Microsoft’s $6.2 Billion AI Bet in Norway for 100% Renewable Energy Powered Computing

Jennifer L
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0
Microsoft’s $6.2 Billion AI Bet in Norway for 100% Renewable Energy Powered Computing

Microsoft has made one of its biggest commitments yet to clean energy and artificial intelligence. The company signed a $6.2 billion deal to secure new AI computing capacity in Northern Norway. The project will run on 100% renewable energy, mainly hydropower. It will help Microsoft meet rising AI demand while keeping emissions down.

This move highlights how the tech industry is trying to balance two big goals: growing faster with AI and meeting climate targets at the same time.

President of Business Development and Ventures for Microsoft, Jon Tinter, stated:

“We are incredibly excited for what this means for our customers, in Norway and across Europe, providing the latest and most advanced AI services from Microsoft. It is inspiring to see how Nscale and Aker are building cutting-edge, sustainable AI infrastructure, and adding this facility to our comprehensive Microsoft cloud offering in Europe demonstrates our unwavering commitment to customers on the continent.”

What the Deal is All About?

The agreement is set for five years. Microsoft will lease AI computing from Nscale Global Holdings and Aker ASA. Together, they plan to deliver the power of about 100,000 NVIDIA GPUs by the end of 2026.

The site will be in Northern Norway, chosen for its clean electricity and cool climate. Hydropower will supply the energy, while the natural cold will reduce the need for mechanical cooling. That makes the project both cost-efficient and climate-friendly.

The scale of the deal is huge. With AI use soaring worldwide, this project gives Microsoft a strong base in Europe. It ensures the company can serve governments, businesses, and research institutions that need secure, low-carbon AI compute.

Benefits of the Deal

The Norway deal gives Microsoft several major benefits:

  • First, it reduces greenhouse gas emissions by replacing fossil fuels with hydropower.
  • Second, it shows customers that Microsoft’s AI services are backed by clean energy, which matters for ESG reporting.
  • Third, it helps Microsoft move closer to its net-zero targets while still expanding its AI capacity.

Recently, the tech giant also agreed to a deal with Nebius worth around $19.4 billion over five years to supply massive GPU-powered AI infrastructure. Deliveries will begin in late 2025. The arrangement boosts Microsoft’s ability to compete in cloud and AI markets.

With these deals, Microsoft is showing a dual strategy: expand AI capacity at record speed while anchoring that growth in clean energy, balancing innovation with sustainability goals.

Why This Matters for Microsoft’s Climate Goals

Microsoft has pledged to become carbon negative, water positive, and zero waste by 2030, and to protect more land than it uses. By 2050, it also aims to erase all emissions it has produced since 1975.

Microsoft 2030 carbon negative goal

Reaching these goals has not been easy. Between 2020 and 2023, Microsoft’s total emissions rose by about 30%, largely due to the rapid growth of cloud services and AI workloads. Training and running large AI models require enormous amounts of electricity. And Scope 3 emissions from suppliers and product use now make up more than 96% of the company’s footprint.

At the same time, Microsoft has made significant progress in clean energy. It has contracts for more than 19 gigawatts of renewable capacity worldwide, making it one of the largest corporate buyers of green power. It has also invested in carbon removal projects such as reforestation, soil carbon, and direct air capture.

Microsoft carbon removal targets
Source: Microsoft

The new Norway project is a direct response to these challenges. By pairing AI growth with renewable energy, Microsoft shows that it can expand without abandoning its climate targets. This step also helps build trust with investors and customers who increasingly expect measurable progress, not just long-term pledges.

Why Norway?

Norway is a natural choice for this kind of project. It has several key advantages:

  • Abundant hydropower provides clean and stable electricity.
  • Cool weather helps lower cooling needs for data centers.
  • Strong industrial experience supports complex energy and technology projects.

These factors reduce both costs and emissions. They also allow the site to run efficiently year-round. For Microsoft, this means reliable AI computing with a lower environmental impact.

The Growth and the Risks of Scaling Green AI

AI demand has exploded in recent years. Businesses, schools, and governments now use advanced AI tools daily. Large language models, predictive analytics, and AI-powered cloud services are driving record growth in computing needs.

The global market for AI infrastructure is expected to grow more than 30% per year. By 2030, the sector could be worth hundreds of billions of dollars. But this growth brings pressure. Data centers already account for around 2% of global electricity use, and that share is climbing.

data center electricity demand due AI 2030

Microsoft has responded by signing contracts for 19 gigawatts of renewable energy across 16 countries in 2024 alone. The Norway project adds even more clean power, directly linked to AI expansion.

Competitors like Amazon and Google are also making big clean energy deals. But Microsoft’s $6.2 billion project stands out because it ties renewable energy directly to AI growth in Europe.

The project also faces challenges:

Scaling to 100,000 GPUs by 2026 will take a massive supply of hardware and careful planning. Global shortages in chips or materials could delay progress. Local regulations and permits may also slow the build.

Another issue is that AI hardware itself has a carbon footprint. Manufacturing, shipping, and recycling servers and GPUs all release emissions. Microsoft will need to keep working with suppliers to cut those impacts.

Finally, demand for AI may outgrow even this massive project. Microsoft could soon need more clean energy sites to keep pace.

Setting the Benchmark for Big Tech and the AI Industry

This project could shape how other tech companies build AI capacity in the future. It proves that large AI data centers can run entirely on renewable energy. If successful, it may push rivals to copy the model. It also shows that clean power can be built into the foundation of AI growth.

For renewable energy producers, this trend means larger, long-term contracts. Deals like this provide financial stability and help scale up clean power projects.

The deal aligns with Microsoft’s 2030 climate goals and gives it a strategic advantage in Europe. It also sets a benchmark for how AI and sustainability can move forward together.

Challenges remain, from hardware supply to rising demand. Yet, the message is clear: the future of AI may also be a future powered by clean energy.

Xpansiv and KRX Collaborate on Korean Carbon Credit Market Launch

Jennifer L
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0
Xpansiv and KRX Collaborate on Korean Carbon Credit Market Launch

Xpansiv, a global provider of market infrastructure for environmental commodities, is teaming up with the Korea Exchange (KRX). They will launch a Korean Carbon Credit Market together.

The initiative will offer a trading platform for several types of credits. This includes voluntary carbon credits, Article 6 credits from the Paris Agreement, and credits linked to compliance systems like CORSIA.

This partnership is a big step for South Korea. It has run its own national Emissions Trading System (K-ETS) since 2015. It’s also significant for Xpansiv, which operates the largest spot carbon exchange in the world. Together, they aim to bring transparency, liquidity, and confidence to a rapidly growing sector.

