Oracle’s Race to Net Zero: Cloud Gains, AI Wins, But Earnings Miss the Mark for Q3 2025

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Oracle’s Race to Net Zero: Cloud Gains, AI Wins, But Earnings Miss the Mark for Q3 2025

Oracle’s Q3 2025 results showed mixed performance, with revenue and earnings missing expectations. However, the company saw strong cloud growth, securing major AI-driven deals with OpenAI, Meta, and Nvidia. At the same time, Oracle is making strides in sustainability, aiming for net-zero emissions by 2050.

Despite a recent stock dip, Oracle’s cloud expansion and green initiatives position it as a long-term tech leader.

Oracle’s Cloud Growth and Financial Hurdles

In its fiscal third quarter of 2025, Oracle reported a revenue of $14.13 billion. This was slightly below analysts’ expectations of $14.38 billion. The company’s adjusted earnings per share were $1.47, missing the anticipated $1.49.

Despite these misses, Oracle’s cloud services and license support revenue grew by 10%, reaching $11 billion. However, this was still under the expected $11.21 billion.

  • The company announced a 25% increase in its quarterly dividend, raising it to 50 cents per share.
Oracle Corporation Q3 2025 financial results
Source: AlphaStreet

Oracle also secured significant cloud agreements with major tech firms, including OpenAI, Meta Platforms, and Nvidia. These deals are expected to boost Oracle’s cloud infrastructure and AI initiatives.

The company’s remaining performance obligations (RPOs) increased by 62%. They now total $130 billion. This exceeded analysts’ expectations and indicates strong future demand.

Oracle projects a 15% revenue growth for the next fiscal year, driven by its cloud infrastructure and AI initiatives. However, the cloud giant’s stock experienced a decline in pre-market trading following these results.

Oracle stock has dropped 4.1% amid broader market selloffs and is down 11% this year. Nevertheless, it has gained 30% over the last 12 months.

Amid its financial hits and misses, Oracle continues to push forward with its sustainability and net-zero promises.

Oracle’s Sustainability Initiatives and Path to Net Zero 

Oracle Corporation has established itself as a leader in integrating sustainable practices into its operations, aiming to minimize environmental impact and promote a circular economy. The company’s sustainability strategy includes:

  • Setting ambitious goals,
  • Creative cloud solutions, and
  • Teamwork with suppliers and customers.

Ambitious Sustainability Goals

Oracle has set clear targets to guide its sustainability initiatives. The company aims to achieve net-zero greenhouse gas (GHG) emissions across its operations and supply chain by 2050. 

As an intermediate goal, Oracle plans to halve its GHG emissions by 2030, relative to a 2020 baseline. It has pledged to use 100% renewable energy for all its global operations, including cloud data centers, by 2025. 

Oracle 2025 sustainability goals
Source: Oracle

The IT company wants all its key suppliers to have environmental programs. It also aims for 80% of them to set emissions reduction targets by 2025.

The company aims for a 33% cut in both drinking water use and landfill waste per square foot. It also targets a 25% reduction in employee air travel emissions by 2025. Oracle shows its commitment to the environment by aligning its operations with these goals for a greener future.

Greener Data Centers, Smarter AI

Oracle is making great strides in lessening the environmental impact of its cloud services. The company has put a lot of money into energy-efficient data centers. It uses advanced cooling tech and AI for better power management. 

Oracle Cloud Infrastructure (OCI) aims to deliver high-performance computing. It does this while using less energy than traditional on-premises systems. In 2023, OCI sourced 86% of its energy from renewables. Data centers in Europe and Latin America reached 100% renewable energy use.

Also, Oracle helps businesses track and manage their carbon footprint. Their cloud solutions guide customers in making smart sustainability choices. The company is setting the standard for responsible computing by making sustainability a key part of its cloud services.

Innovative Sustainability Solutions and Supply Chain Management

Oracle has introduced solutions to help organizations manage and report on their sustainability initiatives:

  • Oracle Fusion Cloud Sustainability: Launched in September 2024, this app helps organizations capture and analyze key sustainability data. It streamlines reporting and boosts decision-making, all at no extra cost.
  • Oracle Cloud EPM for Sustainability: Launched in March 2024, this tool helps organizations track and manage sustainability efforts. It links data, plans, and goals, making it easier to comply with new reporting standards.

The tech company emphasizes sustainability throughout its supply chain:

  • Design and Sourcing: The company creates eco-friendly products. It also sources materials responsibly to lessen environmental impacts.
  • Manufacturing and Transportation: Oracle focuses on making and moving products in a sustainable way. They aim to save costs while also providing better service.

Oracle’s Green Milestones: Progress, Wins, and What’s Next

Oracle has made significant strides toward its sustainability goals. The company has already transitioned all European cloud regions to 100% renewable energy, setting a precedent for other regions to follow. 

More than 50 facilities worldwide now run on renewable energy. This shift helps cut corporate emissions. The company has cut total emissions by 47% since 2020. This shows strong progress toward its targets for 2030 and 2050.

Oracle energy and GHG emissions 2024
Source: Oracle Report

Oracle also has a strong hardware recycling program. They collect and repurpose millions of pounds of old IT assets. Nearly all of these items are reused or recycled. 

The tech company also partners with its suppliers to promote sustainability. It aims for all key suppliers to have environmental programs by 2025. It reports that 80% of its key suppliers have emissions reduction targets in place, aligning with the company’s sustainability objectives.

The company cut potable water use and waste to landfills by 33% per square foot. It also reduced employee air travel emissions by 25%. These achievements will meet the 2025 targets early.

