COP29: Launch of “An Eye on Methane”, Will Pledges Turn into Progress?

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methane cop29

According to the IEA, methane is responsible for around 30% of the rise in global temperatures since the Industrial Revolution. While carbon dioxide is mostly given importance in climate discussions, addressing methane removal is equally critical to achieving climate targets. At COP29, methane was much talked about with the launch of the 2024 report- An Eye on Methane.

The report revealed that the tools to cut methane emissions exist but a significant gap remains between commitments and action. The 2024 An Eye on Methane Report by the United Nations Environment Program’s (UNEP) International Methane Emissions Observatory (IMEO) emphasizes the urgency to close this gap.

Methane’s Alarming Impact: Short-Lived but Powerful

IEA reported that the latest Global Methane Budget estimated annual global methane emissions to be around 580 million tons (Mt). Of this, approximately 40% comes from natural sources, while 60% is due to human activity.

In 2023, the energy sector accounted for nearly 130 Mt of methane emissions, making it the second largest contributor after agriculture, which emitted around 145 Mt in 2017.

Methane stays in the atmosphere for about 12 years which is shorter than carbon dioxide’s lifespan of centuries. However, it absorbs far more energy during that time which makes it a potent greenhouse gas and a major cause of climate change. This is why, rapid and sustained reductions in methane emissions from the energy sector are crucial to keeping global warming within 1.5°C.

Additionally, methane contributes to air pollution by forming ground-level ozone, which is harmful to health. Leaks also pose explosion risks and other safety concerns. We can see that the impact of methane emissions is directly felt on air quality, climate, and health. Thus, cutting these harmful emissions is essential for improving both environmental and public health.

Sources of methane emissions, 2023

methane emissions IEA

Source: IEA

Tracking Methane with Cutting-Edge Tools

UNEP’s IMEO is leading efforts to monitor and reduce methane emissions. It gathers data from several sources, including:

  • Oil and Gas Methane Partnership 2.0 (OGMP 2.0): Industry reporting on emissions.
  • Methane Alert and Response System (MARS): Satellite-based alerts for large methane leaks.
  • Scientific Studies and National Inventories: Comprehensive research and emission records.

So far, MARS has flagged over 1,200 significant methane leaks to governments and companies. These alerts offer clear opportunities for action. However, only 1% of these notifications have received responses, revealing a significant lack of follow-up.

Satellites and AI: A Powerful Combination

MARS uses advanced satellite technology and artificial intelligence to detect methane emissions. This system helps governments and industries locate and address major leaks quickly. However, results would show up only when the leaks are fixed. This highlights the necessity for a “call to action”.

Despite these capabilities, very few emitters are using these tools. The report emphasized that companies and governments must engage more actively. The system is operational, but it needs collaboration to make a meaningful difference.

Changes in atmospheric methane concentrations, 1990-2023

Methane data IEA

Source: IEA

The Global Methane Pledge: Can the Champions Charge Ahead?

Global Methane Pledge (GMP) Champions include Canada, the European Union, the Federated States of Micronesia, Germany, Japan, Nigeria, and the United States.

These countries are urging other nations to implement active methane mitigation measures and integrate them into their Nationally Determined Contributions (NDCs). Notably, the NDCs if pertain to limiting warming, should explicitly include how methane reductions will help achieve climate targets. This step is vital to achieving the Global Methane Pledge’s target of reducing global methane emissions by 30% from 2020 levels by 2030.

Additionally, their agenda and progress are significant for the methane session at COP29.
The GMP Champions stresses the energy sector’s role in meeting methane reduction goals which also align with the G7’s commitment to cut methane emissions from fossil fuels by 75% by 2030. They also urge countries to adopt methane regulations and policies for oil and gas operations.

Lastly, as already explained before accurate data is critical for action. The Champions also call on governments to use the MARS and the private companies to join the (OGMP) 2.0 for better emissions tracking.

The global methane monitoring system is already ready to drive change. However, its success depends on turning data into action. For this, governments must enforce accountability by holding emitters responsible for addressing methane leaks and subsequently repairing them.

Significantly, the “An Eye on Methane” report is “a call to action” that pushes stakeholders to harness the methane data revolution. Methane’s harmful impact on global warming and human health made it a top priority at this year’s COP29 summit. And as the leaders said, the time to act is NOW!

Sources:

  1. An Eye on Methane 2024 | UNEP – UN Environment Programme
  2. Global Methane Pledge Champions Call for Accelerated Global Action on Methane Mitigation, Spotlight New Super Pollutant NDC Guidance | Global Methane Pledge
  3. Global Methane Tracker 2024 – Analysis – IEA

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Global EV Trends: Growth, Challenges, and the Future of Electric Mobility

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EV electric vehicle

From metals to mining, energy to electricity, and transport to transmission, every sector is pivoting toward sustainability. The automotive market has already adopted renewable solutions, and one such is Electric Vehicles (EVs), which are playing a significant role in combating transport emissions.

Recent data shows EV sales skyrocketed from under a million in 2012 to about 14 million in 2023. This rapid growth indicates a reduction in oil consumption and a shift toward cleaner energy options for road transportation.

Despite this seemingly impressive EV boom, they currently make up less than 2% of the total global vehicle fleet, according to the International Energy Forum’s (IEF) latest report. This percentage shows there’s ample scope for EV expansion in the future.

At the same time, it leaves one wondering if the EV momentum is slowing down or will pick up space in the coming years. Let’s analyze it here…

Projected EV Sales: Regional Disparities

We discovered from the BloombergNEF report that EV sales including battery-electric and plug-in hybrid vehicles can spike up to 16.7 million units this year but was 13.9 million in 2023.

However, global EV penetration will be unevenly distributed and will vary region-wise. 

global EV - electric vehicle sales

source: S&P Global

China

The report further revealed China has captured the global EV market, claiming six out of every ten plug-in vehicle sales worldwide this year. The EV share of domestic car sales was more than 50%, with September alone seeing a nearly 50% surge in sales.

