DevvStream and UAE Platform’s Alliance Targets $100M Carbon Investment by 2027

Jennifer L
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DevvStream and UAE Platform’s Alliance Targets $100M Carbon Investment by 2027

A Canadian carbon management company, DevvStream Corp., and a United Arab Emirates (UAE) investment platform have joined forces to launch a new climate investment vehicle. The goal of the partnership is to build a US$100 million fund by the end of 2027 to invest in environmental assets. These include carbon solutions, decarbonization, and technologies that support the global energy transition.

The new vehicle, called the Fayafi x DevvStream Investment Platform, seeks to bring in capital. It will help scale impactful projects in various carbon and climate initiatives. DevvStream’s carbon asset know-how and Fayafi’s financial strength will team up. They will build a global investment engine for environmental infrastructure and carbon solutions.

Inside the Fayafi–DevvStream Investment Platform

DevvStream and Fayafi Investment Holding Limited, based in the Dubai International Financial Centre (DIFC), have signed an investment agreement. They will create a jointly governed special purpose vehicle (SPV).

The SPV’s main objective is to pursue scalable, high-impact decarbonization opportunities. It is targeted to reach $100 million in capital commitments by 2027, though this remains a non-binding target rather than a guarantee.

The vehicle will focus on several areas, including:

  • Environmental infrastructure,
  • Carbon credit solutions and monetization,
  • Climate-related technologies

Fayafi is expected to hold 80% of the economic interest in the SPV, while DevvStream will hold 20%. Most profits from investments and carbon credit revenues are expected to go to Fayafi. The rest will be distributed to DevvStream.

An Investment Committee with representatives from both partners will review and approve funding decisions. A Fayafi representative will serve as Chair of this committee. DevvStream will charge a one-time setup fee once the platform is approved. It will also receive ongoing consulting fees based on a percentage of assets used in the fund.

Why This Deal Matters for Carbon Markets

The launch of the Fayafi x DevvStream Investment Platform comes at a time when carbon markets and environmental assets are gaining traction. More companies, governments, and investors want to fund climate solutions. They are looking for options beyond just cutting emissions. Projects related to carbon capture, carbon markets, clean energy, and decarbonization infrastructure are drawing interest from a wider set of financial players.

DevvStream itself specializes in handling, aggregating, and monetizing environmental assets such as carbon credits and renewable energy certificates. This lets the company handle and create climate investments within larger sustainability plans.

Carbon credits are units that represent a reduction or removal of greenhouse gas emissions. They can be bought and sold in voluntary and compliance markets.

Carbon credit demand is set to rise. Companies aim for net-zero targets, and regulators are tightening rules on climate reporting and carbon offsets.

projected global carbon credit market 2050

The chart shows the projected global carbon credit market size from 2025 to 2050. The green range shows lower and upper bounds, reaching $50–$250 billion by 2050 (2024 prices). Growth depends on demand: high demand with loose supply drives the market to the upper bound, while low demand with loose supply results in the lower bound.

Another projection says it could reach up to $270 billion by 2050. This prediction of market growth reflects the rising corporate demand for nature-based and technology-based environmental asset solutions. DevvStream and Fayafi are building platforms to tap into this growing market. They focus on linking finance with clear climate results.

DevvStream’s Expanding Role in Climate Assets

DevvStream started in 2021. It focuses on carbon management and monetizing environmental assets. The company works across three strategic domains:

  1. Carbon offset portfolios: including nature-based, tech-based, and carbon sequestration credits for sale to corporations and governments.
  2. Project investment and acquisition: helping to extend its reach into broader environmental markets.
  3. Project development services: where it structures and manages eligible climate and sustainability activities in exchange for a percentage of generated credits.

This model allows DevvStream to provide full support, from project development to monetization. By teaming up with Fayafi to scale investments, the company can boost its opportunities and increase steady revenue from advisory and asset management roles.

Devvstream carbon credit process
Source: Devvstream

DevvStream has also been active in other strategic moves. In late 2025, it teamed up with Southern Energy Renewables and agreed to merge into a Nasdaq-listed company. This new company will focus on producing low-cost, carbon-negative fuels like sustainable aviation fuel (SAF) and green methanol.

The plan features a $402 million bond allocation for a biomass-to-fuel facility in Louisiana. This move will boost the company’s role in carbon-negative industries.

Market Forces Powering Climate Capital

Many market trends are shaping the launch of climate investment vehicles that DevvStream and Fayafi are creating. 

Corporate net-zero commitments are a major driver. Many multinational companies now aim to reach net-zero greenhouse gas emissions by 2050 or sooner. To meet these goals, they mix direct emissions cuts with clean energy buying. They also purchase environmental assets like carbon credits. This corporate demand boosts liquidity. It also supports investment platforms that create and manage climate-aligned assets.

Policy changes and ESG reporting standards are also pushing growth. Governments and regulators in developed and emerging markets are improving climate reporting rules. This trend increases the demand for verified environmental assets that help firms demonstrate progress toward emissions targets.

Another key trend is the rise of carbon markets themselves. Both compliance markets (such as the EU Emissions Trading System) and voluntary markets are expanding. Voluntary markets have challenges with pricing and standardization.

Still, they are vital for companies looking to offset and eliminate residual emissions. Research shows that the ecosystem for environmental asset investment is growing. This growth opens doors for financial products that blend climate impact with returns.

Climate Finance Market: Size, Trends, and Outlook

Global climate finance continues to expand, but it still falls short of what is needed. In 2024, global climate finance flows reached over $1.8 trillion in 2023 and will surpass $2 trillion in 2024, based on Climate Policy Initiative (CPI) data. Most of this funding goes to clean energy, transport, energy efficiency, and climate-resilient infrastructure. Private investors now provide more than half of total climate finance.

Despite this progress, the funding gap remains large. Analysts estimate that annual climate investment must rise to $5 trillion to $7 trillion by 2030 to meet global climate goals. This means current funding would need to increase several times within the next few years.

global climate finance investment gap CPI

Carbon markets form a smaller but growing part of climate finance. Most future growth is expected in emerging markets, where mitigation costs are lower but access to capital is limited. This has increased interest in structured climate investment vehicles.