Why Asia Matters in Global Carbon Markets: A Milestone in Seoul

Asia is emerging as the center of gravity for carbon markets. The region’s scale, economic growth, and rising emissions make it critical for the success of global climate goals. According to Xpansiv,

“Asia is home to some of the world’s fastest-growing economies and largest emitters, which makes the region critical to achieving global climate goals. Countries like Korea are setting ambitious net-zero targets, and carbon markets provide a flexible, effective tool to reach them. We’re also seeing growing demand from Asian companies, financial institutions, and investors who want credible instruments to demonstrate progress on decarbonization, making Asia a natural hub for carbon market growth.”

South Korea has pledged to cut greenhouse gas emissions 40% below 2018 levels by 2030 and achieve net zero by 2050. Its national carbon trading system already covers more than 80% of national emissions, making it one of the largest in the world.

south korea 2030 emissions projection

Korea plans to launch a new carbon credit market with global ties. This will give companies more ways to achieve their ambitious goals.

Infrastructure That Builds Trust

For carbon markets to work well, they need trustworthy trading systems. This builds confidence among participants. KRX is already the central platform for South Korea’s financial markets and compliance carbon allowances. By teaming up with Xpansiv, it can extend this role into the voluntary and international carbon space.

As the Xpansiv spokesperson noted,

“Exchanges such as KRX’s are trusted platforms that support liquidity, transparency, as well as operational and credit efficiencies. When you combine KRX’s established role in compliance carbon and financial markets with Xpansiv’s proven exchange and post-trade infrastructure, you get a system that can scale quickly, build participation, and accelerate time to market. Exchanges boost markets by giving commercial end users and investors confidence that transactions are effectively priced, secure, and efficiently settled. This trust and confidence are important to build participation from large companies and financial institutions.”

This model shows a global trend. Exchanges are becoming the backbone of environmental commodity markets. Linking KRX’s platform with Xpansiv’s Carbon Business Line (CBL) lets South Korean users tap into global liquidity. It also connects international players to Korean projects.

Xpansiv’s CBL exchange remains the largest marketplace for voluntary carbon credits, handling more than 250 million metric tons CO₂e since 2020. In 2025, activity remains strong, with weekly trades exceeding 300,000 tons, most from nature-based projects.

The platform also launched CORSIA-compliant GEO CP1 contracts and expanded removal-only credit listings, including 75,000 forestry credits. Since early 2023, over 3.5 million Australian ACCUs have traded on CBL. With ~25% global VCM share, Xpansiv anchors voluntary market growth in 2025.

The market is also shifting toward credits with stronger co-benefits, like biodiversity and community impact. Also, early adoption of carbon removal credits has begun, signaling an evolution in market quality and transparency.

The Broader Role of Carbon Trading: Putting a Price on Carbon Progress

Carbon trading is seen more as a market driver than just a compliance tool for climate solutions. By putting a price on carbon, trading systems create demand for projects that avoid, reduce, or remove emissions.

Xpansiv highlighted this broader role:

“Carbon markets are not necessarily an end in themselves. When implemented properly, they’re a tool and arguably a market accelerator. By putting a price on carbon and creating demand for projects that avoid, reduce, or remove emissions, markets have the potential to unlock billions in private capital to fund real-climate solutions. These funds support renewable energy, reforestation, and innovative technologies that would otherwise struggle to scale. In that way, carbon markets bridge climate ambition and real-world decarbonization, speeding up the global energy transition.”

The voluntary carbon market was valued at around $2 billion in 2024. It could grow to nearly $50 billion by 2030 if corporate demand continues to rise.

voluntary carbon credit demand growth
Source: McKinsey & Company

At the same time, compliance carbon markets worldwide reached a record $950 billion in traded value in 2023. This growth was led by the EU Emissions Trading System. South Korea can boost its role in carbon finance by being a hub for compliance and voluntary trading.

Xpansiv’s Global Playbook

Xpansiv partners with KRX to expand global environmental commodity markets. The company runs trading, registry, and post-trade platforms. These support carbon credits, renewable energy certificates, and digital fuels.

In their words, “Our mission is to accelerate the world’s energy transition by operating robust infrastructure for environmental commodity markets. Our technology platform makes these markets work efficiently and securely. Supporting Korea’s new market is a significant step to drive measurable and real climate impact.”

Xpansiv strengthens its global network by enabling Korea’s carbon credit market. This move helps one of Asia’s leading economies get closer to its climate goals.

The collaboration between Xpansiv and the Korea Exchange to launch a new Korean Carbon Credit Market underscores the growing importance of carbon trading in Asia. With ambitious climate goals, strong policy frameworks, and rising demand from companies and investors, South Korea is well-positioned to become a regional leader.

The new platform combines KRX’s trusted market role with Xpansiv’s global exchange. It aims to provide the transparency, liquidity, and confidence needed to grow carbon finance. The partnership shows that strong carbon markets can attract private investment. This, in turn, speeds up the global shift to cleaner energy.

ARMR Sciences – The Future of Drug Defense

Alex
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Disseminated on behalf of ARMR Sciences.


Please read our Full RISKS and DISCLOSURE here.

Uber Stock Hits Record High with Joby and Blade Air Mobility Deal

Jennifer L
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0
Uber Stock Hits Record High with Joby and Blade Air Mobility Deal

Uber Technologies has reached an all-time stock high of about $98.85 on September 16, signaling strong investor confidence in the company’s growth strategy. In the last year, Uber’s share price rose by over 70%. This growth was driven by higher demand for ride-hailing, delivery expansion, and more people using its premium services. 

Revenue has expanded by nearly 18% year over year, reflecting Uber’s ability to scale across different business lines. The company now has over 150 million monthly active users worldwide, underscoring its scale and reach.

The latest announcement linking Uber with Blade Air Mobility through Joby Aviation has added momentum. Investors see this as more than a transportation deal—it’s a sign that Uber is serious about entering the next wave of mobility innovation.

From Street to Sky: Uber’s Boldest Move Yet

Joby Aviation, a leader in eVTOL (electric vertical take-off and landing) aircraft, bought Blade’s passenger business for up to $125 million. Blade is well known for its helicopter and seaplane operations, which carried over 50,000 passengers in 2024. Its flights connect key urban markets, including New York, the Hamptons, and Southern Europe.

By 2026, Uber users will be able to book Blade flights directly through the Uber app. This means a customer in Manhattan could book a ride to the airport and seamlessly add a helicopter leg through Blade, all within the same app. 

Joby aims to replace Blade’s helicopters with eVTOL aircraft. These new planes will be quieter and produce fewer emissions. This change supports climate goals.

This integration makes Uber one of the first big ride-hailing companies to add air mobility to its platform. Joby gains instant access to Uber’s huge global customer base. Meanwhile, Blade enjoys greater reach and operational scale.

Why Investors Are Flying High on Uber

The deal comes at a time when Urban Air Mobility (UAM) is emerging as a high-growth sector. The global UAM market was about $5.4 billion in 2023. It is set to grow over 30% each year, reaching around $30 billion by 2030.

global urban air mobility market 2030
Source: Grand View Research

For Uber, this move opens up access to a premium segment with much higher average fares than traditional car rides. Short flights from airports to city centers can cost hundreds of dollars each trip. This leads to higher revenue per passenger.

