BASF and ExxonMobil Team Up to Boost Low-Emission Hydrogen with Methane Pyrolysis

Saptakee S
-
0
BASF and ExxonMobil Team Up to Boost Low-Emission Hydrogen with Methane Pyrolysis

BASF, the world’s largest chemical producer based in Ludwigshafen, Germany, has partnered with ExxonMobil to develop low-emission hydrogen using methane pyrolysis technology. This collaboration aims to accelerate the production of cost-effective, clean hydrogen for industrial use. The companies have signed a joint development agreement and plan to build a demonstration plant in Baytown, Texas, to test the technology at scale.

BASF has been researching methane pyrolysis for several years with funding from Germany’s Federal Ministry of Research, Technology, and Space (BMFTR). By teaming up with ExxonMobil, the companies hope to combine expertise and bring this promising hydrogen solution closer to commercial reality.

BASF methane pyrolysis test facility at Ludwigshafen site

exxonmobil basf
Source: Exxon

Methane Pyrolysis: Fueling a Low-Carbon Future

Methane pyrolysis is a process that splits methane—a major component of natural gas—into hydrogen and solid carbon using electricity. Unlike traditional hydrogen production methods, such as steam-methane reforming (SMR), methane pyrolysis does not produce CO2 during the reaction.

The process uses about five times less energy than water electrolysis and doesn’t require water, making it more efficient in many situations. Methane pyrolysis also benefits from existing natural gas infrastructure, so it can be deployed in multiple locations without major modifications.

Product costs and CO2 footprint of different hydrogen production technologies

methane pyrolysis carbon emissions
Source: Royal Society of Chemistry https://pubs.rsc.org/en/content/articlehtml/2025/ee/d4ee06191h

Key Benefits and Challenges 

Methane pyrolysis can play an important role in the transition to a low-carbon economy. Hydrogen demand is expected to grow across industries, from chemicals and steel to transportation and energy storage. By producing hydrogen without direct CO2 emissions, methane pyrolysis can help industries meet decarbonization targets.

Hydrogen is a critical energy carrier and feedstock for the chemical industry. Solid carbon, the byproduct of methane pyrolysis, is also valuable. It can be used in steel and aluminum production, construction materials, and advanced carbon products like battery components.

Key advantages of methane pyrolysis include:

  • No direct CO2 emissions during hydrogen production.

  • High-purity solid carbon that can be stored or used commercially.

  • Lower energy demand compared to electrolysis.

  • Compatibility with existing natural gas systems makes deployment easier.

However, the technology isn’t completely emissions-free. Upstream methane leaks—from extraction, processing, or transportation—can significantly increase greenhouse gas emissions. Methane has a global warming potential many times higher than CO2, so minimizing leaks is critical for keeping emissions low.

Thus, the process requires careful management of upstream methane leaks to ensure true low emissions. Also, methane supply chains must be monitored and controlled. Additionally, energy inputs must be optimized to maximize efficiency and minimize lifecycle CO2 emissions.

If successfully deployed, this technology could complement renewable-based hydrogen solutions and provide a scalable, industrial-ready pathway to cleaner hydrogen production. The Baytown demonstration plant will provide critical insights into operational efficiency, emissions management, and the commercial viability of methane pyrolysis.

Methane Pyrolysis vs. Other Hydrogen Methods

Energy Efficiency: Methane pyrolysis requires about 37.5 kJ of energy per mole of hydrogen, compared to 63.4 kJ for SMR and 285.8 kJ for water electrolysis. This shows methane pyrolysis is highly energy-efficient.

Lifecycle Emissions: Studies estimate methane pyrolysis produces 9–12 tons of CO2 equivalent per ton of hydrogen, depending on methane management and energy sources. SMR with carbon capture (CCS) has slightly higher emissions, while electrolysis emissions depend entirely on the electricity source. If powered by renewable electricity, electrolysis can achieve near-zero CO2 emissions, but grid electricity with fossil fuels increases emissions.

Full Lifecycle Benefits: Methane pyrolysis may also avoid some emissions linked to manufacturing and resource use for electrolyzers. Its efficiency and carbon byproduct make it a competitive low-carbon solution.

In summary, methane pyrolysis offers a balance between low emissions, energy efficiency, and economic feasibility. It competes well with SMR + CCS and is generally less energy-intensive than full electrolysis, though renewable-powered electrolysis has the lowest emissions if electricity is green.

BASF and Exxon’s Demonstration Plant to Validate Technology

BASF and ExxonMobil plan to build a demonstration plant at ExxonMobil’s Baytown Complex. This facility will produce up to 2,000 tons of low-carbon hydrogen and 6,000 tons of solid carbon annually. The project will validate the technology at scale and prepare it for commercial deployment.

This plant represents a key step toward making methane pyrolysis a practical solution for industrial hydrogen demand. By combining BASF’s chemical expertise with ExxonMobil’s experience in energy infrastructure, the companies aim to accelerate the global adoption of low-emission hydrogen.

A Strategic Leap for Clean Hydrogen Innovation

Moreover, ExxonMobil brings additional strengths to the partnership. The company owns the largest CO2 pipeline network in the U.S. and has extensive experience in fuels, chemicals, and low-carbon solutions. Combining this with BASF’s innovation in chemical processes makes the collaboration a powerful step forward for sustainable hydrogen production.

Overall, this partnership represents a major step in advancing low-emission hydrogen.

IEA predicts that low-emissions hydrogen production is set to grow significantly by 2030. Projects that are already operational or have reached final investment decisions (FID) are expected to produce 4.2 million tons per year (Mtpa) by 2030. It’s a fivefold increase compared with 2024.

IEA Green hydrogen
Source; IEA

Although this is still below the ambitious targets set by governments and industry earlier in the decade, it would raise the share of low-emissions hydrogen from less than 1% today to around 4% of total hydrogen production by 2030.

This growth is similar to the rapid expansion seen in other clean energy technologies, such as solar PV. In addition, a new assessment of announced projects suggests that another 6 million tons of low-emissions hydrogen could become operational by 2030, provided effective policies are in place to support demand and secure offtake agreements.

As industrial hydrogen demand rises and decarbonization becomes urgent, methane pyrolysis is set to play a key role in the energy transition. By combining their expertise, BASF and ExxonMobil are positioning themselves at the forefront of low-emission hydrogen innovation.

COP30 Moves Into a More Ambitious Phase: Key Updates to Know

Jennifer L
-
0
COP30 Moves Into a More Ambitious Phase: Key Updates to Know

COP30, held in Belém, Brazil, has shifted into higher gear. Ministers are now at the negotiation table. The talks are shifting from technical discussions to tough political bargaining.

The COP30 presidency has released a new summary document outlining 21 different options for resolving some of the most contentious issues. This is signaling a push for real progress.

A Menu of Options from the Presidency

At the heart of the summit is a 5-page note from COP30 President André Corrêa do Lago. This document does more than guide discussions: it frames possible outcomes by laying out 21 options across four major areas.