These efforts highlight Oracle’s proactive approach to reducing its environmental footprint. The company’s steps in renewable energy, cutting emissions, and saving resources show its commitment to a sustainable future. 

With a push toward 100% renewable energy and net-zero emissions by 2050, Oracle is balancing innovation with environmental responsibility. As the company expands its cloud infrastructure and green initiatives, it remains a key player in both the tech and sustainability space.

The post Oracle’s Race to Net Zero: Cloud Gains, AI Wins, But Earnings Miss the Mark for Q3 2025 appeared first on Carbon Credits.

Rio Tinto’s $6.7B Arcadium Deal—Is It a Smart Move Amid Falling Lithium Prices?

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rio tinto

Rio Tinto has completed its $6.7 billion acquisition of Arcadium Lithium in the U.S. The Royal Court of Jersey approved the deal on March 5, officially making Arcadium Lithium a part of Rio Tinto Lithium. This acquisition also brings the Rincon lithium project into Rio Tinto’s growing portfolio.

Rio Tinto’s Big Bet on Arcadium Lithium

  • With this acquisition, Rio Tinto aims to grow the capacity of its Tier 1 assets to over 200 thousand tonnes per year of lithium carbonate equivalent (LCE) by 2028.

Furthermore, it expects strong growth, higher EBITDA, and improved cash flow in the coming years. It will deploy advanced technologies and its strong global hold to boost its market presence in the lithium sector.

Explaining more, Rio Tinto Chief Executive Officer Jakob Stausholm said,

“Today we are delighted to welcome the employees of Arcadium to Rio Tinto. Together, we are accelerating our efforts to source, mine and produce minerals needed for the energy transition. By combining Rio Tinto’s scale, financial strength, operational and project development experience with Arcadium’s Tier 1 assets, technical and commercial capabilities, we are creating a world-class lithium business which sits alongside our leading iron ore, aluminium and copper operations. We believe we are well-positioned to deliver the materials needed for the energy transition while maintaining our focus on.”

As part of the agreement, Arcadium Lithium shareholders will receive $5.85 per share. To fund the purchase, Rio Tinto is using a bridge loan facility, which it plans to replace with long-term debt financing.

Following the acquisition, Arcadium Lithium’s shares and CHESS Depositary Receipts (CDIs) will be delisted from the New York Stock Exchange (NYSE) and the Australian Securities Exchange (ASX).

Lithium: The Power Player in Rio Tinto’s Future

The global shift toward electric vehicles (EVs) is fueling demand for lithium and other battery minerals. Rio Tinto expects lithium to become a crucial part of its portfolio, contributing more than 10% of its earnings (EBITDA) by 2033.

Other than Acradium Lithium, Rio Tinto invested $2.5 billion in the Rincon project in Argentina, which was approved last year in December 2024.

This expansion will increase the site’s annual capacity to 60,000 tonnes of battery-grade lithium carbonate. Additionally, it also includes a 3,000-tonne starter plant and a larger 57,000-tonne facility.

Construction is set to begin in mid-2025, after all permit approvals. After a three-year ramp-up, full production is expected by 2028. The Rincon mine will operate for 40 years while maintaining a low-cost position in the industry.

Rio tinto
Source: Rio Tinto

Navigating the Lithium Storm

The ongoing decline in lithium prices has sparked strong industry reactions. Some mining companies are delaying new projects, while others are cutting costs to stay profitable. Smaller lithium miners are feeling the most pressure. Without strong financial backing, many are struggling to survive. Some have even halted operations or are seeking mergers to stay afloat.

Notably, major producers like Albemarle and SQM plan to cut production, hoping to prevent further price drops and stabilize the market.

However, with these two massive lithium deals, Rio Tinto is consolidating its position in the global lithium market. Notably, the Acardium acquisition occurred amid an excess supply and significantly lower prices since their peak in 2022.

Despite battery advancements, lithium remains crucial, especially in China and Europe, where EV adoption is rising. Long-duration storage may boost demand, but alternative technologies could compete.

Rio Tinto’s lithium expansion plans support its sustainable mining strategy. Let’s discover how the mining giant is mitigating mining emissions.

lithium

Rio Tinto’s Net Zero Goals 

Rio Tinto has set ambitious targets to cut Scope 1 and 2 emissions by 50% by 2030 (compared to 2018 levels) and to achieve net-zero emissions by 2050. Its latest sustainability report revealed:

  • 2024 gross Scope 1 and 2 emissions: 30.7 Mt CO2e
  • 2024 emissions reduction: 3.2 million tonnes of CO2e through renewable energy contracts
  • Projected additional reductions by 2030: 3.6 million tonnes per year

To reach these goals, Rio Tinto has signed major renewable power purchase agreements and invested in solar and wind energy projects.

Additionally, the company is committing $143 million in Western Australia to develop BioIron™, an innovative ironmaking process that could slash CO2 emissions by up to 95% compared to traditional blast furnace methods.

rio tinto emissions
Source: Rio Tinto

Roadmap to a Greener Future

Rio Tinto’s comprehensive strategy to achieve its 2030 emissions target includes transitioning to renewable electricity and reducing process heat emissions at its alumina refineries. A key priority is cutting emissions at its Pacific Aluminium operations, particularly at the Boyne and Tomago smelters.

The company is also advancing other sustainability initiatives:

  • Richards Bay Minerals: Expanding renewable energy contracts
  • Queensland Alumina Limited (QAL): Improving alumina processing efficiency

Expanding the Use of Carbon Credits

To meet its 2030 net emissions target, Rio Tinto plans to use high-quality carbon credits from nature-based solutions. These credits will be capped at 10% of the company’s 2018 baseline emissions.