In this context, initiatives like DevvStream’s joint platform targeting $100 million by 2027 reflect a broader push to channel private capital into scalable carbon mitigation projects and close global climate finance gaps.

What This Deal Means for Climate Finance

The Fayafi x DevvStream Investment Platform will target:

  • Environmental infrastructure
  • Carbon solutions
  • Technologies that support climate goals

This initiative fits with the growing trend in sustainable investing. Corporations, governments, and financial firms are putting more money into environmental assets. They aim to meet net-zero goals. Though achieving a $100 million target is still a forecast, this partnership is a big step in climate finance growth.

Carbon Credit Offtakes Surge in 2025: What the $12B Says About the Future Market?

Jennifer L
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Carbon Credit Offtakes Surge in 2025: What the $12B Says About the Future Market?

Offtake agreements became one of the strongest signals in the carbon credit market in 2025. While spot market activity slowed, long-term commitments surged. These deals revealed how buyers think about future supply, quality, and risk.

The contrast is striking. The spot market remains large in volume but low in value. The forward market is small in volume but very high in value. This gap tells an important story about where the carbon credit market is heading.

A Record Year for Offtake Value, Not Volume

In 2025, companies announced carbon credit offtake agreements worth about $12.25 billion, according to Sylvera’s report. This was a sharp increase from around $3.95 billion in 2024. It was also more than 12x the value of credits retired on the spot market during the same year.

Carbon credit offtake infographic
Data source: Sylvera

This growth did not come from higher volumes. The total credits covered by these deals amount to roughly 78 million tonnes, spread across many years. On average, these agreements are expected to deliver only about 10 million credits per year through 2035.

To put this in context, the spot market retired about 168 million credits in 2025 alone. This means offtakes represent less than 10% of current annual retirements.

carbon credit offtakes annual 2025 Sylvera
Source: Sylvera

This mismatch matters. It shows that the forward market is not about scale today. It is about securing future supply that meets higher standards. Buyers are not chasing large volumes. They are targeting specific credit types with strong integrity signals.

The value growth reflects high carbon prices, not high quantities. The weighted average price implied by offtake deals in 2025 was around $160 per credit. This is far above the spot market average of roughly $6 per credit.

carbon prices spot vs offtake
Source: Sylvera

Why Buyers Are Willing to Pay a Premium Upfront

The forward market price premium reflects several structural factors.

  • Carbon removals dominate offtake deals: 
    Most credits covered by offtake agreements are carbon removal credits, not avoidance credits. These include direct air capture, biochar, BECCS, and mineralization. These technologies are costly and still scaling.

  • Net-zero targets drive long-term planning:
    Companies face growing pressure to meet net-zero goals. Many now acknowledge that emissions cuts alone will not eliminate all emissions. They expect to use removals to address residual emissions in the 2030s and beyond.

  • Future supply remains uncertain:
    Few carbon removal projects operate at a commercial scale today. Delivery risks remain high. Offtake agreements help buyers reduce exposure to future shortages and price spikes.

  • Policy signals reinforce buyer behavior:
    Updated guidance from standard setters and the expansion of compliance markets point to rising demand for high-integrity credits. Buyers anticipate stronger competition for a limited supply.

As a result, buyers accept high prices today to manage future risk. These prices reflect expected scarcity, not current market conditions.

A Highly Concentrated Landscape: Few Players, Big Moves

The offtake market in 2025 was not broad-based. It was highly concentrated.

A small group of buyers accounted for most of the value and volume. Among them, Microsoft dominated the durable carbon removal market. The company accounted for about 85% of the total durable removal offtake volume announced in 2025.

carbon credit offtake announced annual by buyer
Source: Sylvera

Other large buyers included technology firms, energy companies, and buyer coalitions such as Frontier. However, the overall number of active offtakers remained limited. Estimates suggest only 100 to 200 buyers participated meaningfully in the forward market.

This concentration reflects both cost and complexity. Offtake agreements require long-term commitments, strong balance sheets, and the ability to manage delivery risk. Many companies are not ready to take on these challenges.

In contrast, the spot market remains much broader. It involves thousands of buyers and a wide range of project types. Prices are lower. Entry barriers are minimal.

This divide suggests that the forward market is not replacing the spot market. Instead, it operates alongside it, serving different needs and buyers.

What the Volume Gap Tells Us About Market Structure

The gap between offtake value and volume sends a clear signal about market structure.

The carbon credit market does not suffer from a lack of credits overall. Instead, it suffers from a lack of credits that buyers trust for future use.

Inventory data supports this view. Credits rated BBB or higher have been in deficit since 2023. In 2025, this deficit continued for a third year. Lower-rated and unrated credits, by contrast, remained heavily oversupplied.

Offtake buyers focus almost exclusively on the scarce segment. They prefer credits with strong durability, clear additionality, and future compliance potential. Many of these credits do not yet exist at scale.

This explains why high prices do not translate into high volumes. Project developers face long development timelines. New technologies require capital, permitting, and verification. Nature-based removal projects also take years to mature.

As a result, the forward market reflects future expectations, not current supply. It prices scarcity before it appears in the spot market.

What Offtakes Signal for 2026 and Beyond

Offtake agreements offer several insights into the near-term outlook.

  • First, they suggest that quality premiums will persist. Even if spot prices remain low for lower-quality credits, prices for high-integrity projects are likely to rise. Buyers are already anchoring expectations at much higher levels.
  • Second, they show that carbon removal credits will shape long-term demand, even if near-term retirements remain small. Investment and offtake activity indicate confidence that removals will play a central role after 2030.
  • Third, they highlight growing competition between voluntary and compliance demand. As markets converge, credits eligible for compliance use may attract both types of buyers. This will further tighten supply for premium projects.
  • Fourth, they suggest that the total market value could grow without higher volumes. If even a small share of spot market demand shifts toward higher-priced credits, overall spending could increase significantly.

