AIโ€™s Environmental Cost: Data Centers Now Rival Entire Nations in Energy, Water, and Land Use

Artificial intelligence (AI) is often discussed in terms of innovation, productivity, and economic growth. But a new United Nations University (UNU) report warns that its physical footprint is becoming comparable to that of entire countries.

The report, โ€œEnvironmental Cost of AI’s Energy Use: Carbon, Water and Land Footprintsโ€, finds that global data centers powering AI could consume 945 terawatt-hours (TWh) of electricity by 2030. That is nearly triple the combined annual electricity use of Pakistan, Bangladesh, and Nigeriaโ€”countries with more than 650 million people.

  • If AI data centers were a country, they would rank among the top six electricity consumers in the world by 2030.

The report argues that the impact of AI cannot be measured by carbon emissions alone. It also includes large and growing demands for water and land. These pressures are reshaping how governments and companies think about digital infrastructure.

Ai energy use vs 3 nations

Kaveh Madani, the Director of UNU-INWEH and the professor who led the investigation, remarked:

“This report is not a case against artificial intelligence, a technological transformation that is improving the lives of billions of people around the world. It is a call for using it responsibly and addressing its unintended impacts proactively to make it sustainable and equitable. We have a narrow window to ensure that the backbone of the technological revolution of our era develops within planetary limits, and that the communities who provide the critical minerals for advancing AI and the ones that host its infrastructure and e-waste are also among those who benefit from it.”ย 

Data Centers Already Consume Nation-Level Resources

The scale of AI infrastructure is already large today, and it is growing quickly.ย 

In 2025, global data centers consumed about 448 TWh of electricity. That is more than the total electricity use of countries like Saudi Arabia. They also produced about 189 million metric tons of COโ‚‚ emissions, similar to the annual emissions of Argentina.

The report finds that AI currently accounts for about 20% of total data center energy use, but this could rise to 40% by 2030 as AI applications expand. Goldman Sachs predicts that data center power use will climb by over 160% by the same period.ย ย 

data center power demand AI 2030 Goldman

This shift is driven mainly by โ€œinference,โ€ which is the continuous use of AI systems after they are trained. The report estimates that inference accounts for 80โ€“90% of total AI energy consumption, far more than model training.

A single widely used system shows the scale. ChatGPT processes around 2.5 billion prompts per day, which translates to about 383 GWh of electricity per year for one application alone.

The report highlights a key trend: AI is no longer a training problem. It is a continuous global electricity demand system.ย 

The Triple Burden: Energy, Water, and Land Under Pressure

One of the reportโ€™s central findings is that AIโ€™s environmental cost is multi-dimensional. It is not just about carbon emissions. By 2030, data centers are projected to use:

  • 945 TWh of electricity,
  • 9.3 trillion liters of water, and
  • Over 14,500 square kilometers of land.

The water footprint alone is equal to the basic annual needs of 1.3 billion people in Sub-Saharan Africa. The land footprint is roughly twice the size of the Jakarta metropolitan area, a region home to more than 32 million people.

These impacts come from cooling systems, power generation, and infrastructure build-out. The report warns that focusing only on carbon can hide trade-offs. For example, switching to some low-carbon energy sources can reduce emissions but increase water and land use.

This creates a more complex challenge, according to the report. โ€œLow-carbonโ€ does not always mean โ€œlow-impact.โ€ Dr. Miriam Aczel, the lead author, stated:

“What surprised us most is how often the choices that look greenest from a carbon perspective end up worse for water or for land. If we keep judging AI sustainability by carbon alone, we might think that renewables make AI infrastructure clean, but that is solving one problem while creating other problems, often in places that didn’t ask for it.”

RELATED: AI Data Centers Power Crisis: Massive Energy Demand Threatens Emissions Targets and Latest Delays Signal Market Shift

Efficiency Gains Are Being Outpaced by AI Growth

AI systems are becoming more efficient, but demand is growing even faster. A typical AI image query can use about 1,450 times more energy than a basic text classification task. A single AI video can consume as much electricity as 200,000 simple queries.

Even small design choices matter. The report notes that changing output length, resolution, or model type can significantly alter energy use per request.

AI energy cost per query
Source: UNU Report

However, efficiency gains are often offset by rising usage. This is known as the rebound effect. As AI becomes cheaper and faster, people use it more frequently.

The report warns that this trend could cancel out many efficiency improvements unless stronger limits or design rules are introduced. It also highlights a growing environmental justice issue.

Only 32 countries host AI-specialized data centers, and more than 90% of global capacity is concentrated in just two countries. More than 150 countries have little or no access to AI computing infrastructure, even as they bear environmental costs linked to mineral extraction and e-waste.

The top 20 data center hubs and their distribution are as follows:ย 

global distribution of data centers
Source: UNU Report

Local Resources Are Under Pressure From Global AI Demand

The environmental impact of AI is not evenly distributed. The report shows that data centers can place heavy pressure on local water and electricity systems.

In Ireland, they already account for 21% of total metered electricity use, exceeding household consumption in some regions. Authorities have paused new approvals in parts of Dublin until 2028 due to grid constraints.

In other regions, the pressure is even more direct. In Mexico and Uruguay, data center expansion has coincided with severe drought conditions, raising concerns about water availability for local communities.

The report also warns about downstream impacts. AI infrastructure could generate up to 2.5 million tons of electronic waste per year by 2030, much of which may be processed in countries with weaker environmental protections.

This creates a mismatch. The benefits of AI are global, but many environmental costs are local.

A Call for Multi-Factor AI Governance

The UN report does not call for slowing AI development. Instead, it calls for better governance and measurement, as Professor Madani said.

It argues that current environmental reporting is incomplete because it focuses mainly on carbon emissions. The report recommends tracking carbon, water, and land footprints together.

It also proposes several actions, including:

  • Governments should include AI infrastructure in energy and water planning.
  • Companies should design models for efficiency, not just performance.
  • Data centers should consider local environmental limits when choosing locations.
  • Investors should treat resource use as a financial risk factor.
  • Users should be encouraged to reduce unnecessary computing load.

The key message is that AI must be built within planetary limits.

AI Infrastructure Is Becoming a Global Resource System

The report concludes that AI is no longer just a digital technology. It is becoming a physical infrastructure system that consumes electricity, water, land, and minerals at a national scale.

By 2030, AI data centers could use as much electricity as some of the worldโ€™s largest countries combined. At the same time, they could require water equivalent to billions of peopleโ€™s needs and generate large volumes of electronic waste.

The UN framing is straightforward. The question is no longer whether AI will grow. It already is. The real challenge is whether that growth can be managed in a way that stays within environmental limits and distributes both benefits and burdens more fairly across countries and communities.

Tesla (TSLA Stock), Sunrun, and Renew Home Reveal 16 GW Virtual Power Plant to Meet AI’s Soaring Energy Demand

Tesla, Sunrun, and Renew Home are joining forces to build one of the largest virtual power plant (VPP) networks in the United States. The partnership plans to link millions of home batteries, solar panels, smart thermostats, and electric vehicles. This will create a flexible energy network that can provide over 16 gigawatts (GW) of electricity.

The companies say the network could help power data centers, factories, and other large electricity users without relying only on new power plants or transmission lines. Instead, it would use energy already stored in homes and businesses, sending electricity back to the grid when demand is high.

Why AI Is Changing the Power Market

The announcement comes as U.S. electricity demand is rising for the first time in decades. Artificial intelligence (AI), cloud computing, and hyperscale data centers are driving much of this growth. Utilities are now looking for faster ways to add electricity capacity while keeping the grid reliable and cutting emissions.

The proposed 16 GW network would generate about as much electricity as 16 large nuclear reactors. It could also supply power to millions of homes during peak demand periods.

Sunrun CEO Mary Powell remarked:

“The grid of the 1800s cannot power the innovation of 2026. Americans deserve innovation that does not create unnecessary energy costs. When data centers are asked to throttle down operations during the most expensive and stressful hours of the day, we can activate our distributed power plants to help provide them the power they need while also protecting American families from footing the bill for costly new infrastructure.โ€

The rapid growth of AI is putting increasing pressure on electricity systems around the world.

The International Energy Agency (IEA) says global electricity demand from data centers will more than double by 2030. AI data centers are the main driver because they require huge computing power and run around the clock.

In the United States, the Department of Energy estimates that data centers already use about 4% of the nation’s electricity. That share could rise sharply over the next decade, alongside its water and carbon footprint.

