Microsoft’s Mega Move: 18 Million Carbon Credit Deal with Rubicon Carbon

Jennifer L
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Microsoft’s Mega Move: 18 Million Carbon Credit Deal with Rubicon Carbon

Microsoft has made a significant move for its climate goals. It signed a deal with Rubicon Carbon to buy 18 million tonnes of carbon removal credits. This will happen over the next 15 to 20 years. These carbon credits will come from Afforestation, Reforestation, and Revegetation (ARR) projects around the world.

The agreement is one of the largest of its kind by a single company and shows how big corporations can help scale climate solutions. Microsoft has entered into many similar carbon removal deals starting early this year. 

Rubicon Carbon, a leading carbon credit management firm backed by TPG Rise Climate, will manage the projects and ensure they meet high scientific standards. With this deal, Microsoft is funding climate efforts that may not have received investment otherwise.

Tom Montag, CEO of Rubicon Carbon, emphasized the importance of the deal, saying:

“Addressing climate change requires more than good intentions—it requires capital deployment at scale. This collaboration serves as a blueprint for how the financial sector can meet the urgency of the moment while also generating strong financial returns.”

Why Carbon Removal Matters

Carbon removal is the process of taking carbon dioxide (CO₂) out of the atmosphere and storing it in natural or engineered ways. Reducing emissions is important, but scientists say we also need carbon removal to reach global climate goals.

Nature-based solutions like planting trees are some of the most affordable and scalable options available today.

According to Microsoft, carbon removal plays a key role in their goal to be carbon negative by 2030. That means removing more CO₂ than the company emits. To reach this goal, Microsoft has committed to using a blend of natural and technological solutions.

Microsoft 2030 carbon negative goal

This deal focuses on ARR projects—planting trees and restoring vegetation to capture carbon from the air. These projects often get ignored because of low funding. However, Microsoft’s long-term purchase helps make sure they are built and cared for.

The tech giant has been the top buyer of carbon removal credits, purchasing 5 million tonnes in 2024 as seen below.

top carbon removal buyer 2024

Setting a New Standard for Carbon Markets

Each transaction under the agreement is a long-term “offtake.” That means Microsoft promises to buy credits in the future, giving developers financial certainty now. These types of deals are common in energy markets but are still new in the carbon market.

Microsoft and Rubicon also worked together to create a new evaluation framework for carbon credit quality. It includes Microsoft’s science-based standards and Rubicon’s existing due diligence tools. The credits must meet strict rules for impact, durability, and transparency.

Rubicon’s science team will use satellite data and remote sensing tools to track and verify carbon removal over time. This approach builds confidence in a market that has faced criticism for low-quality or unverifiable carbon credits in the past.

Brian Marrs, Senior Director of Energy & Carbon Removal at Microsoft, noted:

“We believe that project finance needs to be central to the voluntary carbon market. This deal signals the long-term demand for carbon removal necessary to mobilize infrastructure-grade investment and world-class execution.”

Fueling a Maturing Carbon Market

The voluntary carbon market—where companies buy carbon credits to meet sustainability goals—is growing fast. According to McKinsey & Company, global carbon credit demand could reach 1.5 to 2 billion tonnes per year by 2030, up from under 500 million in 2023. Yet, concerns about credit quality have held back investment.

Deals like Microsoft’s help build trust in the market by sending clear signals: there is real, long-term demand for high-quality removal. This helps project developers get loans, attract private funds, and plan bigger projects.

Nature-based credits are also more affordable than high-tech options like direct air capture (DAC), which can cost over $100 per tonne. In contrast, ARR credits often cost between $5 and $15 per tonne. You can find carbon prices for different types of credits on our page here.

Microsoft’s commitment to long-duration contracts gives these projects a better chance to succeed. It helps diversify removal technologies in the market. This is key for increasing global carbon removal capacity. The market has seen significant growth since 2020, as shown below. 

Durable carbon removal credits CDR purchases 2024

A Growing List of Corporate Climate Leaders

Microsoft is not alone in investing in carbon removal. Other major companies like Shopify, Stripe, and Alphabet (Google) have made similar commitments. They are working together to create the early market for permanent carbon removal. This can happen through nature or new technologies.

But Microsoft stands out for the scale and structure of its deals. Besides the 18-million-tonne deal with Rubicon, Microsoft has invested in carbon removal projects. These include DAC facilities and bioenergy with carbon capture and storage (BECCS).

The company’s 2023 sustainability report showed it contracted 1.4 million tonnes of carbon removal. About 40% of this comes from engineered sources. These investments are part of a bigger climate plan. This plan aims to cut Scope 1, 2, and 3 emissions in operations, the supply chain, and products.

The Road Ahead: Scaling Climate Solutions Through Partnership

Rubicon Carbon launched in 2022 with the goal of scaling high-quality carbon credit projects. Supported by TPG Rise Climate, it blends finance and climate science to help companies track their carbon footprints. The Microsoft partnership is its largest and most ambitious deal to date.

Jim Coulter, Founding Partner of TPG and Managing Partner at TPG Rise Climate, noted that this deal is not just about selling the credits, but also about reshaping how they fund climate action. 

The new evaluation framework aims to show how carbon markets can grow into reliable and scalable systems. Both parties hope to lead by example. This includes transparency, long-term planning, and science-driven impact assessments.

Looking forward, the success of this deal could encourage more companies to enter similar agreements. It might also create better financing tools for carbon project developers. This could strengthen standards in the voluntary carbon market.

Microsoft’s carbon credit agreement with Rubicon Carbon shows how corporate climate commitments can translate into meaningful global impact. By locking in 15- to 20-year purchases, the tech giant is helping fund carbon removal projects that can last decades.

The blend of business innovation, environmental science, and financial strategy sets a new path forward. As other companies watch this space, one thing is clear: carbon removal is becoming a core part of the climate solution, and Microsoft is helping to lead the way.

Actis Raises $1.7 Billion to Power Clean Energy and Digital Growth

Jennifer L
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0
Actis Raises $1.7 Billion to Power Clean Energy and Digital Growth

Actis, a global investor in sustainable infrastructure, has raised $1.7 billion for its second Long Life Infrastructure Fund, called ALLIF2. This fund will back clean energy and electricity transmission. It will also support digital networks in fast-growing areas like Asia, Latin America, Eastern Europe, the Middle East, and Africa.

Actis has invested nearly half of its funds and is quickly backing real-world infrastructure. This will help cut carbon emissions and improve access to reliable energy and digital services. The company says these investments also provide strong long-term returns for investors.

Investing in the Future: Actis’ Clean Energy and Digital Projects

ALLIF2 focuses on current infrastructure projects, called “brownfield assets.” It does not build new ones from scratch. This approach helps improve what’s already working and reduces risk for investors.

So far, the fund has:

  • Bought 100% of Stride Climate Investments, a group of 21 solar power projects in India, one of the world’s fastest-growing energy markets.
  • Signed two major deals to buy electricity transmission assets in Brazil, where clean energy sources like hydro, wind, and solar make up nearly 90% of the electricity supply.

Focusing on solar energy and power transmission is a smart move. Solar power is booming in sunny places like India. At the same time, the world needs dependable transmission to carry clean electricity from generators to users.