For Joby, pairing with Uber lowers customer acquisition costs and speeds up market acceptance of its eVTOL technology.

Investor enthusiasm reflects these possibilities. Uber’s new all-time high signals that markets see the company as more than a ride-hailing and food delivery platform. It is now viewed as a diversified mobility company preparing for future transportation needs.

uber stock price
Source: TradingView

The Race for Urban Air Supremacy

Urban air mobility is drawing heavy interest from startups and established aerospace players alike. Archer Aviation, Lilium, and Vertical Aerospace are all working on eVTOL aircraft. Boeing and Airbus are also monitoring the space, given their long history in aviation.

Joby has a clear edge. It was one of the first to secure key approvals from the U.S. Federal Aviation Administration (FAA). It also signed contracts with the U.S. Air Force worth over $100 million, giving it valuable testing and revenue. Acquiring Blade’s passenger business provides immediate infrastructure, like lounges and landing sites. Many competitors don’t have these.

By combining this with Uber’s app integration, Joby has a unique first-mover advantage. Customers can still use helicopters and seaplanes today. They can then switch to eVTOL flights when certification is done. This hybrid model provides revenue now and builds customer trust for the future.

Flying Cleaner: Uber’s ESG Takeoff

Uber seeks to grow its mobility services, including air travel, in a way that supports climate goals. The air mobility deal aligns with Uber’s sustainability targets and its efforts to reduce emissions.

Uber has committed to becoming a zero-emission mobility platform globally by 2040. This includes rides, deliveries, and using public transit or micromobility (like bikes and scooters).

Uber net zero goals
Source: Uber

It also aims that by 2030, 100% of rides in the U.S., Canada, and Europe will be zero-emission. Here are Uber’s recent progress highlights:

  • As of Q1 2025, Uber has more than 230,000 active zero-emission (ZEV) drivers globally. That is over 60% more than in the same period a year ago.
  • In that same quarter, drivers using ZEVs completed over 105 million emission-free trips globally, more than 60% more than a year earlier.
  • In many European cities (like London, Amsterdam), over one in every three miles traveled on Uber is now electric.
  • Uber has committed $800 million through 2025 to support drivers switching to EVs. By the end of 2023, it had already allocated $439 million.

By adding air mobility with Joby’s eVTOLs, Uber can cut emissions per trip by 50% to 80% compared to helicopters. This helps Uber move closer to its net-zero goals.

Market Outlook for Urban Air Mobility

The long-term outlook for UAM is strong, driven by several trends, including:

  • Urban Congestion: Cities like New York, Los Angeles, and Tokyo face heavy traffic. Short flights save time and reduce road emissions.
  • Technology: Advances in battery density are extending eVTOL range to 150+ miles.
  • Policy Support: Governments are backing clean aviation, with the U.S. Federal Aviation Administration and European Union Aviation Safety Agency both advancing certification frameworks.
  • Funding: Billions in private and public capital are flowing into advanced air mobility. For example, Archer Aviation secured $1.1 billion in funding from Stellantis and the U.S. Air Force.

If Joby and Uber succeed, they could set the standard for how urban air mobility integrates with everyday transportation. Analysts predict that by the early 2030s, millions of passengers may fly on eVTOL aircraft each year. This growth will be backed by networks of vertiports in major cities. 

McKinsey & Company reported that by 2030, top companies in advanced air mobility (AAM) may run fleets larger than today’s biggest airlines. Their aircraft will carry one to six passengers, plus a pilot, on short trips averaging about 18 minutes.

air mobility by 2030 vs large airlines

Skybound Future of Mobility

The partnership between Joby Aviation, Blade Air Mobility, and Uber represents a major step forward in the future of transportation. Uber’s stock hitting a record high highlights the excitement around this deal and the opportunities it creates. 

Adding air mobility to the Uber app boosts the platform. It draws in high-value customers and prepares Uber for the future of travel.

For Joby, the integration accelerates the rollout of its eVTOL technology by pairing it with Blade’s infrastructure and Uber’s global reach. While challenges remain—especially around regulation, infrastructure, and cost—the momentum is clear. Urban air mobility is no longer just a futuristic idea; it is on the verge of becoming part of everyday travel.

With strong investor support, expanding customer demand, and groundbreaking partnerships, Uber, Joby, and Blade are helping to redefine what it means to move through cities.

Scaling Sustainable Farming: AgreenaCarbon’s 2.3 Million Verified Carbon Credits Redefine Regenerative Agriculture

Saptakee S
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0
Scaling Sustainable Farming: AgreenaCarbon’s 2.3 Million Verified Carbon Credits Redefine Regenerative Agriculture

Danish carbon credit company, Agreena’s “AgreenaCarbon Project” reached a major milestone by becoming the first large-scale arable farming initiative verified under Verra’s Verified Carbon Standard (VCS) VM0042 Improved Agricultural Land Management v2.0 methodology.

This achievement advances carbon markets by providing verified, traceable, and compliance-ready credits supported by measurable, field-level data. By issuing 2.3 million Verified Carbon Units (VCUs), the project enables farmers and corporates to drive real climate action and align with global sustainability goals.

Mandy Rambharos, the Chief Executive Officer of Verra, commented:

“The AgreenaCarbon Project is extremely important because it demonstrates how soil carbon projects can scale. It spans vast areas of land across multiple countries in Europe – from Ukraine to Spain – showing the breadth and reach of its impact. By implementing VM0042 and ensuring the right protocols, we can guarantee the quality and integrity of the carbon credits generated. This gives us confidence that these projects truly have the ability to scale.”

AgreenaCarbon: Setting a New Benchmark for Agriculture-Based Carbon Credits

The press release highlights that the AgreenaCarbon Project operates across 1.6 million hectares of regenerative farmland spanning countries including the UK, Denmark, Ukraine, Moldova, Romania, Lithuania, Latvia, Estonia, Bulgaria, and Spain. Its success in securing VCS verification underscores the credibility and integrity of its carbon credits.

Unlike conventional farming initiatives that primarily focus on yield, Agreena’s approach emphasizes soil health, biodiversity restoration, and measurable greenhouse gas reductions.

Through its holistic solution, Agreena finances farmers’ transition toward regenerative practices, rigorously verifies their impact using AI-driven digital measurement, reporting, and verification (dMRV), and offers corporates access to high-quality nature-based carbon offsets.

The verification process, following its validation earlier in 2025, confirms that the project has delivered verifiable carbon benefits from historic practices implemented in 2021, 2022, and 2023.

Simon Haldrup, CEO and co-founder of Agreena, added:

“The verification of the AgreenaCarbon Project reaffirms Agreena as a leader in regenerative agriculture, proving that soil carbon sequestration can be measured, verified, and trusted at scale. This milestone empowers farmers – the true climate heroes – to adopt new practices through verified carbon credits, while giving corporate buyers the confidence to invest in meaningful climate action. Agreena is proud to be building the world’s largest verified supply of soil carbon credits, bringing the first large-scale wave of high-quality credits to market.”