US data centers energy and carbon emissions
Xiao, T., Nerini, F.F., Matthews, H.D. et al. Environmental impact and net-zero pathways for sustainable artificial intelligence servers in the USA. Nat Sustain 8, 1541โ€“1553 (2025). https://doi.org/10.1038/s41893-025-01681-y

Meeting this demand will require new sources of electricity. Building large power plants and transmission lines can take years or even decades. This is due to delays in permitting, construction, and connecting to the grid.

Virtual power plants offer a faster option. Utilities now combine thousands of smaller energy sources from homes and businesses. This replaces the need to build new generation facilities. These include rooftop solar panels, battery storage, electric vehicles, and smart appliances. These devices can automatically respond when the grid needs extra power.

The U.S. Department of Energy says virtual power plants may offer 80 GW to 160 GW of flexible capacity by 2030. This could cover 10% to 20% of the countryโ€™s peak electricity needs.

virtual power plants VPP
Source: NREL

How the 16 GW Network Will Work

The partnership combines the strengths of three companies.

Tesla offers Powerwall home battery systems, which allow homeowners to store extra solar power. When demand increases, they can send electricity back to the grid.

Sunrun, the largest residential solar installer in the United States, brings its growing network of rooftop solar systems and home batteries. The company now serves nearly one million customers, giving it one of the country’s largest distributed energy networks.

Renew Home adds its software platform, which connects millions of smart thermostats, water heaters, electric vehicles, batteries, and other internet-connected devices. The platform lets utilities coordinate these resources in real time without disrupting customers’ daily routines.

Together, the companies will join their distributed energy resources into one virtual power plant. Utilities can then manage it like a regular power station.

Electricity will come from thousands of homes in different states, not just one big facility. This approach also strengthens grid resilience because power is generated closer to where it is needed.

Tesla Is Building More Than Cars, It’s Building the Future Grid

While Tesla is best known for its electric vehicles, its energy business is becoming a bigger part of its long-term strategy. The company‘s mission is to speed up the world’s shift to sustainable energy. The company invests in electric vehicles and also focuses on:

  • Battery storage,
  • Solar energy,
  • Grid services, and
  • Artificial intelligence.

Its Megapack batteries are now used by utilities around the world to support renewable energy and improve grid reliability. Powerwall installations are growing. More homeowners want energy independence and backup power during outages.

Tesla has also set environmental goals beyond vehicle manufacturing. The company aims to cut emissions across its operations by increasing renewable energy use, improving manufacturing efficiency, and expanding battery recycling.

Tesla’s latest Impact Report states that widespread electrification, along with renewable electricity and battery storage, is one of the quickest ways to cut global greenhouse gas emissions. The EV giant is also working on its own VPP system.ย 

A Tesla Virtual Power Plant connects thousands of homes with Powerwall batteries, rooftop solar systems, EV chargers, and other smart energy devices into a single network that works like a traditional power plant.

Tesla virtual power plant VPP
Source: Tesla

Instead of generating electricity from one central spot, the VPP uses software. It helps homes decide when to store, use, or send electricity back to the grid during busy times. This helps improve grid reliability, reduce reliance on expensive fossil fuel peaker plants, and lower emissions.

Homeowners can also earn payments for participating while keeping backup power for outages. In July 2025, Tesla’s California VPP delivered more than 535 MW of grid capacity.

Examples of Tesla Virtual Power Plant programs include:

  • California, U.S. โ€“ The largest Tesla VPP, operating with utilities such as Pacific Gas and Electric and Southern California Edison.
  • Texas, U.S. โ€“ Tesla Electric customers with Powerwalls can participate in the state’s VPP program.
  • South Australia โ€“ One of the world’s first large-scale residential VPPs, connecting thousands of public housing and private homes.
  • Puerto Rico โ€“ A growing VPP network that helps improve grid resilience following frequent power outages.
  • Massachusetts, U.S. โ€“ Powerwall owners participate through utility demand response and connected solutions programs.

These projects demonstrate how distributed home batteries can provide utility-scale grid services while supporting the transition to cleaner and more flexible electricity systems.

Tesla Stock Shows Limited Reaction

Despite the importance of the announcement, Tesla’s stock showed only a modest reaction. Investors largely viewed the partnership as a long-term opportunity rather than an immediate earnings driver. The financial impact will depend on how quickly utilities adopt virtual power plants and how fast home battery installations grow.

Tesla TSLA stock

On the other hand, Sunrun shares jumped over 20% after the announcement. Investors noticed bigger near-term gains for the residential solar company. The partnership also strengthens Sunrun’s strategy of expanding beyond rooftop solar into grid services and energy management.

Sunrun RUN stock price

For Tesla, however, the announcement boosts confidence that its energy storage business could play a bigger role next to its automotive business.

Home Batteries Could Become the Next Power Plants

The proposed 16 GW virtual power plant is more than just another clean energy partnership. It shows how electricity systems may evolve to meet rising demand from AI, electrification, and renewable energy.

Utilities can use millions of connected batteries, solar systems, electric vehicles, and smart devices in homes. This way, they do not need to build enough power plants for just a few hours of peak demand each year.

Challenges remain. Expanding virtual power plants need the following for a successful implementation:

  • Supportive regulations,
  • Customer participation,
  • Strong cybersecurity, andย 
  • Better coordination between utilities and tech providers.

Even so, momentum is growing. As AI drives electricity demand to record levels, distributed energy resources are shifting from niche programs to essential parts of the power grid.

For Tesla, Sunrun, and Renew Home, the 16 GW initiative is more than a technology partnership. It shows how home energy systems could become a key part of tomorrow’s electricity grid by providing flexible, low-carbon power exactly when it is needed most.

ร˜rsted Cuts Power Generation Emissions 98%, Now It Faces the Hardest Part of Net Zero

Danish renewable energy company ร˜rsted, the world’s largest developer and operator of offshore wind, has achieved one of the biggest emissions reductions in the global power sector. Since 2006, the company has reduced emissions from its power generation and operations by 98%. This change has turned it from one of Europe’s most coal-heavy utilities into a global leader in offshore wind.

Now, ร˜rsted is taking on an even bigger challenge. The company has launched a new decarbonization strategy called The Next Zero,” shifting its focus to emissions across its value chain. Scope 3 emissions come from making the steel, copper, vessels, cables, and other materials used to build and run renewable energy projects.

ร˜rsted aims to reach net-zero emissions across its entire value chain by 2040. This goal relies more on suppliers, manufacturers, shipping companies, and policymakers than on the company’s own efforts, unlike previous emissions cuts.

The announcement highlights a growing challenge across the clean energy industry. Renewable electricity has low carbon emissions when in use. However, creating the necessary infrastructure involves a lot of materials that generate high emissions.

The Supply Chain Is Now Offshore Wind’s Biggest Carbon Challenge

ร˜rsted’s latest report shows how much its emissions profile has changed. Today, most of the company’s remaining emissions no longer come from generating electricity. Instead, they come from the supply chain that supports offshore wind projects.

Orsted renewable energy share
Source: ร˜rsted

For a typical offshore wind farm, about 75% of life-cycle emissions occur during development and construction, while only 25% come from operations. The report also identifies three major emissions hotspots that account for 88% of the total life-cycle footprint:

  • Steel: 46%
  • Maritime fuels: 33%
  • Copper: 9%
Orsted carbon emissions 2025
Source: ร˜rsted

Steel remains the biggest challenge. Offshore wind foundations and turbine towers need thousands of tons of steel. This steel must endure tough ocean conditions for many years.

Construction vessels mainly use conventional marine fuels. Copper is vital for cables and electrical systems. These connect offshore wind farms to the grid.

These materials are hard to replace, making decarbonizing the supply chain more complex than simply switching from coal to renewable energy. Patrick Harnett, ร˜rstedโ€™s Chief Construction Officer, says:

“Our sights are firmly set on achieving net zero across our full value chain by 2040. The most impactful and immediate stepping stone is industrial electrification. But it will also require technical ingenuity in engineering, innovation in design and construction, and not least close collaboration across the supply chain.”

Offshore Wind Remains One of the Cleanest Energy Sources

Despite these remaining emissions, offshore wind remains one of the world’s lowest-carbon sources of electricity.

According to ร˜rsted’s life-cycle assessment, offshore wind produces electricity with an emissions intensity of just 8โ€“12 grams of COโ‚‚ equivalent per kilowatt-hour (gCOโ‚‚e/kWh).