Digital infrastructure, such as data centers and internet networks, is another key focus for Actis. These systems are vital for today’s economies. This is especially true in areas with limited digital access.

Why Investors Are Paying Attention

Actis says there’s strong investor interest in its fund because of its focus on long-term, stable income. Many of the fund’s backers are large pension funds, sovereign wealth funds, and insurance companies from around the world. These groups are looking for safe, steady investments that can perform well even during economic uncertainty.

Actis uses “availability-based contracts” and inflation-linked revenues to reduce risks. That means the fund earns money based on how available a service is — such as electricity delivery — rather than on how much people use it. These contracts provide a safety net during slow economic times.

Other protections include currency and interest rate protections. These safeguards make ALLIF2 appealing to global investors who want to support clean energy and keep their investments safe. Examples of the company’s clean energy portfolio include:

Actis Fund portfolio sample
Source: Actis

Actis Targets the World’s Fastest-Growing Regions

One of Actis’s big advantages is its focus on non-Western energy and digital markets. While many investors look to the U.S. and Europe, Actis sees high-growth potential in Asia, Latin America, Africa, and Eastern Europe. Torbjorn Caesar, Chairman and Senior Partner at Actis, remarked:

“We’re building real-world assets that are essential to national development, and pairing that with disciplined, long-term investment capital. It’s clear from our experience that regions outside the West, in the more populated and faster-growing parts of the world, are where compelling infrastructure opportunities can be found. That remains the case today.”

And Actis has the track record to back it up. Its first Long Life Infrastructure Fund (ALLIF1), launched in 2019, raised $1.3 billion. Since then, the company has handled over $26 billion in capital. After merging with General Atlantic in 2024, it now manages $108 billion in assets.

In 2025, investors are showing more interest in globally diversified strategies — especially those that offer stability and help meet climate and digital goals. That’s why ALLIF2’s focus on long-life, low-risk infrastructure in rising markets is so appealing.

Helping Countries Meet Climate and Energy Goals

Countries like India and Brazil are under pressure to expand energy access while also reducing carbon emissions. Investments like those from Actis help bridge that gap by funding clean energy and reliable grid systems.

For example, in India, solar power helps reduce dependence on coal and other fossil fuels. Actis’s solar projects will support India’s national goal of reaching 500 GW of non-fossil fuel power by 2030.

India annual solar manufacturing projections
Chart from SolarPower Europe

Likewise, in Brazil, new electricity transmission lines make it easier to move renewable energy across the country. It generates almost 90% of its electricity from clean sources. Better transmission cuts energy loss and lowers power outages.

Actis supports these clean energy projects to help countries grow sustainably. This also brings returns for its investors.

A Strong Start, and More to Come

Actis has already invested nearly half of its new fund. But it’s not stopping there. The company has a $2 billion pipeline of upcoming deals. This includes investments in solar, wind, transmission, and digital infrastructure.

Adrian Mucalov, Head of Long Life Infrastructure at Actis, said:

“Our strategy is built for the investor appetite we are seeing: infrastructure businesses in high-growth markets that have a solid operating track record with stable, downside-protected cash flows.”

That pipeline includes:

  • More solar energy projects in Asia and the Middle East
  • Additional transmission lines in Latin America and Africa
  • Growing digital infrastructure across emerging markets

These investments are not just good for business. They also help fight climate change, improve energy access, and create jobs in developing economies.

Looking Ahead: A Blueprint for Sustainable Investment

As climate concerns grow and economies shift toward clean energy, funds like ALLIF2 are likely to play a bigger role. Investors increasingly want portfolios that are resilient, green, and globally diversified.

Actis’s model — combining infrastructure improvements with long-term contracts and strong protections — is becoming a popular blueprint for others. It proves that clean energy and digital growth can be both profitable and low-risk.

Actis’s $1.7 billion infrastructure fund shows how investment capital can support global climate and development goals. The fund targets clean energy, power transmission, and digital access in fast-growing areas. This approach meets local needs and tackles global sustainability issues. It shows how smart and sustainable infrastructure investments can yield strong returns and create a cleaner, more sustainable world.

UK’s 2035 Green Finance Vision: Leading the World in Carbon Credits

Aiden Green
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UK’s 2035 Green Finance Vision: Leading the World in Carbon Credits

The UK government has rolled out new plans to strengthen voluntary carbon and nature markets. These markets help businesses reduce emissions. They do this by funding eco-friendly projects. Examples include tree planting, electric vehicles, and forest protection.

The government wants to boost these markets. This will bring in private funding, boost climate efforts, and create new revenue for British businesses. Landowners and farmers will benefit the most.

According to the Department for Energy Security and Net Zero, the UK’s total greenhouse gas emissions in 2024 were around 371 million tonnes of CO2 equivalent. That’s 4% lower than in 2023, when emissions were 385 million tonnes.

Compared to 1990 levels, emissions in 2024 dropped by 54%. Carbon dioxide was the biggest contributor, making up about 78% of the total emissions.

Uk emissions net zero
Source: Department for Energy Security and Net Zero

A Global Role for the UK in Green Finance

BeZero Carbon says that the UK has long been a pioneer in carbon markets. Back in 2002, it launched the first national greenhouse gas trading system.

Internationally, it has helped shape carbon rules under the Paris Agreement, including at COP29. Recent data reveals that UK companies are the top users of voluntary carbon credits in the G7. They lead in both total volume and GDP comparison.

Turning Potential Into Progress

Currently, carbon and nature markets aren’t reaching their full potential. Many businesses are unsure how to use carbon credits effectively, and poor practices in the market have raised doubts. To address this, the government is creating a global framework. This will set clear standards for what makes a carbon or nature credit effective.

The new guidance will:

  • Define high-quality carbon credits

  • Ensure projects deliver real environmental benefits

  • Encourage companies to fully disclose how credits are used in sustainability reports

These steps aim to build confidence and help businesses invest in high-impact climate solutions. With the right conditions, the carbon market could grow to $250 billion and nature markets to $69 billion by 2050.

These new plans aim to make the UK a global leader in green finance. By creating a strong and trusted carbon market, the UK can attract more private investment, support climate goals, and help businesses shift to clean energy.

Taking climate action also brings major business benefits. Since July, the UK’s clean energy sector has drawn £43.7 billion in private investment.

According to the Confederation of British Industry (CBI), the net-zero economy grew three times faster than the rest of the UK economy last year, with over 10% more jobs created in the sector.

Carbon Credits in the UK

The Department for Environment, Food & Rural Affairs’ Woodland and Peatland Carbon Codes support local nature-based projects. These efforts have expanded, creating a solid foundation for growth. The government is also pushing engineered carbon removals through contracts for carbon capture and storage (CCS) technologies.

Climate Minister Kerry McCarthy said,

“Building up trust in carbon and nature markets is crucial to their success in driving meaningful climate action and real, lasting change for the environment. 

The UK is determined to spearhead global efforts to raise integrity in these markets so they can channel the finance needed to tackle the climate crisis and speed up the global clean energy transition.