Most of these credits will come from Australian Carbon Credit Units (ACCUs), supporting compliance with the country’s Safeguard Mechanism. Rio Tinto remains committed to transparency in its emissions reporting. The company will clearly distinguish between its gross operational emissions and net emissions while also disclosing the volume and type of carbon credits used.

Advancing Carbon Capture and Mineralization Technologies

Rio Tinto is actively developing innovative ways to capture and store carbon emissions from fossil fuel use. In 2024, the company focused on identifying the most effective methods to capture low-concentration CO2 from aluminum smelters’ flue gas.

This effort includes adapting direct air capture for higher CO2 levels and modifying point-source technologies for lower concentrations, though both approaches remain in early development stages.

In early 2025, Rio Tinto partnered with Hydro to evaluate carbon capture technologies for aluminum emissions. Additionally, its collaboration with Carbfix is in the pipeline. They plan to begin CO2 mineralization at the ISAL site by 2028.

Meanwhile, at the Tamarack project in Minnesota, Rio Tinto recently completed a 1,137-meter exploratory well to assess the mineralization potential of local rock formations.

rio tint net zero
Source: Rio Tinto

By investing in sustainable solutions and advanced technologies, the company is paving the way for a low-carbon future. Lastly, when the market rebounds, Rio Tinto will be ready to meet rising demand with a stronger and more diverse lithium portfolio.

The post Rio Tinto’s $6.7B Arcadium Deal—Is It a Smart Move Amid Falling Lithium Prices? appeared first on Carbon Credits.

Top 4 Green AI Stocks You Shouldn’t Ignore in 2025 and Beyond

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Top 4 Green AI Stocks You Can't Ignore in 2025 and Beyond

Green artificial intelligence (AI) has a crucial role in accelerating the transition to clean energy and achieving net-zero emissions. AI solutions boost energy efficiency, improve power grids, and cut carbon footprints in various industries.

Machine learning algorithms predict energy demand. This helps integrate renewable sources, such as solar and wind, more effectively. Additionally, AI improves battery storage management, ensuring more effective use of sustainable energy.

Some important statistics on AI-powered energy transition:

  • AI-driven energy efficiency could cut global electricity demand, says the International Energy Agency (IEA). It can deliver more than 40% of the emissions reductions needed by 2040

  • AI smart grids cut energy waste by 30%. This makes electricity distribution more efficient.

  • AI could add $5.2 trillion to the global economy by 2030. A big part will come from applications that focus on sustainability.

Apparently, AI is changing industries. Companies that combine AI with sustainable practices are becoming market leaders. Companies investing in AI for sustainability not only contribute to environmental goals but also position themselves for long-term profitability as the world moves toward cleaner energy solutions.

By 2025, AI, cloud computing, and clean energy will create big investment chances. Among these, four companies stand out for their innovation, robust financials, and commitment to a greener future.

Let’s delve into why these top 4 Green AI stocks are drawing investors’ attention in 2025 and beyond.

Amazon (AMZN): Leading AI in Cloud and Logistics

Amazon has been at the forefront of AI development, leveraging it across various facets of its business—from Amazon Web Services (AWS) to AI-driven logistics and automation. The AI recommendation engine boosts e-commerce sales. Also, AWS AI tools are now used in many industries worldwide.

AI is also key to Amazon’s supply chain. It helps cut inefficiencies, reduce emissions, and speed up deliveries.

Financial Performance. For the fourth quarter of 2024, Amazon reported:

  • Revenue: $187.8 billion, a 10% increase from the previous year.

  • Operating Income: $21.2 billion, a significant increase from the previous year.

  • Net Income: $20.0 billion, nearly doubling from the previous year.

  • AWS Revenue: Grew 19% to $28.8 billion, contributing significantly to profitability.

These figures underscore Amazon’s robust financial health and strategic positioning in the AI and cloud computing sectors.

Amazon’s stock experienced an increase of 1.78% on March 10, 2025, at market close, but dipped the next day. Despite the slight uptick, the broader tech sector has faced significant challenges, with major companies experiencing substantial losses due to escalating trade tensions and recession concerns.

Amazon stock
Source: TradingView

Regardless, the e-commerce giant continues to push for sustainable growth.

Key Sustainability Initiatives

Amazon has set ambitious sustainability goals, including a commitment to reach 100% renewable energy by 2025, which it achieved in 2023. The company uses AI systems to cut energy use in data centers. This helps reduce waste and lower costs.

Amazon carbon free energy
Source: Amazon report

The company’s AI logistics network optimizes routes. This cuts fuel use and emissions a lot. Amazon is also deploying 100,000 electric delivery vans worldwide, aiming to reduce its carbon footprint in logistics operations.

AWS AI tools also help customers cut their environmental impact. They do this by optimizing workloads and boosting energy efficiency in cloud operations. These initiatives highlight Amazon’s dedication to integrating sustainability with technological innovation.

Alphabet (GOOGL): Pioneering AI with Google DeepMind

Alphabet’s subsidiaries, Google DeepMind and Gemini AI (formerly Bard), are at the cutting edge of artificial intelligence research and application. Google uses AI to boost search algorithms, make ads work better, and lead in cloud computing.

DeepMind’s AI models have played a key role in energy management, significantly improving the efficiency of Google’s data centers. DeepMind’s AI uses reinforcement learning to adjust cooling systems on its own. This leads to a 40% cut in energy use.

Financial Performance. In the fourth quarter of 2024, Alphabet announced the following results:

  • Revenue: $86.31 billion, a 13% increase from the previous year.