However, Chinese EV sales mainly came from plug-in hybrids and range-extended EVs, rather than battery-electric vehicles (BEVs) that fueled earlier growth. Notably, retail BEV sales in China have grown by 18% this year, while overall plug-in vehicle sales have climbed 37%.

From this data, we can infer that EV sales are not slowing down in China. But this can put pressure on international automakers with stiff competition.

The U.S.

Bloomberg reported that the US EV market is far behind that of Europe and China but hit a high in the third quarter, with around 390,000 vehicles sold.

They further reported that while Tesla’s market share has declined this year, dropping below 50% of all EVs sold in the US, other automakers have stepped up. Companies like GM and Hyundai have significantly increased their sales which made up for Tesla’s slowdown and added a spark to the industry.

On the other hand, media reports say that the EV industry experienced this sudden jerk after President Donald Trump planned to end the consumer tax credit for electric vehicles. Rivian Automotive, Lucid, GM Motors, and Ford Motor joined the fleet, experiencing a sharp stock drop.

Japan and EU

Japan and Germany despite being the major hubs for the largest automotive brands have not only experienced a market slowdown but a massive decline in EV sales.

Several media agencies reported on the challenges for electric vehicles in the European market for a considerable period. This is mainly because of the highly-priced EV models in the market and the pricing system.

BNEF’s head of advanced transport, Colin McKerracher, described gauging the current EV demand in Europe as “complicated”. He commented,

“Automakers are holding off launching more affordable EV models until 2025 when vehicle CO2 targets across the bloc toughen again. They are trying to recoup the full development costs of their EV platforms across relatively low sales volumes.”

He also added that they are likely to see “history” repeat in Europe, with automakers prepping more affordable models like the new Renault 5, Hyundai Inster, Fiat Grande Panda, Skoda Epiq, and VW ID2.all.

Germany experienced a sharp 61% drop in EV sales in August, raising concerns at first glance. However, the decline isn’t as alarming as it seems. In August 2023, a rush to buy EVs before a subsidy cut caused a significant spike in sales, creating an inflated baseline for year-over-year comparisons. This pull-forward effect distorted the figures, making the 2024 drop appear more dramatic than it is.

Who’s Ahead in Global EV Adoption?

EV penetration is set to grow significantly worldwide. The Internation Energy Forum stressed on the following data:

  • IEA projected, that the number of EVs per 1,000 people will rise from less than 1% in 2020 to 28% by 2035 globally.
  • China leads with a projected 57% EV adoption among passenger cars by 2035 while the U.S. and EU will reach 30% and 28%, respectively.

Once again China is driving the surge in demand where EVs can cover 70% of road transport within a decade. In contrast, regions like Asia, the Middle East, Africa, and South America show slower adoption. By 2035, EV penetration in these areas will remain around 8% under the IEA’s Stated Policies Scenario. The disparity highlights uneven progress in electric mobility and the challenges for global emissions reduction goals.

The data reveals that there’s a slower pace of EV adoption in developing regions. This highlights the need for supportive policies and better access to sustainable transport solutions.

Electric Vehicle penetration per 1,000 inhabitantsEV electric vehicle International Energy Forum

source: International Energy Forum Report 2024

Removing Trade Hurdles for a Greener EV Future

The rapid increase in EV production relies on a robust critical minerals supply chain like lithium, cobalt, and nickel. As we have seen, these materials are essential for manufacturing EV batteries, motors, and renewable energy storage systems.

Imposing trade restrictions on EVs, batteries, and critical minerals creates challenges for adopting clean technologies. It also creates significant delays in the EV manufacturing process.

Even though such policies may support domestic EV growth they come with risks. For example, tariffs on EVs and essential components increase costs for both manufacturers and consumers. Higher costs subsequently make it difficult for countries to deploy cost-effective solutions. If consumerism decreases then delay in progress to achieve climate goals is inevitable.

global ev electric vehicle battery demand

source: S&P Global

Thus, minimizing barriers in the supply chain is crucial for maintaining a balance in electric vehicle supply and demand. Moreover, governments and industries must work together to streamline trade and avoid complex policies that could disrupt this progress. Once EVs continue to dominate the mobility sector, reliance on fossil fuels will automatically wean off.

Content Sources:

  1. International Energy Forum Report 2024
  2. Are Global EV Sales Really Slowing Down? | BloombergNEF

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Shell’s Carbon Offset Exit: What Does It Mean for the Voluntary Carbon Market?

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Shell's Carbon Offset Exit: Selling Off Nature-Based Projects Amid Market Woes

Shell Plc plans to sell part of its nature-based carbon projects as the carbon offset market, also known as the voluntary carbon market, faces challenges. This move fits into CEO Wael Sawan’s focus on boosting profits with high-return ventures such as fossil fuels. Sawan is shifting away from ventures that don’t offer a strategic advantage, such as offshore wind.

This change shows Shell’s updated strategy and recalibration of its low-carbon commitments. While the company once aimed for big growth in low-carbon projects, it’s now focusing on areas that deliver stronger returns.

Shell’s Carbon Credit Journey: From Green to Greener Profits

Shell launched its nature-based carbon offsets portfolio in 2018, with the goal of generating 120 million carbon credits annually. These credits come from REDD+ projects, which aim to stop deforestation. Each REDD+ credit equals one ton of carbon dioxide emissions avoided.

By 2022, Shell was the world’s largest publicly known buyer of carbon credits, according to BloombergNEF. However, the market has struggled recently. 

Spot prices for REDD+ credits have plummeted to an average of $3.60 per credit in 2023, a sharp decline from $12.50 in 2022, according to MSCI Carbon Markets. 

In another carbon pricing data by Viridios AI, REDD+ carbon credit prices for 2018 and 2022 vintages in all regions have been dropping. This price drop reflects reduced demand and skepticism about the environmental benefits of some projects.

REDD+ carbon credit price
Chart from Viridios AI

Shell retired 20 million tonnes of carbon offsets in 2023, a significant increase from the 4.1 million tonnes counted in its 2022 net carbon intensity. According to the oil major’s Energy Transition Strategy 2024 report, carbon dioxide emissions from the energy system accounted for nearly 75% of global greenhouse gas emissions in 2023.