These principles will cement the UK as the global hub for green finance and carbon markets. This is an opportunity to deliver on the climate crisis and drive investment and growth in the UK as part of our Plan for Change.”

uk carbon credits

UK’s Carbon Market Strategy for 2035

A recent report titled “Making the UK the carbon markets capital of the world” from BeZero Carbon outlines what the UK could potentially achieve by 2035 if it leads in carbon markets:

  • Create 135,000 skilled jobs

  • Add £1 billion to tax revenue

  • Meet domestic carbon removal targets (13 million tonnes from engineered sources and 5 million tonnes from nature-based projects)

  • Attract £10 billion per year in private climate finance for international projects

To make this vision real, the UK must grow demand. The plan expects that by 2035, all major UK businesses will offset their remaining emissions. This includes both current and future emissions, using high-quality carbon credits. These would include nature-based and engineered solutions, sourced both from the UK and abroad.

What’s Needed to Get There?

To support this growth, the government should:

  • Integrate international and nature-based carbon removals into the UK Emissions Trading Scheme

  • Promote alignment with trusted standards like the Voluntary Carbon Markets Integrity Initiative (VCMI)

  • Use independent ratings to ensure credit quality

  • Develop smart regulations that encourage, not block, market expansion

UK carbon market
Source: BeZero Carbon

The report explains that carbon credit markets are more reliable now than five years ago. New monitoring and verification technologies reduce the risk of credits failing. These tools are backed by science and data. The COP29 Article 6 framework also helps prevent double-counting between countries and businesses.

The UK can lead in climate investment. It can support innovation and set clear rules. Carbon and nature markets can help cut emissions. They can also boost the economy and enhance the UK’s global role in green finance with the right efforts.

When the government, businesses, and communities team up, the UK can create a strong carbon market. This will create jobs, boost the economy, and support a greener future for generations to come.

Shipping Toward Net Zero: Maritime Turns to Green Hydrogen and Ammonia

Aiden Green
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0
Shipping Toward Net Zero: Maritime Turns to Green Hydrogen and Ammonia

The maritime industry is entering a period of major change as global efforts intensify to cut greenhouse gas (GHG) emissions. The International Energy Agency (IEA) has highlighted the need for clean energy solutions—especially green hydrogen and ammonia—to help shipping cut emissions and reach climate goals.

Ships now emit about 3% of global greenhouse gases (GHG). So, there’s growing pressure to decarbonize fast. The IEA recently stated that we need urgent improvements in storage, safety rules, and policy support. These changes are essential for making these fuels viable for widespread use.

The industry’s goal is to reach zero emissions by 2050. However, the road to decarbonization is complex and demands progress in technology, safety, and policy. This is where green hydrogen and ammonia come in.

The Promise of Green Hydrogen and Ammonia

Green hydrogen is made using renewable energy, like wind or solar, to split water into hydrogen and oxygen. Ammonia, which can be made from green hydrogen, is another low-carbon fuel option.

Both fuels provide a cleaner option than fossil fuels. This is especially true for long-distance shipping, where battery-powered ships aren’t practical yet. These fuels are essential to meeting the International Maritime Organization’s (IMO) climate targets.

IMO shipping net zero roadmap
Source: IMO

The IMO aims to reduce shipping’s total annual emissions by at least 50% by 2050 compared to 2008 levels, and to peak emissions as soon as possible. Achieving these targets will require the wide-scale adoption of alternative fuels.

The IEA highlights that green hydrogen and ammonia can support these goals. However, industry players must tackle several key challenges:

  • Storage Challenges: Hydrogen is difficult to store due to its low energy density. It needs high-pressure tanks or must be cooled to cryogenic temperatures. Research is focused on safer and smaller storage methods. This includes metal hydride systems and compressed gas solutions.

  • Safety Concerns: Hydrogen is highly flammable, while ammonia is toxic. To avoid risks, ships need new safety systems, and crew members must receive updated training. The development of international safety standards will help guide proper handling and storage.

  • Cost Barriers: Green hydrogen is currently 2-3 times more expensive than traditional marine fuels. Ammonia is also costly to produce at scale. According to BloombergNEF, costs could drop by 2030 with scaling and technology advances. Reducing these costs will require financial support from governments and private investors.

Bloomberg further estimates that clean ammonia could represent 13% of global ammonia supply by 2030.

clean ammonia supply 2030

DNV, a global maritime classification society, says ammonia and hydrogen could be 60% of shipping fuel by 2050. This depends on policies that support their growth. Yet today, they account for less than 0.1% of total fuel use at sea.

Both clean fuels’ costs would go down by 2050, per IRENA’s projections.

ammonia cost projections

green hydrogen cost projection

 

 

 

 

 

 

 

 

 

 

 

Boosting Maritime Decarbonization Through Policy

Policy support is critical to drive the shift toward cleaner fuels in shipping. Experts and industry groups are calling on governments and international regulators to create favorable conditions for investment in green hydrogen and ammonia.

Proposed policy measures include:

  1. Clean Fuel Subsidies. Direct incentives can help shipowners adopt low-emission technologies and offset higher fuel costs.

  2. R&D Grants. Public funding can support research into fuel storage, fuel cells, bunkering infrastructure, and vessel designs optimized for alternative fuels.

  3. Carbon Pricing. Implementing a carbon tax or emissions trading system in the maritime sector can make green fuels more competitive.

  4. International Standards. Harmonized regulations across countries can prevent market fragmentation and ensure global progress.

Some countries are already taking steps. Norway has introduced zero-emission requirements for cruise ships in its fjords by 2026. The EU has included shipping in its Emissions Trading System (ETS) starting in 2024, requiring ships to pay for carbon pollution. The bloc has also launched the “FuelEU Maritime” initiative to promote green fuel adoption.

The IEA and IMO are also working with ports, shipbuilders, and fuel producers to design a shared roadmap for green fuel adoption. In addition to cargo vessels, ferries and cruise ships are being looked at as early candidates for green fuel use.

GHG Emissions and the Urgency to Act

The shipping industry emits over 1 billion tonnes of CO2 annually. Without action, emissions could rise by 50% to 250% by 2050, according to IMO projections. The IEC stresses that if these emissions are not reduced, they can hinder global efforts to limit warming to 1.5°C above pre-industrial levels.

To stay on track, the shipping industry must embrace low-carbon technologies and provide clear emissions reports. Many digital tools are being created to track emissions in real time. This helps companies stay accountable and make smart choices.

Some shipping companies have already begun testing hydrogen and ammonia-powered vessels. NYK Line and Maersk are testing ammonia-fueled ships. Others are looking into hybrid vessels that mix green fuels and batteries.

The Poseidon Principles, signed by over 30 global banks, require shipping lenders to align their portfolios with climate goals. This initiative puts additional pressure on companies to invest in cleaner ships or risk losing access to finance.

Trends Shaping the Clean Fuel Market

The market for green fuels is expanding rapidly, driven by both regulation and investor interest. IEA forecasts say the global hydrogen demand could reach over 6 Mtpa by 2030.

By 2050, the total demand for green hydrogen will reach 46 million tonnes, according to IRENA. About 74% of this will be used to produce ammonia, 16% for making methanol, and the remaining 10% will be used directly as hydrogen.

green hydrogen requirement for 2050
Source: IRENA

Ammonia demand is also expected to rise, especially in sectors like shipping and power generation. It can grow at an annual rate of 70% through 2030.