For comparison:

  • Utility-scale solar: 10โ€“50 gCOโ‚‚e/kWh
  • Natural gas: 450โ€“630 gCOโ‚‚e/kWh
  • Coal: 820โ€“990 gCOโ‚‚e/kWh

That means offshore wind can produce electricity with life-cycle emissions up to 99 times lower than fossil fuel power.

offshore wind lifecycle emissions
Source: ร˜rsted

The International Energy Agency (IEA) predicts that global electricity demand will continue to rise until the end of the decade. This increase will be fueled by electric vehicles, data centers, artificial intelligence, and industrial electrification. At the same time, renewable energy is expected to provide almost all growth in global electricity generation.

Meeting that demand will require a major expansion of offshore wind. The European Union aims to increase offshore wind capacity to 300 gigawatts (GW) by 2050, up from about 37 GW today. Reaching that goal will require major investment not only in turbines but also in cleaner industrial supply chains.

Investors responded positively to ร˜rsted’s latest decarbonization update. The company’s shares rose slightly after the announcement, which shows confidence in its long-term climate strategy. The rise comes after tough years filled with project issues, higher financing costs, and challenges in the offshore wind market.

ORSTED stock price

ร˜rsted’s stock has bounced back in 2026, up about 28% this year. Investors are happy due to better operations, progress on key offshore wind projects, and a clearer plan to cut emissions in its value chain.

How ร˜rsted Plans to Cut Scope 3 Emissions

ร˜rsted aims to cut emissions by redesigning offshore wind projects. They will focus on how these projects are built and supplied instead of relying on carbon offsets.

The company has worked with more than 50 strategic suppliers since launching its supply chain decarbonization program in 2020. It encourages suppliers to adopt science-based climate targets, switch to renewable electricity, and report emissions through CDP.

Yet, steel remains the top priority.

ร˜rsted has signed an offtake agreement with German steel producer Dillinger to develop low-emission heavy steel plates for offshore wind foundations. The company estimates the new production method could cut embodied emissions from foundation steel by about 55%.

It is also partnering with the University of Oxford to enhance monopile designs. This will cut emissions from each foundation by another 3% by using materials more efficiently.

Beyond Steel: Shipping, Copper, and the Hidden Carbon Footprintย 

Steel is ร˜rsted’s largest emissions hotspot, but maritime fuels and copper are also major sources. To cut these emissions, ร˜rsted is deploying hybrid-electric and methanol-powered vessels, which can reduce emissions by up to 85% and 80%, respectively.

It is also using lower-carbon copper cables at the Hornsea 3 wind farm, reducing embodied emissions by about 50%.

The company is also expanding circular practices. In 2025, it refurbished 80% of key turbine parts and promised to send no blades or solar panels to landfills. Plus, it extended the life of older wind farms by as much as 15 years.

These efforts can lower a wind farm’s life-cycle emissions by more than 30%. Beyond offshore wind, ร˜rsted is building two CCS facilities in Denmark that will capture 430,000 metric tons of COโ‚‚ annually starting in 2026.

All these initiatives could help the energy company reach its SBTi climate targets:

Orsted climate targets
Source:

A Bigger Challenge for the Renewable Energy Industry

ร˜rsted’s strategy reflects a broader challenge for the renewable energy sector. As power generation becomes cleaner, emissions from manufacturing and construction are becoming a larger share of the industry’s carbon footprint.

The IEA says global renewable energy capacity must nearly triple by 2030 to meet climate goals. That growth will require huge amounts of steel, cement, copper, and other materials. Unless these industries also decarbonize, supply-chain emissions could slow progress toward net zero.

renewable power triple pledge 2030 wind energy

ร˜rsted believes stronger policies such as the EU ETS and CBAM, together with closer cooperation across supply chains, will help speed up the shift to low-carbon materials and cleaner industrial production.

The Next Stage of Net Zero

ร˜rsted has already transformed itself from one of Europe’s most coal-intensive utilities into a global renewable energy leader. Cutting emissions from its own power generation by 98% is one of the industry’s biggest decarbonization achievements.

The next stage will be much harder. Instead of replacing coal plants with wind farms, the company must now reduce the emissions embedded in every turbine tower, monopile foundation, vessel, cable, and supply chain contract.

Success will depend not only on new technologies but also on stronger partnerships across industries.

If the company succeeds, it could provide a roadmap for the wider renewable energy industry. As countries expand offshore wind to meet climate goals, the next frontier of decarbonization may not be the turbines themselves, but everything needed to build them.

Anglo American, Codelco Complete Chile Deal to Unlock 2.7 Million Tonnes of Copper

Anglo American and Chile’s state-owned miner Codelco have finalized a major deal. They will develop their neighboring Los Bronces and Andina copper mines. The agreement follows all necessary competition and regulatory approvals. This comes after a framework agreement from September 2025.

The partnership will boost copper production without needing a new mine. Instead, both companies will coordinate their mining efforts in nearby operations. This approach allows them to extract more copper from existing assets while keeping costs low.

  • Once fully in action, the joint mine plan is expected to yield an extra 2.7 million tonnes of copper over 21 years.
  • That means about 120,000 tonnes of additional copper each year, shared equally between Anglo American and Codelco.
  • The project should also generate at least $5 billion in extra pre-tax value for both companies.

The project wonโ€™t start just yet. It needs environmental approvals and some customary conditions first. Implementation is expected around 2030.

A Low-Cost Strategy That Preserves Future Growth

Unlike a merger, this agreement lets both companies keep ownership and control of their mines. They will collaborate on mine planning. This will boost efficiency, optimize infrastructure, and extract more copper from their shared mineral resources.

Importantly, the agreement allows each company to continue its own future projects. Anglo American and Codelco will work on their underground projects. They will also coordinate with the joint mine plan.

The partners have set sustainability principles to guide the project. These include protecting community programs and upholding environmental obligations throughout the agreement’s duration.

This deal highlights a trend in the mining industry. Companies prefer to improve current operations rather than invest billions in new mines. This approach boosts production more effectively. Partnerships help cut costs, lower project risks, and speed up metal supply delivery.

Chile Faces Production Challenges Despite Long-Term Potential

The agreement comes at an important time for Chile’s copper industry.

Although Chile remains the world’s largest copper producer, recent production has weakened. According to the country’s National Institute of Statistics, copper output fell 13.8% year over year to 399,954 metric tons in April 2026, following another decline in March. Lower ore grades and difficult comparisons with last year’s higher production contributed to the slowdown.

  • While analysts expect quarterly production to recover to around 485,000 tonnes, the recent decline has raised concerns about tightening global copper supplies.
copper output
Source: Trading Economics

Cochilco Lowers Growth Outlook as Copper Supply Risks Increase

Meanwhile, Chile’s copper commission, Cochilco, has reduced its 2025 production growth forecast from 3% to 1.5%. The revision follows weaker output at major mines, including BHP’s Escondida and Collahuasi.

Despite the downgrade, Cochilco still expects Chile to produce 5.58 million metric tons of copper in 2025 while maintaining its average copper price forecast at $4.30 per pound for both 2025 and 2026.

The agency also warned that operational disruptions remain a major risk. A fatal accident at Codelco’s El Teniente mine could affect future production if recovery efforts take longer than expected.

  • For 2026, Cochilco maintained its production growth estimate at 3%, although it lowered expected output to 5.75 million metric tons.
  • Over the longer term, Trading Economics projects Chile’s monthly copper production to gradually recover to approximately 510,000 tonnes in 2027 and 530,000 tonnes in 2028.

Nonetheless, copper continues to play a major role in Chile’s economy. According to United Nations COMTRADE data, the country exported $20.43 billion worth of copper in 2025, highlighting its importance as the world’s leading copper supplier.

Collaboration Supports Chile’s Copper Growth Ambitions

The Anglo American-Codelco partnership could help strengthen Chile’s position in the global copper market.

Industry analysts note that integrating the Los Bronces and Andina operations allows both companies to maximize existing resources rather than spending years developing entirely new projects. Better mine sequencing, shared infrastructure, and coordinated planning could improve productivity while lowering operating costs.

The agreement follows several years of negotiations involving Anglo American, Codelco, Mitsubishi Corporation, and Mitsui & Co. Together, the neighboring deposits represent one of the world’s largest concentrations of copper resources.