Despite this, the company remains committed to reducing emissions from its operations by 50% by 2030, compared to 2016 levels.

Shell 2050 net zero goal

Other major corporations and Shell’s industry peers are turning to carbon credits to offset their remaining emissions. Projections suggest the voluntary carbon market could soar to $950 billion by 2037, a dramatic rise from its current $2 billion value. 

However, Shell faces challenges in sourcing carbon offsets that meet its rigorous quality standards. And under Sawan’s leadership, Shell’s carbon strategy shifted. 

Sawan’s Strategic Shift

Sawan became CEO in January 2023 and quickly changed Shell’s approach to carbon projects. Just six months into his role, Shell cut its plan to spend $100 million a year on new carbon credits. This decision was part of Sawan’s strategy to focus more on fossil fuels, moving away from some of the targets set by his predecessor.

The pivot is evident in Shell’s evolving approach to its carbon credit portfolio. Now, Shell is looking to sell some of its carbon projects but plans to keep a minority stake. Talks are underway with private equity firms interested in buying these projects.

The Royal Dutch energy giant is considering different ways to structure the deal. One option is to sell its share in the projects while agreeing to keep buying the credits. Another option is to sell the projects without any commitment to buy credits. However, this second option might make it harder to find buyers.

This move comes as the voluntary carbon market faces changes. In Asia-Pacific, demand for credits that meet specific local regulations is growing. 

At the same time, the Integrity Council for the Voluntary Carbon Market is pushing for higher standards. These stricter rules are influencing what buyers want.

What’s Next for Carbon Removal?

As Shell reduces its focus on nature-based carbon projects, it may look into engineered carbon removal technologies. These include direct air capture (DAC), which removes carbon dioxide directly from the air. These technologies offer a more permanent solution for carbon removal, though they remain costly and require significant scaling.

However, many DAC firms are now aligning with strict carbon accounting standards to satisfy buyer and carbon credit exchange requirements.

Kyle Harrison, head of carbon markets at BloombergNEF, expects more companies to move toward these solutions. He noted that:

“The pain point right now is cost and scale – as these improve it will open the door for more companies to adopt these solutions.”

Shell’s decision to sell part of its carbon portfolio marks a shift in its climate strategy. The company is focusing more on profitable ventures and exploring advanced carbon removal technologies. This change reflects the evolving carbon market and could reshape Shell’s role in the energy transition. 

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Crypto Market Tops $3 Trillion Amid ‘Trump Bump’, Bitcoin Hits All-Time High at $93K

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Crypto Market Tops $3 Trillion Amid ‘Trump Bump’, Bitcoin Hits All-Time High at $93K

The global cryptocurrency market has surpassed $3 trillion, fueled by renewed investor optimism following Donald Trump’s re-election as U.S. President. Alongside this, Bitcoin has reached an all-time high at $93,434.

According to CoinMarketCap, the total market cap currently sits at $3 trillion, up 4% in the past day. CoinGecko reports an even higher figure of $3.15 trillion, tracking over 15,000 cryptocurrencies, compared to CoinMarketCap’s 10,000.

global crypto market hitting $3 trillion
Chart from CoinMarketCap

The $3T Surge: What’s Driving the Crypto Boom?

This milestone marks an all-time high, surpassing the 2021 bull run. The surge, dubbed the ‘Trump Bump,’ reflects expectations of a pro-crypto regulatory environment under the new administration. 

Trump’s campaign promises, including making the U.S. a global crypto hub and establishing a national Bitcoin reserve, have strengthened market confidence.

Institutional appetite for digital assets continues to grow. A recent survey of 400 global institutional investors revealed that 57% plan to increase their crypto allocations, with many aiming to do so within the next 6 months. 

Companies like MicroStrategy have also made significant investments, recently acquiring $2 billion in Bitcoin.

Analysts predict further growth but caution against potential corrections, citing external risks like weak U.S. economic data.

Bitcoin’s Record-Breaking Rally: Is $100K Next?

Bitcoin has been a key driver of this crypto rally, hitting a new all-time high (ATH) of $93,434 on November 13. Its market cap now stands at almost $1.8 trillion, comprising 60% of the total crypto market. 

Altcoins are also experiencing significant gains, contributing to the broader market’s upward momentum.

Maksym Sakharov, CEO of DeFi platform WeFi, attributes the surge to “Bitcoin’s price rally above $93,000, growing demand, and regulatory clarity.” Bitcoin has more than doubled in 2024, fueled by the launch of spot Bitcoin ETFs and increased institutional interest.

Many crypto analysts suggest Bitcoin’s rally is far from over. Some predict it could hit $100,000 in the coming months. 

Galaxy Digital CEO Mike Novogratz offers an even bolder outlook, forecasting a potential surge to $500,000—if Bitcoin gains traction as a national reserve asset in the U.S. 

Bitcoin Surpasses Silver, Becomes World’s 8th Largest Asset

Even more remarkable, Bitcoin has reached a new milestone. It surpassed silver with a market cap of $1.8 trillion, positioning itself as the world’s 8th largest asset. This marks a significant leap in Bitcoin’s trajectory, as it now trails only major players like gold, Apple, and Microsoft, according to Companies Market Cap.

Bitcoin market cap surpassing silver

The surge comes as Bitcoin’s price hit over $93,000, with even more bullish projections ahead. In contrast, silver fell by 2%, helping Bitcoin secure its spot ahead of the precious metal.

Institutional Momentum Drives Bitcoin’s Rise

Institutional activity played a crucial role in today’s rally. BlackRock’s iShares Bitcoin Trust (IBIT) recorded $4.5 billion in trading volume, reflecting the growing interest in Bitcoin from major financial players. 

Bloomberg’s Eric Balchunas highlighted this trend, noting that Bitcoin ETFs and related assets, including MicroStrategy and Coinbase, reached a combined trading volume of $38 billion.