Key developments include:

  • EU Green Deal Initiatives. New climate laws are allocating billions of euros to fund clean energy, including maritime fuel infrastructure.

  • Private Investments. Companies such as BP, Shell, and TotalEnergies are investing in hydrogen production and supply chains. Maersk, the second-largest shipping company in the world, is investing in vessels powered by methanol and hydrogen. Other firms, like NYK Line and MOL from Japan, are testing ammonia-powered ships.

  • Green Corridors. More than 20 “green shipping corridors” are being planned worldwide. These include routes between Asia and Europe, and across the Atlantic. These corridors will enable ships to refuel with green fuels and test low-emission technologies.

These initiatives show progress. But to fully implement them, we need stronger partnerships. This includes working with governments, industries, and environmental groups.

In January 2024, the Global Maritime Forum announced that over 200 companies had joined efforts to decarbonize shipping, focusing on scalable fuel alternatives and supportive regulations.

Navigating Toward Zero Emissions

Decarbonizing the maritime sector is no longer optional. It’s a needed change due to environmental issues, investor demands, and new rules. The transition needs big investments and teamwork. But it also offers chances for new ideas and long-term savings.

The push for green hydrogen and ammonia is helping to reshape the industry’s future. These fuels offer a path to meet zero-emission targets while supporting cleaner global trade. With ongoing backing from governments, industry players, and the public, the move for maritime decarbonization is speeding up.

Tackling Scope 3 Emissions with AI: A Smarter Path to Net Zero

Aiden Green
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0
Tackling Scope 3 Emissions with AI: A Smarter Path to Net Zero

Energy companies are increasingly using artificial intelligence (AI) to cut Scope 3 emissions. These emissions come from their supply chain and the full lifecycle of their products. They include everything from material sourcing to product disposal.

Since these indirect emissions are hard to track, reducing them is a major challenge. However, with net-zero targets approaching, tackling Scope 3 emissions is a top priority.

AI helps simplify complex data and streamline operations. Companies can cut emissions while boosting profits. With smarter product design and optimized resource use, AI shapes a more sustainable energy future.

AI Is Making Scope 3 Emissions Measurable and Manageable

Scope 3 emissions include many indirect activities, such as suppliers’ energy use and customer product disposal. Their complexity makes them tough to reduce, but AI is changing that.

Machine learning and predictive analytics allow energy companies to find inefficiencies in their supply chains. AI tools automate data collection, making it easier to assess the carbon footprint of each activity. As Energy Central notes, this leads to smarter decisions that reduce emissions and improve operations.

The World Economic Forum highlights that AI could cut global greenhouse gas emissions by 5–10%. This is equivalent to the annual emissions of the European Union. However, they warn that increased AI use may raise electricity demand, so companies must balance their efforts carefully.

Boosting Profits While Cutting Emissions

AI isn’t just about sustainability; it also helps companies save money. Experts also believe that AI for energy management can see significant efficiency gains. Predictive maintenance, for instance, detects problems early, avoiding costly downtime and improving equipment performance.

AI optimizes energy use across systems, leading to lower costs and better output. The World Economic Forum estimates that AI-driven energy efficiency and smart grid solutions could unlock up to $1.3 trillion in economic value by 2030. This is a strong incentive for companies to invest in digital transformation.

However, the International Energy Agency (IEA) warns that AI’s reliance on data centers could add stress to power grids. Companies need to plan carefully to ensure sustainable growth without overloading infrastructure.

  • According to Grand View Research, the global AI in energy market size was valued at USD 8.75 billion in 2023 and is expected to grow at a CAGR of 30.1% from 2024 to 2030.

AI future

Smarter Product Design Reduces Lifetime Emissions

AI is changing how products are designed, built, and disposed of. Life Cycle Assessments (LCAs), once time-consuming, are now faster and more accurate thanks to AI.

AI tools can:

  • Automate the collection of product emissions data

  • Fill data gaps using predictive models

  • Customize carbon assessments for regional and supplier-specific conditions

Engineers can run AI simulations to test designs virtually. This cuts down on the need for physical prototypes. These simulations predict energy use, durability, and efficiency. They help companies create greener and longer-lasting products.

The result? Reduced operational emissions and a lower environmental impact throughout the product’s lifecycle.

The Grid of the Future: Smarter, Greener, AI-Driven

AI is also changing how energy is distributed. Smart grid technologies powered by AI balance supply and demand in real-time. This reduces idle power and waste, and provides reliable renewable energy access.

Additionally, it helps forecast energy needs and stabilize the grid. This leads to smoother integration of solar, wind, and other renewables. The World Economic Forum says AI boosts efficiency. It also future-proofs energy infrastructure by spotting and fixing problems early.

Apart from managing Scope 3 emissions, these advancements make AI a key driver in speeding up the energy transition. It builds a grid that’s both smarter and more sustainable.

Copper Prices Surge to $10,296/Tonne as US-China Truce Sparks Market Rally

Saptakee S
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0
Copper Prices Surge to $10,296/Tonne as US-China Truce Sparks Market Rally

The copper market is seeing big changes lately. A short-term trade truce between the US and China has helped push copper prices up, giving investors some relief. At the same time, China is producing more refined copper than ever before.

But there’s a problem, there isn’t enough copper ore to meet demand. Even with record imports, supply is still tight. With inflation and global growth concerns still hanging around, the market remains on edge.

Let’s study deeper…

Copper Prices Rally on Eased Trump’s Tariff Tensions

COMEX July Futures: Copper futures for July delivery are trading at approximately $4.68 per pound (or $10,296 per tonne), reflecting a 1.3% increase following the recent US-China trade truce.

This boost came after a temporary easing in trade tensions between the US and China. Investors welcomed the news, anticipating smoother trade flows and fewer disruptions in global commodity markets.

copper prices
Source: Bloomberg

What’s Driving the Copper Price Surge?

Elaborating further, both countries have rolled back tariffs for the next 90 days. US tariffs on Chinese goods dropped to 30%, while China cut its tariffs on US imports to 10%. This move has created a positive ripple effect across commodities, stocks, and currencies.

According to media sources, US Treasury Secretary Scott Bessent described the agreement as a “very good framework” and stressed that the US is not seeking full economic decoupling from China. This statement helped further calm market fears.

Another significant factor that pushed up copper prices was China’s record-high imports in April. The world’s largest copper consumer imported nearly 3 million tonnes of copper concentrate last month. Experts predict that this increase could ease supply tightness and help local smelters, which have been struggling with low ore availability.

Challenges Still Persist for Chinese Copper Smelters

While China’s copper imports have surged, its smelters remain under pressure. According to Discovery Alert, spot treatment charges turned negative in December and fell further to -$57.50 per tonne by early May. Smelters are now paying to process ore, which is a sign of tight supply and intense competition.

China’s refined copper production has hit all-time highs, even though copper ore remains in short supply. The situation worsened due to a two-month export halt at Indonesia’s PT Freeport mine and a smelter shutdown in the Philippines. Both events tightened global supply but later helped China when ore flow resumed.

According to Mysteel Global analyst Li Chengbin, Chinese plants are better prepared this year, securing long-term contracts and benefiting from resumed exports out of Indonesia.