However, risks remain. Delivery delays, policy uncertainty, and technology challenges could slow progress. The forward market remains narrow and exposed to concentration risk.

For now, offtakes function as a price and preference signal, not a volume driver. They show where the market wants to go, even if it cannot get there yet.

The offtake buyer behavior reflects bigger changes in how companies view carbon credits. Price alone no longer defines value. Credibility, durability, and future eligibility now matter most.

As the market moves into 2026, offtake agreements will continue to shape expectations. They do not replace the spot market, but they signal where demand, pricing, and strategy are heading in the years ahead.

USA Rare Earth (USAR) Stock Soars After $3.1B Funding Boost for Mine-to-Magnet Buildout

Saptakee S
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USA Rare Earth (USAR) Stock Soars After $3.1B Funding Boost for Mine-to-Magnet Buildout

USA Rare Earth, Inc. (Nasdaq: USAR) has taken a major step toward reshaping America’s rare earth industry. The company announced a non-binding Letter of Intent (LOI) with the U.S. Department of Commerce under the CHIPS Act, alongside a collaboration with the U.S. Department of Energy (DOE). Together with a large private investment, the move could bring $3.1 billion in total capital to the company.

This funding supports USAR’s goal to build a fully domestic, mine-to-magnet platform—from raw materials to finished magnets—critical for national security, clean energy, semiconductors, and advanced manufacturing.

usar magnet
Source: USAR

Barbara Humpton, Chief Executive Officer of USA Rare Earth

“This landmark collaboration with the U.S. Government represents a transformative step in USAR’s mission to secure and grow a resilient, independent domestic rare earth value chain. We are grateful to President Trump, Secretary Lutnick, and Secretary Wright for their support and recognition of the strategic importance of rare earth materials and permanent magnets. With this unprecedented show of public and private support for our Company, we are positioned to accelerate the build-out of important domestic capabilities that are essential to U.S. national security, global economic competitiveness, and critical technologies of the future.”

CHIPS Act Support Underscores Strategic Importance

Under the LOI, the Department of Commerce’s CHIPS Program outlined support totaling $1.6 billion. This includes $277 million in proposed federal funding and a $1.3 billion senior secured loan under the CHIPS Act

In addition, USAR would issue 16.1 million common shares and about 17.6 million warrants to the Department of Commerce.

While the LOI is non-binding and subject to further diligence, approvals, and final agreements, it highlights the U.S. government’s growing focus on securing domestic supplies of rare earth elements and critical minerals.

These materials are essential for semiconductors, defense systems, aerospace applications, electric vehicles, and energy technologies—sectors where the U.S. currently relies heavily on imports.

$1.5 Billion PIPE Brings Total Capital to $3.1 Billion

Alongside government support, USA Rare Earth announced a $1.5 billion private investment in public equity (PIPE). The deal is anchored by Inflection Point, with participation from large mutual fund groups and other strategic investors.

Key details of the PIPE transaction include 69.8 million shares issued at $21.50 per share. The expected closing date is January 28, 2026, subject to standard conditions

If completed, the PIPE and the proposed CHIPS Act funding would give USAR the financial firepower to accelerate development across mining, processing, metal-making, and magnet manufacturing.

USAR’s Round Top Project Aims to Power U.S. Tech and Defense by 2030

The capital is expected to fast-track USAR’s long-term growth strategy, centered on its Round Top rare earth and critical minerals project in Texas and its downstream manufacturing assets.

By 2030, the company aims to:

  • Extract 40,000 metric tons per day of rare earth and critical mineral feedstock from Round Top, with commercial production targeted for 2028
  • Process 8,000 metric tons per year of third-party mixed rare earth concentrates and heavy rare earth elements (HREEs), including dysprosium, terbium, yttrium, gadolinium, hafnium, and gallium
  • Reshore 10,000 tons per year of heavy rare earth metal and alloy production—capabilities that currently do not exist in the U.S.
  • Expand NdFeB magnet production to 10,000 tons per year, more than double earlier plans
  • Recycle 2,000 tons per year of magnet swarf, improving material efficiency

Many of these elements are critical for chips, defense systems, aerospace components, and clean energy infrastructure—and are largely unavailable from domestic sources today.

USAR USA Magnet rare earth
Source: USAR

Q4 2025: Key Milestones Reached

USA Rare Earth also shared several operational updates for the fourth quarter of 2025, showing steady execution.

Major highlights included:

  • Completion of the Round Top process flow sheet, validated through pilot-scale testing
  • Acceleration of Round Top’s production timeline to late 2028, two years earlier than planned
  • Progress toward commissioning the Stillwater, Oklahoma magnet facility in Q1 2026
  • Completion of the acquisition of Less Common Metals Ltd. (LCM), a specialist in rare earth metals and alloys

LCM has already strengthened USAR’s downstream position by forming strategic supply agreements with Solvay, Permag, and Arnold Magnetic Technologies.

After the quarter ended, USAR also announced plans for a 3,750-ton-per-year metal and alloy plant in France, and selected Fluor Corporation and WSP Global as EPCM partners for Round Top.

USAR Stock Rallies Above 15%

Following this announcement, USA Rare Earth’s shares jumped more than 15% during the day, rising to $28.57 from the previous close of $24.77. At one point, the stock even reached nearly $32.

The stock had climbed as much as 27% earlier in the session, following strong gains of 9% and 17% over the previous two trading days.

USAR stock
Source: Yahoo Finance

Why Rare Earths Matter More Than Ever

Rare earths are not actually rare in nature, but economically viable deposits are limited. As per USGS data, in 2024, the U.S. produced about 45,000 tons of rare earth oxide in mineral concentrates, valued at roughly $260 million. Most production came from the Mountain Pass mine in California.

rare earth
Source: USGS

Even so, the U.S. still imported around $170 million worth of rare earth compounds and metals in 2024. Many rare earths also enter the country embedded in finished goods, especially permanent magnets.

