown its customer base to include TD Bank Group, Lufthansa Group, ENGIE, and Sumitomo Mitsui Banking Corporation. This shows that the need for permanent carbon removal goes beyond just tech companies.

The Race to Scale Direct Air Capture Begins

Deep Sky’s milestone comes as the global DAC industry enters a new growth phase.

The International Energy Agency (IEA) reports over 30 direct air capture plants worldwide. However, they only remove about 0.01 million metric tons of CO₂ each year. That is tiny compared with what climate models suggest will be needed.

The IEA’s Net Zero Emissions by 2050 pathway says that DAC capacity needs to grow to over 60 million metric tons each year by 2030. By mid-century, it should reach hundreds of millions of tons annually.

direct air capture carbon planned net zero emissions IEA
Source: IEA

The Intergovernmental Panel on Climate Change (IPCC) also concludes that carbon dioxide removal will be necessary alongside deep emissions cuts to limit global warming to 1.5°C.

Cost remains the industry’s biggest obstacle.

Today’s DAC projects generally remove carbon at costs ranging from $500 to more than $1,000 per metric ton, depending on technology and scale. Developers expect costs to drop significantly. This will happen as facilities grow larger, manufacturing increases, and learning curves get better.

DAC direct air capture cost
Source: Decarbonfuse

Governments are helping accelerate that process.

The United States offers the 45Q tax credit, while Canada has introduced major investment tax credits for carbon capture and clean technology projects. These policies aim to cut project costs. They also encourage private investment in carbon removal infrastructure.

RBC and Microsoft’s purchases from Deep Sky illustrate a broader market trend. Corporate buyers want carbon removals that are independently verified. They also prefer solutions that are permanently stored and based on strict scientific standards.

Why Canada Could Lead the Carbon Removal Economy

Deep Sky’s success also highlights Canada’s growing role in the global carbon removal industry. The country combines several competitive advantages.

Canada has abundant renewable electricity, favorable geology for permanent CO₂ storage, an experienced energy workforce, and government policies that support carbon management technologies.

Canada carbon management companies
Source: Canada Government

Alberta, in particular, has become one of North America’s leading regions for carbon storage. Existing expertise from the oil and gas industry is helping accelerate new carbon capture and storage projects.

These advantages are attracting growing investment from carbon removal developers seeking locations that can support large-scale deployment. As more commercial projects move forward, Canada could become one of the world’s largest exporters of durable carbon removal credits.

A Turning Point for the Carbon Removal Industry

Deep Sky’s first certified DAC credits represent more than a technical achievement. They show that direct air capture is beginning to transition from research and demonstration into commercial delivery.

The industry still faces major challenges. Costs remain high, and global removal capacity must increase dramatically over the coming decades. Yet, verified deliveries like this help build confidence among buyers, investors, and policymakers.

For Deep Sky, the next goal is no longer proving that direct air capture works. It is scaling from thousands of tons to millions.

If the company succeeds, Canada could become a global leader in permanent carbon removal. More importantly, the industry’s focus may shift from announcing future carbon removal purchases to delivering verified climate results.

China’s 15th Five-Year Plan Commits $2.94 Trillion to Reach 50% Clean Electricity by 2030

Saptakee S
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China’s 15th Five-Year Plan Commits $2.94 Trillion to Reach 50% Clean Electricity by 2030

China is ramping up its clean energy efforts with a new roadmap under its 15th Five-Year Plan (2026-2030). The National Development and Reform Commission (NDRC) and the National Energy Administration (NEA) released the plan, which aims to create a cleaner, low-carbon, and efficient energy system by the decade’s end.

To achieve this, Beijing plans to invest over 20 trillion yuan ($2.94 trillion) in energy infrastructure in the next five years. NEA head Wang Hongzhi stated that this investment will expand renewable energy and modernize the country’s power system.

At the same time, China will boost domestic coal, oil, and natural gas production to enhance energy security. This highlights the challenge of balancing clean energy growth with reliable supplies.

china non fossil fuel
Source: greenfdc.com

China Targets 5.4 Billion kW Power Capacity by 2030

China’s power sector is growing rapidly. The NEA reports that total installed power generation capacity reached 4.01 billion kilowatts by May 2026, the highest globally. Wang noted this figure is set to rise to 5.4 billion kilowatts by 2030, driven by ongoing investments in renewables and grid infrastructure.