  • Ad Revenue: $65.52 billion, slightly below analysts’ estimates of $65.94 billion.

  • Google Cloud Revenue: $9.19 billion, showing a 26% growth.

These results reflect Alphabet’s effective integration of AI across its operations, enhancing both performance and efficiency. However, the tech giant’s stock saw a slight decrease of 0.73% on March 11, 2025, closing at $164.02.

Google stock
Source: TradingView

The company has not been immune to the broader tech selloff, with significant market value losses reported recently. Yet, Google is moving forward with its green promise.

Major Sustainability Achievements

Alphabet has made significant strides in sustainability. Google is working toward achieving 24/7 carbon-free energy by 2030, a goal that will make all of its operations run on clean energy at all times. AI plays a major role in this transition, as DeepMind’s models optimize energy consumption in data centers, leading to a 30% reduction in power usage.

Google carbon-free energy map with data center operations
Source: Google

Google has also invested over $5 billion in renewable energy projects worldwide, including solar, wind, and battery storage. These investments help Google reach its sustainability goals. They also boost the use of clean energy technologies in the industry.

These efforts make Alphabet a leader in blending tech progress with caring for the environment, making it one of the green AI stocks to watch for.

Meta (META): AI-Driven Metaverse with Green Data Centers

Meta leverages AI to enhance user experiences across its platforms—Facebook, Instagram, and WhatsApp—while leading advancements in AI-driven virtual reality (VR) and the metaverse.

AI is crucial for Meta. It optimizes ad-targeting algorithms. This cuts down on wasted ad spending and boosts efficiency.

Additionally, AI-driven automation in data centers has improved server utilization, decreasing energy consumption across its infrastructure.

Financial Results. Meta reported the following performance for the fourth quarter of 2024:

  • Revenue: $48.39 billion, surpassing expectations of $47.04 billion.

  • Earnings Per Share (EPS): $8.02, exceeding the anticipated $6.77.

  • Net Income: $20.8 billion, up 49% year-over-year from $14 billion.

  • Daily Active People (DAP): 3.35 billion, a 5% increase year-over-year.

These numbers highlight Meta’s strong financial results and successful AI use on its platforms. With this, the company’s stock experienced a 1.93% increase on March 10, 2025, at market close.

Meta stock
Source: TradingView

Despite this gain, the company has faced notable declines recently, reflecting broader market challenges. Still, it strives harder toward sustainable and clean digital solutions.

Sustainability Commitment Highlights: 

Meta has set and achieved several sustainability goals. The company aims to achieve net-zero emissions by 2030, decarbonizing its operations through investments in renewable energy and energy-efficient AI applications.

AI models help optimize power use in Meta’s data centers. They boost efficiency by 40% and cut overall electricity demand.

Additionally, Meta invests in carbon removal projects to offset its residual emissions, supporting global reforestation and clean energy initiatives. The tech giant’s green data centers aim for energy efficiency. They use advanced cooling systems to lower water and power use.

meta GHG emissions 2023
Source: Meta report

These initiatives reflect Meta’s dedication to integrating sustainability into its technological advancements.

Tesla (TSLA): AI-Powered EVs and Energy Solutions

Tesla is not just an electric vehicle (EV) manufacturer but a leader in AI-driven automation and energy efficiency. From self-driving AI technology to sustainable energy solutions, Tesla continues to push the boundaries of innovation.

AI is at the core of Tesla’s Full Self-Driving (FSD) system, improving safety and efficiency by optimizing traffic flow and reducing energy waste. Tesla’s AI battery management systems boost energy storage. This makes renewable energy easier to use on a larger scale.

Financial Results. In the fourth quarter of 2024, Tesla reported:

  • Revenue: $25.17 billion, a 3% increase year-over-year.

  • Net Income: $7.9 billion, up from $4.1 billion the previous year.

  • Earnings Per Share (EPS): $2.27, surpassing estimates.

  • Energy Storage Deployments: Reached 9.5 GWh, a record high, driven by demand for Tesla’s Megapacks and Powerwalls.

Despite economic challenges, Tesla’s strong financial performance and continued AI advancements make it a solid investment choice among green stocks.

Tesla’s stock rose by 4.56% on March 10, 2025, closing at $232.29. Despite this increase, the company recently experienced a significant drop of 15.4%, driven by escalating recession fears and CEO Elon Musk’s controversial political engagements.

Tesla stock
Source: TradingView

But how does the company move forward with its green and sustainability promises?

Sustainability and AI Integration

Tesla is committed to sustainability through its AI-powered solutions. The company’s Full Self-Driving AI cuts emissions. It does this by making EVs more efficient and reducing wasted energy.

The EV giant uses AI to manage its energy battery storage and solar solutions. This helps optimize energy storage and distribution. As a result, grid reliability improves, and renewable energy adoption increases.

Tesla energy storage deployment
Source: Tesla

Tesla’s Gigafactories focus on sustainability. They reduce waste and mainly use renewable energy sources. These initiatives solidify Tesla’s position as a leader in green AI and sustainable transportation.

Why These 4 Stocks Could Shape the Future of Green AI

As AI and sustainability become key investment themes, Amazon, Alphabet, Meta, and Tesla stand out as top choices for 2025. Each company uses advanced AI and is committed to the environment. This makes them appealing to forward-thinking investors.

Whether it’s Amazon’s cloud dominance, Alphabet’s AI research, Meta’s metaverse expansion, or Tesla’s EV and energy solutions, these stocks represent the future of green AI innovation. Investors looking for long-term growth with a focus on sustainability should keep an eye on these four industry leaders in 2025 and beyond.