These major issue-areas include:

  • Strengthening national climate plans: whether countries should be urged to do more on their new emissions-reduction pledges.
  • Climate finance: especially the allocation of a $300 billion aid target from richer to poorer countries. Current climate finance flows are far too low. About $500 billion is available each year, but the world needs $1.3 trillion by 2030–2035. Rich countries made a promise: to give $100 billion a year by 2020. But they didn’t meet this goal.
  • Trade and climate: how to deal with trade barriers and climate-related trade disputes. Climate-related tariffs and disputes are rising. This shows that COP30 needs to tackle trade measures in a more organized way.
  • Transparency and reporting: improving how countries report their emissions and climate progress.

global climate finance vs COP30 target

The presidency says these options are not fixed decisions. Instead, they reflect different pathways that countries can endorse or reject. This structure is meant to give negotiators flexibility while still working toward a coherent package.

Some options call for a new three-year climate finance program. Others suggest simpler steps, like reaffirming current commitments.

One idea for trade is to host roundtables about how climate policies impact cross-border trade. Another is to create a formal platform to discuss climate-related trade measures under the UNFCCC.

  • The presidency also emphasizes core themes: multilateralism, putting people at the center, and moving from negotiation to implementation.

COP30 metrics show the size of these talks. Nearly 200 countries and many observer groups are represented.

Analysts say the document suggests a bolder COP30 outcome that could lead to roadmaps for phasing out fossil fuels. Also, it may establish a clearer link between climate finance and accountability.

Summary Note on COP30 Presidency consultations

Host Brazil Urges Action, Not Just Words

Brazil, as host, is pressing hard for concrete results. It has sent a strong message through a letter and its draft text, urging parties to negotiate in good faith and aim for real deliverables. And so negotiations extended into the nights to finalize the talks. 

President Lula da Silva and COP President do Lago both emphasize that talks must lead to a practical roadmap, not vague promises. They argue that to meet the challenges ahead, especially on fossil fuels and finance, countries must chart out “who does what, when, and how.”

In particular, Brazil is pushing for a roadmap to phase out fossil fuels. It sees this as both an ethical and strategic move: phasing out fossil fuels in a just way, while respecting development needs.

  • Global fossil fuel subsidies are about $500 billion each year.

Reform efforts are now closely tied to COP talks. This adds urgency to Brazil’s proposals.

Money Talks: Climate Finance Stalls Negotiations

Even though the presidency’s proposal is broad, finance continues to act as a major roadblock. Developing countries say rich nations still haven’t met their climate aid promises. This includes a goal of $300 billion each year by 2035. The shortfall compared to the estimated needs of $1.3 trillion annually illustrates the scale of the finance gap.

300 billion climate finance goal

These financial disputes have even prompted critics to warn that the absence of real funding could undermine the entire summit. Some say that until money flows, other issues — like emissions or transparency — may remain stalled.

South Korea’s Big Coal Shift

Meanwhile, a significant moment came when South Korea announced it would phase out many of its coal-fired power plants by 2040. The country joined the Powering Past Coal Alliance.

Under the plan, 40 out of its 61 coal plants are set to retire by 2040. The remaining 21 will be evaluated for closure later, based on economic and environmental factors.

South Korea aims to have 45% of its electricity supplied by renewables by 2040, supplemented by nuclear and gas. This commitment signals a major step toward a cleaner energy mix and the creation of green jobs.

south korea energy mix

But the pledge also raises geopolitical stakes. South Korea has long been a major coal importer. Its decision could ripple through global coal markets, especially affecting exporting countries.

The country accounts for about 1.5% of global emissions. This shows that its policies, though smaller than those of China or the U.S., still hold significant regional influence.

China Steps Up as the United States Steps Back

Complicating dynamics at COP30 is the notable absence of the United States. As such, China has stepped up its diplomatic efforts. With no top U.S. officials around, it is pushing for stronger cooperation among many countries.

Beijing’s delegation sees itself as a stabilizing force. They push for climate finance, technology cooperation, and working together on the Paris Agreement. China accounts for around 31% of global emissions, making its position critical for the overall climate outcome.

Before the summit, China updated its climate goals. It plans to cut emissions by 7–10% from peak levels and increase non-fossil energy use to 30% of total energy consumption by 2035.

Analysts note that, even with these plans, long-term goals and accountability are still necessary to keep warming within 1.5°C.

Share of Global Emissions by Country (2023)

What’s at Stake: A Turning Point for COP30

As COP30 presses on, what happens in the next few days could define its legacy. Here are the key things to watch out for as the summit takes its second week run:

  • The presidency’s “menu” of options gives countries flexibility, but risks producing watered-down outcomes.
  • Finance remains the most difficult divide. Without real funding, many fear COP30 could fall short.
  • Brazil is pushing for a fossil-fuel roadmap anchored in fairness — but that depends on buy-in from major emitters.
  • South Korea’s coal commitment could reshape export markets and send a signal to other coal-dependent nations.
  • China’s rising role highlights how power dynamics are shifting, especially in the U.S.’s absence.
  • Trade and climate measures, including tariffs and disputes, remain an area where COP30 could produce tangible frameworks to avoid future conflicts.

In short, COP30 may not just be another negotiation; it could be a turning point. Whether countries seize the moment to deliver real change will determine if this climate conference becomes a source of momentum or just another talking summit.

Carbon Credit Prices Hit New 2025 Highs: 7 Safe Platforms Every Buyer Should Know

Aiden Green
-
0
Carbon Credit Prices Hit New 2025 Highs: 7 Safe Platforms Every Buyer Should Know

Carbon credit prices jumped to new 2025 highs this week, sparking intense market activity and a wave of interest from companies and investors racing toward net-zero goals. Fresh data from MSCI showed that high-rated credits traded at more than 300% above lower-rated ones in May.

Meanwhile, the MSCI Global ARR Index—which tracks afforestation, reforestation, and revegetation projects—climbed to a record $21.3 per ton in June. These trends reveal a clear shift: buyers now want transparent, verified, and high-impact credits.

As competition heats up, major players and new platforms are doubling down on quality. Because of this, buyers must choose trusted exchanges that offer verified, high-integrity carbon credits. Below, we break down why prices are rising, what trends are driving demand, and where buyers can find reliable credits in today’s fast-changing market.

MSCI carbon credit prices
Data as of June 2025. Source: MSCI Carbon Credit Price Indexes

Why Carbon Credit Prices Are Climbing in 2025

The 2025 carbon market looks very different from previous years. More than 95 million credits were retired in the first half of the year alone, according to Sylvera. This was the highest six-month total ever recorded. The surge reflects stronger climate action from governments and companies facing stricter rules.

Prices show the same direction. Carbon credits today cost 1.9 times more than in 2018. Demand for high-quality offsets hit new highs, while the supply of credible, recent credits remains tight.

carbon credits retirements

Premium Credits and Removals Capture Big Margins

High-rated credits led the price jump. In 2025, “investment-grade” credits—rated BBB or higher—averaged $14.80 per ton. Lower-rated credits averaged just $3.50. Buyers also paid more for newer credits. According to Ecosystem Marketplace, premiums for credits issued in the past five years reached 217%, up from 53% in 2023.

Carbon removal credits, such as reforestation or direct air capture, gained even more momentum. These credits now trade at a massive 381% premium over traditional reduction credits.

Although prices still vary—sometimes by 11% between credits from the same project—buyers show rising confidence. New standards, such as the ICVCM’s Core Carbon Principles and updated regulations, are making integrity a priority.

carbon credit market
Data as of June 2025. Source: MSCI Carbon Credit Price Indexes

Why High-Quality Carbon Credits Are in Such High Demand

Demand for trustworthy credits keeps rising due to tighter rules, corporate pressure, and growing public scrutiny. Programs like CORSIA, the global aviation offsetting system, now require stricter eligibility. In the first half of 2025, more than one-third of all new credits issued were potentially eligible for CORSIA Phase 1, depending on Article 6 approvals.