Optimism in the crypto market has surged following Donald Trump’s re-election, with analysts suggesting his pro-crypto stance could pave the way for favorable regulations. This sentiment has fueled predictions that Bitcoin could surpass the $100,000 mark by the end of 2024.

However, behind all this hype with the crypto industry, particularly Bitcoin’s sudden surge, lurks the digital asset’s environmental impact. 

Crypto’s Environmental Toll: Balancing Growth and Sustainability

The rising energy consumption of crypto mining has sparked global concern due to its environmental impact. The White House’s 2022 report highlighted the substantial electricity demands of cryptocurrency mining, which now rival the energy consumption of countries like Poland. 

In an analysis by the International Monetary Fund (IMF), crypto mining and data centers made up 2% of global electricity demand in 2022. This figure could rise to 3.5% within three years, matching Japan’s current electricity usage—the fifth highest in the world—according to projections from the International Energy Agency.

crypto and data center share of global emissions

  • Bitcoin’s proof-of-work (PoW) consensus mechanism is a primary contributor, with global electricity use for PoW estimated between 97 and 323 terawatt-hours annually. This translates to significant greenhouse gas emissions, with Bitcoin alone responsible for around 88 million metric tons of CO₂ each year.

The U.S. accounts for nearly 46% of Bitcoin mining emissions, releasing about 15.1 million metric tons of CO₂ annually. Other major contributors include China and Kazakhstan, emphasizing the global nature of the issue. 

The mining process also has indirect environmental impacts, such as electronic waste and water usage, with one Bitcoin transaction consuming thousands of gallons of water.

Efforts to reduce Bitcoin’s carbon footprint include transitioning to less energy-intensive consensus mechanisms like proof-of-stake (PoS) and adopting renewable energy sources for mining.

However, regional emission reduction efforts often fall short due to the global supply chain’s carbon intensity. For instance, even countries with cleaner energy grids, like Norway, face indirect emissions from imported mining equipment manufactured in coal-reliant regions like China.

Interestingly, recent studies challenge the perception of Bitcoin mining’s environmental impact. 

Bitcoin Mining’s Role in Carbon Reduction

Research from the Bitcoin Policy Institute (BPI) highlights how mining increasingly relies on renewable energy, turning surplus energy into a valuable resource. By using excess power from renewable sources like wind and solar, mining helps stabilize grids and reduce energy waste, proving that it can contribute to carbon reduction rather than exacerbating emissions.

The researchers also compared the energy use of Bitcoin mining, data centers, and AI server energy in the U.S. in 2023. Bitcoin used 48 TWh in 2023, while AI servers consumed between 20 and 125 TWh. On the other hand, data centers have the biggest power consumption, ranging from 100 to 325 TWh. 

The following chart shows the historical results and forecasts up to 2027. 

US Bitcoin mining vs US Data center energy use 2023
Chart from BPI

Another report from the Digital Assets Research Institute (DA-RI) reveals flaws in past research on Bitcoin’s energy use. It critiques outdated models that overlooked miners’ shift to renewable energy, resulting in sensational headlines and misinformed policies.

The new findings urge regulators to base decisions on empirical data, underscoring Bitcoin’s potential to align with global carbon reduction goals.

These studies suggest that sustainable Bitcoin mining could play a crucial role in green initiatives. By leveraging clean energy, mining could evolve into a climate-friendly industry, offering both economic and environmental benefits. As this perspective gains traction, policymakers may adopt more balanced regulations, supporting sustainable growth in the crypto sector.

The crypto market’s unprecedented growth comes with both promise and challenges. As Bitcoin leads the charge, its environmental impact sparks global debate. Sustainable mining practices and pro-crypto policies could shape a greener, more resilient future for digital assets.

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Can Canada’s Uranium Reserves Transform it into a Nuclear Superpower?

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Canada nuclear

Canada, already the world’s second-largest uranium producer, is experiencing a renewed surge in uranium mining. This momentum is driven by a global shift to nuclear energy as a cleaner solution to climate change. Canada’s resources, which supply over 20% of the world’s uranium demand, are vital for fueling nuclear energy worldwide.

Historically, most of Canada’s uranium output came from the eastern Athabasca Basin. But now, the western region is flourishing. Promising projects like Fission Uranium’s PLS and NexGen Energy’s Rook 1 are advancing quickly making the western Basin a future hub of Canadian uranium production.

Some other top companies ruling this region are IsoEnergy, Uranium Royalty Corp, and Cameco. These players are investing heavily in exploration and development, leveraging the Athabasca Basin’s rich uranium deposits to secure Canada’s role as a major nuclear fuel supplier.

Speaking about the nuclear sector, it is equipped with Canadian Deuterium Uranium (CANDU) reactors and SMRs. They support global emission reduction and energy security goals. By integrating all non-emitting energy sources, most significantly nuclear, Canada aims to reach net-zero emissions by 2050.

Check out Canada’s nuclear profile highlights according to IAEA :

IAEA Canada Nuclear

Canada’s Uranium Comeback: NexGen Energy CEO Shares Insights

BBC recently rolled out a report where NexGen Energy CEO and Director, Leigh Curyer has analyzed the Canadian uranium potential and expressed his opinion.

He notes that several key moments helped drive nuclear energy’s resurgence in Canada and NexGen Energy’s success. In 2018, Bill Gates publicly endorsed nuclear power as “ideal for dealing with climate change,” drawing widespread attention to its low-carbon benefits. Four years later, former UK Prime Minister Boris Johnson championed a policy aimed at generating at least 25% of the UK’s energy from nuclear sources.

Moving ahead, uranium prices have surged by more than 200% making it the world’s top-performing commodities. Consequently, NexGen’s Rook 1 project, located in the Athabasca Basin, could soon push Canada to become the world’s leading uranium producer. The company anticipates that once its mine is operational, it will boost that to 25%, which can surpass Kazakhstan’s uranium potential.

Curyer and other leaders in the uranium mining industry strongly believe that the next few years are crucial for the thriving uranium industry in Canada. The approval process for new mines is lengthy, sometimes taking a decade from exploration to production.

