Microsoft (MSFT Stock) Doubles Down on Clean Materials: Low-Carbon Cement and Green Steel Deals

Jennifer L
-
0
Microsoft (MSFT Stock) Doubles Down on Clean Materials: Low-Carbon Cement and Green Steel Deals

Microsoft (NASDAQ: MSFT) is stepping deeper into climate action by targeting two of the world’s most emissions-intensive industries: cement and steel. The company invested in Fortera, a U.S. startup making low-carbon cement, and signed new agreements with Stegra, a European producer of green steel.

These efforts support Microsoft’s 2030 goal to become carbon negative and its plan to cut supply chain emissions. Since cement and steel are core to buildings and technology, new solutions in these materials are key to global decarbonization.

Microsoft Backs Green Cement with Fortera

Cement production causes 7–8% of global CO₂ emissions, mainly from heating limestone and powering kilns. Fortera uses a new process that locks carbon into the cement itself. This can cut emissions by up to 60% compared to traditional methods.

fortera low carbon cement process
Source: Fortera

Microsoft’s funding supports this innovation and signals corporate demand for cleaner building materials. The company can use green cement for offices, data centers, and infrastructure.

The global green cement market was worth about $28 billion in 2024. It is forecast to nearly double to $60 billion by 2032, growing at a rate of over 9% per year. Demand is rising due to stricter climate rules, more construction, and corporate sustainability targets. Microsoft’s move shows how tech giants can shape this market.

Microsoft and Stegra: Green Steel for Data Centers

Steelmaking is another hard-to-abate sector, responsible for around 7% of global energy-related CO₂ emissions. Traditional steel production uses coal. However, new methods are emerging. Hydrogen-based direct reduction and electric arc furnaces powered by renewable energy offer cleaner alternatives.

Microsoft’s new deals with Stegra aim to secure green steel for its data centers, hardware production, and corporate facilities. Stegra makes steel with renewable electricity and low-emission methods. This cuts emissions by up to 90% compared to regular steel. For Microsoft, this partnership helps reduce Scope 3 emissions, which come from the materials and products in its supply chain.

Stegra green steel production process
Source: Stegra

The global green steel market is just starting out. It’s expected to hit over $760 billion by 2030. This growth is driven by rising demand from construction, automotive, and tech companies. Europe leads in green steel production thanks to strong government policies and carbon pricing. However, the U.S. and Asia are gaining momentum, too.

green steel market 2030
Source: Grand View Research

Corporate Demand and Industry Shifts

Microsoft’s actions reflect a broader shift among global companies. Many are now pushing suppliers to provide low-carbon materials. Science-based climate targets cover not only direct emissions but also entire supply chains.

Key industry shifts include:

  • Corporate procurement power: Companies like Microsoft, Apple, and Amazon are committing to buying greener materials, creating demand for innovation.
  • Policy drivers: The EU’s Carbon Border Adjustment Mechanism and U.S. Inflation Reduction Act incentives are accelerating clean material adoption.
  • Investment flows: Global investment in clean industrial technologies reached over US$150 billion in 2024, according to the International Energy Agency, with strong growth expected through 2030.

This combination of corporate demand, public policy, and capital flows is reshaping industries once seen as difficult to decarbonize.

Microsoft’s Climate Goals and Broader Impact

Microsoft has set some of the most ambitious climate goals among global technology companies. In 2020, it announced plans to become carbon negative by 2030, meaning it will remove more carbon from the atmosphere than it emits.

microsoft emissions
Source: Microsoft

By 2050, it aims to erase all of its historical emissions since its founding in 1975. To achieve this, the company is cutting direct emissions. It is also investing in renewable energy, carbon removal technologies, and low-carbon supply chains.

A major part of Microsoft’s plan involves reshaping the materials it uses across its global operations. Steel and cement account for nearly 15% of global carbon emissions. They are essential for data centers, offices, and product supply chains.

By supporting low-carbon producers like Fortera and Stegra, Microsoft is addressing these hard-to-abate sectors. If successful, these partnerships will lower Microsoft’s footprint. They will also create scalable solutions for other companies to adopt.

Microsoft is also driving progress in its broader ecosystem. Its Cloud for Sustainability platform gives businesses tools to track and cut emissions. This creates a vital connection between climate promises and real results. This shows how Microsoft is working on both sides of the challenge: cutting its own emissions while helping other organizations do the same.

The company’s climate strategy is also closely tied to investor expectations. ESG-focused funds now manage more than $600 billion worldwide. Companies with solid net-zero plans are gaining favor among institutional investors.

Microsoft’s ability to show progress gives it an advantage in attracting long-term capital while strengthening its reputation as a leader in climate action.

Outlook: Why Microsoft’s Bets Could Reshape Industries

The global clean materials market is entering rapid growth. The International Energy Agency (IEA) reports that annual clean energy investment hit US$1.8 trillion in 2023. It could reach more than US$4.5 trillion by 2030 if countries meet climate targets.

Cement and steel will be vital. By 2050, they could account for more than 20% of all carbon cuts needed. This makes them top targets for innovation and new business models.

Over 6,000 companies worldwide have now set science-based targets. Many are pressuring their suppliers to deliver cleaner products. This could push demand for green cement and steel far faster than the current supply. Microsoft’s early partnerships put it ahead of the curve.

For Microsoft, the benefits are twofold: lower emissions and reduced risk from future carbon rules. Using cleaner materials in data centers, AI facilities, and logistics will also make its operations more resilient.

The tech giant’s deals with Fortera and Stegra show that green materials are moving beyond small pilots into real, large-scale use. This momentum could reshape whole industries in the years ahead.

Amazon (AMZN Stock) Strikes $100M Solar Deal with Iberdrola’s Avangrid to Power Its Net-Zero Future

Jennifer L
-
0
Amazon (AMZN Stock) Strikes $100M Solar Deal with Iberdrola’s Avangrid to Power Its Net-Zero Future

Amazon (NASDAQ: AMZN) has announced a major renewable energy deal in the United States, partnering with Avangrid on a $100 million solar project. The development will add clean electricity to the U.S. grid and further support Amazon’s climate goals.

The agreement highlights the growing role of large corporations in driving clean energy demand. Amazon is one of the biggest buyers of renewable energy in the world. It is quickly growing its solar and wind portfolio.

Amazon signs long-term power purchase agreements (PPAs) to secure renewable electricity. This also helps developers like Avangrid get the funds they need to build large projects.

Net-Zero by 2040: Amazon’s Big Climate Goals, and Bigger Challenges

Amazon aims to reach net-zero carbon emissions by 2040. It also plans to run all operations on 100% renewable energy by 2025, a target it says it is close to achieving.

Amazon net zero 2040 journey
Source: Amazon

But Amazon’s emissions profile shows how hard this goal is. In 2024, the company’s total greenhouse gas emissions rose by 6%, reaching 68.25 million metric tons of CO₂ equivalent. That marked a reversal after years of reductions. All scopes saw increases.

Amazon carbon emission 2024
Source: Amazon

Here is how the emissions break down: Despite the growth in absolute emissions, Amazon says it improved its carbon intensity (emissions per unit of business) by 4% in 2024.

Amazon emissions breakdown 2024
Source: Amazon

Amazon explains its carbon footprint calculation using the GHG Protocol. It includes direct operations, energy use, and activities in the value chain. This covers product manufacturing, logistics, packaging, and more.

To reduce its impact, Amazon has taken multiple steps:

  • Matching electricity use with renewable energy: In 2024, Amazon used 100% renewable energy for all its data centers and facilities.
  • Investing in renewable capacity: As of early 2025, Amazon had invested in 621 renewable projects, amounting to 34 GW of carbon-free energy capacity.
  • Storage and grid support: Amazon pairs solar projects with battery energy storage systems, enabling more stable renewable energy integration.
  • Efficiency in data centers: Amazon’s AWS data centers reported a Power Usage Effectiveness (PUE) of 1.15, better than many industry averages.
  • Innovation in cooling and design: New data center components launched in 2024 provided 12% more compute power. They also reduced peak cooling energy use by 46% without increasing water usage. 

These actions show the e-commerce giant is not just buying clean power, but trying to redesign how it uses energy.

SEE MORE on AMAZON:

Avangrid’s Solar Play and Why It Matters

Avangrid, part of the Iberdrola Group, is one of the largest renewable energy companies in the United States. Its $100 million investment in the new solar project underlines the scale of capital required to expand America’s clean power supply.