  • The project also supports Chile’s national goal of increasing annual copper production to 6 million tonnes by 2030.

Nevertheless, the benefits will take time to materialize. Chile’s environmental approval process for large mining projects is often lengthy, and any delays in permitting could postpone the project’s planned start date.

Duncan Wanblad, CEO of Anglo American, said:

โ€œOur agreement with Codelco demonstrates what is possible when we work in partnership to unlock compelling industrial synergies -delivering significant value and more copper tonnes for both companies and for Chile. The next important milestone for Los Bronces – Andina is the timely receipt of the permits, which will allow us to begin delivering the additional volume and value that we are targeting, for the benefit of all our stakeholders, and for Chile.

โ€œBy integrating the Los Bronces and Andina mine plans, we are unlocking one of the most significant copper adjacency opportunities in the world. Adjacencies such as these are rare and they highlight the role that responsible, partnership-led development can play โ€“ in this case supporting Chileโ€™s ambition to lift national copper production to 6 million tonnes per year by 2030.โ€

The Global Copper Outlook: Demand Vs Supply

While producers work to increase supply, demand for copper continues to accelerate.

Wood Mackenzie’s report projects global copper demand to increase 24% by 2035, reaching 42.7 million tonnes annually. That represents an additional 8.2 million tonnes per year, driven by economic growth, electrification, and digital technologies.

supply and demand
Source: Wood Mackenzie

The consultancy believes several emerging trends could further tighten the market and increase price volatility beyond current expectations.

AI Data Centers Drive Copper Demand

Wood Mackenzie estimates AI-related data centers will consume an additional 2,200 TWh of electricity by 2035, increasing copper demand for power grids to 1.1 million tonnes a year by 2030. Copper accounts for less than 0.5% of total data center construction costs.

Clean Energy and EVs Boost Copper Use

Renewable energy projects are expected to require an additional 2 million tonnes of copper annually over the next decade. Copper demand from clean energy is projected to increase from 1.7 million tonnes today to 4.3 million tonnes by 2035. An electric vehicle uses up to four times more copper than a conventional vehicle.

Asia Leads Future Copper Demand

China is projected to consume 15.7 million tonnes of refined copper in 2025, while India’s demand is expected to grow 7.5%. By 2035, India and Southeast Asia are expected to add 3.3 million tonnes of annual copper demand

Supply May Struggle to Keep Pace

Meeting future copper demand will be tough.

Wood Mackenzie estimates the industry needs over 8 million tonnes of new mine capacity. It also expects a 3.5 million tonne increase in recycled copper by 2035.

The consultancy predicts more frequent mine disruptions. These will stem from climate issues, labor challenges, and operational risks. Annual supply losses could rise from 5% to 6%, removing about 250,000 to 300,000 tonnes of copper from the market each year.

As demand rises for AI, renewable energy, electric vehicles, and industrial growth, limited supply may keep copper prices high. This might cause more market volatility in the next decade.

For Anglo American and Codelco, their joint Chilean mine plan is a chance to add low-cost copper to the market. Every new tonne will be more valuable.

NVIDIA (NVDA Stock) Takes AI Deep Underground: Inside Its Geothermal Energy Push With Fervo and PNNL

Artificial intelligence (AI) is driving a surge in electricity demand worldwide. Now, NVIDIA is taking its AI platform into an unexpected area: geothermal energy.

This week, NVIDIA (NVDA) teamed up with Fervo Energy (FRVO) and the U.S. Department of Energy’s Pacific Northwest National Laboratory (PNNL). Together, they are creating a new AI-powered digital twin platform named EGS-Twin.

The platform will merge real-time field data, physics-based modeling, and AI forecasting. This will boost the performance of enhanced geothermal systems (EGS).

The goal is to help operators understand underground conditions better. This way, they can improve drilling efficiency, increase power output, and lower project risks. Fervo’s CTO and co-founder, Jack Norbeck, remarked:

“We believe that digital twins will expedite the learning curve for geothermal development as we build and operate our GeoBlock assets. Integrating high-fidelity physics-based models with AI-driven forecasting has the potential to reshape reservoir management, improve heat recovery, and enhance system reliability.”

Why AI Companies Are Looking Beyond Solar and Wind

The announcement shows a strong link between two fast-growing industries: artificial intelligence and clean energy. The rapid growth of AI is creating unprecedented pressure on electricity systems.

According to the U.S. Energy Information Administration (EIA), data centers accounted for about 5% of total U.S. electricity consumption in 2024. That share could rise to between 6.7% and 12% by 2028 as AI adoption accelerates.

US data center power use 2030 BLoomberg

Recent research suggests electricity use from major AI companies could more than double by 2030. A study predicts that the six biggest AI companies could boost power use from about 118 terawatt-hours (TWh) in 2024 to between 239 TWh and 295 TWh by 2030.

This growing demand is creating a challenge for technology companies.

Solar and wind power continue to expand rapidly, but they depend on weather conditions. AI data centers, by contrast, require electricity around the clock. That is why interest is growing in “firm” clean energy sources that can operate 24 hours a day.

Geothermal energy fits that profile.

The Department of Energy estimates that geothermal power plants reach capacity factors of about 95%. This allows them to produce electricity nearly all year long. For data center operators, that reliability is becoming increasingly valuable.

Building a Digital Twin 10,000 Feet Underground

The new EGS-Twin platform aims to solve one of geothermal energy’s biggest challenges: understanding what happens deep underground.

Enhanced geothermal systems work by drilling wells into hot rock formations and circulating fluids through engineered reservoirs. The technology can access geothermal resources in many more places than traditional plants. However, subsurface conditions are still hard to predict.

The partnership hopes to change that.

PNNL researchers will use Fervo’s operational data to train AI models on NVIDIA’s accelerated computing platform. The models will join NVIDIA Omniverse libraries. This will create a digital twin that simulates geothermal operations in real time.

The platform is designed to:

  • Predict underground reservoir behavior.
  • Optimize heat extraction.
  • Improve drilling decisions.
  • Increase power generation efficiency.
  • Reduce operational risks.

The partners think AI can help operators react faster to underground changes. This could shorten development timelines and boost project economics. For geothermal energy, that could be a major breakthrough.

The Startup Leading Americaโ€™s Next-Generation Geothermal

The project also shines a spotlight on Fervo Energy, one of the fastest-growing geothermal developers in the United States. The company is building Cape Station in Utah, which is expected to become one of the world’s largest enhanced geothermal developments.

Phase I of the project includes approximately 100 MW of capacity and remains on track to begin delivering power in late 2026. A second phase will expand the site to approximately 500 MW.

Fervo recently got over $421 million in project financing for Cape Station. They plan to invest about $1.2 billion between mid-2026 and early 2027 as construction speeds up.

Investor interest has been strong.

The company completed its public listing in 2026 and has attracted significant attention from markets betting on growing demand for clean, reliable electricity. Reuters previously reported that Fervo sought a valuation of up to $6.5 billion during its IPO process.

The company has also strengthened ties with major technology firms. Earlier this year, Fervo made a deal with Google. This agreement could lead to up to 3 GW of geothermal capacity by 2033. The first phase includes 1 GW of proposed projects.

Geothermal Is Back in the Spotlightย 

For decades, geothermal energy remained a niche part of the renewable energy sector. Today, that is beginning to change.

New drilling techniques adapted from the oil and gas industry are making enhanced geothermal systems more practical and scalable. These advances allow developers to access underground heat in regions previously considered unsuitable for geothermal power.

Governments are also paying closer attention.

The U.S. DOE sees next-generation geothermal as a key technology for supporting grid reliability while reducing emissions. Unlike wind and solar, geothermal can provide constant power without requiring large-scale battery storage.

Interest is also growing among technology companies.

geothermal energy infographics

Google helped launch one of the first commercial enhanced geothermal projects with Fervo in Nevada. Microsoft, Meta, and other large technology firms have also explored geothermal opportunities as they seek dependable clean energy supplies for data centers.

As AI expands, geothermal’s value proposition becomes stronger.

NVIDIA’s Sustainability Strategy Extends Beyond Chips

The geothermal partnership aligns with NVIDIA’s broader sustainability goals. The company aims to match 100% of its global electricity use with renewable sources. It reached this goal in the fiscal year 2025.

Nvidia Renewable Electricity Use FY2025

NVIDIA also emphasizes energy efficiency as a key part of its climate strategy.