The Science-Based Targets initiative (SBTi) also pushed companies to use only high-integrity carbon removals for net-zero claims. As a result, businesses are moving away from cheap, low-quality credits. Instead, they are paying more for offsets that deliver proven climate and community benefits.

Technology-based removal credits—such as direct air capture—saw some of the highest prices in the market, often above $1,000 per ton. Nature-based credits remained important but typically traded between $7 and $24 per ton. This widening gap shows how buyers value durability and innovation.

The Top 7 Platforms to Buy Verified Carbon Credits in 2025

Because transparency matters more than ever, selecting the right exchange is essential. Here are seven reliable platforms offering verified carbon credits in 2025:

carbon credit companies

All these platforms work with leading standards bodies like Verra, Gold Standard, and the American Carbon Registry to ensure strong credibility.

How New Standards and Market Forces Are Reshaping 2025 Prices

Integrity-focused reforms, new technologies, and shifting buyer behavior continue to reshape the carbon market. According to the World Bank, new standards have led to fresh price swings—especially for high-quality nature-based credits. Issuances hit record highs, too.

  • Sylvera reported that 77 million credits were issued in Q2 2025, up 39% from Q1 and 14% from Q2 2024. Yet retirements grew even faster, keeping pressure on supply.
carbon credit prices
Source: Sylvera

Old vintage credits are quickly falling out of favor. Companies now want recent, high-quality offsets that meet new regulatory and investor expectations. As a result, BBB-rated credits and other premium assets are setting the tone for market pricing.

Some older credits still trade below $1 per ton, but high-integrity projects now define the market’s direction and future values.

What the Latest Data Says About Growth and the Road Ahead

The numbers reveal a market growing fast and evolving even faster. BloombergNEF’s High Quality scenario shows potential supply rising from 243 million tons in 2024 to 2.6 billion tons by 2030, and possibly 4.8 billion tons by 2050. Even with rising supply, prices are expected to climb.

  • BNEF forecasts an average of $60 per ton by 2030, increasing to $104 per ton by 2050 as demand for removals outpaces reduction credits.

Notably, Direct air capture will play a major role. By 2050, BNEF expects it to supply 21% of all carbon credits, helping push average prices above $100.

Market structure is also shifting. Bilateral (over-the-counter) deals have exploded—growing 27-fold since 2022—as buyers want tailored, audited solutions. Compliance markets, like those in Singapore and California, continue to raise prices through strong tax and allowance policies.

carbon credits supply
Data source: Bloomberg

The Bottom Line for 2025 and Beyond

The carbon market is moving toward a future defined by quality, transparency, and impact. Demand is rising fast, regulations are tightening, and buyers are paying more for verified, high-integrity credits.

In this new environment, the best opportunities will favor informed buyers—those who act early, choose reputable platforms, and prioritize integrity over volume. The road to net zero increasingly depends on credible, premium carbon credits that deliver real climate results.

What the IEA’s New Scenarios Mean for the Global Climate — and for COP30

Saptakee S
-
0
What the IEA’s New Scenarios Mean for the Global Climate — and for COP30

The energy world is changing fast, yet not fast enough to protect the planet from dangerous warming. The International Energy Agency’s (IEA) World Energy Outlook 2025, released at the start of COP30 in Brazil, lays out three futures for global emissions. These scenarios show how close — or far — the world is from meeting the goals of the Paris Agreement. The findings are sobering, but they also give countries clear signals on where action must accelerate.

The IEA makes one point very clear: 2024 was the hottest year ever recorded, and for the first time, global temperatures stayed above 1.5°C across the entire year. The last decade was also the hottest in history. This puts huge pressure on countries as they update their national climate plans at COP30.

Yet the IEA also stresses something important — none of its scenarios are forecasts. They are pathways, and the direction we take still depends on policy choices made today.

A World on a Hotter Track: What the IEA’s Scenarios Show

The IEA’s three major scenarios outline different ways the global energy system could evolve. Two reflect today’s conditions. The third shows what it would take actually to reach net-zero emissions by 2050.

Global energy demand
Source: IEA

Current Policies Scenario (CPS): The Dangerous Path

This scenario assumes governments stop at policies already written into law. No new climate pledges. No new incentives. No strengthened targets.

Under this path:

  • Coal use falls only slightly.
  • Oil and gas demand have been rising for decades.
  • Global energy-related emissions stay close to 2024 levels all the way to 2050.

The result is alarming. Global warming will hit 2°C by around 2050 and reach 2.9°C by 2100, and temperatures will still be rising. The IEA even warns there is a 5% chance of hitting 4°C, a level associated with extreme climate disruptions and irreversible tipping points.

The CPS was removed after 2020 because it seemed unrealistic in a world trying to cut emissions. But political pressure, especially from the Trump administration, pushed the IEA to bring it back. Its return shows how vulnerable global climate ambition can be when big economies shift direction.

Stated Policies Scenario (STEPS): Better, but Still Off-Track

This scenario reflects what governments say they plan to do — but not what they have legally locked in.

Here:

  • Emissions peak within a few years.
  • They fall slightly to 35.2 gigatonnes (Gt) in 2035.
  • Advanced economies and China reduce emissions.
  • But developing economies emit more as energy demand rises.

Even with these changes, the STEPS pathway still results in 2.5°C of warming by 2100. This is far above the Paris goal of “well below 2°C” and nowhere near keeping warming under 1.5°C. The IEA notes that this year’s STEPS outcome is worse than last year’s due to slower clean energy progress and higher expected coal use.

Net Zero by 2050 Scenario (NZE): The Only Path that Stabilizes the Climate

Net Zero by 2050 Scenario, often called the NZE, shows what a 1.5°C-aligned future would require. It is the only pathway that eventually brings warming back below 1.5°C by the end of the century.

But the challenge has grown sharply. Because real-world emissions remain high, the NZE scenario now includes:

  • a higher and longer overshoot of the 1.5°C limit
  • warming peaks around 65°C mid-century and slowly declines

Large-Scale Carbon Removal Technologies: The Saviour

The only way to return below that threshold later this century is to combine deep emissions cuts with large-scale carbon removal technologies. These technologies remain expensive and unproven at the scale required.

So the IEA emphasizes that countries must do everything possible to limit the overshoot by cutting emissions faster now. Notably, in the NZE pathway, global emissions fall by more than half by 2035 and reach net zero by 2050.

By the end of the century, carbon removal technologies would need to eliminate nearly four gigatonnes of CO₂ each year to bring temperatures back down.

A Fossil Peak Nears as Clean Energy Surges — but the World Still Falls Short

The IEA shows the energy system shifting, with coal already at or near its peak and oil expected to peak around 2030, though its decline will be slower than once expected. Gas demand levels off around 2035, but at a higher baseline than earlier forecasts, revealing how deeply rooted fossil fuels remain in the global mix.

fossil fuel demand
Source: IEA

At the same time, clean energy is rising fast. Solar capacity could more than triple by 2035, wind is set to nearly triple, and nuclear expands by close to 40 percent. Renewables will even overtake oil as the largest energy source by the early 2040s. Yet the world is still not moving fast enough. Under stated policies, renewable capacity reaches about 13,700 gigawatts by 2035, far short of the roughly 19,600 gigawatts required under the net-zero pathway.