The company currently operates more than 8.6 gigawatts (GW) of renewable capacity in the U.S., including wind and solar. By partnering with Amazon, Avangrid gets a steady buyer for its electricity. This deal also speeds up the growth of renewable infrastructure. This helps meet both state and national clean energy goals.

This project also illustrates how large tech and energy firms can work together. Amazon’s demand provides a stable revenue stream, and Avangrid gains the capital certainty to build more solar capacity. Over time, similar deals can help accelerate the transition of the U.S. power grid to cleaner sources.

Scaling renewable energy helps Amazon in two ways:

  1. It reduces operational emissions (Scope 2) in regions where Amazon operates.
  2. It supports grid decarbonization, which benefits all electricity users—including Amazon’s neighbors and future expansions.

How Corporate Demand Supercharges Renewable Growth

The deal comes at a time when renewable energy investment in the U.S. is accelerating. The International Energy Agency (IEA) reports that global clean energy investment hit $3.3 trillion in 2025. This amount surpassed spending on fossil fuels.

The U.S. remains a key market, with solar power installations alone expected to grow by more than 40 GW annually through 2030.

US solar pv installations
Source: SEIA

Corporations are an important driver of this trend. Companies now hold a larger share of renewable PPAs. This shift comes as investors, regulators, and consumers demand stronger climate commitments. Amazon has been the biggest buyer of renewable electricity worldwide since 2020.

Amazon’s deal with Avangrid sends a strong signal to the renewable sector. Corporate demand for clean power gives developers and financiers long-term certainty. This certainty helps make scaling projects easier. As more companies set science-based climate targets, the renewable PPA market is expected to keep expanding.

Industry forecasts say that corporate PPAs might make up 20–25% of new renewable capacity by 2030. Amazon’s scale gives it an outsized role in shaping this market. The company partners with developers like Avangrid. This helps unlock capital and speeds up the clean energy transition.

Amazon’s Hardest Climate Challenge

Amazon leads in renewable procurement, but it faces big challenges in hitting its 2040 net-zero target. The majority of its emissions come from Scope 3 sources, including suppliers, logistics, and product use by customers.

While renewable energy agreements cover operational electricity, tackling emissions across Amazon’s vast value chain will need deeper collaboration with partners and new technologies.

Analysts point out that Amazon’s total emissions haven’t dropped consistently. This shows the struggle between fast business growth and climate goals. For instance, even with renewable progress, Amazon’s overall footprint grew steadily during its years of fastest e-commerce expansion.

Balancing E-Commerce Expansion with Carbon Cuts

Amazon’s renewable energy strategy, like solar, is both a business and environmental decision. Access to low-cost clean power reduces long-term energy risks, while also positioning the company as a leader in climate action.

Partnerships with Avangrid and other developers boost the U.S. renewable energy market. They show that when companies demand clean energy, it can quicken the shift to clean electricity.

The U.S. renewable sector is set for strong growth in 2025, led by wind and storage, per S&P Global analysis. Wind power additions are projected at 15.7 GW, up 73% from 2024’s 9.1 GW. Energy storage is expected to triple, surging from 14.5 GW in 2024 to nearly 44 GW in 2025.

US renewable enery generation

However, S&P Global cautions that some large wind and solar projects may face delays, with in-service dates potentially shifting beyond 2025. Overall, broad-based gains highlight accelerating momentum in the U.S. clean energy transition.

For Amazon, the challenge ahead lies in balancing growth with deeper emissions cuts. The Avangrid solar project represents progress, but a broader supply chain transformation will be needed to meet the 2040 net-zero target.

As more corporations follow Amazon’s lead, the renewable energy landscape in the U.S. is set for continued expansion. The success of these partnerships will help determine whether the country can meet its clean power goals and maintain momentum in the global shift away from fossil fuels.

U.S. to Cancel $13 Billion in Green Energy Funds: Implications for Climate Policy and Industry

Jennifer L
-
0
U.S. to Cancel $13 Billion in Green Energy Funds: Implications for Climate Policy and Industry

The U.S. government, through the Department of Energy, intends to cancel $13 billion in federal funds that were originally set aside for clean or green energy projects. This decision marks one of the largest reversals in clean energy financing since the passage of the Inflation Reduction Act (IRA) in 2022.

The IRA is seen as the biggest climate law in U.S. history. It offers nearly $370 billion in tax credits, grants, and loans for clean energy. With the $13 billion withdrawal, questions are popping up about the U.S. energy transition. Many are wondering if the nation can still meet its climate goals.

The move comes at a critical time. U.S. renewable energy deployment has accelerated in recent years, with solar, wind, and battery storage all expanding.

The U.S. Energy Information Administration (EIA) reports that renewables made up about 24.2% of electricity in 2024. This number could rise to 26% by 2025. However, this progress relies heavily on federal support. The cancellation of billions in funding could slow growth in some areas and introduce uncertainty for investors.

The Inflation Reduction Act and Its Role

The IRA created a powerful framework to support the clean energy economy. It provided tax credits for wind and solar projects. It also gave incentives for making renewable components in the United States. Plus, there was funding for hydrogen, carbon capture, and nuclear innovation.

Analysts estimate that the IRA could cut U.S. greenhouse gas emissions by 40% from 2005 levels by 2030. This would help the country move closer to its net-zero goal for 2050.

US emissions fall to 2030 under the IRA

The $13 billion cut, however, alters this pathway. Much of the funding was expected to go toward loan guarantees, manufacturing incentives, and rural energy support programs. Without this, developers could face higher costs and financing risks. The cancellation also signals political challenges to sustaining long-term climate policies.

The U.S. DOE stated:

“By returning these funds to the American taxpayer, the Trump administration is affirming its commitment to advancing more affordable, reliable and secure American energy and being more responsible stewards of taxpayer dollars.”

Impact on Renewable Energy Development

The U.S. renewable sector has been scaling rapidly. In 2024, the country added around 33 GW of solar and wind capacity, one of the highest yearly totals on record, per EIA. Battery storage is also growing fast, with capacity expected to triple from 14.5 GW in 2024 to 44 GW in 2025, according to S&P Global.

US renewable energy production 2024 EIA
Source: EIA

Pulling $13 billion from the funding pool could have several impacts:

  • Wind and solar projects may see slower financing approvals, particularly in rural and utility-scale developments.
  • Manufacturers of solar panels, wind turbines, and batteries could lose incentives that made U.S. production competitive with China and Europe.
  • Grid modernization and transmission upgrades may face delays, even as demand for electricity rises with the growth of data centers and electric vehicles.

Industry groups warn that this reduction could affect project timelines. The American Clean Power Association says that long-term certainty is key to keeping private investment strong. In 2024, investments or funding in U.S. clean energy and storage projects topped $272 billion.

clean investment by quarter 2024
Source: Clean Investment Monitor’s Q4 2024 Report

Climate Targets and Emissions Outlook

The U.S. has committed under the Paris Agreement to cut emissions by 50–52% below 2005 levels by 2030. Progress has been steady but uneven.

The EIA reports that total U.S. energy-related carbon dioxide emissions stood at 4.77 billion metric tons in 2024, about 17% below 2005 levels. This shows a slight decline from 2023 emissions of around 4.79 billion metric tons. Reductions are largely driven by fuel switching in power generation and increased use of renewables.

The IRA aims to speed up reductions, especially in the power sector. This sector makes up about one-quarter of national emissions. By withdrawing $13 billion in support, the government may put more pressure on states and private companies to deliver reductions.

At the same time, fossil fuel use is proving stubborn. Natural gas remains the largest source of U.S. electricity, providing about 38% of generation in 2024, while coal contributed around 14%. Without aggressive investment in clean energy, these shares could decline more slowly than expected.

Economic and Investor Reactions

The clean energy sector has become a major driver of U.S. job creation and investment. According to the U.S. Department of Energy, clean energy jobs reached approximately 3.56 million in 2024, with solar employment alone rising about 4% year over year. The IRA boosted the building of new factories for solar panels, batteries, and EV parts in several states.

Canceling $13 billion in funding raises questions for investors who rely on policy certainty. Market analysts say companies might cut back or delay expansion plans if financing is harder to get. However, private capital could still play a strong role, especially since renewable energy is increasingly competitive in cost.

The International Renewable Energy Agency (IRENA) says global solar power costs are down 89% since 2010. Wind costs have also dropped by about 70%. These declines mean renewables often outcompete fossil fuels even without subsidies. Still, the lack of government support may slow adoption in costly areas. This is especially true in rural and low-income regions.