Measured and indicated rare earth resources are estimated at 3.6 million tons in the U.S. and over 14 million tons in Canada, underscoring the long-term potential—if domestic processing and manufacturing capacity can be built.

U.S. Rare earth
Source: USGS

Thus, USA Rare Earth’s proposed $3.1 billion capital package marks a clear shift in how the U.S. approaches critical minerals. Instead of relying on fragmented supply chains, the focus is moving toward fully integrated, domestic systems.

If finalized, the CHIPS Act support and PIPE financing could position USAR as a cornerstone of America’s rare earth ecosystem—helping close supply gaps, reduce import dependence, and support industries vital to economic growth and national security.

For the U.S. rare earth sector, this announcement may prove to be a defining moment.

Last but not least, U.S. Energy Secretary Chris Wright hailed President Trump, saying:

“Thanks to President Trump’s leadership, the Department of Energy is ending America’s reliance on foreign nations for the critical materials essential to our economy and national security. The DOE is partnering with USAR to rebuild the critical minerals supply chain. By expanding domestic mining, processing, and manufacturing capabilities, we are creating good-paying American jobs and safeguarding our national security.”

$100B at Stake: New Joint Venture Builds Digital Backbone for Article 6 Carbon Markets

Jennifer L
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$100B at Stake: New Joint Venture Builds Digital Backbone for Article 6 Carbon Markets

A new joint venture has launched to help countries enhance carbon mitigation efforts under Article 6 of the Paris Agreement. This partnership includes various technology and sustainability firms, including Aleria, Tawasal, and Xange.com. They aim to build digital systems and tools for a carbon mitigation pipeline worth over US$100 billion.

The funding focuses on forest and nature-based internationally transferred mitigation outcomes (ITMOs). Article 6 outlines rules for global cooperation on climate action through carbon markets.

The collaboration will help governments track emissions cuts. It will also verify climate actions and share mitigation results clearly. It will also develop digital infrastructure to promote high-integrity carbon credits and environmental assets across regions like Africa, South America, the Middle East, and Asia.

What the Joint Venture Will Do

The joint venture includes three partners with distinct expertise:

  • Aleria: A specialist in artificial intelligence (AI) and data.
  • Tawasal: A UAE-based super app platform.
  • Xange.com: An environmental intelligence software provider.

They will work together to build digital systems for carbon accounting and ITMO transfers. This will help governments and project developers. Their tools include monitoring, reporting, and verification (dMRV) systems to capture verified mitigation data. They will also introduce a global infrastructure solution called GEMIS for policy-aligned project management.

A central registry and settlement platform will enable countries to track and transfer mitigation outcomes. This system will help governments manage carbon mitigation results from international trade. It follows the rules of Article 6 and will have a financial custodian bank in Chicago to host and oversee the settlement system.

The joint venture will connect its systems to millions of users through Tawasal’s platform. This includes payment systems from partners like Gnosis and Noxxo. They support transactions across different regions.

Eric Leandri, CEO of Aleria and Tawasal remarked during the Davos announcement:

“Article 6 requires governments to operate credible registries, data systems, and settlement processes under national authority. This joint venture focuses on delivering the technical infrastructure needed to support compliant accounting, monitoring, and transfer of mitigation outcomes. By combining Aleria’s sovereign data capabilities, Tawasal’s digital platform, and Xange.com’s market infrastructure, we are enabling countries to implement Article 6 mechanisms in line with Paris Agreement requirements.”

Why Article 6 Needs Strong Digital Infrastructure

Article 6 of the Paris Agreement provides a framework for countries to work together on emissions reductions. It has three main parts:

  1. Article 6.2: Rules for accounting and trading of ITMOs.
  2. Article 6.4: A new mechanism for high-quality carbon credits and emissions reductions.
  3. Article 6.8: Non-market methods for climate action without trading emissions units.

Article 6 allows countries and companies to collaborate by transferring emissions reductions across borders. These transfers count toward climate targets known as Nationally Determined Contributions (NDCs). A strong digital tracking system is essential to prevent errors like double-counting.

The Paris Agreement diagram
Source: UNFCCC

International carbon market cooperation under Article 6 is growing. For instance, Singapore signed an agreement with Papua New Guinea in 2023. This deal enables the two countries to generate and trade carbon credits toward their climate targets.

African nations, like Rwanda, are also preparing to engage with Article 6 mechanisms and carbon markets. They are developing national frameworks and enhancing institutional capacity.

Countries like Indonesia and Norway are participating in Article 6 cooperation as well. At COP30, they talked about carbon trading deals. These could involve up to 90 million tonnes of CO₂ reductions. So far, 12.5 million tonnes are already committed.

These developments highlight the need for strong registry systems and verification infrastructure for effective international climate cooperation.

Carbon Credit generation article 6
Source: UNFCCC

Digital MRV and Registries: The Market’s Missing Link

Successful carbon markets depend on accurate data and transparent tracking. The joint venture’s digital tools will help countries meet Article 6 requirements for emissions accounting. Key components include:

  • dMRV tools: Capture verified emissions data and spot environmental risks.
  • ITMO registry: A platform for recording, authorizing, and transferring mitigation outcomes.
  • Settlement systems: Secure systems for transferring and ensuring transparency.

These tools are crucial because accurate tracking of mitigation outcomes is a requirement under Article 6. Countries must show that carbon credits or ITMOs represent real reductions. Without reliable systems, countries can’t trust transfers to meet climate goals.

This project helps build the Article 6 registry infrastructure by the United Nations Framework Convention on Climate Change (UNFCCC). In 2026, the UN started building systems to track mitigation outcomes. This includes international registries that help national systems work together to enhance transparency and confidence in carbon markets.

Global Momentum Behind Article 6 Cooperation

The JV has identified a pipeline of over US$100 billion in forest and nature-based outcomes aligned with the Paris Agreement. This figure reflects the projected value of various mitigation activities eligible for Article 6 cooperation.