Renewable energy
Source: IEA

Global Carbon Emissions: Peaks and Plateaus

Both IEA scenarios point to sustained high emissions, though at different levels. In the CPS, global energy emissions stay near 2024 levels through 2050, as small coal reductions are offset by rising oil and gas use. In the STEPS, emissions peak soon, drop to 35.2 gigatonnes by 2035, and decline slowly to 2050.

Reductions in advanced economies and China are balanced by rising emissions in developing regions. The gap between CPS and STEPS comes mainly from higher coal emissions, slower industrial efficiency, and delayed adoption of electric and efficient vehicles.

All in all, this gap underscores the need to accelerate clean energy deployment to align with global climate goals.

carbon emissions IEA
Source: IEA

Why COP30 Matters More Than Ever

With the world heating faster than expected and the 1.5°C threshold already breached annually, COP30 becomes a turning point. The IEA’s outlook directly shapes negotiations because it:

  • Shows the world is far off-track.
  • Highlights the widening gap between political promises and real action.
  • Makes clear that overshoot is now unavoidable.
  • Warns that delay will force much heavier reliance on expensive CO₂ removals later.

At COP30, countries need to submit new Nationally Determined Contributions (NDCs). The IEA warns that current NDCs do not reflect the full potential of national policies or domestic clean energy momentum. In other words, many countries are doing more at home than they are willing to commit to on paper.

COP30 is a chance to fix this gap.

What Can Be Done to Get on Track? The IEA’s Priority Actions

The message is clear: the world is not on track, and the window to avoid the worst climate impacts is shrinking. Still, the IEA shows that meaningful progress is underway.

It highlights several actions that could quickly bring global emissions closer to the NZE path. The world needs faster renewable energy deployment, stronger energy efficiency improvements, and large reductions in methane emissions from the energy sector.

Electrification of vehicles, buildings, and industry has to accelerate, and sustainable fuels such as biofuels and hydrogen must expand significantly. These steps are well understood, often cost-effective, and achievable with current technology. What remains missing is the political will to scale them up at the speed required.

With COP30, countries certainly have an opportunity to match ambition with action and take decisive steps toward a safer climate future.

Three Streams, One Goal: DECARBON 2026 Unites the Oil and Gas Value Chain

Alex
-
0
Three Streams, One Goal: DECARBON 2026 Unites the Oil and Gas Value Chain

At DECARBON 2026, leading companies come together to turn ambition into action — demonstrating the innovations and finding collaborations to drive the transition to a low-carbon future.

The oil and gas industry operates through highly complex systems in which upstream, midstream and downstream segments often follow distinct strategies and priorities. Upstream focuses on exploration and production efficiency, midstream prioritises secure and reliable supply routes, while downstream aims to enhance refining performance and reduce environmental impact. Aligning these three sectors towards a single goal — decarbonisation — remains one of the greatest challenges. Reducing emissions across exploration, transportation and refining requires technological innovation as well as cross-sector collaboration and consistent strategic alignment.

For these goals, the Oil & Gas Decarbonisation Congress (DECARBON) 2026 unites global industry leaders from the whole value chain to exchange practical insights and proven approaches that deliver measurable results. Throughout the Congress, companies across upstream, midstream and downstream share their experiences and innovations from P2X technologies and green hydrogen to AI-powered autonomous plants.

In the upstream-focused session, Kuwait Oil Company offers valuable perspectives on integrating energy transition strategies into exploration and production planning. Fayez Al-Mezel, Business Planning Specialist, delivers the presentation about the integration of energy transition into upstream strategies. He addresses key challenges such as capital-cost dispersion, technology readiness and infrastructure constraints. The speaker outlines mitigation measures, including modular pilot projects, standardised designs and verified data management. This approach demonstrates how strategic planning and transparent performance tracking translate decarbonisation ambitions into efficient, cost-competitive outcomes.

In the midstream discussion, LiveEO (Session Sponsor) highlights digital tools that enhance pipeline safety and sustainability. Nick Ferguson, Chief Evangelist, explains that satellite technology elevates pipeline safety. Drawing on a case study, he demonstrates that combining high-resolution satellite imagery with artificial intelligence enables the detection of 73% of previously unidentified threats and improves prediction accuracy by 80%, supporting proactive risk management and streamlined operations.

Kent participates in the dialogue dedicated to downstream decarbonisation, specifically low-carbon fuels and feedstock. Luigi Crolla, Head of Energy Transition Technologies, explores how integrating electrolytic hydrogen and Reverse Water Gas Shift (RWGS) technologies into waste-to-fuel processes enhances Sustainable Aviation Fuel (SAF) yield and reduces carbon intensity. While Kent operates across multiple energy transition domains, its contribution highlights the importance of technological integration in scaling sustainable fuel production.

By bringing together diverse organisations working across and beyond traditional sector boundaries, DECARBON 2026 creates a unified platform for forward-looking conversation. The Congress underscores that decarbonisation is not the responsibility of one stream alone but a coordinated transformation across the entire oil and gas value chain — from production to refining. Explore the full programme and speaker line-up at: https://sh.bgs.group/3hn

ReNew Energy to Invest over $9 Billion to Boost Solar, Storage & Green Fuels in Andhra Pradesh

Jennifer L
-
0
ReNew Energy to Invest over $9 Billion to Boost Solar, Storage & Green Fuels in Andhra Pradesh

ReNew Energy Global Plc, an Indian renewable energy company, announced it will invest about US$9.33 billion (around ₹82,000 crore) in green energy projects in the southern state of Andhra Pradesh. This is one of the largest private investments in renewable energy in the region. The plan aims to expand India’s clean energy capacity while supporting local industries and jobs.

The investment will focus on key areas of renewable energy. This includes solar, wind, energy storage, and green fuel production. India is shifting from just power generation to a full renewable energy value chain. This multi-pronged approach highlights that change.

The Projects Included in the $9.33B Power Play

ReNew Energy’s projects in Andhra Pradesh are diverse. The company will set up a 6 GW solar ingot and wafer manufacturing plant. This facility will produce essential materials for solar panels. By making them locally, India can reduce its reliance on imports and strengthen its domestic solar industry.

In addition, the company will build a 2 GW pumped-hydro storage system. This storage will allow renewable energy to be saved when the sun isn’t shining or the wind isn’t blowing, making the electricity supply more reliable.

A green ammonia facility will also be built, producing around 300,000 tonnes per year. Green ammonia can be used as a cleaner fuel and for industrial purposes, helping reduce greenhouse gas emissions.

ReNew plans to develop 5 GW of hybrid renewable projects combining wind, solar, and battery storage. These projects aim to maximize energy output and efficiency. Together, all these efforts cover manufacturing, generation, storage, and newer forms of clean energy.

Benefits and Local Wins for Andhra Pradesh

Andhra Pradesh has set ambitious renewable energy targets. The state aims to achieve 78.5 GW of solar, 35 GW of wind, and 25 GWh of battery storage. ReNew Energy’s investment will help move the state closer to these goals.