Renewable Energy LCOE Decline, 2010-2024

Broader Policy and Political Context

The decision to cancel funds also reflects a larger debate over federal spending and the future of U.S. climate policy. While some policymakers argue that scaling back funds is necessary to reduce fiscal pressures, others see it as a retreat from climate commitments.

Globally, the U.S. is under pressure to maintain leadership in clean energy investment. China and the European Union continue to pour resources into renewables and green manufacturing. If the U.S. reduces support, it could risk falling behind in the race for clean energy innovation and exports.

Environmental groups worry that this step hurts the U.S. credibility before COP30 in Belém, Brazil. At this event, nations will share updates on their climate goals.

Can Momentum Continue?

Despite the intended cuts in clean energy funding, the long-term outlook for U.S. renewables remains positive. Private sector investment is strong. Technology costs are falling. And corporations want more carbon-free electricity. These factors keep the momentum going.

Companies such as Amazon, Google, and Microsoft have pledged to power their operations with 100% renewable energy within the next decade, creating strong demand signals.

Still, the $13 billion reduction highlights the fragility of policy-driven growth. To keep momentum, states may need to expand their programs. Moreover, utilities should speed up grid upgrades. Companies also need to increase investments beyond federal incentives.

While the clean energy transition is not stopping, it may face more turbulence ahead. The U.S. still has the opportunity to lead, but maintaining progress will depend on balancing fiscal priorities with climate commitments.

Steel’s Heavy Carbon Burden: Is ArcelorMittal Pulling Back on Its Net Zero Climate Pledge?

Saptakee S
-
0
Steel’s Heavy Carbon Burden: Is ArcelorMittal Pulling Back on Its Net Zero Climate Pledge?

Steel is one of the most carbon-intensive materials on Earth, responsible for around 7% to 9% of global greenhouse gas emissions. The industry produces nearly two billion tonnes of crude steel annually, with average emissions ranging from 1.85 to 2.33 tonnes of CO2 for every tonne of steel. Despite being the backbone of infrastructure, renewable energy, and modern manufacturing, steel remains one of the hardest sectors to decarbonize.

Against this backdrop, ArcelorMittal, the world’s second-largest steelmaker, pledged in 2020 to slash emissions by 25% globally and 35% in Europe by 2030. It also announced a longer-term goal of reaching net zero by 2050. Yet, new findings suggest the company is falling behind, casting doubt on whether it will deliver on its climate promises.

Is ArcelorMittal Falling Short of 2030 Targets

In 2023, ArcelorMittal’s average emissions intensity was 1.92 tonnes of CO2 per tonne of steel, only a slight improvement from 2018 levels.

Experts and analysts have figured out that the company’s 5.4% reduction in carbon intensity since 2018 pales compared to what is needed to align with a 1.5°C climate pathway.

SteelWatch’s report Backtracking on Climate Action analysed that to meet its own 2030 targets, ArcelorMittal would need to cut emissions by around 3% annually. Instead, its progress has been less than 1% per year.

Even though the company often highlights its 46% cut in absolute Scope 1 and 2 emissions since 2018. At first glance, this appears to be major progress.

But a closer look reveals that most of the decline came from producing less steel, not from genuine decarbonization. Between 2018 and 2024, ArcelorMittal’s crude steel output dropped 37%, while its production capacity fell 32%. Emissions went down largely because activity slowed, not because the steel itself became greener.

This distinction matters. Reducing emissions intensity—how much CO2 is released per tonne of steel—is the key indicator of sustainable progress. ArcelorMittal’s modest improvement in intensity shows its operations remain highly carbon-intensive.

Billions for Shareholders, Pennies for Climate

The same SteelWatch report further explained stark imbalances in ArcelorMittal’s spending priorities. Between 2021 and 2024, the company allocated just $800 million to decarbonization projects. That figure represents less than 2.5% of the $32.6 billion it generated in operating cash flow.

Meanwhile, the company rewarded shareholders with $12 billion in dividends and share buybacks during the same period—nearly 15 times what it spent on climate action. Of the $5 billion ArcelorMittal had resolved for its 2030 climate strategy, only 16% has been spent so far. This raises questions about whether climate commitments are truly central to its strategy, or simply secondary to financial returns.

Its joint venture in India, AM/NS, illustrates the scale of this omission. ArcelorMittal’s share of emissions from the venture exceeded 10 million tonnes of CO2 in 2024. By 2026, the JV’s total emissions are expected to surpass 25 million tonnes annually, yet none of these are reflected in ArcelorMittal’s targets.

Delayed and Stalled Green Steel Projects

Reports also indicate that the steel giant received more than $3.5 billion in public subsidies to develop five flagship Direct Reduced Iron (DRI) projects in Europe and Canada. These projects, intended to shift steel production away from coal-based blast furnaces, could significantly reduce emissions. However, by mid-2025, none had reached a final investment decision.

The much-publicized near-zero carbon steel plant in Sestao, Spain, is among those delayed. In contrast, competitors such as SSAB in Sweden and Salzgitter in Germany are moving forward with binding investments in fossil-free steel, placing them on track to align with Paris climate goals. ArcelorMittal’s slow pace highlights a widening gap between ambition and execution.

ArcelorMittal steel decarbonization
Source: SteelWatch

Shifting Language: “Economic Decarbonization”

ArcelorMittal executives now describe their approach as “economic” or “competitive decarbonization.” In practice, this means they will only pursue climate action when it makes business sense. Critics argue this signals retreat, showing the company prioritizes profit over planetary responsibility. By framing decarbonization as conditional on market conditions, the company risks delaying meaningful change until well past 2030.

ArcelorMittal Says, “Progress Is Real, Despite Challenges”

In November 2024, the company updated its European decarbonisation plans. The company noted that final investment decisions for new DRI-EAF (Direct Reduced Iron – Electric Arc Furnace) projects could not proceed.

Challenges include green hydrogen still being too costly, natural gas-based DRI not being competitive, and carbon capture infrastructure remaining in planning. These hurdles make achieving the 2030 emissions intensity target increasingly unlikely.

Significant Emissions Cuts Already Achieved!

Despite challenges, the company says, progress is real. Its sustainability report shows that in 2024, absolute Scope 1 and 2 emissions dropped to 102 million tonnes—46% lower than the 188 million tonnes recorded in 2018.

The sale of higher-carbon assets helped reduce the average carbon intensity to 1.75 tonnes of CO2 per tonne of crude steel, compared with the global average of 1.92. On a portfolio-adjusted basis, intensity has fallen 5.4% since 2018.

Over the same period, it invested $1 billion in decarbonisation initiatives. Efforts included:

  • Transitioning to electric arc furnaces
  • Increasing energy efficiency
  • Sourcing clean energy
  • Securing and diversifying metallic inputs
ArcelorMittal
Data Source: ArcelorMittal sustainability report

XCarb®: Meeting Growing Demand for Low-Carbon Steel

ArcelorMittal is responding to customer demand through XCarb®, launched in March 2021 as the world’s first low-carbon steel initiative. The offering includes:

  1. XCarb® Steel Certificates – These reflect carbon savings from investments in cleaner steelmaking processes, such as capturing and reusing coke-oven gas or reducing coal use with natural gas. Customers can report Scope 3 emissions reductions alongside their steel purchases.

  2. XCarb® Recycled and Renewably Produced (RRP) Steel – Physical steel made in electric arc furnaces powered entirely by renewable electricity, using high levels of recycled steel.

Sales of XCarb® doubled from 0.2 million tonnes in 2023 to 0.4 million tonnes in 2024. However, this is still a small fraction of total shipments (54.3 million tonnes in 2024), and only a limited number of customers are willing to pay a green premium. Regulatory mandates will be vital to scale adoption.

Bright Spots: Where ArcelorMittal Produces Low-Carbon Steel

Despite setbacks, ArcelorMittal does operate some lower-emission facilities:

ArcelorMittal green steel
Source: ArcelorMittal

These facilities show what is possible, but they represent only a fraction of ArcelorMittal’s global production. Scaling such operations remains the real challenge.

Steel Emissions and the Decarbonization Challenge

Over 70% of global steel is still made using coal-based blast furnaces, the most carbon-intensive method. Electric arc furnaces, which rely on scrap and electricity, account for about 28% and emit far less. To meet a 1.5°C pathway, the IEA says steel emissions must fall 50% by 2050, with near-zero technologies deployed at scale by 2030. ArcelorMittal’s global footprint makes its pace of decarbonization critical for the sector.