They estimate that failure to bring these projects online could lead to a uranium shortage. Consequently, driving up power costs globally.

Canada Uranium

Source: Natural Resources: Govt of Canada

Athabasca Basin: Canada’s High-Grade Uranium Hub Sees New Investment Surge

The Athabasca Basin’s appeal has attracted major players, including Cameco and Uranium Royalty Corp, as well as numerous newcomers to the region.

A recent significant event was Uranium Royalty Corp.’s acquisition of a royalty on the Millennium and Cree Extension Uranium Projects located in Saskatchewan. The company purchased this royalty from a third-party industrial gas firm for $6 million.

Canadian mining companies like NexGen and Cameco are highly optimistic and they aim to meet rising uranium demand as many countries commit to tripling nuclear energy output by 2050.

Saskatchewan’s uranium-rich terrain is attracting investors which is pushing Canada to the nuclear forefront. The industry, along with its investors, remains hopeful that this time the demand will be sustained in the long-term. With rising interest and substantial backing, the western Athabasca can be a global hotspot for uranium production.

________________________________________________________________________

Uranium Royalty Corp.: Powering Decarbonization with Nuclear Efficiency

The only pure-play uranium royalty company is focused on capturing value from uranium price shifts through strategic investments. These include royalties, streams, debt, equity in uranium companies, and even physical uranium holdings. Notably, the company is growing with the rising demand for uranium.

  • IEA revealed that in the U.S. alone, nuclear energy supplied roughly 19% of total electricity in 2022 and accounted for 55% of the nation’s carbon-free electricity.
  • This nuclear output mitigated around 482 MMT of CO₂ emissions, which is equivalent to taking 107 million gasoline-powered vehicles off the roads.

More Power per Punch: Nuclear Energy Outshines Fossil Fuels

carbon credits

________________________________________________________________________

“With Great Power Comes Great Responsibility”

Nuclear power, even though has minimal carbon emissions has faced resistance from environmentalists.

The BBC report also explained the existing and forthcoming challenges that might cross the path of Canada’s nuclear journey. Critics argue that nuclear projects take too long and cost too much, often making them an unviable solution for urgent climate needs.

Over the past two decades, more than 100 nuclear plants have closed, including several in Canada and the U.S., mainly due to high costs and environmental concerns. Even British Columbia having substantial uranium deposits has banned nuclear plants and mining since 1980 voicing similar worries.

Environmentalists are also concerned about the radioactive waste and the risk of accidents like Fukushima, which released radioactive material and caused mass evacuations. However, experts, advocates, and mining veterans argue that modern technology has significantly improved nuclear safety.

In this perspective, Cameco CEO Tim Gitzel insists that the industry has learned from past mistakes and is prepared to meet growing energy demands safely and more responsibly. This is why the saying goes “With great power comes great responsibility.”

Rafael Mariano Grossi Director General, IAEA at COP29’s Nuclear Energy for Clean Energy Transitions session said, 

“Pro-environment and pro-nuclear, they are already changing minds with science, courage, and a clear call for climate action. It’s high time all leaders listen — and more than that, act.”

iaea nuclear CanadaSource: IAEA

With its high-grade uranium deposits in the Athabasca Basin, Canada is well-positioned to meet the growing global demand for clean energy. Furthermore, this could reduce reliance on Russian imports and establish Canada as a nuclear “superpower.“ Overall, the potential is clear, and the path forward is promising for both Canada’s energy future and sustainability goals.

Disclosure: Owners, members, directors, and employees of carboncredits.com have/may have stock or option positions in any of the companies mentioned: UROY.

Carboncredits.com receives compensation for this publication and has a business relationship with any company whose stock(s) is/are mentioned in this article.

Additional disclosure: This communication serves the sole purpose of adding value to the research process and is for information only. Please do your own due diligence. Every investment in securities mentioned in publications of carboncredits.com involves risks that could lead to a total loss of the invested capital.

Please read our Full RISKS and DISCLOSURE here.

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Climate Tech Funding Hits a 4-Year Low: Who Gets the Top Equity Deals in Q3?

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Climate Tech Funding Hits a 4-Year Low: Who Gets the Top Equity Deals in Q3?

Global climate tech funding and deals hit a 4-year low in Q3 2024, per CB Insights’ State of Climate Tech Report. The decline in financial backing comes despite growing urgency around climate action and the push to commercialize technologies that can help mitigate climate change.

As seen below, the funding for the quarter totaled only $4.8 billion, the lowest since 2020. The same goes for the number of deals, which reached only 461 in the said quarter.

climate tech Quarterly equity funding and deals CB Insights

Here are the other key climate tech trends we uncovered from the report.

Regional Disparities in Funding Trends

While global funding has dropped, the US and Europe have managed to grow median deal sizes due to government support. Both regions continue to advance climate tech through substantial grants, loans, and other funding mechanisms. These have somewhat offset the broader slowdown in venture capital (VC) interest. 

climate tech Funding and deals by global region in Q3’24 CB Insights

On the other hand, China has taken a different approach: government subsidies for clean energy have been reduced this year, contributing to a cooling of investor enthusiasm in the climate sector. This shift is particularly notable, as China had previously been a significant player in cleantech innovation and adoption.

A Focus on Early-Stage Innovations

Across major economies, government funds are increasingly flowing into early-stage climate tech ventures, particularly those nearing commercialization. In the US, significant federal support has been directed toward advanced technologies such as nuclear fusion and direct air capture (DAC) of carbon dioxide, both of which promise groundbreaking ways to reduce greenhouse gas emissions at scale. 

The US Department of Energy has led in funding these emerging technologies, recognizing their potential for long-term impact on global climate targets.

Why Climate Tech Funding is Declining

This funding slowdown reflects multiple challenges. Investors face high interest rates and economic uncertainties, which have impacted the willingness to fund high-risk projects typical in climate tech. 

Additionally, some tech investors are refocusing on sectors with quicker returns. The reduction in VC enthusiasm, particularly in markets like China, has also been tied to shifting political and regulatory priorities, which in turn affects international investor confidence.