Andhra Pradesh Renewable Energy Targets by 2029 (in GW)

The projects are expected to create over 10,000 jobs, both directly and indirectly. Jobs will vary from factory work at the solar plant to construction, operations, and maintenance of storage and hybrid projects. The investment will strengthen local supply chains. This gives businesses chances to provide materials, transport, and other services.

By producing solar wafers and ingots locally, the state can also reduce dependency on imported materials. This supports both energy security and the development of local industries.

Sumant Sinha, Founder, Chairman, and CEO, ReNew remarked during the announcement:

“ReNew has a long-standing presence in Andhra Pradesh and with this expansion we are bringing a fully integrated clean energy value chain to the state of Andhra Pradesh, from wafer to large-scale renewable projects and storage deployment…We appreciate the leadership and clear policy direction of the Government of Andhra Pradesh, which makes the state a natural partner in accelerating India’s energy transition and sustainable economic growth.”

Backing India’s Renewable Energy Ambitions

The world’s third-largest CO2 emitter has the following progress in its renewable power targets.

India clean energy progress
Source: DowntoEarth.org

Investments like ReNew Energy’s are essential to achieving this goal. They provide not just electricity but also infrastructure that supports the country’s shift away from coal and oil.

The company’s plans show that India is moving beyond simply building solar and wind farms. Making solar parts, building storage systems, and producing green fuels are key steps in creating a complete renewable energy ecosystem. This approach also strengthens India’s position in global renewable energy markets.

India power capacity by source type
Source: CEA and NPP

What are the Key Considerations?

ReNew Energy already operates wind and solar plants in Andhra Pradesh, including 717 MW of wind capacity and 60 MW of solar capacity. The new projects build on earlier investments of about ₹22,000 crore (US$2.5 billion) made in May.

The scale of the projects means careful planning is essential. Building factories and large storage systems requires land, permits, skilled workers, and strong infrastructure. Financing will also need to be managed carefully. It is not yet clear how much funding will come from company funds, loans, or government incentives.

Although the announcement is positive, implementing these projects will take years. The company, state authorities, and other stakeholders will need to work closely to ensure timely completion.

Cleaner Energy, Stronger Economy

The investment could bring both environmental and economic benefits for India. Cleaner electricity means lower greenhouse gas emissions. Local manufacturing reduces the need to import materials, which also lowers carbon footprints from transportation.

Economic benefits include job creation, skill development, and opportunities for local businesses. The green ammonia project could support industries that require cleaner fuels. Battery storage and hybrid projects can boost energy reliability. This benefits both households and industries.

ReNew Energy’s Emission Reduction Moves

ReNew Energy has strengthened its sustainability plans as it works toward becoming a net-zero company by 2040. The company aims to cut almost 90% of its total emissions from its 2022 levels, covering all scopes, including its supply chain.

The company is boosting energy efficiency at its sites. It’s also increasing clean power use and swapping out fossil-fuel equipment for electric options. It is also working with suppliers to adopt science-based climate targets and cleaner transport systems.

ReNew has made progress in recent years. In its latest reporting cycle, it reduced 18.2% of its Scope 1 and 2 emissions and helped avoid 18.6 million tonnes of CO₂ through its renewable projects.

ReNew Energy carbon emissions 2024 - 2025
Source: ReNew Energy

The company now gets 76% of its electricity from renewable sources. It has also saved over 540 million liters of water by focusing on conservation. ReNew’s targets are validated by the Science Based Targets initiative, reflecting stronger accountability and transparency.

Beyond emissions, ReNew also has broader environmental goals:

  • It aims to be water-positive by 2030 — meaning it gives back more clean water than it uses.

  • It targets zero waste to landfill in its operations.

  • It also aims to make a positive social impact, including having 30% women in its workforce and improving ESG

A Benchmark and Bold Step Toward a Low-Carbon India

If successful, ReNew Energy’s investment could serve as a model for other states in India. Private companies can invest in many areas of renewable energy. This includes manufacturing, generation, and storage. The size of the investment shows trust in India’s clean energy policies. It also highlights the country’s long-term renewable energy market.

ReNew Energy $9.33 billion investment in Andhra Pradesh is a big step for India’s renewable energy efforts. It includes solar manufacturing, storage systems, hybrid renewable projects, and green fuel production.

For the state, the projects offer job creation, energy security, and industrial growth. For India, they support national renewable energy targets and demonstrate the country’s commitment to cleaner energy.

The success of these projects will depend on execution, planning, and coordination among the company, governments, local communities, and supply chains. If done well, it could set a benchmark for future investments and contribute significantly to India’s transition toward a low-carbon economy. 

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

Saptakee S
-
0
Google and TotalEnergies Unlock Carbon-Free Future for Ohio Data Centers with 15-Year Solar Deal

Google has taken another major step toward its clean energy goals by signing a 15-year Power Purchase Agreement (PPA) with French energy company TotalEnergies. Under the agreement, Google will purchase 1.5 terawatt hours (TWh) of renewable electricity from TotalEnergies’ Montpelier solar farm in Ohio.

The 50-megawatt (MW) solar facility, which is nearing completion, will be connected to the PJM grid system, the largest electricity market in the United States. Once operational, the project will supply clean electricity directly to Google’s data centers in Ohio, helping the company reduce its carbon footprint and support local grid decarbonization.

Will Conkling, Director of Clean Energy and Power, Google, said:

“Strengthening the grid by deploying more reliable and clean energy is crucial for supporting the digital infrastructure that businesses and individuals depend on. Our collaboration with TotalEnergies will help power our data centers and the broader economic growth of Ohio.”

Ohio Powers the Next Wave of Data Center Growth

According to S&P Global, data center electricity demand in the U.S. is set to rise sharply — from 75.8 GW in 2026 to 134.4 GW by 2030. This surge is driven largely by the growing adoption of artificial intelligence (AI), cloud computing, and high-performance computing workloads.

In Ohio alone, Central Ohio leads the state with over 100 data centers, including those operated by Google, AWS, and Meta. New projects from companies like Cologix, QTS Data Centers, and Vantage Data Centers continue to expand the region’s energy demand.

This booming digital infrastructure is reshaping the U.S. electricity landscape. Many utilities are now planning for massive grid expansions to support this load growth. Yet, questions remain about how quickly clean energy projects can keep up with the rising power needs of hyperscale data centers.

ohio data center
Source: S&P Global

A Shared Commitment to Building a Carbon-Free Digital Economy

The press release highlights that both companies share a strong commitment to sustainability. The partnership aligns with Google’s 2030 goal for 24×7 carbon-free operations and with TotalEnergies’ strategy to expand its clean power portfolio for digital infrastructure.

Together, they showcase how strategic corporate partnerships can accelerate decarbonization and fuel the clean energy transition.

Stéphane Michel, President Gas, Renewables & Power at TotalEnergies, commented,

“We are delighted to strengthen our partnership with Google with this agreement to supply renewable electricity to their data centers in Ohio. This agreement illustrates TotalEnergies’s ability to meet the growing energy demands of major tech companies by leveraging its integrated portfolio of renewable and flexible assets. It also contributes to achieving our target of 12% profitability in the power sector.”

Corporate PPAs: Driving the Energy Transition

Corporate PPAs are becoming key to cutting global emissions. These long-term contracts let companies buy clean electricity directly from renewable energy developers. By doing this, they skip middlemen and make sure new renewable projects get built.