ArcelorMittal stresses that the steel sector cannot decarbonize alone. Steel is a low-margin, globally traded commodity, and cleaner methods remain uncompetitive without government support.

  • Europe’s 2025 focus includes the Clean Industrial Deal, Steel and Metals Action Plan, CBAM review, and safeguard review. These aim to promote low-carbon steel demand, close CBAM loopholes, and tackle high energy costs.

Yet the company warns policies are still insufficient to level the playing field. Hydrogen-based steelmaking and carbon capture remain central to its strategy, but meaningful scale won’t arrive before 2030. Current efforts rely heavily on subsidies and future breakthroughs rather than near-term transformation.

steel emissions

Will ArcelorMittal Lead or Lag in Steel’s Net-Zero Future?

The steel giant has highlighted that emissions reductions and green steel projects come mostly from reduced output, not innovation. As investments lag behind shareholder payouts, major projects are delayed, and Scope 3 emissions remain largely uncounted. Initiatives like XCarb® show potential, but success depends on policy support, energy management, and market demand.

The steel industry is significantly tough to decarbonize, but vital for a net-zero world. With 2030 targets increasingly challenging, ArcelorMittal has cut emissions almost in half since 2018—but will it commit to real transformation this decade? The answer remains lost in the haze.

U.S. Lithium Push: How Washington’s Bet on Lithium Americas Could Reshape the Global Market

Jennifer L
-
0
U.S. Lithium Push: How Washington’s Bet on Lithium Americas Could Reshape the Global Market

The lithium sector took center stage this week when Lithium Americas (NYSE: LAC) stock soared nearly 95% on reports that the Trump administration is considering taking an equity stake in the company’s Thacker Pass mine in Nevada. If it happens, this move would be one of the biggest government actions in U.S. mining in years. It shows how important lithium is to national policy now.

Behind the headlines lies a deeper story: America’s ambition to lead the clean energy transition risks colliding with a stark supply shortage. We highlight below, with the two charts, both the opportunity and the vulnerability facing the United States in this lithium quest.

A Lithium Crisis in the Making

The United States faces a lithium crisis that makes its clean energy ambitions look more like an aspiration than an execution. Current domestic production is only 2,700 metric tons a year. That’s too small compared to the 500,000 tons needed by 2030 to hit electric vehicle (EV) goals.

To put this in perspective:

  • The lithium in an iPhone weighs about the same as a penny.
  • A Tesla Model 3 battery pack requires around 12 kilograms.
  • A Ford F-150 Lightning demands closer to 17 kilograms.

At present mining levels, the U.S. produces enough lithium for only about 158,000 Tesla Model 3s annually. That’s in a market where Americans bought 1.4 million EVs in 2024 alone, with demand expected to climb sharply in the coming years.

This gap reveals a harsh reality: America’s lithium supply chain is ill-prepared for its electrification goals.

From Marginal Producer to Top Four — If Thacker Pass Delivers

US potential to be top 4 lithium producers

The government’s solution to this issue is projects like Lithium Americas’ Thacker Pass. It’s one of the largest lithium deposits in North America. If fully developed, it could boost U.S. production to around 40,000 tons each year. This would place the country among the top four producers, following Australia, Chile, and China.

That would mark a tenfold increase in output, but it is still far from enough. Even under the most optimistic forecasts, Thacker Pass would meet just 8% of projected U.S. demand by 2030, and a mere 3% of the 1.2 million tons expected by 2035.

Meanwhile, China has spent more than a decade locking up supply chains, securing lithium assets in Africa, South America, and Australia. It is also building refining infrastructure that now processes nearly 80% of the world’s lithium.

The comparison is striking: Zimbabwe produces eight times more lithium than the U.S. Even smaller producers, like Argentina, surpass American output. In this context, Washington’s sudden push for equity stakes is less about profits and more about survival in a high-stakes race for supply.

Reserves Rich, Supply Poor: The Untapped U.S. Advantage

The second chart points to America’s hidden strength: the U.S. ranks first globally in lithium reserves, with more than 100 million tonnes identified. Despite this geological advantage, those resources remain largely untapped.

washington's lithium push

Encouragingly, the U.S. now ranks third in global exploration budgets, reflecting a deliberate policy pivot. Billions of dollars are going to exploration and project development, from Nevada to North Carolina. If even a fraction of these reserves is unlocked, the U.S. could rival today’s top producers and reduce dependence on foreign supply chains.

However, converting reserves into production requires more than exploration. Projects can hit delays with permits, face environmental lawsuits, struggle with financing, and deal with local opposition. All these issues can stretch timelines into decades. This is why federal involvement is becoming more important. This includes equity stakes, subsidies, and fast-tracking permits.

Why the LAC Surge Matters

The near-doubling of Lithium Americas’ stock was not just a speculative rally. It was a market signal that U.S. lithium policy is entering a new phase.

  • Government backing reduces financing risk, making it easier to attract institutional investors.
  • Aligning policies with EV makers like General Motors, which has a big stake in Thacker Pass, ensures supply security and offtake agreements.
  • National security framing places lithium on the same level as oil and gas. This makes lithium a strategic commodity and allows for more state intervention.

For automakers and battery manufacturers, this could mark the start of a more stable domestic supply base. For investors, it highlights how policy can rapidly change the outlook for mining equities.

Demand, Prices, and the Rollercoaster Market 

Lithium demand will rise quickly. Benchmark Mineral Intelligence (BMI) predicts that consumption of lithium carbonate equivalent (LCE) will surpass 2.4 million tonnes by 2030. That’s almost four times what we use now. By 2035, demand could climb past 5 million tonnes, fueled by electric vehicles and large-scale battery storage.

investment needed for high case lithium demand scenario

The industry needs hundreds of new projects to meet this surge. However, BMI points out that permitting delays, financing issues, and tech challenges are slowing supply growth.

Battery demand adds another layer of urgency. Analysts predict global battery capacity will reach nearly 4 terawatt-hours by 2030. This highlights lithium’s vital role in the clean energy shift.

The U.S. is still a minor player. Most refining and conversion happens in China, which holds about 80% of processing capacity. This imbalance shows why Washington supports projects like Lithium Americas. They want to secure a local supply.

Litium prices, meanwhile, have been highly volatile. After lithium carbonate reached over $80,000 per tonne in late 2022, prices dropped sharply. In 2023–2024, they fell by more than 80%, going below $10,000 earlier this year. BMI attributes the crash to oversupply from South America and weaker near-term EV sales in China, which created a temporary glut.

battery grade lithium prices

However, the consultancy stresses that volatility is cyclical, not structural. Demand is strong, and prices should bounce back. In fact, last August, prices climbed when China’s major battery player closed its major mine. 

LCE price august 2025
Source: Trading Economics

New supply can’t keep up with long-term consumption. BMI warns that without steady investment and diversification of supply, future shortages could push prices sharply higher again by the late 2020s.

For the U.S., this shows why public investment matters. It helps create a strong domestic lithium industry. This will support electrification goals and better handle global changes.

Government in the Game: Stabilizing Supply Chains

U.S. government equity in Lithium Americas offers help in these areas:

  • Provide a floor for project financing — Government backing reduces the risk premium for lenders or institutional partners.
  • Stabilize supply — A guaranteed domestic source reduces reliance on external shocks.
  • Mitigate short-term volatility — If Thacker Pass operates under a model combining private and public capital, it could offer a more stable supply corridor insulated from market swings.
  • Signal future project structures — The U.S. may increasingly demand “state-option carve-outs” or partial equity as a condition for major critical mineral projects.

In a market where excess supply can drive prices into unprofitable territory, having a strategic anchor on flagship projects becomes a competitive edge.

Lithium as a Strategic Commodity

Lithium is no longer just a commodity for battery makers — it is now a strategic asset shaping national policy. The U.S. has the reserves, capital, and political will to be a major producer. But it will take years of teamwork to turn potential into production.

The Trump administration’s willingness to consider a government equity stake in Lithium Americas suggests a broader trend: future large-scale projects may require some form of state participation to succeed.

For the U.S., the stakes could not be higher. Without a reliable domestic lithium supply, the country risks falling behind in the global EV race, remaining dependent on supply chains controlled by rivals. With it, America could not only meet its clean energy goals but also secure a critical pillar of its industrial future.