Delivering Climate Solutions with Proven Impact

Agreena’s regenerative practices have already contributed to achieving the following carbon reduction milestones:

  • Nearly 1.2 million tonnes of CO₂ have been cut through improved farming methods, equivalent to removing 261,000 cars from the roads for an entire year.

  • Over 1.1 million tonnes of CO₂ have been captured and stored in soils, matching the yearly carbon footprint of 90,000 individuals.

These results are independently verified by accredited third-party agencies, ensuring that every credit issued reflects real, field-based impact.

Farmers are the backbone of this effort. Oleksandr Mustipan, a farmer involved with Agreena, described the project as transformative: “Working with Agreena has truly been a game-changer. It enabled us to scale up regenerative practices faster and more effectively than I ever could alone. The verification process validates our contribution and motivates us to continue making a difference.”

For corporates, these credits offer a trusted mechanism to meet ESG targets while supporting agricultural ecosystems. Leading firms such as Radisson Hotel Group have already pre-ordered a substantial share of the credits, underscoring market confidence in Agreena’s offering.

AgreenaCarbon carbon credits
Source: AgreenaCarbon

Growing Carbon Credits with Regenerative Agriculture

Agriculture is responsible for 22% of global anthropogenic emissions, making soil management a critical pillar in climate mitigation strategies. Conventional farming practices, reliant on chemical inputs and intensive tillage, have degraded soil health and diminished its carbon-storing potential.

In contrast, regenerative practices focus on rebuilding organic matter, enhancing biodiversity, and fostering long-term resilience.

Key practices employed across Agreena’s projects include:

  • Cover cropping helps lock carbon into the soil while improving nutrient cycling.
  • Crop rotations promote soil structure and reduce disease pressure.
  • Residue management, minimizing soil disturbance, and protecting microbial life.
  • Reduced or no-tillage techniques, lowering emissions, and preserving soil integrity.

These interventions not only generate carbon removal credits by storing atmospheric CO₂ in the soil but also contribute avoidance credits by reducing emissions from fertilizer use or energy consumption. The combined effect of such practices offers a diversified credit profile that meets varying market needs.

regenerative agriculture AgreenaCarbon
Source: AgreenaCarbon

How Regenerative Practices Are Redefining Agriculture

According to Mordor Intelligence, the regenerative agriculture market is poised for rapid expansion. With an estimated market size of USD 9.2 billion in 2025, projections indicate growth to USD 18.3 billion by 2030, reflecting a 14.75% CAGR.

The report further explains several factors that are driving this momentum:

Corporate Commitments

Major food and beverage companies are investing heavily in regenerative sourcing. Nestlé pledged CHF 1.2 billion to source half its priority materials from regenerative farms by 2030, while PepsiCo is funding USD 216 million to transition 7 million acres. These initiatives are expanding through supply chains, offering growers premium contracts and stable revenue.

Government Incentives

Policies are increasingly supporting regenerative practices. The USDA’s USD 3.1 billion program rewards verified soil improvements, and 25% of Europe’s CAP payments now target eco-friendly schemes. Denmark’s mix of taxes and subsidies further encourages sustainable farming.

Consumer Preferences

Growing demand for climate-friendly products is pushing brands to highlight regenerative practices. 63% of food companies now include regenerative agriculture in their sustainability plans, creating new market opportunities for growers.

Financial Risk and Opportunity

Banks and investors are factoring soil-carbon gains into lending strategies. Verified projects help reduce financing risks, leading to lower interest rates and easier access to capital for sustainable farming initiatives.

regenerative agriculture
Source: Mordor Intelligence

Driving Trusted, Scalable Climate Action with Verra

The AgreenaCarbon Project’s verification by Verra marks a pivotal moment in agriculture-based carbon markets. It confirms not only the methodology but also the soil’s wider potential as a climate solution.

By combining financial support, scientific rigor, and farmer-focused practices, it is driving regenerative agriculture into the mainstream and creating new revenue streams through nature’s restoration.

Tech-Enabled Growth for Regenerative Agriculture

Furthermore, the company uses cutting-edge technology to unlock scalable solutions in regenerative agriculture. By leveraging satellite imagery, machine learning, and sensor networks, its dMRV system verifies every credit with accurate, field-level data. This approach prevents fraud, boosts transparency, and helps farmers adopt practices faster by easing technical challenges.

Agreena also integrates with tokenized carbon marketplaces and digital platforms to lower transaction costs, making it easier for smallholders and large enterprises to participate. As verification processes streamline, confidence in regenerative carbon credits continues to rise.

As corporations pursue reliable carbon offsets and consumers demand climate-resilient food, the regenerative agriculture market is poised for dramatic growth. Verified, scalable, and supported by field-level data, Agreena’s carbon credits lead the next wave of climate action—benefiting farmers, businesses, and the planet alike.

TSMC Stock Gains on 38% Semiconductor Market Share, AI Breakthroughs, and Sustainability Efforts

Saptakee S
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0
TSMC Stock Gains on 38% Semiconductor Market Share, AI Breakthroughs, and Sustainability Efforts

Taiwan Semiconductor Manufacturing Company (TSMC) continues to set new benchmarks in both market performance and environmental responsibility. Recently, the company’s stock (TSM) hit a record-high closing price of NT$1,280, pushing Taiwan’s main stock index to an all-time peak.

Investors responded positively, betting on U.S. Federal Reserve rate cuts and rising demand for artificial intelligence (AI) technologies. But behind the market excitement lies a deeper story. TSMC’s leadership in semiconductor manufacturing and its bold climate action strategy are driving long-term value for shareholders and the planet.

Why Investors Are Bullish on TSMC (TSM Stock)

In the second quarter of 2025, the fab giant expanded its global foundry market share to 38%, up from 31% a year earlier. This jump signals how effectively the company is capturing opportunities in advanced chipmaking.

Counterpoint Research reports that TSMC accounted for nearly three-quarters of the revenue growth in the fast-growing “foundry 2.0” market. This segment, which focuses on next-generation semiconductor production, grew by 19% year-over-year.

The company’s rapid 3nm process ramp-up, along with high utilization of its 4nm and 5nm nodes for AI-related chips, positions it at the forefront of innovation.

Furthermore, MediaTek’s announcement that its next flagship chip will use TSMC’s 2nm process underscores the company’s industry leadership. Investors recognize that TSMC’s advanced technologies are critical to powering AI, 5G, and cloud computing.

tsmc stock
Source: Yahoo Finance

AI-Driven Growth Fuels Future Prospects

The much-hyped semiconductor demand is soaring as companies deploy AI chips in data centers, autonomous vehicles, and edge devices. As per reports, its flagship CoWoS (Chip-on-Wafer-on-Substrate) packaging capacity is expected to reach between 65,000 and 75,000 wafers per month by the end of 2025, with further expansion to about 100,000 units by 2026.