Article 6 cooperation could unlock both private and public funding for climate mitigation.  For example, Singapore started a public tender for at least 0.5 million metric tons of high-quality, nature-based carbon credits under Article 6. This is part of Singapore’s plan to reduce emissions to about 60 million metric tons of CO₂ equivalent by 2030. It estimates needing around 2.51 million metric tons of ITMOs annually from 2021 to 2030 to meet its targets.

singapore carbon trading hub
Source: The Straits Times

Countries are also establishing bilateral and multilateral cooperation on Article 6. For instance, Zambia signed a cooperation agreement with Switzerland at COP30 in 2025 to set up frameworks for trading carbon credits. This deal aims to support climate mitigation projects and financing in Zambia.

Market analysts note that over 120 countries are willing to use Article 6 instruments for their NDCs. These countries recognize that cooperation can lower costs by allowing more effective climate action. Capacity-building programs under the UN Environment Programme aim to help developing countries engage in international carbon markets.

Integrity, Regulation, Risks, and Market Outlook 

While interest in Article 6 markets is strong, challenges remain. Some project developers have raised concerns about retroactive changes to market rules. Standards bodies, like the Gold Standard, suggest new alignment requirements for Paris compliance. Developers warn that applying these rules retroactively could create uncertainty for existing projects. Stable rules are crucial for long-term investment in mitigation.

Another challenge is ensuring the integrity of mitigation outcomes. Countries and buyers need assurance that carbon credits or ITMOs reflect real emissions reductions. Article 6 systems aim to minimize risks like overestimation, but more work is needed as markets evolve.

Despite these challenges, the market outlook for Article 6 cooperation is substantial.  Projections from the University of Maryland and IETA estimate over $100 billion in annual trading by 2030. This matches wider industry forecasts. The CAREC Program sees Article 6 boosting the carbon market to $250 billion.

ITMOs article 6 carbon credits market estimate
Source: UNFCCC

Also, Oxford Energy Studies expects annual demand to exceed 700 MtCO₂e. This demand is driven by NDC gaps and the growth of bilateral ITMO.

What This JV Signals for Future Carbon Markets

The new joint venture aims to support a US$100 billion carbon mitigation pipeline under Article 6 of the Paris Agreement. It will help countries create digital systems for tracking, reporting, and transferring ITMOs.

Creating registries, using digital monitoring, and ensuring secure settlement systems are key to building trust in carbon markets. Governments and markets are already building capacity. An increase in bilateral agreements and registry infrastructure indicates stronger adoption ahead.

The joint venture’s pipeline estimate signals significant investment potential in forestry and nature-based mitigation. While challenges exist, the emerging Article 6 ecosystem aims to unlock funding that helps countries meet climate goals with integrity and transparency.

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

Saptakee S
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0
General Fusion’s Nasdaq Listing Pushes Fusion Energy Into the Market Spotlight

Fusion energy has spent decades on the sidelines of the global energy system. Scientists praised its potential, policymakers admired its promise, and investors waited patiently for proof that it could work outside the lab. Now, that long wait appears to be ending.

General Fusion’s planned listing on Nasdaq marks a clear shift in how fusion energy is viewed. The Vancouver-based company has agreed to merge with Spring Valley Acquisition Corp. III, a move that would make it the world’s first publicly traded pure-play fusion energy company. Once the deal closes, General Fusion is expected to trade under the ticker symbol GFUZ.

More importantly, the transaction signals that fusion is moving beyond theory. It is stepping into capital markets, where timelines, costs, and performance matter.

AI, Electrification, and Data Centers Are Driving a New Energy Boom

Electricity demand is rising faster than grids can comfortably handle. According to the International Energy Agency, global power demand could grow by 40-50% by 2035.

This surge is not coming from a single source. Instead, it reflects a mix of electrified transport, electric heating, advanced manufacturing, and rapid digital expansion.

At the same time, artificial intelligence has become a major driver of energy. Data centers now consume enormous amounts of electricity, and demand continues to climb. In the United States, the Department of Energy estimates that data center power use could double or even triple by 2028.

Solar and wind have expanded quickly and remain essential to decarbonisation. However, they depend on the weather and daylight. Batteries help smooth supply, but they cannot yet support large-scale, long-duration demand on their own. As a result, the need for clean, reliable baseload power is becoming urgent.

This is where fusion enters the conversation.

fusion energy generation
Source: General Fusion

Why Fusion Energy Stands Apart

Fusion works by combining light atoms, usually hydrogen isotopes, to release energy. It is the same process that powers the sun. Unlike nuclear fission, which splits heavy atoms and produces long-lived radioactive waste, fusion generates far less waste and carries no risk of meltdown.

The International Atomic Energy Agency estimates that fusion can produce four times more energy per unit of fuel than fission and nearly four million times more energy than coal or oil. Just as important, fusion fuel is abundant and widely available.

These features make fusion attractive not just as a clean energy source, but as a foundation for long-term energy security.

general fusion
Source: General Fusion

General Fusion’s Different Path to Fusion Power

While many fusion developers rely on massive superconducting magnets or powerful laser systems, General Fusion has taken a different route. The company focuses on Magnetized Target Fusion, or MTF, a design intended to simplify fusion hardware and reduce costs.

MTF creates a hot plasma and stabilises it with magnetic fields. Then, instead of squeezing the plasma with magnets or lasers, the system mechanically compresses it using a liquid lithium liner. This rapid compression raises temperature and pressure to fusion conditions.

General Fusion argues that this approach avoids some of the complexity that has slowed other fusion concepts. It also allows the use of existing industrial materials, rather than highly specialised components. Over time, this could make fusion power plants more durable and more affordable.

LM26 Marks a Critical Step Forward

In early 2025, General Fusion announced a major milestone. The company had designed, built, and begun operating Lawson Machine 26, known as LM26. This system represents the world’s first large-scale MTF fusion demonstration built at a commercially relevant size.