Costco’s (COST Stock) $86B Quarter: Balancing Bulk Profits with Bold Net-Zero Goals

Jennifer L
-
0
Costco’s (COST Stock) $86B Quarter: Balancing Bulk Profits with Bold Net-Zero Goals

Costco Wholesale Corporation (NASDAQ:COST) closed its fiscal fourth quarter with results that highlight both its financial strength and long-term sustainability commitments. The retailer reported revenue and earnings that beat expectations, showing it remains strong in a tough retail market.

At the same time, Costco reinforced its ambition to reach net-zero emissions by 2050, with interim 2030 targets already in motion. For investors, earnings results and ESG updates provide two key insights. They show strong business performance now and outline a path for future environmental responsibility.

Strong Financials, But Mixed Investor Reaction

Costco reported its fiscal fourth quarter results after markets closed. Adjusted earnings per share came in at $5.87, beating the $5.80 forecast.

Revenue reached $86.2 billion, narrowly ahead of expectations. However, same-store (comparable) sales rose 5.7%, slightly below the anticipated 5.9%.

Costco Q4 FY2025 results
Source: Costco

The company also revealed full-year sales of $269.9 billion, up 8.1% from $249.6 billion a year ago. Extended store hours implemented in summer added roughly 1% to weekly U.S. sales, according to the CEO — a modest but positive boost.

Investors were cautious, though, even with good results. They noted a small shortfall in comps and worried about margin pressure. Costco’s stock still dips despite better-than-expected results. 

costco stock price

Membership Muscle: Costco’s Secret Weapon

Costco’s strength lies in its membership model. The company ended the period with 81 million paid memberships, of which 38.7 million were executive tier. Renewals remain high, particularly in the U.S. and Canada.

Its limited product assortment and bulk sales model help streamline logistics and negotiating leverage with suppliers. Bulk buyers and value-seeking shoppers have kept foot traffic robust, even in tougher economic times.

Costco continues to expand overseas, focusing on markets like China and Spain. Its broad geographic reach—covering North America, Asia, and Europe—gives it scale and flexibility.

Greener Aisles: From Solar Roofs to Net-Zero Goals

Beyond financials and stock performance, Costco is advancing sustainability goals. The giant retailer has committed to net-zero greenhouse gas emissions by 2050.

To support that, it plans to reduce Scope 1 and Scope 2 emissions by 39% by 2030, using a 2020 baseline of approximately 2.6 million metric tons CO₂e. It also targets 100% renewable energy for operations by 2035.

Operational actions to reduce emissions include:

  • Upgrading refrigeration systems and phasing down hydrofluorocarbons (HFCs)
  • Switching to LED lighting and efficient HVAC systems
  • Installing solar panels at warehouses and depots

Scope 3 emissions remain the greatest hurdle. Costco has proposed a 20% reduction in certain Scope 3 categories (excluding fuel) by 2030 vs. 2020. This relies heavily on supplier cooperation.

Third-party analysts estimate that Costco’s total operational footprint, including indirect sources, is 4–4.7 million metric tons of CO₂e. Meanwhile, Costco’s latest climate action plan report shows mixed but notable progress in its emissions profile.

  • Scope 1 emissions rose 1.3% between FY22 and FY23, though this increase was lower than the company’s overall growth in sales and store space.
  • Scope 2 market-based emissions dropped 3%. This decrease was due to more electricity being bought from clean energy sources.
  • Scope 3 emissions rose by 1%. This is much lower than the 7% rise in merchandising sales. It shows early signs of better efficiency in the supply chain.
Costco carbon emissions
Source: Costco

On ESG scores, S&P Global assigns Costco an ESG score of 36 (out of industry peers), reflecting its public disclosures.

Sustainability initiatives also include sourcing certified seafood, fair-trade coffee, and timber. Costco is expanding waste diversion efforts, recycling, and sustainable procurement.

ESG Actions and Progress

Costco’s Climate Action Plan includes:

  • Rooftop solar
  • Off-grid solar for depots
  • EV charging stations
  • Efficiency upgrades

The company also runs sustainable sourcing programs for seafood, coffee, and timber. These measures aim to lower emissions, reduce waste, and meet consumer demand for responsibly produced goods.

Why ESG Progress Matters for Investors

Investors see sustainability as part of long-term risk management. Energy efficiency cuts costs, renewable energy reduces exposure to fuel volatility, and Scope 3 engagement limits supply-chain risks. While these initiatives require upfront spending, they can strengthen Costco’s margins over time.

Large investors increasingly prefer stock companies with measurable climate targets like Costco’s. Its emission goals, clean energy commitments, and supplier engagement help it align with these expectations and support brand trust with customers.

Retail Rivalries: ESG as the New Competition Ground

Costco’s earnings come at a time of shifting dynamics in global retail. Inflationary pressures have eased somewhat compared to the highs of 2022–2023, but cost-sensitive consumers continue to seek value.

Bulk retailers like Costco are benefiting from these trends. Households are focused on saving money on food, household goods, and fuel. At the same time, ESG expectations are rising. Retailers face scrutiny over product sourcing, supply chain transparency, and emissions targets.

Costco competes with Walmart, Target, and Sam’s Club. These rivals are also pushing climate strategies and setting interim net-zero goals.

Industry analysts expect the global retail sector to grow by 4–5% each year until 2030. This growth will come from population increases, urbanization, and the rise of digital channels. Sustainability is now a key factor in competition. More consumers prefer companies that show strong climate commitments.

Outlook for Investors

Investors will now watch for guidance in Costco’s next earnings cycle:

  • How much margin pressure is expected (especially with extended store hours and energy costs)
  • Capex plans (how much will go toward growth vs. ESG projects)
  • Progress on emissions targets (updates on reductions or new milestones)
  • Membership growth and renewal stability

Costco’s ability to deliver both strong financials and steady ESG progress will determine its appeal to both traditional stock and sustainability-focused investors.

Bottom Line: Growth Meets Green Ambitions

Costco’s fourth quarter results underline its ability to deliver steady growth in a shifting retail landscape. Membership strength and operational efficiency remain clear advantages. Meanwhile, the company is advancing on its climate roadmap, though Scope 3 reductions will be difficult to achieve.

With this achievement, Costco offers a strong option for investors. It’s a solid retailer with dependable earnings while also aiming to improve its ESG profile. This effort helps it compete in a market where financial success and sustainability are both important.

China Moves Toward Carbon Cap: Xi Jinping Pledges 7–10% Emissions Cut by 2035

Saptakee S
-
0
China Moves Toward Carbon Cap: Xi Jinping Pledges 7–10% Emissions Cut by 2035

China, the biggest emitter of greenhouse gases, has set its first absolute emissions reduction goal. In a video at the UN climate summit in New York, President Xi Jinping announced that China aims to cut emissions by 7 to 10% by 2035 compared to its peak.

This marks a major shift in China’s climate policy. Before, the focus was on reducing carbon intensity and setting peak timelines. While this pledge indicates progress, many experts believe it lacks the ambition needed to meet global targets in the Paris Agreement.

A New Era in China’s Climate Policy

Xi’s pledge is China’s first absolute emissions reduction goal. It targets all greenhouse gases and economic sectors, moving beyond earlier commitments that focused only on carbon intensity.

In addition to the 7–10 percent cut, Beijing promised to:

  • Increase the share of non-fossil fuels to over 30 percent of total energy use by 2035.
  • Expand wind and solar capacity to 3,600 gigawatts, over six times 2020 levels.
  • Strengthen its national emissions trading market to support reductions.

As reported by the leading daily, South China Morning Post, Xi called this change a sign of the times, stating: “Green and low-carbon energy and development transition are the trend of our era.”

However, climate advocates quickly pointed out the shortcomings. Yao Zhe, a global policy adviser from Greenpeace East Asia, noted that to meet the Paris Agreement’s 1.5°C limit, China needs to cut emissions by at least 30 percent by 2035. Some studies suggest cuts of over 50 percent are necessary.

Between Caution and Flexibility

China’s choice of a conservative target is strategic. Experts say the 7–10 percent cut reflects Beijing’s desire to maintain flexibility for economic growth and energy security.

Xi also suggested the commitment might be exceeded, calling it a “floor, not a ceiling.” This means stronger reductions could happen based on changing domestic and international conditions.

Signs of a Peak: China’s Emissions Show Early Decline

Recent data hints that China’s emissions may have peaked. From March 2024 to March 2025, emissions from the power sector dropped by about 2 percent due to record renewable capacity and reduced coal use.