This capacity expansion gives TSMC a competitive edge, ensuring it remains the supplier of choice for high-performance AI chips.

The entire supply chain benefits from this growth. Additionally, Advanced Semiconductor Engineering (ASE), a key player in outsourced assembly and test services, saw an 11% increase in revenue. Thus, rising demand for sophisticated packaging solutions confirms that AI-driven expansion is reshaping the industry.

TSMC’s Strong Financials Support Long-Term Investment Confidence

Investors are drawn to TSMC’s resilience. In August 2025, the company’s revenue hit NT$335.77 billion—up 3.9% from the previous month and 33.8% from August 2024. Year-to-date revenue through August reached NT$2,431.98 billion, marking a 37.1% increase compared to 2024.

This growth reinforces TSMC’s reputation as a stable, high-performing investment. The company’s diverse client base, advanced manufacturing capabilities, and strategic expansion into AI markets strengthen its long-term outlook.

tsmc earnings
Source: TSMC

Climate Action: A Competitive Edge for Investors

While growth captures headlines, TSMC’s commitment to sustainability builds deeper trust with investors and stakeholders. The semiconductor industry is energy-intensive, and responsible climate action is now a key differentiator.

  • In 2024, TSMC’s total greenhouse gas emissions reached 21 million metric tons of CO₂ equivalent.
  • Electricity usage (Scope 2) caused 52% of TSMC’s emissions, while its supply chain (Scope 3) contributed 39%, and direct processes (Scope 1) accounted for 9%.

Emissions increased by 8% compared to the previous year, and emissions per product unit rose by 19%. While the company missed its reduction targets, it swiftly accelerated its efforts to improve energy efficiency and reduce its carbon footprint.

tsmc emissions
Source: TSMC

Key Climate Initiatives Driving Impact

Last year, the company installed or upgraded more than 3,400 scrubbers at manufacturing sites, cutting 390,000 metric tons of direct emissions.

It added nine new green factories certified by LEED Gold or higher, bringing its total to 51 eco-certified facilities. These buildings use energy-saving designs and materials that enhance operational efficiency.

Recognizing that reducing supply chain emissions is essential, TSMC introduced its “Supply Chain Carbon Reduction Action Strategy.” This framework focuses on performance tracking, supplier support, motivation incentives, and collaborative innovation, encouraging suppliers to adopt low-carbon practices.

Renewable Energy Drives TSMC’s Climate Action

Renewable energy leads TSMC’s climate roadmap. In 2024, its Taiwan fabs used 1,450 GWh of renewable power. Meanwhile, its global offices ran entirely on renewable electricity, and all CO₂ emissions from overseas sites were fully offset. As a result, TSMC has achieved net-zero electricity-related emissions for seven straight years.

Looking ahead, the company aims to source 40% of its electricity from renewables by 2030. It also fast-tracked its goal to reach 100% renewable energy by 2040—ten years earlier than planned.

Through initiatives like roof-mounted solar panels and maximizing renewable installations, TSMC boosted its renewable energy use to 3,610 GWh in 2024. By year’s end, it secured 4.4 GW of renewable energy contracts, cutting an estimated 5.23 million metric tons of CO₂ emissions annually.

TSMC energy
Source: TSMC

Bringing Bees Back: How TSMC’s Green Efforts Revived Local Ecosystems

The company’s environmental initiatives have restored ecosystems around its manufacturing sites, resulting in unexpected benefits for biodiversity. After reintroducing plant species suitable for pollinators, bees naturally returned to areas near TSMC’s fabs.

Recent reports say that the company partnered with local beekeepers and Taiwan’s Tunghai University to produce “Ji Mi,” a branded honey cultivated in and around its factories. The project not only supports pollinators but also creates new community livelihoods.

In conclusion, investors benefit from TSMC’s leadership not only through market gains but also by aligning with global sustainability trends. As demand for AI and advanced computing grows, TSMC’s forward-thinking strategy keeps it at the forefront—driving returns while safeguarding the environment.

One Carbon World joins Carbon Markets Africa Summit as Official Climate Impact Partner

Jennifer L
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0
One Carbon World joins Carbon Markets Africa Summit as Official Climate Impact Partner

Disseminated on behalf of VUKA Group.

“Partnerships the way to scale of the African carbon market”

One Carbon World (OCW) will be the official climate impact partner of the upcoming Carbon Markets Africa Summit (CMAS) taking place in Johannesburg from 22 to 23 October.

OCW is a not-for-profit dedicated to helping organisations reduce their carbon footprint and achieve recognised standards such as the Science Based Targets initiative (SBTi). They provide tailored guidance to clients and advocate for putting high-quality data in front of decision-makers.

Carbon Markets Africa Summit will gather the continent’s entire carbon markets value chain, from successful early carbon market movers, climate-finance-ready projects, and regulatory bodies to global institutional development organisations and investors. 

Measuring CMAS carbon footprint

“We are very, very proud to be working with the VUKA group as their climate impact partner for the CMAS Summit,” says Madeleine Garlick, One Carbon World Africa Director. “We will be measuring the carbon footprint of the CMAS Summit. VUKA believes in leading by example, which includes setting high standards for themselves.”

She adds:

“Our partnership, we hope, will enable VUKA to gather huge amounts of data to understand the impacts of their summits. By working together, we hope to be able to track year-on-year improvements. It is a journey. And we think that this is a really, powerful move by an organisation who are not only hosting the critical green conversations that we need about Africa’s future, but are also leading the way by walking the walk themselves.”

Monitoring, reporting and verification

One Carbon World recently began to expand its work into nature-based solutions projects in the carbon market. Garlick explains:

“This is very much in response to what our customers have been asking for, which is high integrity carbon credits to support their low carbon journey. We particularly support our customers and clients and projects through the MRV process (monitoring, reporting and verification) to ensure that their process and activities are of high integrity and comply with all the relevant data and global verification requirements. Ultimately, we believe that carbon markets are a key part of the climate journey for a number of organisations.”

Partnerships key to scale African carbon markets

According to Madeleine Garlick, One Carbon World’s key message at CMAS will be that:

“African stakeholders and innovators are developing and leading the market at the moment. And the most important thing at this point in the progress and development of the African carbon market is partnership. Partnerships between businesses, partnership between project implementers to learn from each other, partnerships with communities, and finding new ways to deliver value at the grassroots level. Partnership is the way we will get scale out of the African carbon market and ensure it is delivering for everybody.”

Future of sustainable events in Africa

“We’re thrilled to accompany VUKA on the start of their journey as they take meaningful steps to measure the emissions of their inaugural Carbon Markets Africa Summit,” states Andrew Bowen, One Carbon World CEO. He continues:

“With One Carbon World’s extensive experience in footprinting the emissions from large events around the world, we know how impactful this kind of leadership can be in shaping credible sustainability conversations and global climate action. We look forward to our partnership as we work together to advance the future of sustainable events in Africa and beyond.”