For companies, PPAs provide steady energy prices and clear proof of their green energy use. For developers, they offer financial security to invest in new projects.

In Google’s case, the deal with TotalEnergies supports its goal to power every data center and office with carbon-free energy from the same grid. This approach goes beyond buying renewable energy certificates or offsets. Instead, it adds real clean energy to local grids and helps reduce emissions where it matters most.

TotalEnergies’ Expanding Renewable Footprint

TotalEnergies is one of the world’s leading integrated energy companies, and its renewable power ambitions are accelerating. By October 2025, the company had reached 32 GW of installed renewable capacity and aims to hit 35 GW by year-end. By 2030, TotalEnergies targets over 100 TWh of net electricity production from renewables.

In the U.S., the company is developing a 10 GW clean energy portfolio, including solar, onshore wind, and battery storage projects. Of this, 1 GW is located within the PJM market and 4 GW in Texas under ERCOT.

The new PPA with Google joins a list of corporate deals TotalEnergies has signed with major firms such as Amazon, Microsoft, Air Liquide, LyondellBasell, Saint-Gobain, STMicroelectronics, and Merck. These partnerships significantly help stabilize project revenues while accelerating the clean energy transition for large industrial and technology customers.

TotalEnergies
Source: TotalEnergies

Google’s Journey to 24/7 Carbon-Free Data Centers by 2030

Google’s data centers run its global operations but also create most of its emissions. In 2024, Scope 2 emissions hit 3.1 million metric tons of CO₂, mostly from electricity use.

To address this, Google improved efficiency, reaching an average PUE of 1.09—much better than the industry average of 1.56. This means its data centers use 84% less extra energy.

At the same time, Google signed over 8 GW of new clean energy contracts. These solar, wind, and other carbon-free projects help the company move toward running 24/7 on carbon-free energy by 2030.

google clean energy
Source: Google

Solar Energy: The Core of Clean Power Strategy

Solar energy is a cornerstone of Google’s sustainability roadmap. Since 2017, the company has maintained a 100% renewable energy match globally and has now signed more than 170 clean energy agreements totaling over 22 GW of capacity.

Recent highlights include:

  • A 1 GW solar pipeline in Taiwan, developed in partnership with BlackRock’s Climate Infrastructure business.
  • A 1.5 GW portfolio of new solar projects across the PJM grid in the U.S., aligned with Google’s data center locations.
  • Investments that help semiconductor suppliers and manufacturers in Asia decarbonize their operations.

Through initiatives like Project Sunroof and the Solar API, Google is also using AI and satellite imagery to make rooftop solar more accessible to homeowners and developers. In 2024, solar panels installed through partners using Google’s API were estimated to enable 6 million metric tons of lifetime GHG reductions. It’s roughly 6,000 times greater than the emissions produced by the model’s computing energy that same year.

A Blueprint for Energy and Technology Synergy

The Google–TotalEnergies partnership goes beyond energy supply—it shows how tech and clean energy can work together. However, energy equity remains important. Policymakers and utilities must ensure local communities also benefit from clean energy, not just large data centers.

As AI and digital demand grow, scaling renewables will be key. Partnerships like this help lay the foundation for a sustainable, carbon-free digital future.

Global EV Sales Jump 23% in October Despite Slowdown Claims

Aiden Green
-
0
Global EV Sales Jump 23% in October Despite Slowdown Claims

Electric vehicle (EV) sales surged worldwide in October 2025, rising 23% and brushing aside claims of a market slowdown. New data from Rho Motion shows global sales reached 1.9 million units in a single month. This rapid rise highlights a major shift in the automotive world as consumer interest leans toward cleaner transport.

While some headlines suggest fading momentum, the latest numbers show the opposite. EV adoption continues to expand across regions, backed by technology gains, government incentives, and rising environmental awareness.

EV sales
Source: Rho Motion

Global EV Boom Hits New Highs: What’s Behind It? 

China remains the global leader by a wide margin. In October alone, the country sold roughly 1.3 million EVs, accounting for more than half of global sales. The main driver is affordability. The price gap between EVs and gasoline cars keeps shrinking, making electric options attractive to everyday buyers.

China’s Pricing Advantage

Rho Motion data manager Lester noted that China’s pricing advantage makes EVs accessible to millions. Local manufacturing strength, broad incentives, and practical urban mobility policies give China a decisive edge.

Europe’s Clean Transport Policies

Europe showed remarkable growth too. Sales jumped 36% in October, reaching 372,786 units. Countries like Germany, France, and the UK saw major boosts from subsidies and growing concern over emissions. Policies aimed at cleaner transport and climate goals are reshaping buying behavior across the continent. Cultural acceptance of green mobility is rising, and EVs increasingly feel like the new normal for European drivers.

North America Shows Mixed Results

North America delivered a mixed picture. Sales dropped 41% compared to the prior two months after the federal 7,500-dollar EV tax credit expired. Without that incentive, buyers faced higher price tags, which slowed momentum. One analyst noted that the slowdown underscores the importance of incentives for adoption. Yet long-term investments in charging networks and improvements in battery performance continue to support future growth across the region.

Technology and Policy Are Accelerating EV Demand

The EV market’s strength comes from steady technological improvements and ongoing policy action. As of Q3 2025, the International Energy Agency reported that EVs reached 14% of new U.S. vehicle sales in September, the highest rate so far.

Battery ranges now average 293 miles, a 4% improvement over last year. Fast-charging speeds increased 7%, making EV ownership more convenient and reducing range anxiety.

EV Sales

Public charging networks also saw major upgrades in 2025. About 17,000 new charging ports came online this year, a 33% jump. Tesla opened its Supercharger network to most brands, marking a turning point for fast-charging access. With more stations and faster speeds, drivers feel more confident switching from gasoline to electric.

EV CHARGING network

Additionally, education programs, stronger warranties, and better resale options are helping build buyer confidence. For many drivers, switching to electric is becoming a practical choice rather than a risky one.

How EV Growth Is Influencing Carbon Markets

The rise in EV adoption is reshaping carbon markets around the world. Transportation produces about one-fifth of global emissions, so electrification has a direct impact on climate strategies. In Europe and parts of Asia, automakers must buy carbon credits if their fleets exceed emissions limits. Growing EV sales reduce that need, which lowers compliance costs and influences credit prices.

China and the European Union are leading in linking EV adoption to carbon trading. In China, pilot programs reward companies for meeting EV quotas by giving them easier access to carbon allowances. Some automakers are now trading these credits for revenue. One major Chinese EV producer exchanged 10,000 metric tons of carbon credits for 160,000 yuan, showing how electrification creates new economic opportunities.

As EV adoption rises, demand for voluntary carbon credits is also changing. Companies with net-zero goals see new chances in battery recycling, renewable energy projects, and other clean technologies. Because of this, carbon markets are evolving alongside the global shift to electric transportation.

Regional Standouts: Where Growth Is Most Impressive

China’s dominance is clear, but Europe’s rapid climb stands out. Germany delivered record EV sales in October, helping offset declines in gasoline car demand. Analysts at PwC Strategy& noted that steady EV performance has softened the impact of the broader auto slowdown. France and the UK also benefited from fresh incentives and growing consumer interest.