In the first half of 2025, overall CO₂ emissions fell by about 1 percent. Solar installations hit record highs, and wind power capacity surged. Coal consumption in power dropped by 3 percent during this time.

Chine emissions

Yet, contradictions remain. Emissions from coal-based chemicals and synthetic fuels are still rising, undermining progress. Additionally, 2024 saw the highest number of new coal power permits in a decade, showing provincial governments still rely on coal for short-term needs.

China’s greenhouse gas emissions were around 15.8 gigatonnes of CO₂ equivalent in 2024, near record levels. Analysts expect a plateau soon, followed by gradual declines, but only if the next five-year plan prioritizes rapid decarbonization.

The long-term emissions data highlights why China’s new pledge matters. As the following chart shows, China’s CO₂ emissions surged past the U.S. in the mid-2000s and have since climbed to nearly 12 billion tonnes annually- over double America’s output and more than three times India’s. This steep rise underscores both the scale of China’s challenge and the global impact of even a modest 7–10% cut by 2035. While critics argue the target lacks ambition, achieving it would still mean avoiding hundreds of millions of tonnes of emissions, especially significant given that other top emitters like the U.S. are slowing progress and India’s emissions continue to rise

Data source: Global Carbon Budget (2024), Our World in Data

Record-Breaking Clean Energy Push

Despite the modest target, China’s clean energy growth is remarkable. According to Ember’s China Energy Transition Review 2025, the country invested $625 billion in renewables in 2024, surpassing Europe and North America combined.

Key milestones include:

  • Wind and solar capacity exceeded 1,200 gigawatts by 2024, hitting the target six years early.
  • Investment in national energy projects, like offshore wind and grid upgrades, rose 22 percent year-on-year in the first half of 2025.
  • New energy storage technologies saw a 69 percent increase in deployment.
  • A national power market is expected to launch by late 2025, allowing for cross-regional trading and more renewable energy participation.

China’s renewable pipeline now exceeds 1 terawatt, more than double the EU’s total capacity. The speed and scale of this growth are unmatched globally.

In the past 15 years, China has turned its industrial strength into a major force for global decarbonization. No other country can produce energy technologies at this scale, reshaping global markets.

China clean energy
Source: Ember

Now moving on to this year, NEA data shows that as of February 2025, China has a total cumulative installed power capacity of 3,402GW. It’s up14.5% yoy.

China renewable capacity

Global Climate Stage: Xi’s Pledge Shakes the Spotlight

Xi’s announcement comes as global climate politics reach a crucial point. Top media reports indicate that nations must update their 2035 climate plans under the Paris Agreement before COP30 in Brazil. As the largest emitter, China’s targets will greatly influence global warming limits.

While Beijing chose a cautious target, the European Union is moving aggressively. The EU plans to cut emissions by 66 to 72 percent by 2035, far more ambitious than China’s promise. The bloc is finalizing its plan this year as part of its goal for net zero by 2050.

India has not yet proposed an absolute emissions reduction goal, focusing instead on reducing carbon intensity and boosting non-fossil fuel use.

The United States has stepped back under President Trump, who called climate efforts “the greatest con job ever.” This gap in climate leadership is one Xi seems eager to fill. He criticized countries resisting climate action, urging international focus.

Brazil’s President Luiz Inácio Lula da Silva praised China’s plan, stating that Beijing is advancing “much further” in its energy transition than critics believe.

China’s Climate Path: Ambition or Hesitation?

Critics argue that China’s pledge falls short of what’s necessary. Yet, even a 7–10 percent cut means a significant reduction in absolute terms. For China, this could mean hundreds of millions of tonnes of emissions avoided by 2035.

This pledge shows a structural shift. China is moving from relative intensity goals to an absolute cap. This is required under the Paris Agreement for countries that have peaked their emissions. This change makes it harder to rely on efficiency gains while emissions rise.

China’s 7–10 percent emissions cut by 2035 is historic yet underwhelming. It marks a first step toward reducing emissions from the world’s largest greenhouse gas source, but does not meet scientific demands to keep warming below 1.5°C.

The country’s clean energy growth is unmatched. It’s reshaping global supply chains and lowering costs. With record renewable investments and quick electrification, Beijing acts as both a careful climate player and a leader in the green transition.

Nonetheless, whether China deepens its ambition in the coming years will be crucial for the world’s climate future.

Macquarie Raises $3B Energy Transition Fund to Boost the Net-Zero Future

Jennifer L
-
0
Macquarie Raises $3B Energy Transition Fund to Boost the Net-Zero Future

Macquarie Asset Management has closed a $3 billion fund to speed up the global energy transition. The fund, called Macquarie Green Energy Transition Solutions (MGETS), exceeded its original target after strong demand from investors. The money will support projects that cut greenhouse gas emissions and build a cleaner energy system.

More than 65% of the fund is already committed. Early investments target renewable energy storage, sustainable fuels, carbon capture, and electric transport systems. By backing both proven and emerging solutions, Macquarie shows that climate-focused investing is now central to its strategy.

Where the Billions Are Going

MGETS is designed to finance infrastructure and technology that reduces carbon. This includes battery energy storage, distributed renewable power, clean transportation, and sustainable fuels. It also covers carbon capture, recycling, and circular economy projects.

So far, the fund has backed 12 projects. These include Eku Energy, a UK-based battery storage platform; SkyNRG, a Dutch producer of sustainable aviation fuel; and Verkor, a French maker of EV batteries. These examples show the fund’s focus on areas where emissions are hardest to cut.

The fund also targets low-carbon technologies that are still developing, such as green hydrogen, carbon capture, and advanced batteries. These solutions are not yet scaled up, but early capital is needed to drive progress and lower costs.

Investing in these technologies carries risks. Costs are high, and technical barriers remain. But the long-term growth potential is strong. As countries and companies set net-zero targets, demand for these technologies will increase. Macquarie is positioning itself as a leader by supporting both current infrastructure and future innovations.

Key Features of the Fund

Here are some of the fund’s highlights:

  • Fund size: $3 billion
  • Focus: Energy transition projects
  • Sectors: Renewable power, grid upgrades, clean fuels, storage, and clean transport
  • Scope: Developed and emerging markets worldwide
  • Structure: Mix of equity and debt financing
  • Goal: Cut emissions and support net-zero pathways
  • Investors: Global institutions such as pension funds and sovereign wealth funds

This flexible structure allows the fund to support both large-scale projects and smaller ventures that need growth funding.

The Investor Surge: Why Demand Exceeded Expectations

The strong demand for MGETS highlights how fast climate finance is growing. Pension funds, insurers, and sovereign wealth funds see the energy transition as both a duty and an opportunity. They can back low-carbon infrastructure while earning stable returns.

The fund also shows how investment is expanding beyond solar and wind. Macquarie is putting money into enablers of the transition, such as grid flexibility, carbon storage, and clean fuels.

The International Energy Agency (IEA) forecasts global energy investment will hit a record $3.3 trillion in 2025, led by clean energy technologies. Of this, $2.2 trillion will go to renewables, nuclear, and energy storage — about double the amount slated for fossil fuels. Solar power could attract $450 billion, while battery storage investment rises to around $66 billion.

energy investment 2025 IEA report

According to the IEA, global clean energy investment could reach $4.5 trillion annually by 2030 if countries meet their climate goals. Funds like MGETS are meant to help close this gap.

Scaling Climate Impact: From Europe to the World

The launch of MGETS shows the scale of funding needed to meet climate targets. Private capital, alongside public funding, will be critical.

By committing $3 billion, Macquarie sets an example for other asset managers. The fund is also expected to attract co-investments and partnerships, expanding its impact far beyond its initial size.

Institutional Capital as a Climate Catalyst

Large investors are under pressure to align their portfolios with climate goals. They are looking for opportunities that combine stable returns with measurable impact. MGETS offers one way to do this.

Macquarie is not alone. BlackRock and Brookfield have also raised multi-billion-dollar energy transition funds. Together, these efforts show how finance is becoming a key driver of climate action. 

Separately, a venture capital alliance overseeing $60 billion in assets has launched a $300 million fund to support climate-tech startups. Called the “All Aboard Coalition,” the fund aims to help firms scale from pilot to commercial stage.