LM26 operates at half the diameter of a future commercial reactor. It mechanically compresses plasma using a lithium liner, closely mirroring how a full-scale plant would function. The machine aims to reach several critical technical targets, including heating plasma to 10 million degrees Celsius, then to 100 million degrees Celsius, and ultimately achieving the Lawson criterion.

Reaching the Lawson criterion matters because it defines the conditions required for net fusion energy within the plasma. General Fusion plans to use proceeds from the SPAC transaction to advance LM26 testing and move closer to that goal.

General Fusion
Source: General Fusion

Two Decades of Work Behind the Headlines

The company has spent 20 years developing fusion technology, steadily building both scientific credibility and engineering expertise.

During that time, General Fusion assembled a strong intellectual property portfolio, with more than 210 patents issued or pending. It also became one of only a few private fusion companies worldwide to publish peer-reviewed fusion results. Since its founding, it has raised more than US$400 million from institutional investors, strategic partners, venture firms, and government programs.

This long track record helps explain why investors are willing to back the company as it moves into public markets.

General Fusion’s Big Leap into Public Markets

The proposed business combination with Spring Valley Acquisition Corp. III implies a pro-forma equity value of roughly US$1 billion. The transaction includes about US$105 million from a committed and oversubscribed PIPE financing, along with US$230 million from SVAC’s trust account, assuming no redemptions.

The companies expect to complete the transaction in mid-2026, pending regulatory and shareholder approvals. After closing, the combined business plans to operate under the General Fusion name and list its shares and warrants on Nasdaq.

Spring Valley brings deep experience in energy and nuclear markets. Its leadership team has completed dozens of energy and decarbonization transactions and previously helped take NuScale Power public, marking the first listing of a small modular reactor company.

Strong Market Tailwinds Support Fusion

Beyond company-specific progress, broader market forces are pushing fusion forward. Electricity demand continues to rise as economies electrify. Governments are searching for clean energy sources that do not compromise grid stability.

Meanwhile, large technology firms are actively seeking reliable, carbon-free power to support AI growth.

  • Industry estimates suggest the fusion energy sector could reach between US$40 billion and US$80 billion by the mid-2030s. If commercial deployment accelerates, the market could exceed US$350 billion by 2050.

Early fusion plants will likely focus on grid-scale baseload electricity, with hydrogen production and industrial heat applications following later.

general fusion
Source: General Fusion

However, General Fusion’s Nasdaq move does not mean fusion power is ready for mass use yet. The technology still faces major challenges, including scaling reactors, improving materials, and proving long-term reliability.

Still, the listing marks a turning point. Fusion is shifting from a scientific experiment to a real commercial contender. Public markets will bring more funding, clearer timelines, and stronger scrutiny.

The next decade will determine whether fusion can move from demonstrations to operational power plants. With electricity demand rising and clean baseload options limited, fusion is finally stepping into the spotlight. The fusion era is no longer just an idea — it is starting to take shape.

Trump’s Davos Nuclear Endorsement Powers a Rally in Oklo, SMRs, and Atomic Stocks

Jennifer L
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Trump’s Davos Nuclear Endorsement Powers a Rally in Oklo, SMRs, and Atomic Stocks

At the 2026 World Economic Forum in Davos, U.S. President Donald Trump spoke in support of nuclear energy. His remarks highlighted nuclear power as a key part of energy security and clean energy supply, saying:

“We’re very much into the world of nuclear energy, and we can have it now at good prices and very, very safe…the progress they’ve made with nuclear is unbelievable, and the safety progress they’ve made is incredible…”

After these comments, nuclear and uranium stocks moved higher in early trading. Investors showed renewed interest in nuclear companies, especially those developing advanced technologies like small modular reactors (SMRs).

Stocks such as Oklo Inc. (NYSE: OKLO), NuScale Power (NYSE: SMR), and Nano Nuclear Energy (NASDAQ: NNE) saw price increases as traders responded to the pro-nuclear sentiment. This trend shows how energy markets are changing.

Many investors now view nuclear energy as a stable, low-carbon power source. This is important as demand grows from data centers and industries.

Oklo Takes Center Stage in the Nuclear Trade

Oklo has become one of the most-watched nuclear stocks in 2025. Oklo’s shares jumped after it signed a big deal with Meta Platforms. They plan to build a 1.2 GW advanced nuclear energy campus in Pike County, Ohio.

The deal positions Oklo to supply clean, reliable power for Meta’s data centers. Analysts described this binding agreement as reducing some business risks for Oklo.

In January 2026, Oklo stock kept rising after President Trump’s pro-nuclear comments at Davos. It hit intraday highs around January 22, with gains across the sector. Bank of America upgraded Oklo to a Buy rating, setting a price target of $111. This shows strong confidence in Oklo’s data center partnerships and regulatory progress.

Oklo stock price

Cathie Wood’s ARK Investment increased its stake in Oklo. They bought over 34,000 shares. This shows a rising interest from institutions in advanced nuclear technology. This purchase followed earlier acquisitions valued at more than $8.9 million, showing sustained investment interest.

Strong Rallies, Sharp Pullbacks

Despite strong gains, Oklo’s stock price has also seen pullbacks. At times, shares fell nearly 10% in a single week due to profit-taking after earlier rallies. Investors sometimes respond to news about sectors. For example, competitive technologies like geothermal power can provide clean energy alternatives for data centers.

Oklo remains pre-revenue, meaning it has not yet begun large-scale power production. The company aims to build its first commercial microreactor system between late 2027 and 2028. Until that point, investor focus remains on contracts, partnerships, and regulatory progress.

SMRs and Speculation: Two Very Different Nuclear Bets

NuScale Power (NYSE: SMR) is another company that benefited from the nuclear rally after Davos. The company’s shares jumped around 15% on early trading days in 2026, along with sector momentum.

NuScale Power stock price

The stock is drawing investor interest because of the rising focus on small modular reactor (SMR) technology. SMRs may be easier to deploy and scale than traditional large plants.