The tech giant claims its latest Blackwell AI systems offer over 50 times more energy efficiency than traditional CPU systems. This boost is specifically for large language model inference workloads.

However, efficiency improvements alone may not offset the rapid growth of AI demand.

As data centers continue growing, access to reliable carbon-free electricity is becoming a strategic priority across the technology sector. That makes partnerships like the one with Fervo increasingly important.

However, NVIDIA’s stock showed only a modest reaction to the announcement, as investors remain primarily focused on AI chip demand and data center growth. Still, the partnership highlights NVIDIA’s expanding influence across the broader AI ecosystem.

Nvidia NVDA stock price

The company uses AI and digital twin technologies for geothermal energy. This suggests that itโ€™s not just a hardware provider but also aims to be a key player in creating the energy infrastructure for future AI growth.

AI and Clean Energy Are Becoming One Story

The partnership between NVIDIA, Fervo, and PNNL highlights a major shift taking place across the energy industry. Artificial intelligence is no longer just a consumer technology story. It is becoming an energy story as well.

Growing AI workloads require massive amounts of electricity. Meeting that demand while maintaining climate goals will require new sources of reliable clean power.

Geothermal energy offers one possible solution. By combining AI, advanced drilling techniques, and geothermal resources, companies hope to unlock a new generation of carbon-free electricity that can operate around the clock.

For the broader energy transition, it shows how AI and clean energy are becoming increasingly interconnected as the world builds the next generation of digital infrastructure.

Microsoft Becomes Water Positive Ahead of 2030 Goal With AI-Powered Data Center Innovation

Microsoft has hit a significant sustainability goal by becoming water positive in fiscal year 2025, five years early. The company replenished more water than it used in its global operations. This achievement is impressive, especially with the growing demand for cloud computing and AI.

In a blog post, Judy Priest, Corporate VP and Chief Technology Officer, and Steve Solomon, VP of Datacenter Engineering, emphasized that this success reflects decades of progress in water management.

From 2.3 to 0.27 L/kWh: Microsoft’s Water Efficiency Breakthrough

Microsoft has improved the water efficiency of its data centers by nearly 90% since the early 2000s.

  • The average Water Usage Effectiveness (WUE) has dropped from 2.3 liters per kilowatt-hour (L/kWh) to 0.27 L/kWh in 2025. This shows its commitment to reducing water usage while supporting AI and cloud growth.

For comparison, Microsoft’s latest WUE for FY24 was 1.16 liters per kWh, consistent across major regions. Study the chart below:

microsoft water conservation
Source: Microsoft

These advancements highlight how quickly Microsoftโ€™s new facilities have become more water efficient.

This achievement comes five years before Microsoft’s original 2030 target set in 2020. It reflects years of investment in advanced cooling technologies, water recycling, rainwater harvesting, and major replenishment projects.

The company states these efforts show that expanding digital infrastructure and protecting natural resources can coexist.

Progress Toward Lower Water Intensity

Microsoft has also set a new goal: reducing water intensity in its owned data centers by 40% by 2030. And it has already achieved a 25% reduction by FY25, putting it well on track.

Key operational improvements include:

  • Better temperature and humidity controls
  • Continuous cooling performance monitoring
  • Real-time weather analysis
  • Regular water audits
  • Smarter operational analytics

These changes help minimize unnecessary cooling and ensure facilities use only the water they need.

In Phoenix, Arizona, upgrades improved water-use effectiveness by 23% year over year in FY25. Microsoft plans to expand these practices to similar facilities worldwide.

AI-Optimized Data Centers Use Zero Water for Cooling

One of Microsoft’s major breakthroughs is its AI-optimized data centers.

Launched in 2024, these facilities use direct-to-chip liquid cooling with a closed-loop system. Water circulates inside the cooling equipment instead of evaporating, meaning no additional water is needed during normal operations.

As a result, these data centers use zero water for cooling while operating.

  • Each new facility can save over 125 million liters of water annually, or about 125,000 cubic meters, compared to traditional systems.

This technology supports growing AI workloads and significantly eases pressure on freshwater supplies.

Expanding Water Recycling and Replenishment

Microsoft is not just using less water; it’s also replacing freshwater with recycled and non-potable water across its operations. This reduces pressure on local water supplies as the company expands its AI and cloud infrastructure.

water replenishment
Source: Microsoft

Some of Microsoft’s largest data center campuses rely heavily on alternative water sources:

  • Singapore: 99% recycled, reused, or non-potable water
  • San Antonio, Texas: 79%
  • Quincy, Washington: 74%

The company is also expanding its rainwater harvesting program. Systems are already in use in the Netherlands, Sweden, and Ireland, with more planned for Canada, the UK, Finland, Italy, South Africa, and Austria.

  • For instance, new data centers in Quebec are expected to collect up to 1.5 million liters of rainwater yearly, reducing their need for freshwater.

Many Microsoft data centers have on-site water treatment systems that clean and recycle cooling water several times before replacement, further cutting freshwater consumption.

Water Replenishment Supports Communities

Microsoft’s water strategy goes beyond saving water in its facilities. The company invests in projects that restore and replenish water resources in stressed areas.

Water replenishment microsoft
Source: Microsoft

Currently, Microsoft supports water projects in about 40 priority locations worldwide. These initiatives aim to enhance local water supplies while benefiting nearby communities and ecosystems.

Replenishment projects include:

  • Groundwater recharge
  • Wetland restoration
  • Rainwater harvesting
  • Irrigation modernization
  • Water reuse and conservation

Finding high-quality water projects was a major challenge after announcing its water positive commitment in 2020. To tackle this, Microsoft partnered with NGOs and private companies to develop new projects.

By 2024, 17% of its global replenishment portfolio came from private-sector partnerships, creating a larger market for water sustainability.

microsoft
Source: Microsoft

AI- Enabled Water Conservation

For example, Microsoft collaborates with FIDO Tech and local utilities in Phoenix, Arizona, and nearby Nevada. AI technology identifies hidden leaks in aging pipelines before significant water loss occurs, helping communities save valuable resources.

Microsoft also partners with The Nature Conservancy to restore historic oxbow wetlands in the U.S. Midwest. These wetlands recharge groundwater, reduce flood risks, enhance wildlife habitats, and provide more reliable water supplies for nearby communities.

To summarize, AI supports water conservation in the following ways:

  • Detect hidden water leaks
  • Track watershed health
  • Predict droughts and floods
  • Monitor water quality
  • Improve irrigation schedules
  • Forecast water demand

Building Sustainable AI Infrastructure

As AI use grows, data centers face increasing scrutiny for water consumption. Microsoft states that responsible water management is now central to its Community-First AI Infrastructure strategy.

The company combines water-efficient cooling, recycled water, rainwater harvesting, and replenishment projects to support AI growth while reducing environmental impact.

Reaching water-positive status five years ahead of the 2030 target is a significant milestone. However, Microsoft plans to improve water efficiency, expand replenishment projects, and maintain a positive water balance as its AI and cloud infrastructure grows.

Similarly, Google and Amazon have announced new water-positive commitments and sustainability milestones as the tech industry works to reduce the environmental impact of expanding data centers.

Stegra Lands $1.6 Billion Funding Boost to Build Europeโ€™s Largest Green Steel Plant

Green steel startup Stegra has raised โ‚ฌ1.4 billion ($1.6 billion) in equity funding. This money is for building what will be Europeโ€™s largest green steel plant in Boden, northern Sweden.

Wallenberg Investments led the financing round. It also includes support from existing investors such as Temasek, Hy24, Just Climate, and Altor. The funding round closes months of uncertainty around the project and gives Stegra the capital needed to complete construction and begin commissioning operations.

The announcement is significant not only for Stegra but also for the broader clean industrial transition. Many green steel and green hydrogen projects in Europe have faced delays, funding issues, or cancellations in the last two years. This is mainly due to rising costs and slower market growth than expected.

Against that backdrop, Stegra’s successful capital raise stands out as one of the largest climate tech financing deals of 2026. Stegra CEO Henrik Henriksson remarked:

“We are grateful for the support for the work we are doing in bringing near-zero emissions steel to the market from both new and existing investors, as well as from lenders. Itโ€™s a strong sign of confidence in our business case and the project.”

Why Steel Is a Major Climate Challenge

Steel production is one of the world’s most carbon-intensive industries. According to the International Energy Agency, the sector accounts for roughly 7% of global energy-related COโ‚‚ emissions.

steel carbon emissions

Traditional steelmaking relies on coal-fired blast furnaces that use coking coal to remove oxygen from iron ore. This process releases large amounts of carbon dioxide.