It aims to close what’s known as the “valley of death” in clean technology. Backers include Breakthrough Energy, Khosla Ventures, and DCVC. This move comes amid a multi-year drop in climate-tech investments and seeks to restore funding momentum in the sector.

quarterly climate investment

Opportunities vs. Risks: Navigating the Transition

The opportunities are clear. Demand for clean power, EVs, and smart grids will rise over the next decade. Technologies that reduce emissions will become more profitable as rules tighten and companies aim for net zero.

But there are risks. Some technologies are costly or unproven. Policy changes, such as shifts in subsidies or carbon pricing, can affect returns. Large projects also face hurdles with permits, supply chains, or local opposition. Climate risks such as extreme heat, flooding, or storms can also impact assets directly. Macquarie will need to manage these challenges carefully.

Early Momentum and Global Reach

Despite these risks, the fund has momentum. With over 65% already invested, Macquarie is moving fast. Current projects are based in the UK, France, and the Netherlands, but the fund plans to operate globally.

The name “Green Energy Transition Solutions” reflects its broad focus. It is not only about generating clean power but also about enabling systems that cut emissions across industries.

Looking Ahead: Funding the $4.5 Trillion Net-Zero Gap

The energy transition requires trillions of dollars in funding by 2050. This growth will continue, with more money flowing to energy storage, carbon capture, and clean transport.

Corporate net-zero pledges also create demand. Over 6,000 companies worldwide have set science-based climate targets. In 2023, companies with SBTi-approved climate targets made up 39% of global market value, rising to 41% in 2024. These businesses also grew faster than the wider economy, with market value increasing 16%, compared to 11% growth in global GDP.

This adds pressure on supply chains and energy providers to cut emissions. Financial players like Macquarie are stepping in to provide both funding and expertise.

Companies with SBTi commitments or targets
Source: SBTi

 

Macquarie’s $3 billion fund is part of a much larger movement. To keep global warming to 1.5°C, clean energy investment must rise sharply over the next decade. Funds like MGETS can help connect technology developers, infrastructure operators, and investors.

The success of the fund will depend on two things: financial returns and real carbon reductions. If Macquarie delivers on both, it could attract more capital and inspire others to follow. That would speed up the world’s shift to a low-carbon economy.

Uranium Energy Corp (UEC) Reports $66.8M Revenue in 2025, Expands U.S. Nuclear Supply Chain and Sustainability Goals

Saptakee S
-
0
Uranium Energy Corp (UEC) Reports $66.8M Revenue in 2025, Expands U.S. Nuclear Supply Chain and Sustainability Goals

Uranium Energy Corp (NYSE:UEC) reported its fiscal 2025 results, showing revenue of $66.84 million. This fell short of Wall Street’s $77.2 million estimate. The company also recorded a net loss of -$0.20 per share, slightly above the expected -$0.18.

Despite this earnings miss, UEC shares rose 1.66% in pre-market trading. Investors were encouraged by the company’s operational progress, strategic acquisitions, and strong balance sheet. UEC is positioning itself as a key player in the U.S. effort to rebuild its nuclear fuel supply chain.

UEC Stock Performance 

UEC stock
Source: UEC

Uranium Energy Corp’s Financial Strength and Uranium Ramp-Up 

UEC’s financial highlights indicate a focus on future growth:

  • Revenue: $66.8 million, driven by 810,000 pounds of uranium sold at an average price of $82.52 per pound in the first half of fiscal 2025.

  • Gross Profit: $24.5 million from uranium sales.

  • Inventory Build: As of July 31, 2025, the company held 1.36 million pounds of uranium valued at $96.6 million. Another 300,000 pounds will be added through contracts at $37.05 per pound by December 2025.

  • Balance Sheet: UEC closed the year with $321 million in cash, inventory, and equities, with no debt.

The press release says UEC is fully unhedged, which maximizes its exposure to rising uranium prices. This approach enabled opportunistic sales earlier this year and helped grow inventory for future contracts, including possible sales to the U.S. Uranium Reserve.

Notably, at Christensen Ranch in Wyoming, two new in-situ recovery (ISR) mine units began operations. This will boost production in the Powder River Basin. In Texas, construction at Burke Hollow is 90% complete. Operations are set to start by December 2025.

uec uranium energy corp
Source: UEC

Expanding U.S. Uranium Assets: Sweetwater Acquisition

In 2025, UEC boosted its position by buying Rio Tinto’s Sweetwater Plant and Wyoming assets for $175 million. The deal added about 175 million pounds of historic resources and a processing plant capable of producing 4.1 million pounds annually.

The U.S. government granted Sweetwater a FAST-41 designation under President Trump’s March 2025 order to speed up critical mineral projects. This lets UEC fast-track ISR permitting. The acquisition also gave UEC over 6.1 million feet of historic drilling data, multiple permitted mines. It included Sweetwater, Big Eagle, and Jackpot, and saved time and costs by upgrading the existing plant.

The move strengthens UEC’s role as the uranium company with the largest and most diverse resource base in the Western Hemisphere.

Roughrider Pre-Feasibility Study Advances in Canada

Outside the U.S., UEC advanced its Roughrider Project in Saskatchewan’s Athabasca Basin, known for its rich uranium deposits.

In fiscal 2025, the company:

  • Completed metallurgical tests, including solvent extraction and yellowcake precipitation.

  • Launched a pre-feasibility study (PFS) to advance this high-grade project.

  • Sought proposals for technical reporting on the project.

Roughrider highlights UEC’s strategy to balance U.S. assets with opportunities in Canada’s uranium basin, enhancing its long-term growth potential.

Launch of U.S. Uranium Refining & Conversion Corp

In a strategic step, UEC launched the United States Uranium Refining & Conversion Corp (UR&C), a wholly owned subsidiary. This initiative aims to make UEC the only vertically integrated U.S. uranium company, covering mining, processing, refining, and conversion.

The facility will produce Uranium Hexafluoride (UF₆), essential for both traditional nuclear reactors and next-generation small modular reactors (SMRs).

UEC’s refining and conversion plans align with U.S. policy under the Defense Production Act, which seeks to strengthen the American nuclear fuel supply chain. Early discussions with federal and state energy authorities, utilities, and investors are already in progress.

UEC uranium
Source: UEC

U.S. Nuclear Policy and AI Power Demand Boost Outlook

UEC’s strategy is gaining strength from U.S. nuclear policy and rising energy demand. President Trump’s pledge to quadruple nuclear power, along with Energy Secretary Chris Wright’s plan to build domestic uranium reserves, gives the sector strong momentum.

At the same time, soaring demand from AI and data centers is reshaping power markets. Nuclear energy, as a carbon-free and scalable option, is drawing major private investment through long-term agreements.

Going into fiscal 2026, Uranium Energy Corp is in a strong position. The company has made progress with operations, key acquisitions, and solid finances, all aligned with U.S. policy. Additionally, its unhedged strategy lets it capture the full benefit of rising uranium prices. Development at Sweetwater, expansions at Christensen Ranch and Burke Hollow, and long-term growth from Roughrider add to its strength in the supply chain.

With AI-driven demand meeting supportive U.S. policy, nuclear energy is set to play a central role in clean power and energy security. UEC is ready to take advantage of this momentum and grow as a leading U.S. uranium supplier.

UEC uranium
Source: UEC

UEC’s Path to Cleaner Uranium and Biodiversity Protection

In 2025, UEC’s sustainability efforts received a Sustainalytics rating of 23.8, placing it in the top 5% of the Diversified Metals and Mining subindustry.

Greenhouse Gas Emissions

UEC’s company-wide GHG emissions for FY24 totaled 3,143.81 MT CO₂e. It invested over $400,000 in R&D for decarbonization and mine design, and enhanced scenario planning to better manage climate risks.

Its decarbonization efforts include:

  • Saskatchewan & Wyoming: Expanded decarbonization studies, explored renewable energy, electric and hybrid vehicles, and renewable diesel for heavy equipment.
  • Energy Efficiency: Cut fuel use 30% with efficient drills, added LED lighting, VFDs, and a garbage compressor; procured 73.6 MT CO₂e in RECs at Palangana.
  • Texas & Wyoming: At Roughrider, optimized energy use, lowered emissions, reduced waste, and increased hydroelectric power.
UEC emissions
Source: UEC

A Larger Share: Scope 3 Emissions: 

UEC’s Scope 3 study revealed that the majority of the company’s value chain emissions—around 91%—originate from Category 10: Processing of Sold Products.