Rho Motion Data revealed the following figures:

Snapshot electric vehicle sales in YTD 2025 (Jan-Oct 2025) vs YTD 2024 (Jan-Oct 2024), YTD %

  • Global: 16.5 million, +23%
  • China: 10.3 million, +22%
  • Europe: 3.4 million, +32%
  • North America: 1.6 million, +4%
  • Rest of World: 1.3 million, +48%

Emerging markets surprised analysts as well. EV sales in smaller, developing countries rose 48% year over year. India saw more than 100,000 EV sales in October, worth about 11 billion rupees. These buyers represent a broader shift toward cleaner air and lower ownership costs as local manufacturers release more affordable models.

EV sales

Key Players Shaping the EV Industry

Automakers like BYD, Tesla, and Volkswagen continue to lead global electrification. Tesla sold more than 22,100 Cybertrucks in 2025, reinforcing its reputation for shaping consumer trends. Fleet operators, public transit agencies, and ride-share companies also increased their EV purchases to meet environmental goals and offset fuel costs.

Consumers themselves are the final force behind EV momentum. Families, professionals, and commuters see clear benefits in lower running costs, cleaner air, and better performance. With better battery ranges and faster charging, many concerns that once slowed adoption are fading.

What Comes Next for EV Markets?

Experts at the International Energy Agency say EVs could account for more than 60% of new car sales in major economies by 2030.

BloombergNEF also estimated that one in four new cars sold in 2025 will be electric. By 2030, that number could reach more than 40 million units a year. At this pace, EVs may permanently shift global industry economics and shape the future of carbon markets.

China Targets 80% EV Sales by 2030

  • IEA further reestablished the fact that China will dominate the EV market in the future as well. It’s on track for electric cars and vans to make up about 80% of total sales by 2030.

EV china

heavy duty electric vehicle China

To keep momentum, China has extended trade-in grants through 2025 and continued the NEV purchase-tax exemption until the end of 2027. The government also plans major charging-infrastructure expansion through 2030, focusing on residential areas, workplaces, industrial parks, and government buildings to match rising EV demand

In conclusion, by 2035, EVs may become the standard choice, supported by stronger carbon markets and broader industry collaboration.

Nickel Supply Shock: Indonesia’s 120M Ton Cut and Its Ripple on Carbon Markets

Aiden Green
-
0
Nickel Supply Shock: Indonesia’s 120M Ton Cut and Its Ripple on Carbon Markets

Indonesia has slashed its national nickel mining quota by 120 million tons for 2025. The country’s permitted production will drop from 272 million tons in 2024 to just 150 million tons. As the world’s top nickel producer, responsible for over 56% of global mined nickel, Indonesia’s move immediately shakes global supply chains. The policy also affects carbon markets tied to battery and industrial metals.

The Ministry of Energy and Mineral Resources says the reduction aims to preserve long-term resources and promote environmentally sustainable processing. But the decision carries wider consequences for downstream industries, international buyers, and global nickel pricing.

Why Indonesia Cut the Nickel Quota

Officials cited multiple reasons. First, the government wants to prevent over-extraction and protect strategic reserves. Second, it aims to shift from raw ore exports to higher-value products like nickel matte and Mixed Hydroxide Precipitate (MHP). These processed materials bring more revenue and support the booming electric vehicle (EV) battery sector.

Environmental concerns also played a role. Authorities want stricter compliance with ecological rules to limit habitat loss, water contamination, and other mining impacts. Miners must now meet tighter standards, or their quotas may be reduced further. Mining plan approvals, previously multi-year, are now reviewed annually, increasing regulatory oversight.

Historically, Indonesia’s quota ranged from 200 to 272 million tons. The 44% reduction in 2025 is unprecedented. However, S&P Global noted that, “Indonesia is still projected to more than double its production over the next decade to an estimated 4.97 MMt by 2035.“

nickel Indonesia

Analysts expect it will address oversupply issues that kept nickel prices in the $14,000–$16,000 per metric ton range this year.

Global Nickel Supply Chain Faces Shock

Indonesia’s decision reverberates worldwide. As the “swing producer,” any production change rapidly affects global inventories and prices. Early 2025 saw a temporary price slump from oversupply, but the quota cut is likely to tighten markets and trigger a price rebound.

Macquarie Group Indonesia’s reduction could cut global supply by 35%. This translates to over a third of global supply lost in a single year. Market analyst Adrian Gardner warns that temporary mine closures may occur if prices stay near or below production costs.

Disruption to EV Supply Chains

Nickel is vital for stainless steel and EV batteries. Indonesia supplies over a third of global EV nickel demand, so the quota cut could tighten raw material supply and push prices up. However, growing use of nickel-free alternatives like lithium-iron-phosphate (LFP) batteries—especially in China—may ease pressure. Battery makers and stainless steel producers are now evaluating risks from constrained supply amid strong demand.

GLOBAL NICKEL PRODUCTION

Winners and Losers of Indonesia’s Policy

Indonesia anticipates benefits at home. The shift toward processed nickel will attract investment and create domestic jobs. BloombergNEF estimates that local nickel processing and battery plant investments could exceed $15 billion over the next three years.

Export-focused miners face challenges. Smaller operators may see revenue drops, layoffs, and operational hurdles, especially in Sulawesi and Halmahera. Environmental groups have welcomed the move cautiously, urging strict enforcement to ensure promised ecological gains.

International buyers, particularly in China and the West, face tighter competition. China is expected to consume over 63% of primary nickel in 2025. EV and stainless steel manufacturers must secure supply while navigating price volatility.

Implications for Carbon Markets

Nickel’s supply changes have knock-on effects for carbon markets. Green nickel—produced under higher environmental standards—is becoming a key differentiator. Indonesia’s policy encourages cleaner processing methods, which could generate higher-quality carbon credits.

Western companies sourcing “clean nickel” for low-carbon steel and EV batteries may see costs rise. At the same time, the move may attract investment into green mining technology, supporting carbon offset programs.

Supply bottlenecks could increase the price of both nickel and associated carbon credits. Traders and intermediaries may find opportunities in a market that links commodity supply and decarbonization goals.

Nickel Price Volatility and Market Adaptation

The nickel market is already sensitive. Over 20% of global producers operate at a loss at prevailing prices near $15,000 per ton. Cutting a third of global supply may push prices higher and incentivize new investments.

Fundamentals remain complex. Stainless steel production in China rose 12% in early 2025, while battery nickel consumption grew 10–15%. However, total battery demand is still below earlier expectations. Analysts like Mark Selby at Canada Nickel Corp note that Western projects for sustainable nickel are accelerating, especially in Canada, Australia, and Brazil.

This quota cut serves as a wake-up call. Some industrial parks in Indonesia have already reduced external nickel ore forecasts by nearly 30% to adjust to supply constraints.

nickel prices

Will the Market Adapt?

Nickel prices fluctuated through 2025 but stabilized around $15,000 per ton by Q3. The International Nickel Study Group predicts global supply of 27.2 million metric tons versus demand of 27.3 million metric tons—a near balance after years of surplus.

Several factors heighten market risk. About a quarter of global supply operates at or below cash costs, risking mine closures. Chinese stockpiling surged 30% year-over-year, tightening markets further. Meanwhile, demand for EV batteries and stainless steel continues to grow, intensifying competition.

Western governments are investing in alternative sources. North America and Australia are seeing new mines and financing models. Battery makers increasingly prioritize sustainable nickel, adding complexity but promoting lower-carbon supply chains.