NuScale’s SMRs got design approvals from the U.S. Nuclear Regulatory Commission (NRC). This boosts confidence in their technology. Analysts expect the company’s revenue to continue rising as project work expands.

NuScale is a great example of how modular nuclear designs can provide reliable power for industrial and data center needs. Regulatory milestones for SMRs may accelerate deployment timelines through the rest of the decade.

NuScale SMR power plant view
Source: NuScale Power

Nano Nuclear Energy: Early Stage, Strong Moves

Nano Nuclear Energy (NASDAQ: NNE) is a smaller player that also saw stock gains as part of the sector rally. Its shares rose roughly 40% in one trading week amid news of technology deals between U.S. and U.K. partners, and Trump’s recent announcement. This price movement reflected broader investor interest in nuclear technologies and potential future revenues.

Nano Nuclear Energy stock price

Nano Nuclear is still in the early stages without significant revenue, similar to Oklo’s position. Its valuation illustrates how speculative nuclear stocks can be, driven by future expectations about technology deployment and regulatory support.

Why Nuclear Is Back on Investor Radar

Supportive government policy is a key driver for nuclear stocks. In 2025, the U.S. administration moved to speed up nuclear power development as part of a broader energy strategy. These moves include efforts to shorten licensing timelines and enhance domestic infrastructure for nuclear fuel and reactors. This policy backdrop helped lift stocks such as Oklo and NuScale.

President Trump’s Davos statements reinforced this trend by linking nuclear energy to national energy strategy and data center demand. Many investors view nuclear energy as a solution for rising electricity demands. This includes powering artificial intelligence and cloud computing infrastructure.

Nuclear power generates low-carbon electricity. This attracts companies that need to meet emissions targets while also dealing with growing power demand.

Globally, nuclear power already contributes a significant share of clean energy. According to the World Nuclear Association, nuclear energy generated about 9% of the world’s electricity from existing reactors. Supporters say that expanding nuclear power can meet future demand and reduce carbon emissions.

nuclear energy power share 2024
Source: World Nuclear Association

AI’s Power Hunger Fuels the Nuclear Case

The growth of data centers, particularly for AI, is driving interest in reliable baseload power. Tech companies, including Meta, have pursued long-term nuclear power agreements.

Meta has deals with companies like Oklo and TerraPower. These agreements aim to secure nuclear-generated electricity for its AI infrastructure. They involve spending tens of billions of dollars on building AI data centers. This corporate demand creates new business models for nuclear power. It makes future reactor deployments more financially viable.

Electricity demand from industrial and tech sectors continues to rise worldwide, increasing focus on clean, consistent power sources. Nuclear energy’s high capacity factor, meaning it can provide steady power output, is a key strength in this context.

What the Next Nuclear Decades Could Look Like

Industry analysts expect nuclear capacity to grow over the next few decades. Some forecasts tied to long-term pledges suggest that global nuclear capacity could triple by 2050 as part of decarbonization goals. This aligns with commitments from large utilities, governments, and corporate coalitions.

Nuclear Power Req in 2050 - CC (1)

Stock forecasts differ, but long-term demand for nuclear reactors and fuel is expected to grow. This growth is driven by electrification and carbon reduction goals.

Small modular reactors are key to industry growth. They offer shorter construction times and lower upfront costs than large traditional reactors. If SMRs get regulatory approval and have stable supply chains, companies like Oklo and NuScale could start commercial operations in the 2030s.

Analysts provide mixed views on nuclear stocks. Many forecasts highlight the potential upside if technologies succeed at scale, especially for SMRs. Analyst price targets for NuScale Power suggest there is a lot of potential for growth from current prices.

A Renewed Nuclear Narrative

After President Trump’s supportive comments on nuclear energy at Davos, nuclear stocks climbed as traders reacted to potential industry growth. Oklo saw strong investor interest following major deals and institutional purchases. NuScale benefited from regulatory milestones and rising demand for modular reactors. Nano Nuclear showed how early-stage players can also capture attention.

Government support, corporate demand for reliable low-carbon power, and rising electricity needs from AI and data centers are key drivers behind the nuclear sector’s resurgence. Analysts still see challenges, but they expect nuclear capacity, especially smaller modular systems, to grow in the global energy mix.

Nickel Price Today: Indonesia Supply Cuts Drive Market Near 19-Month Highs

Simon H
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The **Nickel Price** continues its strong start to 2026, trading at **$18,639.14 USD** as of Friday, January 23. The metal has recorded a steady **0.49%** gain over the last seven days, consolidating recent rallies that have pushed year-to-date (YTD) returns to an impressive **11.45%**. Investors are currently digesting major supply-side updates from Indonesia, the world’s largest producer, which have successfully underpinned values near their highest levels in over a year and a half.

Nickel Price

Unit: USD/Tonne
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Source: Nickel Price Chart by CarbonCredits.com

Market Drivers: Indonesia Slashes Output Quotas

The primary catalyst for the recent bullish sentiment is the confirmation that Indonesia is significantly tightening its ore production quotas for 2026. Reports indicate the government has cut production quotas by approximately **34%** compared to last year, targeting a range of 250-260 million tonnes. This strategic move aims to align output with domestic processing capacity and conserve high-grade ore reserves. The market has reacted positively to this “disciplined supply” narrative, which effectively removes the fear of the massive surpluses that plagued the market in previous years.

Complementing the supply tightness is a resurgence in demand from China. Recent data suggests improved buying activity from stainless steel mills and electric vehicle (EV) battery manufacturers. While profit-taking limited gains earlier in the week, the combination of constrained Indonesian supply and recovering downstream demand has created a strong floor for the Nickel Price.

Technical Outlook

Technically, Nickel is trading just shy of the **$18,700** resistance level, which marks a 19-month high established earlier in January. The consolidation of 0.49% this week suggests a healthy pause after the sharp 19.28% rally observed over the last 30 days. Immediate support is forming around the **$18,000** psychological handle. If the price can break and hold above $18,700, analysts expect a test of the $19,000 zone; however, failure to maintain momentum could see a retrace toward the 50-day moving average as the market awaits further clarity on the finalized Indonesian production licenses (RKABs).