A Look Back: The Copper Price Shakeup

Just days before the trade truce, copper prices took a hit. On April 4, Bloomberg reported a sharp decline in both copper and global equity markets. On the London Metal Exchange, prices dropped as much as 7.7%, briefly reaching $8,735 per tonne before rebounding slightly.

Earlier, traders had rushed to ship copper into the US to avoid rising tariffs. Premiums surged to $500 per tonne. Major firms like Mercuria and Trafigura had predicted copper prices could hit $12,000 per tonne. But when the US unexpectedly shortened the tariff deadline, buyers were caught off guard, and stockpiles began piling up outside US ports.

copper

Copper Market Outlook 2025–2026

The International Copper Study Group (ICSG) shared its latest copper forecast during a meeting held on April 25, 2025, in Lisbon. Both mine and refined copper production are expected to see solid growth through 2026.

ICSG expects a surplus of about 289,000 tonnes for 2025, slightly higher than the surplus of 194,000 tonnes forecast last September. It’s a surplus of about 209,000 tonnes is currently expected for 2026. This is attributed to weak global demand, particularly influenced by U.S. tariff policies.

Mine Production on the Rise

In 2025, global copper mine production is projected to increase by 2.3%, reaching around 23.5 million tons. This growth will be driven mainly by the continued ramp-up of major projects like Kamoa in the Democratic Republic of Congo (DRC) and Oyu Tolgoi in Mongolia, along with the commissioning of the new Malmyz mine in Russia.

However, some of these gains will be partially offset by expected output declines in Australia, Indonesia, and Kazakhstan.

For 2026, the ICSG expects a slightly higher growth rate of 2.5%. This will be supported by ongoing capacity expansion, particularly in China, as well as an expected recovery in Indonesia and improved output from Chile and Zambia.

Additionally, several smaller mining operations and mid-sized projects in countries like Brazil, Iran, Uzbekistan, Ecuador, Eritrea, Greece, Angola, and Morocco will contribute to the overall production increase.

copper mine production
Source: International Copper Study Group (ICSG)

Refined Copper Output Expanding

Refined copper production is forecast to rise by about 2.9% in 2025. The increase will be fueled by continued capacity expansion in China and new refining operations starting in Indonesia, India, and the DRC.

Growth in 2026 is expected to slow slightly to 1.5%, but output will still benefit from ongoing upgrades and new capacity additions across several countries.

In short, the global copper market is on a growth path, with new projects and recovering output in key regions setting the stage for steady production gains through 2026.

copper
Source: International Copper Study Group (ICSG)

Other Forecasts

  • Long-Term Price Predictions: According to LongForecast, copper prices are expected to average around $4.535 per pound in May 2025, with potential fluctuations ranging from $4.180 to $4.896.

  • Goldman Sachs has revised its copper price forecast for Q2 2025 to $9,330 per tonne, up from the previous estimate of $8,620, citing shifts in the global metals market.

The US-China trade truce has breathed new life into the copper market, lifting prices and calming investor nerves. China’s record copper imports have also helped support global demand. But the road ahead is still uncertain. All in all, inflation, interest rates, and economic growth will all play a role in copper’s next move.

MENA’s Renewable Energy Boom: Solar Capacity to Hit 180 GW by 2030

Aiden Green
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MENA’s Renewable Energy Boom: Solar Capacity to Hit 180 GW by 2030

The Middle East and North Africa (MENA) region is emerging as a global solar energy leader. With falling solar costs, government-backed clean energy strategies, and strong partnerships with Chinese manufacturers, the region is accelerating its renewable energy transition.

  • According to the Middle East Solar Industry Association (MESIA) 2025 Solar Outlook Report, MENA’s solar capacity could exceed 180 GW by 2030.

In 2024 alone, installed capacity reached 24 GWAC, up 25% from the previous year, and is expected to surpass 30 GW by year-end.

MENA’s Solar Boom: The UAE Leads the Growth

The UAE is leading the solar growth in the region with bold plans like the Dubai Clean Energy Strategy 2050, which aims for 75% renewable energy by 2050, and the Abu Dhabi Vision 2030, targeting 30% renewables by 2030.

It expanded its solar capacity from just 12 MW in 2012 to 6.1 GW in 2023, now ranking 10th globally in solar capacity per capita. Programs such as Shams Dubai are also encouraging homes and businesses to install solar panels.

To meet these goals, companies are incorporating digital and scalable tools that help manage large solar projects and improve efficiency.

Gears Up to Become Global Solar Powerhouse

  • Saudi Arabia has giga-scale projects such as the 700 MWAC Ar Rass 1 plant and the Red Sea solar development.
  • Egypt is also advancing rapidly, with the Kom Ombo 200 MWAC project now online and Benban Solar Park already contributing over 1.6 GW.
  • North African countries like Morocco, Algeria, and Tunisia are scaling up, with Morocco surpassing 2 GW and Algeria targeting 15 GW by 2035, partly through its plan to solar-power 22,000 schools.

Set to Replace Southeast Asia in Global Solar Trade?

The global solar supply chain is undergoing a shift—and MENA is at the center of it. Wood Mackenzie projects that the region will emerge as a low-tariff hub for solar panel manufacturing.

As per Wood Mackenzie, with US tariffs on Southeast Asian solar modules reaching up to 651%, MENA’s 10% import tariff advantage is already attracting Chinese manufacturers. As a result, the region’s solar manufacturing capacity could reach 44 GW by 2029, with Chinese firms projected to control 85% of that output by 2028.

mena solar

This trend is driven not only by tariffs but also by growing local demand, abundant sunlight, and regional ambitions to dominate solar exports. In fact, MENA is forecast to achieve solar module self-sufficiency by 2026.

These factors together make MENA one of the most cost-competitive regions for exporting solar components to global markets, especially the US.

mena solar
Source: MESIA’s 2025 Solar Outlook Report

Policy Push and Private Sector Action

Strong policy backing is another major growth driver. The UAE aims to triple its renewable energy capacity by 2030 under its Energy Strategy 2050, supported by AED 150–200 billion in investments.

Saudi Arabia has raised its clean energy commitment to $235 billion and wants two-thirds of its residential electricity to come from renewables by 2030.

Egypt and Morocco are also pushing hard, targeting 42% and 52% renewable shares in their electricity mixes, respectively.

Private players like ACWA Power, AMEA Power, Jinko, and Masdar are actively driving installations across the region. Notably, the Red Sea project in Saudi Arabia is integrating solar, wind, and battery storage to power an entire tourist development sustainably.

In the UAE, the 500 MWAC Abydos project will also include 300 MWh of battery energy storage when it goes online later this year.

READ MORE: UAE to Invest $54B in Renewable Energy as Part of Net Zero Goal

Innovation, Jobs, and Economic Impact of Solar Growth

The solar sector is fueling not just clean energy but economic transformation across MENA. Investments in solar are expected to create more than 500,000 direct and indirect jobs by 2030.

Advances in solar module mounting structures, tracking systems, and battery storage are reducing the Levelized Cost of Electricity (LCOE), making renewables even more affordable.

Several hybrid solar projects now combine PV with green hydrogen production, desalination, and waste-to-energy systems, reflecting a new era of infrastructure innovation.