The post Top 4 Green AI Stocks You Shouldn’t Ignore in 2025 and Beyond appeared first on Carbon Credits.

Power Surge: Can Carbon Capture Keep Up with AI’s Energy Demand?

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Power Surge: Can Carbon Capture Keep Up with AI’s Energy Demand?

Electricity demand in the United States is rising faster than it has in decades. For years, power use remained steady due to efficiency improvements and shifts in industrial activity. However, recent changes have increased demand significantly. 

More people are using electric vehicles (EVs), new factories are opening, and artificial intelligence (AI) is expanding. These factors require more electricity, putting pressure on the U.S. power grid.

One of the biggest drivers of power demand is the rapid growth of data centers. These facilities store and process massive amounts of digital information. Cloud computing, AI, and streaming services all rely on data centers, which require a steady and reliable power supply.

Many power companies have raised their peak electricity demand forecasts by over 50% in just three years, according to a paper by Carbon Direct.

power demand for US data centers forecast
Source: Carbon Direct

Natural Gas and the Challenge of Lowering Emissions

Currently, natural gas supplies about 40% of the electricity in the U.S. It is the largest energy source for power generation. While renewable energy like wind and solar is expanding, natural gas remains important because it provides steady power, unlike solar panels or wind turbines, which depend on weather conditions.

The downside of natural gas is that burning it releases carbon dioxide (CO₂), a greenhouse gas that contributes to climate change. To meet energy needs while reducing emissions, power companies are looking at carbon capture and storage (CCS). This technology captures CO₂ before it enters the atmosphere and stores it underground.

  • CCS can reduce carbon emissions from natural gas plants by 90-95%.

How Carbon Capture Works

Carbon capture technology uses chemical reactions to separate CO₂ from power plant emissions. The captured CO₂ is then compressed and transported to a storage site. It is injected deep underground into rock formations, where it stays permanently. If a storage site is not nearby, the CO₂ must be transported by pipeline, truck, or rail.

Not all power plants are suitable for carbon capture. The technology works best on large power plants that operate continuously. Smaller or backup plants that only run occasionally are not good candidates for CCS because the capture process is expensive and requires steady operation.

The Cost of Carbon Capture

Adding CCS to a power plant increases costs. The price of electricity from a natural gas plant without CCS is estimated at $40–$70 per megawatt-hour (MWh). With CCS, the cost rises to $65–$100 per MWh. These costs come from the capture equipment, extra fuel needed for the process, and the expense of transporting and storing CO₂.

However, tax credits can help reduce the cost. In the U.S., a program called 45Q offers financial incentives for capturing and storing carbon. These incentives make CCS more affordable and encourage companies to invest in clean energy solutions.

Capturing the advantages of natural gas plant with CCS, the Carbon Direct paper noted:

“Natural gas-fired power generation can be built in locations that do not have enough land area available for renewable forms of power generation like wind and solar. They can often be sited conveniently close to electricity transmission infrastructure and end users. Natural gas-fired power generation with CCS is competitive with both geothermal and nuclear electricity in terms of providing enough baseload power. Further, it offers cost advantages and is speedier to bring to market.”

Tech Giants in Trouble: How Carbon Capture and Carbon Credits Can help

Tech companies like Google and Microsoft are under pressure to reduce emissions from their data centers. AI computing requires huge amounts of power, and companies need clean energy solutions. Many large tech firms have set goals to cut their carbon footprints, but their emissions are rising due to energy demand.

For example, Google’s emissions increased by 13% in 2023 because of higher energy use in data centers. Microsoft has also highlighted the need to clean up its supply chains.

Since data centers need constant power, natural gas plants with CCS could be a solution for providing clean, reliable electricity.

The Role of Carbon Credits

Carbon credits are an important part of reducing emissions. A carbon credit represents one metric ton of CO₂ that is either reduced or removed from the atmosphere. Companies that emit CO₂ can buy carbon credits to offset their emissions.

With CCS, power plants can earn carbon credits by capturing and storing emissions. These credits can be sold to companies needing to meet their climate goals. This system helps create a financial incentive for reducing carbon pollution.

By combining CCS with carbon credits, power producers can reduce costs while helping businesses achieve net-zero targets.

Future Outlook: The Need for More Investment

Experts agree that carbon capture must expand if the U.S. wants to lower emissions while maintaining a reliable power supply. The International Energy Agency (IEA) warns that current investments in CCS are not enough. 

CCS current and planned projects IEA
Source: IEA

Without new projects, carbon emissions from power generation will remain high. The supply gap could reach 1.2 billion metric tons of CO₂ per year by 2050, making it much harder for industries like power generation to reduce their emissions.

Companies planning new power plants should consider making them “capture-ready.” This means designing them so CCS can be added later. However, delaying CCS for too long could increase emissions and make it harder to meet climate goals.

This shortfall highlights the urgent need for increased investment in CCS technology and infrastructure to ensure a significant reduction in carbon emissions from natural gas power plants and other high-emission sectors​.

According to the IEA, achieving net-zero greenhouse gas emissions by 2050 requires scaling up CO₂ capture capacity to 1.7 gigatons annually by 2030. This ambitious target requires a substantial financial commitment. 

Estimates indicate that capital investments ranging from $665 billion to $1.28 trillion are required by 2050 to scale CCUS. Per McKinsey & Company, annual investment in this technology will hit up to $150 billion after 2035. 