The world produces nearly 2 billion metric tons of steel every year, making the industry one of the hardest sectors to decarbonize. Researchers estimate that making steel produces about 2 tons of COโ‚‚ for every ton of steel.

Meanwhile, demand for steel will keep rising. Countries are investing in infrastructure, renewable energy, electric vehicles, and grid upgrades, which require steel. This is why green steel has become one of the most closely watched industrial decarbonization opportunities.

How Stegra Plans to Cut Emissions by Up to 95%

Stegra, formerly known as H2 Green Steel, aims to replace coal with green hydrogen produced from renewable electricity.

At its Boden facility, the company will use large-scale electrolyzers to produce hydrogen from water. That hydrogen will then be used to reduce iron ore into iron before it is processed into steel.

The company says this approach can reduce carbon emissions by up to 95% compared with conventional steelmaking. The facility is expected to produce 2.5 million metric tons of green steel annually during its first phase of operation. In the long term, Stegra plans to expand capacity to as much as 5 million tons per year.

Stegra green steel vs traditional steelmaking
Source: Stegra

The project also includes one of Europe’s largest green hydrogen facilities. Access to abundant hydropower and wind energy in northern Sweden is a key reason the company selected Boden as its location. Electricity costs in the region are often significantly lower than in many other parts of Europe.

Why Investors Are Still Writing Billion-Dollar Checks for Climate Industry

The latest funding round pushes Stegra’s total financing to almost โ‚ฌ8 billion. This amount includes earlier equity, debt, and public funding. That makes it one of the most heavily funded industrial decarbonization projects in the world.

Investor backing is particularly notable given recent setbacks across Europe’s clean tech sector.

Swedish battery maker Northvolt filed for bankruptcy earlier this year after struggling with production and financing challenges. The collapse raised concerns about investor appetite for large-scale industrial climate projects. Stegra itself faced questions about its financing needs after project costs increased and construction timelines shifted.

However, investors appear to view Stegra differently. The company uses familiar steelmaking technologies, unlike battery manufacturing. It focuses on replacing fossil fuels with renewable electricity and hydrogen. Supporters argue that this lowers technology risk while still delivering significant emissions reductions.

The new funding package also provides additional financial flexibility as the company moves from construction to commercial operations.

Demand for Green Steel Is Growing Fast

Stegra’s investors are betting that demand for low-carbon steel will continue to grow. Automakers, construction firms, and industrial manufacturers are facing increasing pressure to reduce supply chain emissions.

  • Steel is a major source of embodied carbon. Itโ€™s found in many products, like cars, appliances, buildings, and wind turbines.

Several major companies have already signed supply agreements with Stegra, including Mercedes-Benz, Volvo Group, Porsche, Electrolux, and IKEA. These firms are looking for ways to reduce Scope 3 emissions, which typically account for the majority of their carbon footprints.

Market forecasts say the global green steel market could grow to $766.8 billion in 2030. This growth is due to stricter carbon pricing and companies pushing for net-zero targets. Europe is expected to remain one of the largest early markets due to its climate policies and industrial decarbonization goals.

green steel market 2030
Source: Grand View Research

The European Union’s Carbon Border Adjustment Mechanism (CBAM) is also encouraging lower-carbon steel production by adding a carbon cost to some imported materials.

Green Hydrogen Remains the Industry’s Biggest Challenge

Despite growing momentum, major challenges remain. The economics of green steel depend heavily on the cost of renewable electricity and green hydrogen. Producing hydrogen through electrolysis remains significantly more expensive than using coal or natural gas in many markets.

Also, many hydrogen-based projects are delayed. Developers are waiting for lower equipment costs, cheaper renewable energy, and better policy support.

Industry experts note that producing green steel at scale will require massive amounts of clean electricity. To fully decarbonize the sector, estimates suggest the steel industry needs nearly 100 million tons of green hydrogen each year by mid-century.

That means projects like Stegra are not only testing a new steelmaking model. They are also testing whether the wider green hydrogen economy can scale fast enough to support heavy industry.

A Key Test for Europe’s Industrial Net-Zero Future

Stegra’s successful funding round arrives at a pivotal moment for industrial decarbonization.

Heavy industries such as steel, cement, and chemicals account for nearly one-third of global greenhouse gas emissions. Many climate pathways show that deep emissions reductions in these sectors are essential for achieving net-zero goals.

By securing another โ‚ฌ1.4 billion in funding, Stegra has strengthened its position as one of the world’s most important green steel projects. The company has a clearer plan to finish its main plant. This will show that low-carbon steel can compete on a large scale.

If successful, the Boden facility could become a model for future steel plants around the world. It would also provide evidence that investors remain willing to back large industrial climate projects despite recent setbacks elsewhere in the clean tech sector.

For Europe, the project serves as a test of whether the continent can turn climate ambition into a large-scale industrial reality.

Gold Standard Unveils a $17 Billion Climate Plan and How Businesses Can Use Carbon Credits With It

Companies around the world are spending billions to cut their carbon emissions. But even as they work toward net-zero goals, they continue to release large amounts of greenhouse gases every year.

A new report from Gold Standard, Pinwheel, and ClimatePartner says these “ongoing emissions” could become a major source of climate funding. If companies track their yearly emissions, they could invest up to $17 billion each year into projects that cut or remove carbon from the air.

The report introduces Ongoing Emissions Responsibility (OER). OER suggests that companies should contribute yearly to climate projects instead of relying on carbon credits. They should also keep working on reducing emissions in their operations.

Gold Standard says this approach could unlock billions of dollars in private investment at a time when the world faces a growing climate finance gap.

Why Climate Finance Is Still Falling Short

The report comes as governments and businesses struggle to raise enough money to meet global climate goals.

The United Nations estimates that developing countries will need around $1.3 trillion each year by 2035. This funding is vital for cutting emissions and adapting to climate change. Current funding is still far below that level, leaving a gap of hundreds of billions of dollars each year.

global climate finance vs COP30 target

Most companies focus their climate spending on reducing emissions from their own operations and supply chains. While this remains essential, Gold Standard says it does little to address the emissions businesses continue to release while working toward net zero.

Many companies do not expect to reach net zero until 2040 or 2050. Until then, billions of tons of carbon dioxide will continue entering the atmosphere. Gold Standard says companies need to take financial responsibility for ongoing emissions now, and not wait for decades.

What Is Ongoing Emissions Responsibility?

OER is meant to work alongside โ€” not replace โ€” corporate decarbonization. The report specifically refers to it as:

“OER is a structured approach through which organisations can take responsibility for emissions that remain unabated each year as they progress toward net zero.”

Under the framework, companies continue cutting emissions across their operations and value chains. At the same time, they invest in verified climate projects based on the amount of emissions they still produce each year.

That funding can support a wide range of climate solutions, including:

  • Carbon removal technologies,ย 
  • Forest restoration and conservation,ย 
  • Methane reduction projects,ย 
  • Renewable energy, and
  • Climate adaptation programs.

Unlike traditional carbon offsets, companies would not claim these projects cancel out their own emissions. Instead, they would present them as contributions to global climate action.

Gold Standard says this makes climate claims clearer and reduces the risk of greenwashing. OER activities fall under these categories:

OER three categories
Source: Gold Standard

The framework also backs the idea of Beyond Value Chain Mitigation (BVCM). This encourages companies to invest in emissions cuts outside their own operations while they keep decarbonizing internally.

How Companies Could Generate $17 Billion Each Year

Gold Standard believes corporate climate finance could grow rapidly if more businesses adopt OER.

The report models a system in which companies apply an internal carbon price to their ongoing emissions. Even relatively low carbon prices could generate around $17 billion every year for climate action.

  • The model assumes businesses contribute $20 per metric ton of COโ‚‚ for 10% of the emissions they continue to produce while working toward net zero.

Many companies already use internal carbon pricing to guide business decisions. According to CDP, more than 1,000 companies worldwide either use an internal carbon price or plan to introduce one. Gold Standard proposes linking those internal carbon fees directly to climate investments.

gold standard carbon price OER
Source: Gold Standard

The report also recommends a “money-for-tonne” approach. Under this model, companies contribute funding for every tonne of carbon dioxide they continue to emit. Unlike buying offsets, these payments would provide steady funding for climate projects while companies continue reducing their own emissions.