With high solar irradiance, strong financing momentum, and growing investor confidence, the region is solidifying its position as a global solar hub.

mena solar
Source: MESIA’s 2025 Solar Outlook Report

MENA’s Solar Outlook: From Regional Player to Global Export Hub

Wood Mackenzie predicted earlier that the global solar market is expected to stabilize at 493 GW in 2025, and MENA is on track to contribute significantly to that total. With the right mix of natural resources, strategic trade advantages, and supportive policies, the region is quickly moving from energy importer to clean energy exporter.

Mena solar
Source: MESIA’s 2025 Solar Outlook Report

All in all, MENA’s solar growth is not only helping meet climate goals but also shaping new economic futures for millions across the Arab world.

Carbfix Secures First EU Permit for Onshore Carbon Capture and Storage

Aiden Green
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Carbfix Secures First EU Permit for Onshore Carbon Capture and Storage

Carbfix has made a big move in Europe’s battle against climate change. It received the first permit for onshore carbon dioxide (CO2) storage under EU law. This project, based in Iceland, makes history by allowing the underground storage of CO2 in line with the EU’s strict climate policies. It is the first time the EU has formally approved an onshore geological storage project under its 2009 CCS Directive.

Carbfix’s storage method uses Iceland’s natural basalt rock to turn captured CO2 into solid minerals. This innovative approach supports the EU’s Green Deal, which aims to cut greenhouse gas emissions by at least 55% by 2030.

The mineral storage operator shows that carbon capture and storage (CCS) can work well on land. This sets a strong example for other European countries.

Understanding the Science Behind Carbfix’s CCS Tech

The Carbfix process is both simple and groundbreaking. First, carbon dioxide is captured from industrial sources or directly from the air. Then it is dissolved in water and injected into underground rock formations.

Carbfix carbon capture
Source: Carbfix

In Iceland, natural basalt rock reacts with CO2 solution. This forms solid carbonate minerals that trap carbon permanently. Carbfix’s method is different from other carbon storage methods. Instead of keeping gas trapped under rock layers, it turns gas into stone. This process removes the risk of leakage in the long run.

Key features of the project include:

  • Location: The site is in Iceland, where volcanic basalt is plentiful and ideal for mineralizing CO2.

  • Technology: The CO2 reacts with minerals in the rock to form stable solids in under two years.

  • Safety: The National Energy Authority of Iceland (Orkustofnun) checked the project to ensure it follows EU safety rules for geological storage.

Carbfix’s innovative technology has already been used in smaller pilot projects in Iceland, including at the Hellisheiði geothermal power plant. Getting a permit under the EU’s tough rules is a major step for wider use in Europe.

Highlighting the growing importance of CCS technology in Europe’s climate strategy, Carbfix CEO, Edda Sif Pind Aradóttir stated:

“With this first onshore storage permit in Europe, Iceland also retains a certain leadership role in building a new industry that is essential to both the EU’s and IPCC’s climate goals.”

Why the EU Supports Carbon Capture and Storage

The European Union is focused on cutting greenhouse gases to fight global warming. Technologies like CCS play a key role in achieving this.

The European Commission’s Industrial Carbon Management Strategy says that by 2050, the EU will store around 250 million tonnes of CO2 each year. This will be in underground storage.

Total carbon capture could reach around 450 million tonnes yearly, which includes some CO2 that is used instead of stored. This could account for 7-8% of the region’s emissions.

Europe climate strategy methods
Source: European Union

The EU’s climate plan encourages both public and private investment in carbon storage projects. Experts estimate that suitable sites in Europe could store up to 300 million tonnes of CO2 per year by 2030.

The European Climate Law requires net-zero emissions by 2050. This law pressures all sectors, including heavy industry, to cut or offset their emissions.

While the company is pioneering onshore CCS, most EU CCS capacity and projects focus on offshore storage, especially in the North Sea region.

By 2030, Europe might reach a storage capacity of 140 million tonnes per year. However, only about 66 million tonnes per year is expected in EU member states. Most of the onshore projects are small, mainly in Denmark and the Netherlands.

Europe carbon storage growth
Source: Clean Air Task Force

Iceland’s Carbfix project is unique as an onshore basalt mineralization site. The Carbfix permit allows storage of up to about 106,000 tonnes of CO2 annually, totaling around 3.2 million tonnes over 30 years.

It proves that onshore CO2 storage is possible within the EU’s legal framework. It opens the door for similar projects in other member countries. By proving that this kind of storage is safe and effective, Carbfix is leading the way for other innovators to follow. It also opens opportunities for generating carbon credits.

The Growing Role of Carbon Markets

With more companies and governments trying to lower emissions, the demand for carbon credits is growing. These credits allow companies to pay for carbon reductions elsewhere if they cannot cut emissions directly.

Projects like Carbfix generate carbon credits by permanently removing CO2 from the atmosphere. This makes them especially attractive to buyers seeking high-quality, verifiable carbon offsets.

Recent projections indicate the average EU carbon price could reach about €92/t CO2e in 2025. It could rise to €130/t by 2026 and €195/t by 2030.

EU carbon price forecast

Analysts expect the global carbon market to more than double in size by 2030, possibly reaching $100 billion. More storage projects like Carbfix are starting up that can increase the supply of high-quality carbon credits. As a result, the market will stabilize and new investment opportunities will arise.

Carbon credit markets help create a circular carbon economy. In this system, captured emissions are reused or stored permanently, preventing them from entering the atmosphere. As countries strengthen their climate commitments, demand for such credits will likely increase.

A Model for Future Projects

Carbfix could serve as a model for future carbon storage projects across Europe and beyond. Other European countries are already exploring similar opportunities. Reports say that up to 10 new onshore storage projects might start in the next five years. This is especially true in areas with volcanic or sedimentary rock formations.

To support this growth, the EU is working on clearer rules and funding support for carbon capture projects. This includes easier permitting, better carbon pricing, and more public-private partnerships. The Innovation Fund and Horizon Europe are two major EU programs supporting climate technology, including CCS.

Experts agree that CCS must grow quickly to meet climate targets. Renewable energy and energy efficiency are vital. However, technologies like Carbfix can cut emissions in tough industries, which include cement, steel, and chemicals.

The Carbfix carbon storage permit marks the beginning of a new phase in Europe’s climate journey. As the EU looks to scale up CCS efforts, the success of onshore projects will be crucial. With the right policies and technologies in place, the region could become a global leader in carbon storage innovation.

L’Oréal’s €100M Green Glow-Up: Where Beauty Meets Sustainability

Aiden Green
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L’Oréal’s €100M Green Glow-Up: Where Beauty Meets Sustainability

L’Oréal is making bold moves toward a more sustainable beauty industry with its Sustainable Innovation Accelerator. Under the global “L’Oréal for the Future” plan, this initiative helps quickly develop technologies. These technologies aim to lower the environmental impact of cosmetics production and L’Oréal’s carbon footprint.

The beauty company aims to lower carbon emissions, reduce waste, and form eco-friendly partnerships. These efforts seek to change the beauty industry. They also aim to meet the growing demand for sustainable products.