CCUS investment Mckinsey forecast

Challenges of Carbon Capture

While CCS has benefits, it also faces challenges:

  • High Costs: The technology is still expensive, although tax incentives help.
  • Infrastructure Needs: Transporting CO₂ requires pipelines, which can take years to build.
  • Public Concerns: Some communities worry about storing CO₂ underground.
  • Energy Use: CCS requires extra energy, which slightly reduces power plant efficiency.

Despite these challenges, many experts believe that CCS is necessary for reducing emissions in industries that cannot fully switch to renewables, such as steel, cement, and natural gas power.

The demand for electricity is growing, especially due to AI and data centers. While renewable energy is expanding, natural gas remains essential for providing steady power. To reduce emissions, carbon capture technology can be used to trap and store CO₂ from power plants.

CCS can cut emissions by up to 95% and provide low-carbon electricity. Although it is expensive, tax credits and carbon credits can help make it more affordable. As businesses and governments work toward cleaner energy, investing in CCS will be crucial for balancing energy demand with climate goals.

The post Power Surge: Can Carbon Capture Keep Up with AI’s Energy Demand? appeared first on Carbon Credits.

Canada’s Nuclear Boom: Big Investments in CANDU and SMRs

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CANADA

Canada is making bold moves in nuclear energy. It is investing heavily in next-generation technology to boost its clean power supply. As demand for low-emission electricity grows, the government is modernizing its flagship CANDU reactors along with developing the small modular reactors (SMRs).

On March 5, 2025, Canada’s Energy Minister, Jonathan Wilkinson, announced a deal with AtkinsRéalis to develop the MONARK reactor, a new CANDU design. Under this agreement, Canada will provide up to $304 million over four years to cover 50% of the project’s design costs.

AtkinsRéalis CEO Ian L. Edwards,

“We are honoured to have the full faith and confidence of the Government of Canada in continuing our development of proven home-grown CANDU technology.” 

AtkinsRéalis Leads CANDU Innovation

AtkinsRéalis, a global engineering and nuclear company, has been operating since 1911. It focuses on building a sustainable future by connecting people, data, and technology. The company provides end-to-end services to key sectors such as engineering, nuclear, and capital projects.

They have pioneered CANDU technology for over a decade and have contributed majorly to global low-carbon energy solutions.

CEO Ian L. Edwards further added,

“The federal government’s decision today to invest in the further development of CANDU technology, an evolution of the proven Darlington reactor model, will enable us to continue this important work already underway with our utility partners. Advancing CANDU technology creates economic value for the country and Canadians, ensures energy security at this critical time, improves health outcomes through the creation of more cancer-fighting isotopes, builds stronger and more resilient relationships with Indigenous peoples, workers and communities, and above all, maintains Canada’s status as a Tier-1 nuclear nation.”

This initiative involves Atomic Energy of Canada Limited (AECL), Canadian suppliers, and reactor operators. Together, they will modernize a technology that has powered Canada for decades.

candu canada nuclear
Source: AtkinsRéalis

Canada’s CANDU Advantage: A Homegrown Powerhouse

CANDU (CANada Deuterium Uranium) reactors have a major plus. They use natural uranium sourced from Saskatchewan. This means no enriched uranium is needed. Most of the uranium is used to produce fuel for nuclear plants (over 99%). The rest (less than 1%) is used for research reactors and medical isotopes.

In 2022, Canada produced 7.4 kilotonnes of uranium from mines in Saskatchewan. This was worth around $1.1 billion. This makes uranium a secure energy source for Canada and an easily available fuel for CANDU reactors.

  • Currently, Canada has 17 CANDU reactors—16 in Ontario and one in New Brunswick.
  • Net Zero Integration: can eliminate over 17 million tonnes of CO₂ emissions annually when replacing coal.

Internationally, CANDU technology is used in South Korea, China, Argentina, and Romania. Demand for CANDU reactors is rising. In late 2024, Romania said it would buy two more units for its Cernavoda nuclear site. This move strengthens Canada’s reputation in global nuclear energy.

The CANDU supply chain drives economic growth as the industry sources 85% of its components from domestic companies. This supports 89,000 high-quality jobs in manufacturing and engineering. In 2024, AtkinsRéalis hired over 750 new employees for Candu Energy Inc. and placed more than $1 billion in orders with Canadian suppliers.

Minister Wilkinson hailed the potential of CANDU reactors by explaining,

“CANDU reactors maintain an almost entirely Canadian-made, Canadian-designed supply chain through a consortium of Canadian companies, and they provide good-paying, long-lasting, and sustainable jobs in manufacturing for Canadians. They are also fuelled by uranium mined in Saskatchewan without the need for enrichment. As countries look to secure safe sources of clean energy, demand for Canadian nuclear is growing. The Government of Canada is acting now to modernize Canadian-owned CANDU technology, which will provide a viable, cost-effective design in support of the expansion of nuclear energy capacity in Canada and internationally.”

canada uranium
Source: Government of Canada

SMRs: The Future of Flexible Nuclear Power

Canada is also investing in small modular reactors to diversify its nuclear energy options.

The Government’s press release also highlighted,

Minister Wilkinson, on behalf of the Honourable Steven Guilbeault, Minister of Environment and Climate Change, also announced $55 million in funding from Environment and Climate Change Canada’s Future Electricity Fund (FEF) to support Ontario Power Generation’s Darlington New Nuclear Project.

This project will install three GE Hitachi BWRX-300 SMRs at Darlington. Each unit will produce 300 megawatts, which can power 900,000 homes.

Saskatchewan is moving forward with SMR deployment. The federal government increased funding for SaskPower’s pre-development work. It went up from $24 million to $80 million. This support helps with engineering studies, environmental assessments, regulatory planning, and collaboration with indigenous communities. These are all essential steps before construction begins.