[Read and watch the full interview with Madeleine Garlick, One Carbon World Africa Director here.]

Carbon markets africa summit

VUKA Group 
Carbon Markets Africa Summit is organised by VUKA Group, and the United Nations Development Programme (UNDP) is the official host organisation. 

The VUKA Group (formerly Clarion Events Africa) is a leading Cape Town-based and multi-award-winning organiser of exhibitions, conferences and digital events across the continent in the infrastructure, energy, mining, mobility, ecommerce and CX sectors. It has more than 20 years’ experience in serving the business community across Africa.

Other well-known events by The Vuka Group include Africa’s Green Economy Summit, Smarter Mobility Africa, Enlit Africa, DRC Mining Week, Nigeria Mining Week, DRC-Africa Battery Metals Forum, ECOM Africa and CEM Africa. 

Event dates and location:
Dates:
21 October: Pre-summit day
22–23 October: Summit
Location: Johannesburg, South Africa

Contact details for Carbon Markets Africa Summit: 
Project Lead: Emmanuelle Nicholls 
Cell: +27 83 447 8410  
Email: emmanuelle.nicholls@wearevuka.com  

Event website: About — Carbon Markets Africa
One Carbon World website: https://www.onecarbonworld.com 

US-UK Nuclear Pact Sends Oklo Stock (OKLO) to Record Highs in Clean Energy Boom

Jennifer L
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0
US-UK Nuclear Pact Sends Oklo Stock (OKLO) to Record Highs in Clean Energy Boom

The United States and the United Kingdom have announced a landmark initiative called the Atlantic Partnership for Advanced Nuclear Energy. This partnership aims to speed up the development and deployment of next-generation nuclear technologies. These include small modular reactors (SMRs) and microreactors. They are smaller, more flexible, and often cheaper to build than traditional nuclear plants.

Both nations view this agreement as a way to secure their energy futures while also cutting carbon emissions. The partnership involves sharing research, aligning regulations, and boosting supply chains for nuclear parts and fuel.

By doing so, the US and UK hope to accelerate projects that can deliver reliable, clean power not only at home but also to global markets.

The announcement comes at a time when energy security and climate change are pressing issues. Recent global events, like rising fossil fuel prices and supply issues, highlight the need to diversify energy sources. And nuclear energy is gaining attention again. It can provide steady, low-carbon electricity. This makes it a key part of our energy mix.

Oklo’s Meteoric Rise

The news has sent ripples through the financial markets. Companies in advanced nuclear technology feel the impact the most. One of the biggest winners is Oklo Inc. (OKLO).

The company focuses on creating compact microreactors. These reactors provide clean, reliable power for various needs, including industrial operations, military bases, and remote communities.

Oklo’s stock has been on a dramatic upward path after the announcement:

  • 1,460% increase in one year — rising from $6.20 on September 16, 2024, to $96.70 today.
  • 30% gain in just five days, from September 11 to September 16, 2025.

This performance has positioned Oklo as one of the standout companies in the clean energy sector. Investors believe the company’s technology and solid policy support will make it key in the global nuclear revival.

Oklo stock price

Moreover, Oklo was chosen by the U.S. Air Force in June to build a microreactor at Eielson Air Force Base in Alaska. It has a capacity of up to 75 megawatts of combined electrical and thermal power. The project will be designed, built, owned, and operated by Oklo on-site, helping the base cut fuel deliveries and improve energy security.

Why Nuclear Energy is Back in Focus

The renewed focus on nuclear energy is not accidental. The world is experiencing rapid growth in electricity demand.

According to the International Energy Agency (IEA), global electricity use could rise by 30% between 2023 and 2030. A lot of this growth will come from electric vehicles, industrial electrification, and big data centers. These centers are needed to support artificial intelligence and cloud computing.

At the same time, governments around the world have pledged to reduce greenhouse gas emissions to net zero by the middle of the century. Nuclear energy already provides 10% of global electricity and about 25% of all low-carbon power. Without nuclear, meeting climate targets would be much more difficult.

nuclear power share of electricity global 2024

The Intergovernmental Panel on Climate Change (IPCC) has also emphasized the role of nuclear in reducing emissions. Their reports show that doubling or tripling nuclear power by 2050 could cut billions of tons of CO₂ from the global energy system.

The chart below from Katusa Research shows how much nuclear power the world needs by 2050 in different scenarios.

Nuclear Power Requirement in 2050

Small Reactors, Big Promise

Traditional nuclear plants are large, costly, and can take more than a decade to complete. In contrast, advanced reactors are designed to be smaller, modular, and easier to construct. Oklo’s main project, the Aurora microreactor, provides about 1.5 megawatts of electricity. This is enough to power hundreds of homes or a small industrial site.

Aurora reactors are designed to run for up to 20 years without refueling. Oklo is also developing technologies to recycle used nuclear fuel. This process turns waste into a resource, enhancing the sustainability of nuclear energy.

The US-UK partnership is expected to speed up the demonstration and deployment of advanced reactors. Both countries aim to launch new nuclear designs in under a decade. They plan to do this by aligning regulations and funding demonstration projects.

Billions Flowing Into Atoms

The nuclear industry is experiencing a wave of new investment. The IEA says that yearly investment in nuclear energy should double to around $120 billion by 2030. This growth comes as governments and companies seek reliable, clean power.

nuclear energy investment outlook by type 2050
Source: IEA

Several countries are already moving forward with SMR projects. Canada has committed $970 million to develop SMRs in Ontario. Poland and Romania are working with US-based companies to deploy new reactor designs. Japan, South Korea, and France have also signaled stronger support for nuclear after years of slower growth.

Oklo stands out in this context because of its early-mover advantage in microreactors. Its reactors are smaller than most SMRs. This makes them ideal for specialized markets such as off-grid industries, island nations, and military uses. This flexibility gives the company a potential edge as countries and companies look for clean, scalable power solutions.

Investors Bet on Oklo

Oklo’s stock rally is part of a broader trend of growing investor enthusiasm for nuclear. Over the past year, companies tied to the nuclear sector have outperformed broader market indexes.

While the S&P 500 gained around 12% in the past 12 months, Oklo’s more than 1,400% increase stands out as extraordinary. By comparison, NuScale Power, another SMR developer, has seen more modest stock performance as it works to advance its projects.

The surge highlights both the opportunities and risks of investing in emerging nuclear technologies. Oklo still has big challenges ahead. They need regulatory approvals and must scale up manufacturing. However, the market is signaling confidence that Oklo’s approach aligns with the global push for clean, dependable power.

What This Means Going Forward

The Atlantic Partnership for Advanced Nuclear Energy marks a turning point in transatlantic cooperation. The US and UK are joining forces. By sharing their expertise, resources, and political will, they send a strong message: Nuclear energy will be key to their strategies.