By working closely with startups and scientific innovators, L’Oréal plans to push boundaries in green technology. Ezgi Barcenas, Chief Corporate Responsibility Officer at L’Oréal, remarked:

“This accelerator will help address the solution gap and help steer the catalytic adoption of breakthrough technologies.”

This marks a shift in how beauty companies think about growth—balancing performance with responsibility.

Innovation Engine: The Accelerator at Work

The €100 million Sustainable Innovation Accelerator helps boost new ideas that make cosmetics more sustainable. L’Oréal is directing substantial investment toward this initiative, focusing on two main goals: carbon emissions and waste reduction.

The program supports technologies that lower emissions throughout the supply chain. This includes everything from sourcing ingredients to packaging and delivery. It also encourages solutions that cut down on plastic, packaging waste, and excess materials in manufacturing.

loreal sustainable innovation by design

L’Oréal has big green goals. By 2030, it wants to cut greenhouse gas emissions by 50% for each product. This is based on 2016 levels and follows science-based targets from the UN.

The accelerator doesn’t work alone. It builds partnerships with startups, researchers, and suppliers, creating a network of innovation. In 2023, L’Oréal helped over 70 startups. These startups worked on climate solutions, biotechnology, and sustainable packaging.

Carbon Goals: From Reduction to Net Zero

L’Oréal’s path to sustainability isn’t just about products—it’s about long-term responsibility. The company plans to be net zero by 2050. This means it aims to balance the emissions it creates with what it takes out of the atmosphere.

In 2023, L’Oréal’s Scope 3 emissions were about 11,406 thousand tonnes of CO₂ equivalent. The biggest sources were purchased goods and services, which accounted for 5,170 thousand tonnes. Also, the use of sold products contributed 4,297 thousand tonnes.

L’Oréal carbon emissions 2023
Source: L’Oréal

Despite the overall increase in emissions, L’Oréal managed to cut emissions from its operated sites (Scopes 1 and 2) by 74% since 2019. This was achieved even with a 12% rise in production during that time.

The company cut greenhouse gas emissions from product transport by 9.7%. It aims for a 50% reduction per finished product by 2030, using 2016 as a baseline.

Additionally, 83% of L’Oréal’s operated sites globally had reached 100% renewable energy by the end of 2023, up from 34% in 2019.

L'Oréal climate targets
Source: Company report

To get to net zero, L’Oréal set clear science-based targets, including:

  • By 2025: All L’Oréal sites—including factories, distribution centers, and offices—will be carbon neutral.

  • By 2030: A 50% reduction in greenhouse gas emissions per finished product compared to 2016 levels.

  • By 2050: Net zero across the entire value chain, including suppliers and consumers.

To support these goals, L’Oréal is investing in renewable energy, green building design, and transportation alternatives. As of 2023, over 70% of its industrial sites had already achieved carbon neutrality by using solar, wind, biomass, or hydroelectric power.

In addition, L’Oréal has created a €50 million Climate Fund for Nature. This fund helps carbon offset projects. It supports reforestation, wetland restoration, and soil regeneration. These efforts absorb carbon dioxide and boost biodiversity.

L’Oréal partners with organizations like the Carbon Disclosure Project (CDP) and the Science-Based Targets initiative (SBTi). This helps ensure its progress is clear and accountable.

Biotech Breakthroughs: A Cleaner Chemistry

One of the most exciting frontiers in sustainable beauty is biotechnology. L’Oréal is using biotech to find new options. These alternatives can replace traditional ingredients that often harm the environment or use too many resources.

The Beauty Tech Challenge 2025—part of the accelerator’s broader mission—invites startups to submit ideas that use biotechnology to make skin and hair care products with lower emissions and waste. Biotech can make biodegradable ingredients from renewable sources like algae or yeast. This replaces chemicals that come from petroleum or rare plants.

One successful example of this is L’Oréal’s partnership with Genomatica, a U.S. biotech company. They are working together to create sustainable alternatives to palm oil. This ingredient is commonly used but is linked to deforestation. The partnership can lower the beauty industry’s environmental impact by making palm oil substitutes in labs using fermentation.

In 2023, L’Oréal launched a shampoo with biotech surfactants. These compounds clean hair gently, avoiding harsh chemicals. These new formulas are not only more sustainable but also gentler on skin and scalp, adding value for consumers.

Beauty Tech on the Rise

L’Oréal’s ambition goes beyond ingredients—it includes how products are made, delivered, and experienced. The company’s Big Bang Beauty Tech Innovation Program helps startups. It focuses on smart packaging, circular systems, and digital tools. These tools promote responsible consumption.

Examples include:

  • Smart refillable packaging. A startup supported by L’Oréal developed a system that tracks usage and reminds consumers to refill, reducing plastic waste.

  • AI-powered skin diagnostics. Tools that assist customers in selecting the right product for their skin. This helps cut down on waste and avoid unnecessary purchases.

  • 3D printing for custom cosmetics. L’Oréal is experimenting with 3D printers that can create makeup on demand, minimizing inventory waste.

These innovations help L’Oréal cover the entire lifecycle of its products and cut carbon emissions where possible. This includes production, consumer use, and disposal. They also attract tech-savvy and eco-friendly buyers.

The company has also launched “SPOT” (Sustainable Product Optimization Tool), a system that measures the social and environmental footprint of each product. As of 2023, SPOT has evaluated over 95% of L’Oréal’s portfolio, helping the brand design cleaner, greener items.

L'Oréal GHG emissions product lifecycle

A Green Future in Focus

The beauty market is booming. Analysts expect it to reach $750 billion globally by 2025. But this growth comes with responsibility. Consumers today are asking tough questions: Where do ingredients come from? Is the packaging recyclable? Does the brand support climate action?

Market research supports this shift. According to IBM’s Institute for Business Value, 58% of consumers are willing to change their buying habits to help the environment. Moreover, companies that adopt sustainable practices see long-term benefits. A study by NYU Stern found that sustainably marketed products grew 2.7x faster than their conventional counterparts.

The global sustainable beauty market could grow at an annual growth rate of 9.1% through 2030. That means demand for eco-friendly, ethically sourced products will only increase.

L’Oréal’s investments today position it to lead tomorrow. Its Sustainable Innovation Accelerator isn’t just a project. It’s a guide for beauty brands to grow and change. By combining biotechnology, smart packaging, and digital tools, the company is showing that beauty and sustainability can go hand in hand.

Bitcoin’s New Gold Rush: ETFs, Energy Battles and the Rise of American Bitcoin

Jennifer L
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Bitcoin’s New Gold Rush: ETFs, Energy Battles and the Rise of American Bitcoin

Bitcoin began as an idea shared by a small group of technology enthusiasts. In the last ten years, it has become a global digital asset. It draws interest from big investment firms, governments, and regular people.

Today, Bitcoin is not just a digital currency used for online payments. It is also seen as a new type of asset, similar to gold or stocks, that people can invest in. However, this transformation has come with significant challenges, particularly regarding energy use and environmental impact. As the Bitcoin mining industry matures, the focus is shifting toward more sustainable practices.

The Digital Pickaxe: How Bitcoin Mining Actually Works

In 2024, a major event for Bitcoin took place. The U.S. Securities and Exchange Commission (SEC) approved spot Bitcoin exchange-traded funds (ETFs). This decision made it much easier for regular investors and big institutions to buy and sell Bitcoin.