In response to these challenges, governments in the US, Europe, and other regions are providing targeted funding to keep innovation in climate tech moving forward. By supporting early-stage technologies through grants and loan programs, governments are working to ensure that promising but capital-intensive projects, such as fusion energy and DAC, have a chance to mature and reach commercial viability.

The emphasis on early-stage innovation signals a shift toward investing in technologies that, though not yet ready for widespread deployment, hold the potential for transformative impact on emissions reduction and energy transition efforts.

According to the CB Insights Report, here are the top three equity deals in Q3 and what these companies are doing in the sector. 

Fourth Partner Energy: Leading India’s Solar Revolution

Location: India

Round Amount: $275 Million

Fourth Partner Energy is a trailblazer in India’s renewable energy sector, focusing on delivering sustainable, solar-based power solutions to businesses. Founded in 2010, the company has installed over 700 MW of solar capacity, positioning itself as one of India’s top solar energy providers.

The company operates across 20+ states in India, with a diverse portfolio that spans rooftop, ground-mount, and utility-scale solar installations. Fourth Partner Energy has successfully executed more than 1,000 projects, with over 600 clients from various sectors, including manufacturing, retail, and education.

Through innovative financing models, the company has helped clients reduce their energy bills by up to 40%, while also contributing to India’s green energy goals. With an ongoing commitment to sustainability, the company plans to reach 2 GW of installed capacity by 2025.

Below are the climate tech company’s major milestones at a glance:

Fourth Partner Energy milestones

Key Initiatives:

  • 700 MW of installed solar capacity
  • Goal to reach 2 GW of installed capacity by 2025
  • Achieving 40% energy savings for clients on average

With its innovative approach and growing portfolio, Fourth Partner Energy is set to be a significant force in India’s renewable energy future.

Altana AI: Revolutionizing Supply Chains with Artificial Intelligence

Location: United States

Round Amount: $200 Million

Altana AI is transforming global supply chains by leveraging artificial intelligence to drive efficiency, sustainability, and transparency. Founded in 2018, the company’s AI-driven platform helps businesses map, analyze, and optimize supply chain operations with a focus on minimizing environmental impact and reducing waste.

The climate tech company’s platform uses advanced machine learning and big data to provide real-time insights into supply chain networks, identifying inefficiencies and enabling smarter decision-making.

Here’s a glimpse of its dashboard:

Altana AI platform view
Image source: TechCrunch

Altana AI serves industries ranging from manufacturing to retail, providing tools that help companies track carbon footprints, manage risks, and enhance sustainability efforts.

By using AI, the company empowers organizations to reduce emissions, cut costs, and achieve better supply chain resilience.

Key Highlights:

  • Raised over $250 million in funding
  • Serves global Fortune 500 companies in multiple industries
  • Helps reduce carbon emissions by 20% on average across supply chains
  • Provides real-time data insights and predictive analytics for supply chain optimization

Altana AI’s cutting-edge approach to AI-powered supply chain optimization is enabling businesses to make smarter, more sustainable decisions. With an eye on the future, the company continues to lead the charge in using technology to create a greener, more efficient global economy.

Twelve: Transforming CO2 into a Resource for the Future

Location: United States

Round Amount: $200 Million

Twelve is at the forefront of the fight against climate change by transforming carbon dioxide (CO2) into valuable products through its revolutionary technology. Launched in 2020, the company is developing a groundbreaking process that captures CO2 and converts it into clean, sustainable products like chemicals, fuels, and building materials, which can help industries reduce their carbon emissions and reliance on fossil fuels.

Twelve’s carbon transformation technology uses renewable energy to turn CO2 into useful commodities at scale, with the potential to reduce millions of tons of CO2 annually. The company’s efforts align with global net-zero targets that enable industries to meet their climate goals while maintaining economic growth.

Twelve carbon transformation tech
Twelve Carbon Transformation Tech

Twelve’s innovative approach has garnered significant attention, raising over $330 million in funding from leading investors and forming partnerships with top corporations committed to a carbon-free future.

Major Achievements:

  • $330 million raised in funding to date
  • Partnership with BMW and Microsoft to scale CO2-to-product technology
  • Potential to reduce millions of tons of CO2 annually
  • Focused on delivering a net-zero emissions future

As the company continues to scale its operations, Twelve is playing a key role in advancing a circular economy and enabling industries to decarbonize at an unprecedented scale.

Ultimately, climate tech faces a funding dip, but innovation hasn’t stalled. Governments and investors continue to back transformative technologies of top climate tech companies. As these companies strive to scale their innovative products and services, they can significantly contribute to reducing carbon emissions.

The post Climate Tech Funding Hits a 4-Year Low: Who Gets the Top Equity Deals in Q3? appeared first on Carbon Credits.

Laconic and the Plurinational State of Bolivia Set New Benchmark with USD$5 Billion Sovereign Carbon Deal

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Laconic Infrastructure Partners Inc. (Laconic), a Public Benefit Corporation (PBC) founded in 2021 and headquartered in Chicago has announced a new mandate from the Plurinational State of Bolivia. The agreement authorizes Laconic to deploy its unique SADAR™ Natural Capital Monetization (NCM) platform to facilitate technology transfer and bolster Bolivia’s capacity-building efforts.

Notably, Bolivia could generate up to $5 billion, funding sustainability projects that align with global climate goals from this groundbreaking model.

Marcelo Montenegro Gomez Garcia, Minister of Economy & Public Finance of Bolivia emphasized, 

“The Plurinational State of Bolivia is committed to completely ending deforestation within our territorial borders by 2030. By working with Laconic, we have been able, for the first time, to generate sufficient development financing to enable our country to make this commitment a reality and enhancing our ambition under the Paris Agreement. This benefits not only our own citizens, but all of mankind, as we collectively strive to meet NetZero 2050.”

Empowering Bolivia’s Carbon Market with Laconic’s Innovative Technology

Laconic offers advanced environmental intelligence and data management solutions. They empower governments, corporations, and financial institutions to engage openly and fairly in the carbon market.