For Oklo, the timing could not be better. Investor enthusiasm is high, government policies are supportive, and demand for clean energy is rising. And so, the company can take advantage of the nuclear boom.

If Oklo can deliver on its promises, it could help reshape the way the world thinks about nuclear power. Microreactors could become common in places where traditional reactors were never an option, from rural communities to industrial hubs.

The company’s story also reflects a larger shift. Nuclear power, once seen as a legacy technology, is now being recast as a driver of innovation and climate action. The mix of private-sector energy and government support could finally unleash its full potential.

Nature’s Miracle Bets $20M on Blockchain Carbon Credits to Capture 1M Tons of CO₂

Jennifer L
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0
Nature’s Miracle Bets $20M on Blockchain Carbon Credits to Capture 1M Tons of CO₂

Nature’s Miracle Holding Inc., a publicly listed company (NASDAQ: NMHI) focused on agriculture technology and indoor farming, is making a bold entry into the carbon credit industry. The company plans to buy a $20 million carbon credit portfolio that will cut about one million metric tons of carbon dioxide. 

NMHI will also use blockchain technology to boost transparency and efficiency. This move shows that smaller companies are joining the growing carbon market. They use digital tools to improve trust and access.

A $20M Leap into Carbon Credit 

Nature’s Miracle signed a Letter of Intent to buy $20 million in carbon credits from Carbon Credit Corporation, a company based in Taiwan. These credits represent one million metric tons of CO₂ reductions. That’s about the same as the yearly emissions from 220,000 gasoline cars or the energy used by 125,000 homes.

Credits mainly come from hydroelectric and methane capture projects in Asia and South America. Together, these sectors account for about 40% of voluntary carbon credits issued worldwide, which are registered with Verra’s Verified Carbon Standard (VCS). It is the largest carbon registry, overseeing over 75% of all carbon credits traded worldwide.

To pay for the deal, Nature’s Miracle plans to issue new company shares. For a company with a market cap under $100 million in 2025, this investment is big. It may change the business, moving beyond agriculture tech into environmental finance.

In addition to its carbon credit push, Nature’s Miracle is also moving into electric vehicles with a plan to tokenize a $100 million EV sales order. The company plans to use the XRP Ledger. They will convert customer deposits into digital tokens.

Nature's Miracle tokenization
Source: NMHI presentation

Each token will represent a fraction of an XRP-backed contract. These tokens can then be traded on real-world asset (RWA) exchanges or redeemed at contract maturity. The goal is to merge EV sales with blockchain innovation. This gives customers access to vehicles and the chance for investment returns.

Why Blockchain for Carbon Credits?

The carbon market has long faced criticism over a lack of transparency, double-counting, and difficulty in tracking credit ownership. Blockchain offers a promising solution. It creates a permanent and verifiable digital record for every transaction.

Through the XRP Ledger blockchain, Nature’s Miracle plans to tokenize each carbon credit, turning it into a digital token. This allows credits to be traded more easily across markets and retired once used.

Blockchain tools in carbon markets can:

  • Track the origin and transfer of credits in real time.
  • Prevent double-counting or fraudulent claims.
  • Increase liquidity by making trading more efficient.

This idea of tokenizing carbon credits is gaining momentum. In 2024, the World Bank reported that more than 60 pilot projects worldwide were exploring blockchain or digital MRV (monitoring, reporting, and verification) systems for carbon markets.

Moreover, an analysis shows that in 2025, more than 60% of new carbon credit platforms are using blockchain, with most focused on agriculture and forestry projects. A study further shows that blockchain can boost carbon markets, reduce inefficiencies, and aid climate action and the Sustainable Development Goals (SDGs).

blockchain tokenization of carbon credits
Source: https://doi.org/10.1016/j.sftr.2025.101109

Riding the $250B Carbon Wave

The global carbon market is expanding quickly as governments and companies act on climate targets. In 2024, the voluntary carbon market was worth around $2 billion. Analysts expect it to reach $50 billion by 2030 and up to $250 billion by 2050 if demand keeps rising.

carbon credit market value 2050 MSCI
Source: MSCI

Key drivers of this growth include:

  • Corporate net zero pledges: Over 9,000 companies worldwide have set targets to cut or offset emissions by 2050.
  • Government regulations: Policies like the EU’s Carbon Border Adjustment Mechanism are increasing demand by putting a price on carbon-intensive imports.
  • Rising carbon prices: In compliance markets such as the EU Emissions Trading System, prices reached over €100 per ton in 2023, up from less than €30 per ton in 2020. It stabilizes at around €100 per ton in mid-2025.

Carbon credits are a bridge solution for firms that cannot yet eliminate all emissions. They allow companies to support renewable energy, forest protection, or clean technology projects while continuing to cut emissions internally.

High Risk, High Reward

For Nature’s Miracle, entering the carbon market creates opportunities but also major risks. This acquisition allows the company to expand beyond indoor farming. It positions it in a fast-growing industry.

A successful blockchain platform could attract corporate buyers and investors looking for trustworthy carbon credits. However, the risks are equally significant.

The company’s market value is small compared to the $20 million portfolio it is acquiring. Financing and managing the credits will be a test of its capacity. Investor confidence has also been weak, with the stock losing more than 60% of its value in the past 12 months.

 

Blockchain Meets Carbon: What Other Blockchain Carbon Projects Do

Nature’s Miracle is not the first to explore blockchain for carbon markets. Other notable projects include:

  • Toucan Protocol:

Known for bringing carbon credits onto the blockchain by “bridging” them into digital tokens on Polygon. Toucan was one of the first large-scale efforts to tokenize credits, with over 20 million credits in 2021-2022.

  • KlimaDAO:

A decentralized autonomous organization that built a carbon-backed cryptocurrency. By using blockchain incentives, KlimaDAO aimed to create demand for tokenized credits and raise their price. It has attracted more than 17 million tons of credits into its treasury at its peak.

  • Flowcarbon:

Backed by venture capital and co-founded by WeWork’s Adam Neumann, Flowcarbon has focused on issuing carbon-backed tokens and building a marketplace for transparent trading. It has raised $70 million in funding in 2022 to develop blockchain-based carbon tokens.

Unlike these startups, Nature’s Miracle is a publicly traded company with an existing agricultural technology base. Its plan to tokenize Verra-registered credits on the XRP Ledger may appeal to investors looking for a link between traditional finance and emerging digital tools.

Verra’s dMRV platform
Source: Verra

From Fields to Finance: What This Means for the Future of Carbon Markets

The Nature’s Miracle deal highlights a shift from pilot projects to real strategies in carbon finance. Tokenization might boost trust in carbon offset markets. These markets lost momentum in 2023 after reports raised doubts about credit quality.

If successful, blockchain adoption could make it easier for both small and large companies to trade and retire credits. Over 40% of Fortune 500 companies already use carbon offsets in their climate strategies. Many are also looking for better tracking systems.

The coming years will reveal whether regulators and big corporate buyers accept tokenized credits. If they do, blockchain could become a standard tool in emissions accounting. If not, it may remain a niche experiment.