Gold Standard recommends that businesses make OER part of their long-term climate strategy.

It identifies five priorities:

  • Integrate OER into company planning.
  • Adopt stable funding methods.
  • Build diversified climate portfolios.
  • Strengthen transparency.
  • Develop internal expertise.

The New Rules for Credible Carbon Credit Use

Gold Standard says carbon credits can still play an important role in corporate climate actionโ€”but only if companies use them the right way. The report argues that credits should no longer be used to claim that a company has “offset” or “neutralized” its emissions. It writes:

“Carbon credits are a funding mechanism that quantifies mitigation outcomes from climate projects and are used to fund climate action without implying one-for-one compensation of a buyerโ€™s emissions. This distinction separates the tool from compensation style messaging and aligns its use with contribution-based responsibility for ongoing emissions.”

The report also sets out several conditions for credible carbon credit use. Companies should buy credits from trusted programs with transparent methods, independent verification, and strong environmental and social safeguards. Credits should align with the goals of the Paris Agreement and avoid double-counting.

Gold Standard suggests regular checks, clear public reports, and ongoing monitoring of carbon credit portfolios. Companies should show that carbon credits complement, not replace, direct emissions cuts. They must keep value-chain decarbonization as their top priority.

What is ongoing emissions responsibility (OER)

A Shift Beyond Traditional Carbon Offsetting

Gold Standard’s proposal comes as the voluntary carbon market continues to evolve.

For many years, companies used carbon credits mainly to offset emissions and support net-zero claims. However, concerns about project quality and transparency have increased scrutiny of the market.

Organizations like the Integrity Council for the Voluntary Carbon Market (ICVCM), the Voluntary Carbon Markets Integrity Initiative (VCMI), and the Science Based Targets initiative (SBTi) have launched new standards. These aim to boost market integrity.

The biggest shift is the growing focus on cutting emissions first. Under the SBTi Corporate Net-Zero Standard, companies need to cut at least 90% of their emissions. Only then can they use carbon removals for the small amount left.

Gold Standard’s OER framework supports this approach. Companies should report their emissions openly. Instead of saying carbon credits offset these emissions, they would fund climate action outside their own operations.

This approach could improve transparency and help companies avoid misleading climate claims.

Can OER Help Close the Climate Finance Gap?

OER is still a new idea, and companies are only beginning to test how it will work. Gold Standard says the industry needs more pilot projects, case studies, and collaboration. This step is essential before the framework can be widely adopted.

Even so, the report reflects a broader shift in corporate climate action.

More businesses now recognize that reaching net zero is not only about reducing emissions inside their own operations. It also means helping fund the global transition to a low-carbon economy while those reductions are taking place.

If companies take financial responsibility for their emissions, billions could support projects that restore forests, reduce methane, expand renewable energy, and scale carbon removal technologies. That funding could help narrow the climate finance gap while speeding up global emissions reductions.

Whether OER becomes common practice remains to be seen. But Gold Standard’s proposal suggests the next step in corporate climate action may not be claiming carbon neutrality. It may be taking greater responsibility for the emissions that companies continue to produce today.

DHLโ€™s โ‚ฌ3 Billion Clean Energy Bet: Why Logistics Has Become the Next Bottleneck in the Energy Transition

As countries invest heavily in clean energy, the equipment needed to build that future is becoming larger, heavier, and more complex to transport. DHL Group believes this challenge represents one of the biggest growth opportunities in logistics.

At the New Energy Conference in Amsterdam, the company shared its goal to boost revenue from its new energy logistics business. They aim to grow it from about โ‚ฌ600 million in 2025 to โ‚ฌ3 billion by 2030. That would represent a fivefold increase in just five years.

The target shows a rising need for specialized logistics services. This includes renewable energy, battery storage, electric vehicles, hydrogen, and grid infrastructure.

Tobias Meyer, CEO, DHL Group, remarked:

โ€œThe energy transition is not happening through a single technology and a single supply chain. It is a set of different assets that help countries to shift. DHL has the capabilities to help establish this new supply chain end-to-end, from parts and components to aftermarket support, at a global scale like no one else… Our combination of reach, reliability, and sector expertise is what companies and countries can lean on to facilitate the energy transition and bolster resilience.”

The timing is significant. The International Energy Agency (IEA) says global energy investment will hit a record $3.3 trillion. About $2.2 trillion of this will go to clean energy technologies. This includes renewables, grids, batteries, nuclear power, and electrification. That is roughly double the amount expected to flow into fossil fuels.

As the clean energy buildout accelerates, companies like DHL are positioning themselves as critical enablers of the transition.

Bigger Turbines, Bigger Batteries, Bigger Logistics Challenges

One reason DHL sees such strong growth potential is the increasing complexity of clean energy supply chains. Wind turbines have grown dramatically over the past three decades.

Modern turbine rotors can generate roughly 15 times more electricity than those built in the 1990s. While that improves efficiency, it also creates major transportation challenges. Larger blades, towers, and nacelles require specialized trucks, vessels, cranes, and route planning.

Battery storage presents another challenge. Lithium-ion batteries are crucial for electric vehicles and large storage systems. However, they need strict safety measures during transport due to fire risks. Moving large battery systems by air remains particularly difficult.

At the same time, geopolitical disruptions are reshaping global logistics networks.

Conflicts in Ukraine and the Middle East, shipping disruptions, airspace restrictions, and trade tensions have forced companies to redesign supply chains that once operated smoothly. These changes have increased demand for logistics providers that can manage complex international projects.

DHL believes these challenges will continue to grow as energy infrastructure expands around the world.

A $17 Trillion Buildout Creates a Logistics Gold Rush

The scale of future demand helps explain DHL’s optimism. The Energy Industries Council reports about 17,000 energy projects worldwide. These projects have a total investment value of around $17 trillion.

Much of that investment is flowing into renewable energy and supporting infrastructure.

The IEA expects renewable energy deployment to continue expanding rapidly this decade. Global renewable power capacity additions hit a record 800 GW in 2025, while global battery storage investments climbed rapidly to surge above $65 billion. This growth supports countries in creating more flexible electricity systems.

total renewable capacity additions 2025 IEA
Source: IEA

Grid infrastructure is becoming equally important.

The IEA estimates that global grid investment is around $400 billion each year. However, it warns that spending needs to rise a lot to meet increasing electricity demand and boost renewable energy use.

Each solar farm, wind project, battery system, transmission line, and hydrogen facility needs equipment. This equipment must be transported, stored, and delivered on time.

That growing need is creating a new market for specialized logistics services.

DHL Is Building a New Energy Logistics Platformย 

To capture that opportunity, DHL has expanded its capabilities across multiple clean energy sectors. The company now provides logistics services for:

  • Wind energy,
  • Solar power,
  • Battery energy storage systems,
  • Electric vehicles,
  • EV batteries,
  • Hydrogen,
  • Alternative fuels, and
  • Grid infrastructure.

DHL has combined these features in its Express, Global Forwarding, and Supply Chain divisions. This forms what they call a completely new energy logistics platform.

One of the company’s latest offerings is Time Definite Plus, a specialized service designed for time-critical deliveries in the renewable energy sector. The service covers 22 European countries. It quickly delivers replacement parts to keep renewable energy assets running.

For wind farm operators, minimizing downtime can have a major impact on electricity generation and project economics.

DHL is also investing in infrastructure. The company plans to open a new European battery logistics hub in Holtum, Netherlands, in early 2027. The facility will meet the rising need for battery transport, storage, and handling. This comes as Europe boosts electric vehicle production and energy storage use.

DHL Is Also Decarbonizing Its Own Operations

DHL Group net zero goals
Source: DHL Group

The company’s clean energy push aligns with its broader sustainability strategy. DHL has committed to achieving net-zero greenhouse gas emissions by 2050, a target approved by the Science Based Targets initiative (SBTi).

The company’s total GHG emissions for 2025 by scope are 38.71m metric t CO2e. Here is the breakdown.

As part of its 2030 roadmap, DHL aims to reduce emissions from 40 million metric tons of COโ‚‚e in 2021 to below 29 million metric tons. The company is pursuing a 42% reduction in Scope 1 and Scope 2 emissions and a 25% reduction in key Scope 3 emissions categories.