Record Growth in Solar and Wind

China has built the world’s largest renewable energy system. During the 14th Five-Year Plan (2021-2025), the country added about 951 GW of solar and 359 GW of wind capacity. These additions accounted for roughly 43% of global solar and 66% of global wind capacity installed during this period.

Fossil Fuels Still Matter

The share of non-fossil energy in China’s total energy use rose from 16.7% in 2021 to 21.7% in 2025. Clean energy use grew by 69%. However, overall energy demand also increased by 24%, leading to a 10% rise in fossil fuel use. This shows that while China adds renewable energy, fossil fuels remain crucial for meeting growing demand.

By 2030, China aims for non-fossil sources to produce 50% of its electricity. It also plans to peak coal and oil use before 2030, moving closer to its carbon neutrality goal by 2060.

A More Modest Growth Target Ahead

The draft released in March sets two key energy targets for China’s clean energy transition by 2030:

  • A 10% reduction in energy intensity to boost efficiency.
  • A 25% share of non-fossil energy in total energy consumption.

These goals aim to increase clean energy use while reducing energy needed for economic growth.

Assuming a GDP growth of about 5%, non-fossil energy consumption needs to grow by roughly 5.9% per year through 2030. This is below the 11% annual growth rate from the 14th Five-Year Plan.

In other words, the official target may be conservative. If current renewable trends continue, China could exceed its goals for clean energy.

The Emissions Puzzle

A key question is whether China’s greenhouse gas emissions will peak before 2030.

China still relies on emissions intensity targets instead of absolute emissions caps. The previous plan aimed for an 18% reduction in carbon intensity, and the new framework has a similar focus.

  • Analysts estimate that with GDP growth and emissions intensity targets, absolute emissions could rise by 3% to 6% by 2030.

This trend could make it hard for China to meet its goal of peaking emissions before 2030. However, if renewables continue to grow faster than expected, emissions could plateau or decline by the decade’s end.

china emission
Source: greenfdc.com

Why Fossil Fuels Are Still Growing

Despite its clean energy ambitions, China is the world’s largest coal consumer and a major oil and gas importer.

The country uses about:

  • 56% of global coal
  • 15% of global oil
  • 9-10% of global natural gas

Import dependence remains high, especially for oil, with about 72% of consumption coming from imports.

Energy security is central to the 15th Five-Year Plan. Beijing aims to reduce exposure to geopolitical disruptions by boosting domestic coal, oil, and gas production while continuing to expand renewables.

The plan aims for crude oil output near 200 million tons per year, with natural gas production rising. Domestic energy production capacity is expected to grow from 5.13 billion to 5.8 billion tons of standard coal equivalent by 2030.

china fossil fuel
Source: greenfdc.com

The Contradiction at the Heart of the Plan

Here lies the core tension in China’s strategy.

Renewables are becoming cheaper and more competitive than fossil fuels. However, the government prioritizes energy self-sufficiency.

If China sticks to its fossil fuel targets, analysts estimate fossil fuel consumption could rise by 7.9% to 10.5% by 2030. This would be a significant increase and could undermine emission reduction efforts.

The government links energy security to food security. Fertilizer production relies on fossil fuels, and Beijing has raised grain production targets as a priority. Although China is exploring low-carbon alternatives like green ammonia, large-scale deployment is still in early stages.

What the Market Should Watch

For investors and energy companies, the key focus should be on the gap between official goals and actual deployment trends.

China’s renewable sector has consistently outpaced government targets. If this continues, several outcomes are possible:

  • Non-fossil electricity generation could exceed 50% before 2030.
  • Coal demand could plateau sooner than expected.
  • Power-sector emissions could decline even if industrial emissions stay high.
  • China could strengthen its global leadership in solar, wind, batteries, and grid technologies.

The Bottom Line

China’s 15th Five-Year Plan represents a strong commitment to clean energy and energy security. The country plans to invest nearly $3 trillion in new energy infrastructure and aims for non-fossil sources to dominate electricity generation.

Yet, the plan does not impose a hard cap on absolute emissions. Instead, it focuses on reducing carbon intensity while continuing to support domestic fossil fuel production.

Whether China’s emissions peak before 2030 will depend less on formal targets and more on how quickly renewables, storage, grid upgrades, and electrification can outpace coal, oil, and gas demand.

The next five years will be crucial in testing whether the world’s largest energy consumer can balance decarbonization, economic growth, and energy security.

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