Image: Energy and Emissions Bolivia 2022

Bolivia carbon emissions

Source: IRENA

The SADAR™ NCM platform

The company’s one-of-its-kind SADAR™ NCM platform will help Bolivia secure funding for its enhanced NDC goals. The AI-powered platform delivers an essential, unchangeable data store and a structured information exchange that carbon markets need to operate effectively.

Explaining further SADAR’s carbon securitization technology can transform Bolivia’s environmental assets into financial capital.

This platform will function in the following ways:

  • Aggregate and analyze large-scale data streams from Bolivia’s extensive natural resources. Laconic’s platform can monetize both current and future carbon stocks.
  • Potentially generate up to $5 billion for Bolivia, thereby creating a robust funding stream for sustainability projects that align with global climate commitments.

Bolivia’s collaboration with Laconic comes at a critical moment for the global carbon market. Through Laconic’s SADAR™ platform, Bolivia can ensure its compliance with the Paris Agreement as well as with local and regional regulations. This is how the government can focus on expanding its NDC ambitions and global decarbonization efforts.

Laconic signed a new Memorandum of Understanding (MOU) with the State of Espirito Santo, Brazil last month. This agreement will also incorporate Laconic’s SADAR™ Platform and Natural Capital Monetization (NCM) services and explore how they can support the state in creating a digital platform to help meet Brazil’s climate goals.

The company revealed that for the first time, all carbon market participants have timely access to the right information, ensuring liquidity and compliance for large-scale trading in global financial markets.

Check out Lanconic’s CEO Andrew Gilmour’s take on how AI and financial innovation can save the planet

Sovereign Carbon: The Carbon Financing Mechanism

The platform will manage Bolivia’s carbon assets as a “Sovereign Carbon” product. Creation of a Sovereign Carbon product is the only scalable way to mobilize the $1 trillion in annual carbon trading, required to meet collective net zero goals.

Bolivia’s market launch marks a significant milestone as the world’s first Article 6-compliant sovereign carbon sale. This sets a new standard for national-level carbon financing.

This capability provides governments with an efficient mechanism to monetize natural capital on a global scale. Subsequently enabling institutional investors to purchase bona fide securities backed by carbon assets.

CEO Andrew Gilmour remarked, 

“Laconic is honored to be working with the Plurinational State of Bolivia to champion the innovative Sovereign Carbon market. This transaction demonstrates the power of technology to drive change in emerging markets finance, as, for the first time, we are able to collectively harness market forces to generate more economic growth from the preservation of natural capital assets than from the exploitation of them. Put simply – our technology has made it possible to make more money preserving your forests than you can by cutting them down.”

Laconic’s Sovereign Carbon provides a distinctive option for investors in the carbon market, structured as a financial asset with built-in security features, verified uniqueness, and alignment with the Paris Agreement. The asset’s compliance and security framework position it as a noteworthy entry in the carbon finance sector.

This initiative not only strengthens Bolivia’s role in the global carbon market but also sets a promising precedent for Article 6-compliant carbon financing, supporting global climate goals through innovative financial solutions.

Source: Laconic and the Plurinational State of Bolivia announce landmark 5 Billion USD Sovereign Carbon Transaction

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Article 6.2 at COP29: Singapore Partners with Gold Standard and Verra to Advance Climate Action

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COP29 ARTICLE 6.2

Singapore’s National Climate Change Secretariat (NCCS) is working with two major carbon credit programs, Gold Standard and Verra’s Verified Carbon Standard (VCS). Their goal is to create a new protocol that will help countries meet their climate targets under Article 6.2 of the Paris Agreement. The newly formed Article 6.2 Crediting Protocol will simplify global efforts to cut emissions and promote sustainable growth.

Over the past year, NCCS, Gold Standard, and Verra have worked closely with governments and climate experts to shape initial recommendations. They plan to finalize the Protocol after COP29 and begin implementation in 2025, giving countries a practical tool to reach their climate goals through strong international cooperation.

Benedict Chia, Director-General (Climate Change), NCCS, Singapore, said,

“It is important to have a protocol that facilitates Article 6.2 cooperation between independent crediting programs and governments. This would ensure that Article 6.2 can operate efficiently.”

Article 6.2: A Pathway to Global Climate Cooperation

Broadly speaking, Article 6.2 of the Paris Agreement helps countries achieve their Nationally Determined Contributions (NDCs) and advance sustainable development. It further leverages governments and private sectors to work together through carbon credit markets to reach their climate goals.

With established carbon crediting programs provided by Gold Standard and Verra, governments can certify emission reductions and removals without creating new standards from scratch. This reduces complexity and ensures quantified results.

Subsequently, this collaboration will also serve a similar purpose in reducing climate efforts and allowing countries to focus on impactful actions.

Margaret Kim, CEO of Gold Standard, expressed her opinion in the following statement,

“If a market is to be trusted, it must be built on solid foundations. For Article 6 to be reliable and efficient, governments and standards need to work together. These initial recommendations outline how, by doing so, they can deliver impact for both the climate and sustainable development.”

Mandy Rambharos, CEO of Verra noted, 

“Independent crediting programs offer comprehensive standards and verification mechanisms that are primed and ready for use by governments in their cooperation under Article 6. The positive reactions we are already receiving from government stakeholders demonstrate how independent standards, that have grown up in the voluntary carbon market, have built a robust and credible foundation that can seamlessly integrate into the infrastructure of compliance markets and Article 6. Together, we can enable these new markets to be operational and effective much more quickly than otherwise possible.”

Collaborative Efforts to Shape Initial Recommendations

The NCCS, Gold Standard, and Verra officially announced their partnership at COP28 in December 2023 with a shared ambition, as described above. They have been working with governments and climate experts to develop the initial recommendations for this protocol.

Without this unified approach, countries might take the risk of inconsistent paths, which could slow down or complicate international cooperation under Article 6.2.

The initial recommendations or insights will outline key ideas and steps that will shape the Protocol. However, they expect to release the final version only after COP29, containing the outcomes of the summit.