More Nuclear Investments, Less Carbon

Moving on, Minister Wilkinson announced a $52.4 million investment to push SMRs and CANDU reactors. This investment also includes decarbonization strategies in Saskatchewan, Alberta, and Ontario.

  • The investment includes $11.4 million from the Enabling SMRs Program for three projects and $41 million under NRCan’s Electricity Predevelopment Program for four projects.

This investment reflects Canada’s dedication to partnering with businesses, utilities, and system operators to grow clean energy. By backing both proven CANDU technology and new SMR projects, the government aims to fortify its nuclear policy and establish Canada as a leading global energy provider.

nuclear capacity Canada
Source: Statista

Economic and Environmental Wins

Investing in nuclear power offers major economic advantages. The Conference Board of Canada says a four-reactor CANDU project could boost Canada’s GDP by $50 billion. It might also generate $29 billion in tax revenue. Additionally, building these four CANDU reactors could create over 20,000 full-time jobs and ~ 3,500 permanent jobs for more than 70 years.

Nuclear energy is also crucial for Canada’s goal of net-zero emissions by 2050. Unlike fossil fuels, CANDU reactors and SMRs produce zero emissions. Thus, expanding the nuclear capacity will bring direct environmental benefits like:

  • They provide a clean and reliable power source.
  • Help replace coal and natural gas plants.
  • Cut greenhouse gas emissions and ensure a stable electricity supply.

With strong government support and growing investment, nuclear energy has a bright future in Canada. It will also play a key role in cutting emissions by 45–50% below 2005 levels by 2035.

The post Canada’s Nuclear Boom: Big Investments in CANDU and SMRs appeared first on Carbon Credits.

Copper Crunch! How Trump’s Tariffs and Supply Shocks Drive Prices Up

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Copper Crunch! How Trump's Tariffs and Supply Shocks Drive Prices Up

Copper prices have risen due to market uncertainty, trade policies, and supply changes. Recently, copper jumped by more than 5% after U.S. President Donald Trump hinted at a 25% tariff on copper imports. This caused a rush in the market as traders tried to adjust prices and secure copper before tariffs took effect.

U.S. Tariffs Shake the Market: The Great Copper Rush

Trump’s comments on tariffs have caused a stir in the copper market. In a speech to Congress, he suggested that a 25% tariff on imported copper might already be in place. This shocked traders, as the market expected lower tariffs or a longer timeline.

Following this news, Comex copper prices soared, reaching nearly 12% higher than London Metal Exchange (LME) prices. This price gap led to a global scramble for copper that could be shipped to the U.S. before tariffs are enforced. U.S. manufacturers have also been stocking up to avoid paying extra costs in the future.

copper prices LME
Source: Bloomberg

Copper Inventories and Supply Constraints

Apart from tariffs, copper inventories have played a major role in price movements. Recently, copper stockpiles in China and overseas markets have dropped. 

In China, inventories fell by 9,000 metric tons in early March. In the U.S., both Comex and LME copper inventories declined, showing strong demand for the metal.

Copper ore supply has also tightened. A major copper producer, Indonesia, recently changed its mining regulations, impacting exports. This has added to concerns about future copper availability. Additionally, mining companies are struggling with declining ore grades, leading to lower copper output.

To address these shortages, companies are investing in new mining projects. For example, mining giant BHP is expanding operations in Botswana, Africa, in an effort to meet rising demand. However, opening new mines takes years, meaning supply issues are unlikely to be resolved quickly.

Why Copper Prices Matter and What Affects Them

Copper is a key material in construction, electronics, and renewable energy. The rising demand for electric vehicles (EVs) and green energy projects has made copper even more valuable. Experts predict that in 2025, global demand for copper will grow by about 2.9%.

Higher copper prices can make products more expensive. For example, the cost of electrical wiring, batteries, and even home construction may rise if copper stays expensive. Many industries rely on stable copper prices to keep production costs low.

The U.S. dollar also influences copper prices. Recently, the dollar index dropped to 103.6, making copper more expensive for international buyers. This, combined with uncertainty about U.S. economic growth, has contributed to market volatility.

China, the world’s largest copper consumer, is also playing a role. A positive economic outlook in China has supported copper demand. Lower inventories and increased construction projects have further pushed up prices. 

Additionally, China’s government is investing heavily in infrastructure and clean energy, further increasing the need for copper.

The Role of Green Energy in Copper Demand

One of the biggest drivers of copper demand is the green energy sector. Copper is used in solar panels, wind turbines, and electric vehicle batteries. As countries push for more renewable energy, demand for copper is expected to keep growing.

For example, the International Energy Agency (IEA) predicts that demand for copper from renewable energy projects will double by 2030. This will put even more pressure on copper supplies, potentially leading to further price increases.

According to IEA data, global refined copper demand could grow from 26 million tonnes in 2023 to around 40 million tonnes by 2050 in the Net Zero Emissions (NZE) scenario. 

  • In 2023, renewables and EVs accounted for about 25% of global refined copper demand. By 2030, this share could rise to about 45% in an accelerated NZE scenario. EV-related copper demand could increase more than twelvefold, from 2% of global demand in 2023 to 12-13% by 2050.
copper demand outlook IEA
Source: IEA Report

However, the IEA warns of a significant supply gap after 2025. Mining output may struggle to keep up with demand. 

By 2030, there could be a 4.5 million-tonne deficit in primary copper supply under the NZE scenario. This highlights the need for increased investment in mining and recycling​.

copper supply projection IEA
Source: IEA Report

Future Outlook: Will Copper Prices Keep Rising?