Analysts predict global battery-grade nickel demand could double by 2030. If Indonesia’s reduced output persists, competition for raw materials and carbon credits will intensify. Geopolitical and supply chain risks are likely to rise.

nickel demand and supply

Indonesia’s Strategic Pivot and Global Ripple Effects

Indonesia’s decision is more than a domestic policy—it reflects the challenges of critical minerals in the energy transition era. By limiting raw ore output and emphasizing processed nickel, the country is reshaping markets, investments, and carbon credit dynamics.

The reduction affects boardrooms, factories, and carbon markets worldwide. Companies must adapt, governments must secure alternative sources, and investors must anticipate volatility. In a market increasingly linked to decarbonization, Indonesia’s nickel policy highlights the global stakes of sustainable mining and energy transition strategies.

Nestlé to Plant 11 Million Trees in Brazil to Generate Carbon Credits and Boost Sustainability

Jennifer L
-
0
Nestlé to Plant 11 Million Trees in Brazil to Generate Carbon Credits and Boost Sustainability

Nestlé, the Swiss food and drink giant, has committed to two major restoration projects in Brazil to generate carbon credits. The company is working with re.green, a Brazilian restoration company, and chocolatier Barry Callebaut on these projects.

They aim to cut down Nestlé’s carbon footprint. At the same time, they aim to restore degraded lands, plant native trees, and support more sustainable supply chains for cocoa and coffee.

Planting Millions: Nestlé’s Brazil Projects

Nestlé’s deal with re.green focuses on restoring roughly 2,000 hectares in Bahia’s Atlantic Forest. Over a 30-year period, the project plans to plant around 3.3 million native trees.

Re.green estimates this will create around 880,000 tonnes of CO₂-equivalent in carbon credits. This is based on a strong ARR (Afforestation, Reforestation, and Revegetation) method.

In a second initiative, Nestlé and Barry Callebaut will work on 6,000 hectares across Bahia and Pará. This project will turn degraded land into a mixed agroforestry system—mainly cocoa trees plus native species.

The plan calls for planting 7.7 million seedlings over many years. This agroforestry system is expected to generate around 600,000 tonnes of carbon credits.

Altogether, Nestlé’s efforts in Brazil cover about 8,000 hectares and aim to plant roughly 11 million trees.

Nestle carbon credit deals Brazil

Why This Deal Matters for Climate and Business

This deal is strategically important for Nestlé on several fronts. First, it supports its climate goals. These project credits reduce carbon in the atmosphere. This helps Nestlé aim for net-zero emissions in the long run.

Second, the projects improve Nestlé’s supply chain resilience. Restoring landscapes where the company sources cocoa and coffee helps to keep these regions healthy.

Third, these are not just tree-planting projects. Restoration boosts biodiversity, enhances soil quality, safeguards water resources, and helps local communities. Using native species in the Atlantic Forest helps preserve one of Brazil’s most threatened biomes.

Finally, the deal is a signal of long-term commitment. Nestlé is more than just buying credits. It’s creating nature-based solutions that match its business and environmental goals.

Nestlé’s Roadmap to Net-Zero

  • Nestlé has set bold climate targets. The company aims to plant 200 million trees by 2030 and achieve net-zero greenhouse gas emissions by 2050.
Nestlé GHG emission reductions 2023
Source: Nestlé

In its 2024 Non-Financial Statement, Nestlé clarifies that it will not use carbon credits outside its value chain to achieve its main net-zero goals. Instead, it invests in nature-based solutions tied directly to its sourcing regions.

Nestlé uses rigorous approaches to estimate greenhouse gas removals. It accounts for tree growth, species types, soil differences, and uses field data and science-based models. It also meets global standards, like those from the Intergovernmental Panel on Climate Change (IPCC) and the GHG Protocol. This helps ensure transparency and accuracy.

In addition to reforestation, Nestlé partners on regenerative agriculture. For instance, it has a global agroforestry initiative with OFI (Olam Food Ingredients). This program will help 25,000 farmers in Brazil, Côte d’Ivoire, and Nigeria change their farms.

  • The plan includes planting 2.8 million trees and transforming more than 72,000 hectares into agroforestry systems over time.

These combined efforts show how Nestlé links carbon removal, biodiversity restoration, and sustainable farming to its broader climate strategy.

Nestlé’s Nescafé hit its 2025 target early by sourcing 32% of its coffee through regenerative agriculture in 2024. This gives it a strong lead toward the 2030 goal of 50%.

Nescafé 2025 sustainability goal
Source: Nescafé Plan 2030 Report

The company has invested over $1 billion. This supports more than 200,000 farmers on 400,000 hectares. They train these farmers in methods like shade trees, natural composting, and cover crops.

These practices help restore soil health and lower the need for chemicals. They have also cut greenhouse gas emissions by 20-40% per kilogram of green coffee. They also help Nestlé reach its goal of halving production-related emissions by 2030 and achieving net-zero by 2050.

Backing the Green: Funding and Market Momentum

These reforestation deals come amid strong momentum in Brazil’s nature-based carbon sector. The Brazilian Development Bank (BNDES) approved an $85 million loan for ARR projects. These projects should create about 2.47 million carbon credits.

Meanwhile, re.green itself has won fresh financing. It secured 80 million reais (approx. US$14 million) from BNDES, with Bradesco as a financial partner. The deal helps re.green scale up restoration in key biomes.

Credits from ARR projects in Brazil, especially those using high-quality methods, should trade for around $55 per tonne of CO₂ equivalent. This carbon price can vary based on deal structures.

This shows that both public and private resources are flowing into nature-based carbon solutions. For Nestlé, joining this trend offers both environmental benefits and strategic value.

Impact for Business and Nature

These contracted projects by Nestlé have a significant impact on business and nature:

  • Credible Carbon Removal:
    Nestlé is funding long-term restoration projects linked to its supply chain. This helps create high-integrity carbon credits instead of just buying generic ones.
  • Sustainable Sourcing:
     Restoring tree cover in cocoa and coffee regions strengthens the ecological base of Nestlé’s ingredient supply.
  • Corporate Climate Leadership:
     This move positions Nestlé as a leader in tying net-zero goals to meaningful, nature-based actions.
  • Market Signal:
     Big corporate deals like this could drive more investment in restoration. This would boost Brazil’s carbon credit market and increase the supply of high-quality nature credits.

What Could Go Wrong? Nestlé’s Bold Step in Carbon Leadership

While this initiative is ambitious, its success depends on several factors. Tree survival over decades is crucial: saplings must grow, persist, and avoid being lost to fires or land-use changes. Long-term monitoring is needed to make sure the credits represent real removal.

Also, the permanence and additionality of the credits matter. Observers will watch how re.green, Nestlé, and their auditors ensure that the forest does not revert and that the project would not have happened without this financing.

Finally, the social dimension is important. Local communities must benefit, and land rights and governance issues should be handled transparently. Without community support, restoration projects often struggle.

Nestlé’s carbon credit deal with re.green and Barry Callebaut marks a significant and strategic step in its climate journey. Its net-zero strategy focuses on nature-based solutions, backed by careful accounting and long-term commitments. Public and private investors in Brazil’s carbon market are also backing this shift.

If the projects succeed, they could show big companies how to scale regenerative landscapes. This approach can help not only to offset emissions but also to build stronger business foundations.

1...181920...246Page 19 of 246