This category covers all processes the uranium undergoes after the sale of yellowcake, including conversion, enrichment, and fuel fabrication. Total Scope 3 GHG emissions amounted to 336,801 MTCO₂e.

Biodiversity and Reclamation

The uranium miner is dedicated to reclaiming all land impacted by ISR activities. It has allocated over $27 million for reclamation in Texas and Wyoming. The company also avoids exploration in World Heritage sites and protected areas. This aligns with global biodiversity standards.

Thus, from the Sweetwater acquisition and Roughrider development to launching UR&C, Uranium Energy Corp is creating a fully integrated uranium supply chain while cutting emissions and protecting biodiversity. And lastly, with AI-driven energy demand and strong U.S. nuclear policies, UEC is poised to lead the clean, carbon-free power transition in America.

Lithium Americas (LAC) Stock Jumps 95% as Trump Seeks Government Equity in Nation’s Largest Lithium Mine

Saptakee S
-
0
Lithium Americas (LAC) Stock Jumps 95% as Trump Seeks Government Equity in Nation’s Largest Lithium Mine

A recent exclusive from Reuters revealed that the Trump administration is aiming to secure a 10% stake in Lithium Americas (NYSE: LAC). This move is part of ongoing negotiations to revise a $2.3 billion Department of Energy loan, which backs the Thacker Pass lithium project in Nevada, developed in partnership with General Motors.

The move shows Washington’s increasing readiness to take charge of key mineral projects. This aims to protect national security and lessen dependence on China.

Trump Targets Lithium Americas Equity

This proposed deal reflects a larger trend. Trump officials have pursued stakes in Intel, MP Materials, and other key tech firms. Washington’s push for direct equity in Lithium Americas shows that taxpayer-backed financing needs real returns. This is vital for sectors important to the clean energy transition.

The same Reuters report revealed what a White House official told the news agency. He said, “President Trump supports this project. He wants it to succeed and also be fair to taxpayers. But there’s no such thing as free money.”

Loan Backdrop: A $2.26 Billion Bet

In October 2024, the U.S. Department of Energy’s Loan Programs Office (LPO) approved a $2.26 billion loan for Lithium Nevada Corp., part of Lithium Americas. This loan includes $1.97 billion in principal and $289.7 million in capitalized interest. It’s one of the largest federal investments in U.S. lithium production.

The loan lasts for 24 years and has an interest rate tied to the U.S. Treasury rate. It will fund facilities to produce lithium carbonate for lithium-ion batteries.

Thacker Pass: America’s Lithium Powerhouse

Thacker Pass is in Humboldt County, Nevada, about 25 miles south of the Oregon border. It aims to be the largest lithium source in the Western Hemisphere. Construction has been underway for nearly a year, with over 600 contractors currently active on-site.

The project is massive in scale:

  • Phase 1 output: 40,000 tonnes of battery-grade lithium carbonate annually.
  • Enough material to power up to 800,000 electric vehicles (EVs) each year.
  • Backed by the world’s largest measured lithium resource, enabling the development of a full lithium district in northern Nevada.

Slated to open in 2028, Thacker Pass is seen as a cornerstone of America’s clean energy strategy, promising to cut foreign dependence while fueling the EV boom.

thacker pass lithium americas
Source: Lithium Americas

Economic Impact for Nevada Communities

The Thacker Pass project also carries major local economic benefits. During construction, it is expected to create 1,800 jobs, with 360 permanent positions once operational. These jobs range from chemical processing specialists to management roles, providing new opportunities for rural Nevada.

The Biden administration earlier emphasized that the project aligns with its pledge to ensure the energy transition generates prosperity in communities that have historically been left out of economic growth.

Why Trump Wants a Bigger Piece

Despite bipartisan support, the Trump administration has raised concerns about loan repayment amid a slump in lithium prices caused by Chinese overproduction. The fear: Lithium Americas might struggle to repay the DOE loan, potentially putting taxpayer dollars at risk.

Trump officials are demanding stronger safeguards, including:

  • Equity Warrants: No-cost warrants that could give Washington 5%–10% ownership of Lithium Americas.
  • GM Guarantees: A binding commitment that General Motors (GM) will purchase lithium from Thacker Pass for decades.
  • Project Oversight: Pressure on GM to relinquish parts of its project control to the federal government.
GLOBAL LITHIUM DEMAND
Source: IEA

GM’s $625 Million Bet on Lithium

GM invested $625 million in Thacker Pass in 2024, securing a 38% stake and long-term supply rights. The automaker locked in access to all lithium from the mine’s first phase and part of the second phase for 20 years, making the project essential to GM’s EV strategy.

A GM spokesperson stressed: “We’re confident in the project, which supports the administration’s goals. The loan is a necessary part of financing to commercialize this important national resource.”

For GM, Thacker Pass is a supply lifeline as it ramps up EV production under its electrification roadmap.

A Tightrope Over Loan Restructuring

Lithium Americas had sought a modification in the loan’s amortization schedule—shifting when certain payments are due, though not altering the overall repayment timeline or interest owed.

In exchange, the company offered no-cost equity warrants equal to 5–10% of its common shares and funds to cover the administrative costs of restructuring.

But as we understand, Trump officials want more. They see the deal as a chance to ensure taxpayers capture upside from any future rise in lithium prices and to cement federal influence over a strategic resource.

Even under the existing loan agreement, Washington holds protections. Reuter explained that clauses in the contract allow the government to seize control of the project if it faces significant delays or cost overruns. That safeguard reflects how seriously the U.S. views critical mineral projects in its broader economic and defense strategy.

Lithium Supply: America’s Weak Spot

Currently, the U.S. produces less than 5000 tonnes of lithium per year, less than 1% of global supply. By contrast, Australia, Chile, and China dominate mining, while China refines over 75% of the world’s battery-grade lithium.

Latest lithium data from USGS shows:

  • U.S. reserves: ~1.8 million tonnes.
  • Geological resources: ~19 million tonnes.
  • Global production (2024): 240,000 tonnes.

That imbalance leaves the U.S. heavily exposed. Overreliance on foreign supply chains poses risks to defense capabilities, infrastructure, and technology development. With minerals traveling an average of 50,000 miles before being assembled into batteries, the carbon footprint of global lithium supply is also a concern.

u.s. lithium USGS
Source: USGS

Thacker Pass promises to change the equation by establishing a domestic EV battery supply chain, reducing emissions, and enhancing economic security.

China’s Grip on Lithium

China may not be the top miner of lithium, but its control of refining capacity is unrivaled. The country processes 60–75% of the global supply, turning raw ore into the high-purity lithium carbonate and hydroxide required for EV batteries.

That dominance has raised concerns in the U.S., which views domestic lithium production as crucial for both the energy transition and national security. Direct U.S. ownership in Thacker Pass would send a clear message: America is ready to compete.

Lithium Americas Stock (NYSE: LAC) Jumps

This announcement fueled a dramatic rally in Lithium Americas’ stock. Shares closed at $3.07, then soared pre-market to $5.23 – a remarkable jump of nearly 71%. After markets opened, the price surged even higher, reaching $6.30 intraday.

The rally sent the company’s market capitalization above $1.39 billion, highlighting how direct government involvement can rapidly transform investor confidence and reshape valuation.

Other U.S. lithium developers—including ioneer (ASX: INR), Standard Lithium (TSX-V: SLI), and even Exxon Mobil (NYSE: XOM), which has entered lithium projects—are closely watching. If Washington pursues direct ownership across the sector, project financing and timelines could shift overnight.

By seeking a stake in Lithium Americas, the Trump administration is reshaping how the U.S. approaches critical mineral projects. It’s now about equity and control.

LAC stock
Source: Yahoo Finance

Will Thacker Pass Success Be a Turning Point for U.S. Lithium?

Thacker Pass is becoming the test case for America’s resource nationalism. With Trump pushing for equity, and GM relying on its output for EV production, the project sits at the intersection of energy security, industrial policy, and the clean energy future.

Additionally, analysts are also considering a reduction in the volatility of lithium prices with this deal. Notably, SMM data shows battery-grade lithium carbonate prices are approximately $9,165 per metric tonne (USD) and battery-grade lithium hydroxide around $9,200 to $9,800 per metric tonne.

If successful, Thacker Pass could anchor a new domestic lithium district and accelerate the U.S. energy transition. But with Washington demanding a slice of ownership, the deal could redefine how America funds and controls its most critical resources. However, it’s marking a new era in the race for clean energy minerals.

1...333435...251Page 34 of 251