Natural Gas Price Today: Arctic Blast Triggers Historic 66% Spike

Simon H
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The Natural Gas Price has exploded higher this week, trading at $5.23 USD as of Friday, January 23, 2026. This represents a staggering 66.02% gain over the last seven days, marking one of the most volatile weeks on record for the energy commodity. The parabolic move has pushed year-to-date gains to 41.47%, completely reversing the bearish sentiment that dominated late 2025. Markets are currently reacting to a perfect storm of freezing temperatures and supply constraints, with the 30-day movement now sitting at a robust 22.10%.

Natural Gas Price

Unit: USD/MMBtu
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Source: Natural Gas Price Chart by CarbonCredits.com

Natural Gas Price Market Drivers

The primary catalyst for this week’s historic rally is an unprecedented Arctic blast currently gripping 230 million people across the United States. Weather models confirm that temperatures have plummeted well below freezing in key consumption hubs, driving heating demand to record levels. This demand shock has collided with a significant supply disruption; the extreme cold has triggered widespread “freeze-offs”—where ice blocks the flow of gas from wells—in critical production basins including the Permian and Appalachia.

Furthermore, the rally was exacerbated by a massive short squeeze. Hedge funds, which had positioned for a mild winter, were forced to aggressively cover their bearish bets as prices breached the psychological $4.00 and $5.00 levels. Analysts warn that if the cold persists, natural gas storage inventories could swing to a 10% deficit relative to the five-year average by March, radically altering the fundamental outlook for the remainder of 2026.

Technical Outlook

Technically, Natural Gas has entered a parabolic phase, smashing through resistance levels that had held for over a year. The break above $5.00 is significant, signaling a potential trend reversal on the weekly charts. However, with the Relative Strength Index (RSI) now at extreme overbought levels, volatility is expected to remain high. Traders should watch for support near the $4.50 breakout zone if weather forecasts moderate, while continued freeze-offs could see bulls target the $6.00 handle next.

Uranium Price Today: Kazakhstan Supply Shocks & Data Center Demand Fuel Rally

Simon H
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The uranium price continued its bullish momentum this week, climbing to 85.67 USD per pound. This represents a 2.19% gain over the last seven days and extends the metal’s year-to-date growth to 5.09%. Trading near 18-month highs, the nuclear fuel market is reacting to a convergence of tightening global supply regulations and surging demand forecasts from the technology sector.

Uranium Price

Unit: USD/lb
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Source: Uranium Price Chart by CarbonCredits.com

Uranium Price Market Drivers

Two primary factors have driven the recent price action: escalating "resource nationalism" in Kazakhstan and expanding U.S. demand initiatives.

Kazakhstan Supply Constraints: The most significant catalyst this week was the fallout from Kazakhstan’s newly amended Subsoil Use Code. Laramide Resources announced its exit from a major greenfield exploration project in the Chu-Sarysu Basin on January 20, citing new laws that mandate a minimum 75% stake for the state-owned Kazatomprom in new ventures. This policy shift effectively tightens foreign access to the world’s largest uranium reserves, stoking fears of a long-term structural supply deficit as Western developers face higher barriers to entry.

Data Center Demand & Strategic Buying: Simultaneously, demand signals from North America remain robust. The U.S. Department of Energy recently awarded $2.7 billion in contracts to domestic enrichers to secure HALEU supplies, aiming to offset reliance on Russian fuel. Furthermore, the Sprott Physical Uranium Trust reportedly added 100,000 pounds of yellowcake to its holdings this month. These moves are underpinned by projections that AI data centers could double their electricity consumption by 2030, necessitating a rapid expansion of reliable baseload nuclear power.

Technical Outlook

Technically, uranium has broken through key resistance at $82.00 and is consolidating above the $85.00 psychological level. The immediate trend remains bullish, supported by the 8.27% gain over the last 30 days. Traders will be watching for a sustained close above $86.00 to open the path toward $90.00. Conversely, if profit-taking occurs, the previous breakout zone at $82.00 should serve as strong support.

Lithium Price Today: Energy Storage Boom and Supply Cuts Ignite 71% Rally

Simon H
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The Lithium price continued its explosive start to 2026, surging to 170,999.81 CNY per tonne on Friday. The battery metal has posted a remarkable 7.55% gain over the last seven days alone, extending a massive 71.86% rally over the past month. Year-to-date, lithium prices are up 44.38%, marking a definitive reversal from the surpluses that plagued the market in previous years.

Lithium Price

Unit: CNY/Tonne
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Source: Lithium Price Chart by CarbonCredits.com

Market Drivers

Two primary factors are fueling the current rally: a surge in utility-scale energy storage demand and sudden supply constraints in China’s mining hubs.

  • Energy Storage Demand Spike: While EV sales remain steady, the demand for lithium iron phosphate (LFP) batteries in energy storage systems (ESS) has outperformed expectations. Analysts forecast a 55% growth in ESS installations for 2026, driven by Beijing’s mandate to double EV charging capacity and grid storage infrastructure by 2027.
  • Jiangxi Supply Crunch: On the supply side, Chinese authorities recently canceled 27 mining permits in the lithium hub of Jiangxi as part of an environmental crackdown. This follows the suspension of operations at CATL’s Jianxiawo mine, effectively removing significant monthly tonnage from the market just as downstream battery makers rush to restock ahead of reduced export rebates.

Technical Outlook

Technically, the Lithium price has decisively broken through the psychological resistance level of 150,000 CNY. The steep vertical ascent suggests intense buying pressure, likely exacerbated by short covering from traders who were positioned for a surplus. With the price now firmly establishing support above 160,000 CNY, market participants are eyeing the 200,000 CNY level as the next major target. However, the Relative Strength Index (RSI) indicates the metal is in overbought territory, suggesting potential volatility in the short term as the market digests these rapid gains.

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