DHL carbon emissions 2025
Source: DHL Group

Several major initiatives support those goals. DHL plans to:

  • Achieve more than 30% sustainable aviation fuel (SAF) blending across its Express and Global Forwarding businesses by 2030.
  • Electrify more than 66% of its last-mile delivery vehicles.
  • Ensure all newly-owned buildings operate with carbon-neutral designs.
DHL 2030 emissions targets
Source: DHL Group

The company has also signed several major SAF agreements.

In 2025, DHL secured more than 314 million liters of SAF through a large supply agreement with Phillips 66. In 2026, it signed another long-term agreement with SAF One in Bahrain covering 250,000 metric tons of SAF over ten years beginning in 2028.

These efforts highlight a broader challenge facing logistics companies: helping customers reduce emissions while lowering their own carbon footprints.

Logistics Could Become a Critical Piece of the Energy Transition

The clean energy transition is often discussed in terms of technological breakthroughs or investment levels. However, infrastructure deployment depends on supply chains working efficiently.

Solar panels must reach project sites. Wind turbine components must cross oceans and highways. Batteries must move safely through global transportation networks. Grid equipment must arrive on schedule.

As projects become larger and more complex, logistics is becoming a strategic part of the energy transition rather than a supporting function.

The trend is creating new opportunities for logistics providers with specialized expertise.

Companies that handle oversized cargo, battery transport, renewable energy gear, and strong supply chains will become more important. This is as countries work towards climate goals and energy security.

A Growing Market Beyond Traditional Freight

DHL’s โ‚ฌ3 billion target reflects more than just a new business segment. It signals how the logistics industry itself is evolving alongside the energy transition.

The company sees strong demand emerging from battery storage, electric vehicles, renewable energy, hydrogen, and grid modernization. These sectors are expected to attract trillions of dollars in investment over the coming decade.

At the same time, clean energy infrastructure is becoming larger, more valuable, and more difficult to move. This combination is creating a rapidly growing market for specialized logistics services.

For DHL, the opportunity could generate billions in new revenue by 2030. For the broader clean energy sector, it highlights an important reality: building a low-carbon economy requires not only new technologies but also the supply chains capable of delivering them.

Gevo Advances BECCS Strategy to Meet Rising Demand for Durable Carbon Removal

Gevo, Inc. is increasing its focus on the fast-growing carbon removal market, which is now worth about $12 billion. The company is already one of the leading suppliers of carbon removal credits and is working to expand its presence across both voluntary and regulated carbon markets.

According to data provided byย CDR.fyi โ€” Carbon Removal Market Data, Leaderboards & Intelligence. Gevo recently ranked among the top five companies worldwide for delivering carbon removal credits to customers.

gevo carbon credits sales
Data Source: CDR.fyi

Many carbon removal companies still face technical and operational challenges that make large-scale delivery difficult. However, Gevo has developed a strong track record of issuing and delivering carbon credits on time, helping it stand out in a competitive market.

New Website Supports Carbon Credit Buyers

The press release highlights that, to make its carbon products easier to access, Gevo has launched a new website, gevocarbon.com. The platform is dedicated to the company’s carbon removal business and highlights its Bioenergy with Carbon Capture and Storage (BECCS) project.

The website will provide:

  • buyers with easy access to Gevo’s carbon removal products,
  • create a direct connection between the company and potential customers
  • explain how the BECCS process removes carbon dioxide from the atmosphere

The launch coincides with Climate Week London, where Gevo executives are participating in discussions on carbon removal standards and the future of carbon markets. This reflects the company’s growing influence within the industry.

Gevo Chief Carbon Officer Alex Clayton said,

โ€œGevo continues to help the industry set standards and create first-of-a-kind deals in the voluntary space while unlocking additional compliance and voluntary carbon market opportunities through new pathways and programs. We believe this business can exceed $30 million from our existing operations as demand grows for high-quality carbon removal. We see a clear long-term path toward a fungible carbon credit market – one built on trusted standards that can support a global exchange-traded system.โ€

Carbon Credits Sales Continue to Grow

Demand for Gevo’s carbon credits continues to rise. During the first half of 2026, the company’s carbon removal sales exceeded its total sales for the whole of 2025.

Equally important, Gevo has delivered all of its carbon credits on schedule. In a market where delivery delays can be common, consistent performance helps strengthen buyer confidence.

Several major organizations have purchased and retired carbon removal certificates generated by Gevo’s North Dakota project. These organizations include Nasdaq, Delta Air Lines, Monzo Bank, Bank of Montreal, and Amgen. Their participation demonstrates growing trust in Gevo’s carbon removal solutions and the quality of its credits.

How Gevo’s Carbon Removal Worksย 

Gevo’s carbon removal program is based at its North Dakota facility and uses Bioenergy with Carbon Capture and Storage technology. This process combines renewable fuel production with permanent carbon storage.

  • The process begins with corn supplied by more than 200 local farming families. Most of the corn comes from farms located within 75 miles of the facility, allowing Gevo to maintain a fully traceable supply chain.
  • During ethanol production, carbon dioxide is naturally released through fermentation. Instead of allowing this carbon dioxide to enter the atmosphere, Gevo captures and purifies it.
  • The captured carbon dioxide is then injected into the Broom Creek Formation, a geological storage site located approximately 1.3 miles beneath the facility.

Because the storage site is located directly below the plant, there is no need for transportation through pipelines or trucks. This reduces potential leakage risks and improves operational efficiency. The carbon dioxide is expected to remain safely stored underground for more than 1,000 years.

Gevo carbon removal
Source: Gevo

Focus on High-Quality Carbon Credits

As carbon markets continue to develop, buyers are increasingly looking for credits that are transparent, reliable, and independently verified. Gevo has made quality a central part of its carbon strategy.

The company’s carbon removal credits are certified through Puro.earth, a leading carbon removal registry. In addition, independent monitoring is provided by Cula Technologies to help verify carbon storage and ensure transparency.

These verification processes help confirm that the carbon credits represent real, measurable, and long-lasting carbon removal. As a result, buyers can have greater confidence in the environmental value of the credits they purchase.

Carbon Credits to Offset Emissions

Gevo also applies its carbon strategy within its own operations. The company uses its carbon credits to offset emissions generated by corporate travel activities.

By using its own credits, Gevo demonstrates confidence in the quality and integrity of its carbon removal products. This approach also provides a practical example of how businesses can incorporate carbon removal into broader sustainability plans.

North Dakota Facility Reached an Important Milestone

In January, Gevo announced that its North Dakota facility had issued more than 500,000 carbon dioxide removal certificates since carbon capture operations began in June 2022.

This milestone highlights the company’s ability to deliver carbon removal credits at a commercial scale while maintaining high standards of quality and reliability.

Gevo believes that reducing emissions across transportation and agriculture requires collaboration. As a result, the company continues to work closely with farmers, technology providers, fuel producers, and government agencies.

  • Climate-Smart Agriculture: Through its USDA-funded Climate-Smart Farm-to-Flight Program, Gevo supports farming practices that reduce the carbon intensity of crop production and improve sustainability.
  • Farm-Level Carbon Tracking: Partnered with Farmers Edge to improve carbon measurement and reporting at the farm level, increasing transparency and data accuracy.
  • Supply Chain Carbon Accounting: Gevo’s Verity platform tracks carbon emissions across the supply chain. Partnerships with ClearFlame Engine Technologies and Midwest Renewable Energy help strengthen carbon accounting from farm to fuel use.

Supporting Sustainable Aviation Fuel

Beyond carbon removal, Gevo continues to expand its sustainable aviation fuel business. The company is working with several technology and engineering partners to help bring low-carbon aviation fuels to commercial markets.

At the same time, the company is exploring additional opportunities in renewable fuels and renewable chemicals, including motorsports. These efforts support the company’s broader goal of reducing emissions across multiple industries.

Looking Ahead

A recent report from Abatable says that this year is built on “integrity at scale.” The goal is to provide carbon credits that are transparent, reliable, and supported by real-world operations.

Carbon credit buyers are becoming more informed and selective. They increasingly demand credits that deliver measurable climate benefits and meet strict verification standards.

While international frameworks such as CORSIA and Article 6 continue to evolve, voluntary carbon markets remain an important tool for climate action. These markets allow companies to invest in carbon reduction and removal projects today rather than waiting for future regulatory requirements.

With growing demand, a strong delivery record, and an expanding network of partners, Gevo is positioning carbon removal as a major growth area for the future. By focusing on quality, transparency, and scalability, the company aims to play an important role in the continued development of global carbon markets.