Furthermore, the three organizations will continue to engage and seek feedback from stakeholders when developing the final Protocol. This is to ensure that it can serve as a “practical enabler” and complement Article 6.2 rules that are adopted within the United Nations Framework Convention on Climate Change (UNFCCC).

Additionally, the report calls on governments to take steps to limit regulatory and market risk associated with Article 6.2 transactions. For example, by adopting tools like robust templates for Letters of Authorization.

The final protocol will be ready for implementation in 2025.

Key Components and Timelines for the Article 6.2 Playbook

Image: Snapshot of Article 6.2 Crediting Protocol 2024

article 6.2

Source: Verra

COP29 Milestone – November 2024

At COP29, stakeholders will introduce the initial recommendations for the Article 6.2 Crediting Protocol. These guidelines will offer insights on how to harmonize Article 6.2’s implementation across Independent Carbon Programs (ICPs). The focus will be on providing clear guidance for countries, ICPs, and other involved entities to ensure streamlined and effective climate action.

Starting 2025 – Protocol Development and Implementation

From 2025 onward, the development of the full Article 6.2 Crediting Protocol will begin. This will include a specialized data protocol aimed at standardizing how ICPs report to countries. These protocols may also include recommendations for additional reporting to guarantee the full traceability of credit transactions, linking them to corresponding adjustments where required, based on outcomes from COP29.

Ongoing Engagement and Outreach

Regular communication and collaboration with countries, ICPs, and other stakeholders will continue. The goal is to build awareness, secure support, and deepen understanding of the Article 6.2 Crediting Protocol’s implementation, ensuring widespread engagement and effective adoption.

Carbon Credits vs. ITMOs: Clear Lines for Effective Climate Reporting

The Protocol establishes a clear distinction between two elements: carbon credits and Internationally Transferred Mitigation Outcomes (ITMOs). Carbon credits represent the direct mitigation results achieved by projects and are recorded on Independent Carbon Program (ICP) registries.

In contrast, ITMOs reflect the accounting implications of these credits under Article 6.2 which are tracked on national registries. This approach allows private investors to engage in credit transactions. At the same time, it ensures governments track these transactions in their Article 6.2 reports and helps countries meet their Nationally Determined Contributions (NDCs).

We have read in our previous article about COP29 making a breakthrough in global climate action during its opening day. Nearly 200 governments agreed on a framework under Article 6.4 of the Paris Agreement, backed by the UN to create a stronger demand for carbon credits, especially to fund climate projects in developing nations.

For this case, let’s wait and watch how Article 6.2 unfolds at COP29 to meet the unified goal of Singapore’s National Climate Change Secretariat (NCCS), Gold Standard, and Verra.

Source: Singapore, Gold Standard and Verra Release Initial Recommendations Outlining Progress in the Development of a Carbon Crediting Protocol to Implement Article 6.2 – Verra

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Freeland Confirms $2.5 Billion Small Business Carbon Rebate Will Be Tax-Free

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Freeland Confirms $2.5 Billion Small Business Carbon Rebate Will Be Tax-Free

Deputy Prime Minister and Finance Minister Chrystia Freeland announced that the Canada Carbon Rebate for small businesses will not be taxed.

Freeland clarified this in a statement on X, following concerns from the Canadian Federation of Independent Business (CFIB) that the rebate would be considered a taxable benefit.

Freeland’s post reaffirmed the government’s commitment to providing financial relief for small businesses without adding tax burdens.

The CFIB posted on X that the government will tax the long-awaited $2.5 billion carbon tax rebate for small businesses when it’s issued in December.

CFIB President Dan Kelly criticized the move, comparing it to taxing a tax refund. He stated that this undermines claims of the carbon tax being revenue-neutral, as the government will collect significant corporate tax revenue from the rebate.

The Canada Revenue Agency initially assured CFIB that the rebate would be tax-free, similar to the Canada Carbon Rebate for individuals. 

However, the Department of Finance later declared the small business rebate as taxable, considering it “government assistance.” Kelly argued that calling the rebate government assistance is absurd since it merely returns a portion of the taxes small businesses have paid.

CFIB’s Campaign Pays Off

The carbon tax system has long been criticized for its unfairness to small businesses. After initially promising 10% of total carbon tax revenue as rebates in 2019, the government delayed issuing the funds for five years. 

The rebate only materialized after persistent lobbying by CFIB and widespread support from business owners, opposition leaders, and provincial premiers. 

Adding to the frustration, the carbon tax will increase again on April 1, 2025. Meanwhile, future rebates for small businesses will be slashed from 9% to 5% of total revenue. 

In response, CFIB has sent an open letter to Finance Minister Chrystia Freeland, urging the government to reverse course. Kelly noted that:

“It’s clear why 83% of small business owners now oppose the carbon tax. Delaying, taxing, and reducing promised rebates make it evident that the carbon tax should be scrapped entirely.”

Business owners can estimate their rebates and sign CFIB’s petition to abolish the tax using the CFIB’s online calculator.

The Carbon Tax Controversy Continues

The Canada Carbon Rebate (CCR), formerly the Climate Action Incentive Payment (CAIP), is a tax-free payment that helps individuals and families offset the federal carbon price. It includes a base amount, with an extra supplement for those in small or rural communities.

The rebate amount varies by province and is calculated annually based on projected carbon pricing revenue in each province.

The federal carbon price currently increases gasoline costs by about 17.6 cents per liter, but quarterly rebates help Canadians manage these expenses. The chart below outlines the government’s planned annual carbon price hikes, implemented every April 1st.

Canada carbon price rate increase

Canada’s carbon price is currently set at C$65 per tonne and will rise to C$80 per tonne on April 1. After that, it will increase by C$15 annually, reaching C$170 per tonne by 2030. These incremental hikes aim to reduce emissions while generating revenue to support climate initiatives.

The tax-free Canada Carbon Rebate offers some relief for small businesses facing rising carbon costs. However, with future rebates set to decline and carbon taxes increasing, the debate over the system’s fairness and effectiveness remains heated.

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