More companies and financial firms now offer Bitcoin to their clients. So, the digital asset is becoming more accepted in mainstream finance. Here’s how its market value compares with other cryptoassets and traditional assets. 

market value crypto comparison
Source: Cambridge Report

Bitcoin depends on a process called “mining” to keep its network secure and to create new coins. Mining is done by powerful computers that solve complex math problems. When a computer solves a problem, it adds a new “block” to the Bitcoin blockchain. The miner then gets new bitcoins and transaction fees as a reward.

This process is called “Proof-of-Work.” It is designed to make sure that no one can cheat the system or take over the network. The more computers, or “hashrate,” that are working to mine Bitcoin, the more secure the network becomes.

Mining has changed a lot since Bitcoin started. At first, anyone with a home computer could mine Bitcoin. Now, most mining is done by large companies using special machines called ASICs (Application-Specific Integrated Circuits). These companies often have mining farms with thousands of machines running day and night.

The Cambridge Digital Mining Industry Report states that a recent survey covered 49 mining companies. These companies control almost half of the total computing power for Bitcoin mining, and they operate in 16 countries.

Based on the report findings, the United States is now the biggest mining hub, accounting for over 75% of the mining activity surveyed. 

global bitcoin mining activity top 5 countries
Source: Cambridge Report

The Energy Debate: Powering Bitcoin

One of the biggest debates about Bitcoin is how much energy it uses. Bitcoin mining is a high-energy process. Because mining requires so much computing power, it also needs a lot of electricity. Some people worry this might hurt the environment. This is a concern, especially if the electricity comes from fossil fuels like coal or natural gas.

The Cambridge report estimates that Bitcoin mining uses about 138 terawatt-hours (TWh) of electricity each year. This is similar to the annual electricity use of a country like Sweden.

  • The mining activity also produces about 39.8 million metric tons of carbon dioxide (CO2) each year. However, this share of global emissions remained under 0.1%.

However, the report also shows that the energy mix for Bitcoin mining is changing. More than half (52.4%) of the electricity used by miners now comes from sustainable sources. This includes hydropower (23.4%), wind (15.4%), nuclear (9.8%), and solar (3.2%). Still, natural gas remains the single largest energy source at 38.2%, followed by coal (8.9%).

Bitcoin electricity use and mix by method
Source: Cambridge Report

Many mining companies are trying to use more renewable energy and to find ways to reduce their environmental impact. Some are even using energy that would otherwise be wasted, such as gas flaring from oil fields. These efforts are important as the industry faces growing pressure to be more environmentally friendly.

Meanwhile, the survey shows a possible scenario when miners want to offset the emissions of their activities by buying carbon credits. The chart below compares the cost of removing Bitcoin’s carbon emissions using two methods: nature-based solutions like planting trees, and high-tech solutions like direct air capture (DAC).

bitcoin and carbon offsets
Source: Cambridge Report

Nature-based methods cost about $5 to $9 per ton of CO2, while DAC costs much more—between $134 and $344 per ton. Lower emissions mean lower total costs, and higher emissions mean higher total costs for offsetting.

Wall Street Meets Blockchain: Institutions Dive In

Bitcoin’s price has seen big changes in recent years. In early 2025, Bitcoin reached a new high of about $109,000 before dropping to around $74,000 in April. By May, it had recovered to about $95,000. These price swings show how quickly the market can change.

However, the broader market trend shows growing maturity:

  • Institutional adoption is rising. Major firms—including BlackRock, Fidelity, and MicroStrategy—have invested directly in Bitcoin or launched crypto-related products.
  • Spot Bitcoin ETFs approved in early 2024 have brought mainstream exposure, unlocking billions in capital inflows.
  • Bitcoin’s market cap briefly surpassed $1.5 trillion in early 2025, signaling continued investor interest even amid macroeconomic uncertainty.

RELATED: BlackRock Bets on Abu Dhabi for Strategic Growth. Is Crypto Part of the Plan?

Experts have different predictions for where Bitcoin’s price will go next. Some believe it could reach $150,000 or even $200,000 by the end of 2025, especially as more institutional investors enter the market.

The approval of Bitcoin ETFs has made it easier for large funds and retirement accounts to invest in Bitcoin. Even a small investment from these big players could have a big impact on Bitcoin’s price.

The growing interest from companies is also important. Some businesses, like MicroStrategy, have bought large amounts of Bitcoin as a way to store value. This shows that Bitcoin is being used not just as a currency, but as a financial asset.

These trends point to Bitcoin’s growing acceptance as both a store of value and a portfolio diversifier. This financial legitimacy is helping drive the push toward more sustainable and compliant mining practices. And one name stands out in this direction – American Bitcoin Corp. 

Stars, Stripes, and Satoshis: The Rise of American Bitcoin

American Bitcoin Corp. is a majority-owned subsidiary of Hut 8 Corp., one of North America’s leading digital asset mining companies. In early 2025, Hut 8 teamed up with American Data Centers to launch American Bitcoin. This partnership includes investors Eric Trump and Donald Trump Jr. American Bitcoin will focus on large-scale Bitcoin mining and creating a strategic Bitcoin reserve.

Hut 8 serves as American Bitcoin’s exclusive infrastructure and operations partner. American Bitcoin uses Hut 8’s strong data center skills, energy setup, and large-scale operations. They do this through long-term business agreements.

Hut 8’s CEO, Asher Genoot, highlights that separating American Bitcoin helps it raise growth capital on its own. This move also keeps Hut 8 shareholders connected to Bitcoin’s potential gains.

Just recently, American Bitcoin announced a merger with Gryphon Digital Mining. This stock-for-stock deal will take them public. They plan to trade on Nasdaq with the ticker symbol “ABTC.” This move aims to scale American Bitcoin as a low-cost Bitcoin accumulation vehicle, unlocking new capital to expand mining capacity and Bitcoin holdings.

The combined company will be led by a board including Hut 8 CEO Asher Genoot and other key executives such as Mike Ho and Eric Trump. American Bitcoin aims to be the largest and most efficient Bitcoin miner globally. They plan to achieve over 50 exahashes per second (EH/s) of mining power. Their goal is also to maintain an average fleet efficiency below 15 joules per terahash (J/TH).

By combining Hut 8’s operational excellence and infrastructure with strategic capital and market access, American Bitcoin is positioned to lead the U.S. Bitcoin mining industry and build a robust Bitcoin reserve for long-term growth.

Hurdles on the Hashrate Highway

Bitcoin’s future hinges on overcoming several key challenges. Regulatory uncertainty is a big problem. Governments have different rules for digital assets, which makes it hard for mining companies to plan for the long term.

Energy costs are a big concern. Mining only makes money when Bitcoin’s price is higher than electricity and equipment costs. If energy prices keep rising, miners might lose and shut down.

Additionally, as more miners join, mining becomes harder and requires continuous equipment upgrades to remain competitive. Environmental impact remains a concern, but innovations like AI are improving efficiency.

Despite these challenges, Bitcoin mining continues to evolve, with new technologies emerging to enhance sustainability and possibly even support power grids. The balance between growth and these hurdles will shape Bitcoin’s future in the global economy.

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