Nature’s Miracle’s plan to acquire $20 million in carbon credits is a bold step for a small company. By tokenizing these credits on the XRP Ledger, it is entering both the carbon finance and blockchain arenas.

The move highlights the growing demand for transparent, credible carbon markets. It also shows how innovation in finance and technology is shaping the global response to climate change. Whether Nature’s Miracle succeeds or struggles, its entry marks another step in merging agriculture, carbon markets, and digital tools in the fight against global warming.

EU Unveils €17.5B Boost to Help SMEs Go Green and Cut Energy Costs

Jennifer L
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0
EU Unveils €17.5B Boost to Help SMEs Go Green and Cut Energy Costs

The European Investment Bank (EIB), supported by the European Commission, has started a €17.5 billion program for small and medium-sized enterprises (SMEs). This initiative aims to boost energy efficiency upgrades and decarbonization projects in the EU.

The program will run for three years and aims to help over 350,000 businesses. The goals are to cut costs, reduce emissions, and boost competitiveness in a changing energy market.

This financing is not only about helping SMEs modernize. It is also part of Europe’s broader plan to reach its climate goals under the European Green Deal. By supporting smaller firms, the EU hopes to ensure no business is left behind in the green transition.

The Commissioner for Energy and Housing Dan Jørgensen remarked during the announcement:

“SMEs are at the heart of Europe’s economy and way of life. But they invest in energy efficiency at only half the rate of larger companies. This EIB initiative supported by the Commission will be key to close the investment gap, simplify access to financing, and accelerate the deployment of energy efficiency solutions. With more energy-efficient SMEs, we boost our economy, we benefit our climate, and we keep a healthy heartbeat in communities across Europe.”

Why SMEs Are Central to the EU’s Climate Goals

SMEs are the backbone of Europe’s economy. They account for more than 99% of businesses and employ around 100 million people. Yet, their smaller size often makes it harder for them to invest in energy-saving measures than larger companies.

Data shows that SMEs invest at only half the rate of larger firms in energy efficiency projects. Rising energy costs have made this gap even more pressing. Old heating systems, bad insulation, or weak lighting can expose SMEs to rising energy costs.

With this major financing, the EU is helping SMEs in two ways: it lowers their costs and advances the EU’s climate goals. This approach makes sure that smaller firms join the move to a greener economy. Together, they play a big role in Europe’s energy use and emissions goals. 

EU GHG emissions by sector 2023
Source: EU website

The European Union has reduced its greenhouse gas emissions by around 37% since 1990, as of 2024. This drop is mainly due to increased use of renewable energy and less reliance on coal.

The EU aims to cut emissions by at least 55% by 2030, using 1990 levels as a baseline. Member States may achieve reductions of about 54-49%, depending on their policies.

EU net-zero pathway
Source: European Commission (EC)

Looking ahead, the EU is considering even more ambitious goals: a proposed 2040 target seeks a 90% reduction in net emissions, setting the path toward becoming climate neutral or net zero by 2050.

Inside the €17.5 Billion Green Financing Plan

The EIB will provide financing in the form of loans, equity investments, and guarantees. These tools will be delivered through existing programs like InvestEU, as well as new channels designed to make access easier.

One major feature of the initiative is a “one-stop shop” model. This will allow SMEs to find support in a single place rather than navigating multiple programs. The goal is to simplify procedures, reduce paperwork, and make financing faster to access.

The projects supported will cover proven technologies that are widely available but underused by smaller firms. These include improved building insulation, energy-efficient machinery, advanced heating and cooling systems, and low-carbon lighting. Each of these upgrades can help reduce operational costs while cutting emissions.

Importantly, the financing is not limited to equipment purchases. SMEs can use funds to try new business models. One option is energy efficiency as a service. In this model, a provider installs and maintains equipment. The SME then pays only for the energy saved. This approach lowers upfront costs and makes it easier for firms with limited budgets to adopt modern technologies.

Scaling Up Impact: €65 Billion in Investments by 2027

While the program itself offers €17.5 billion, the EU expects it to mobilize at least €65 billion in total investment by 2027. This figure includes extra support from private investors, national governments, and financial institutions. They will collaborate with the EIB.

Over the 3-year period, the program could reach over 350,000 SMEs across all EU member states. The projects will help firms lower energy bills, reduce carbon footprints, and build resilience against future energy shocks.

Moreover, the impact is expected to go beyond the companies themselves. The initiative will create demand for retrofits, new heating systems, and efficiency services. This will generate thousands of jobs in construction, engineering, and clean technology. It will also support regional development, especially in areas where SMEs are a critical source of employment.

Barriers Ahead: Can All SMEs Keep Up?

Despite its promise, the initiative faces several challenges. First, many SMEs have limited time and capacity to deal with complex applications. Even with simplified procedures, awareness and outreach will be essential.

Second, energy efficiency projects often involve upfront costs that take time to recover. While financing helps, firms may still hesitate if payback periods are long. 

Third, access must be balanced across all EU regions. SMEs in rural or less developed areas may need extra support to compete with firms in larger cities that already have more resources. Ensuring an equitable rollout will be key to the program’s success.

These challenges are significant, but the potential rewards are even greater. By bringing SMEs into the center of the green transition, the EU is linking small business growth with Europe’s broader decarbonization agenda.

The Policy Context: Fitting Into Europe’s Green Deal

European Union energy demand under net zero
Source: EC

This initiative comes at a time when the EU is under pressure to deliver on its climate commitments. Achieving these targets will require action across all sectors, including SMEs.

Global energy efficiency investment is also on the rise. According to the International Energy Agency, annual spending on energy efficiency reached $660 billion in 2024 and is expected to grow steadily. 

Global investment in energy efficiency by sector and region 2019-2024
Source: IEA

Europe’s new program fits within this global trend by channeling resources to smaller firms that often lack access to capital. If successful, the program could deliver multiple benefits:

  • Lower costs: SMEs will save money on energy, improving their competitiveness.
  • Reduced emissions: Widespread adoption of efficiency upgrades can significantly cut carbon output from the SME sector.
  • Job creation: New demand for retrofits, technology, and services will support employment in clean industries.
  • Resilience: Companies will be better prepared to handle energy price shocks and supply disruptions.

Double Wins: Lower Costs, Lower Emissions

The EU’s €17.5 billion financing program marks a major step in supporting SMEs through the green transition. It aims to lower barriers and boost the adoption of energy efficiency and decarbonization projects in the EU by combining loans, equity, advisory services, and innovative models.

Challenges remain, like ensuring access in all areas and managing upfront costs. Still, the initiative provides a guide for governments. It shows how to support climate action and boost small businesses.

By linking competitiveness with sustainability, the EU is signaling that the path to a low-carbon future must include every level of the economy. SMEs, once seen as too small to matter in climate policy, are now positioned as key players in the EU’s decarbonization journey.

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