Experts are divided on what comes next. J.P. Morgan predicts that the global copper supply deficit will grow, pushing prices even higher. The bank expects copper to reach an average price of $11,000 per metric ton by 2026. 

The bank also expects China’s copper demand growth to slow from 4% last year to 2.5% this year, posing a key risk to market tightening.

The International Copper Study Group (ICSG) reported a 22,000 metric ton deficit in December, down from 124,000 metric tons in November. Citi has anticipated a 25% tariff on copper imports by late 2025 under Trump’s executive order.

Meanwhile, ANZ suggests that if the U.S. fully implements its 25% tariff, copper prices will climb further as trade flows shift.

Some analysts believe copper prices could rise by more than 75% in the next 2 years. However, if the U.S. economy slows down, copper demand could weaken. Investors are watching key economic indicators, such as job reports and inflation data, to understand where the market is headed.

Last year, copper faced a supply shortage, and demand is expected to rise even more with the growth of EVs, where copper plays a crucial role.

BHP forecasts a 70% increase in global copper demand, surpassing 50 million tonnes per year by 2050. The copper market could expand at an average annual rate of 2%, driven by the shift to clean energy and advanced technology.

copper demand projection 2050 BHP
Source: BHP

A mix of political, economic, and supply factors is driving copper prices. The potential for a 25% U.S. tariff has already shaken the market, while declining inventories and strong demand continue to support higher prices. 

As global trade shifts and supply chains adjust, copper remains a key material to watch in the coming months.

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Verra’s Cookstove Credits Get ICVCM Green Light – Boosting Carbon Market Trust

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Verra’s new cookstove methodology just received approval from the Integrity Council for the Voluntary Carbon Market (ICVCM). This approval confirms that the method meets high scientific and transparency standards. It also proves that cookstove carbon credits lead to real and measurable emissions cuts, improving the lives of millions.

With this recognition, clean cooking projects gain more credibility in the voluntary carbon market. The methodology also aligns with Article 6 of the Paris Agreement and CORSIA.

Mandy Rambharos, CEO of Verra, stated,

“Today’s approval by the ICVCM is a defining milestone for clean cooking projects and the voluntary carbon market. There are 2.3 billion people in the world who still rely on polluting cooking methods; cookstove projects and the carbon credits they generate can deliver both clean cooking technologies and the necessary finance to provide them to local communities. The ICVCM’s decision is a powerful endorsement of cookstove credits as a high-integrity climate solution that provides measurable environmental benefits for global impact.”

ICVCM’s Core Carbon Principles (CCPs) for Cookstove Carbon Credits

Last year in May, the ICVCM confirmed that Verra’s Verified Carbon Standard (VCS) Program meets the Core Carbon Principles (CCPs) for high-quality carbon credits.

The ICVCM has established the CCPs as a benchmark for high-quality carbon credits. These principles set the foundation for evaluating carbon credits and ensuring they meet rigorous standards for transparency, credibility, and integrity.

Understanding Cookstove Carbon Credits

Cookstove credits are part of avoidance-based carbon projects aimed at reducing emissions from cooking. These projects fall into two categories:

  • Fuel Efficiency: These projects distribute more efficient cookstoves, reducing overall fuel consumption.
  • Fuel Switch: These initiatives help households transition from high-emission fuels (such as charcoal) to cleaner alternatives like electricity.

All clean cookstove methodologies aim to measure or estimate fuel savings using specific frameworks, improve efficiency to reduce fuel demand, and ease pressure on forests, allowing them to regenerate naturally.

More significantly, high-quality cookstove projects and carbon credits follow the Principles of Responsible Carbon Finance in Clean Cooking.

Introduced at the Clean Cooking Summit in Africa in May 2024, these principles have gained support from over 180 organizations in the cookstove and carbon credit sectors.

The latest Buyer’s Guide to High-Quality Cookstove Carbon Credits revealed that

  • Cookstove projects have issued over 150 million carbon credits (tCO2e) since 2009, reducing emissions.
cookstove credits
Source: Buyer’s Guide to High-Quality Cookstove Carbon Credits

Moving on, the report further highlighted that cookstove credit prices were usually higher than other credits. But in mid-2024, quality concerns caused prices to drop below others. They later recovered by the end of the year.

cookstove credit price
Source: Source: Buyer’s Guide to High-Quality Cookstove Carbon Credits

Key Features of High-Quality Cookstove Projects

To ensure cookstove projects provide genuine environmental and social benefits, they must meet strict criteria:

  • Robust methodologies: Projects must follow advanced monitoring, reporting, and verification (MRV) processes to ensure emission reductions are real, additional, and verifiable.
  • Transparency: Buyers should have access to clear reports detailing project impacts, financial transactions, and compliance with global standards.
  • Fairness and equity: Projects must prioritize informed community consent and ensure equitable revenue distribution.
  • Sustainability: These projects should create lasting community benefits without causing economic distortions.

What’s inside Verra’s VM0050 for Clean Cooking?

A well-established methodology, VM0050, is used for implementing clean cooking approaches. It incorporates the latest scientific research and best practices for distributed thermal energy generation.

The methodology:

  • Integrates the latest advancements in clean cooking technologies.
  • Consolidates and strengthens previous cookstove methodologies.
  • Ensures continued access to carbon markets with fair transition timelines.
  • Responds to market feedback and allow for further improvements.

The Broader Impact of Clean Cooking Projects

If clean cooking solutions reach global adoption by 2030, the impact will be significant:

  • Emission Reductions: 1.5 gigatonnes of CO2e avoided—comparable to removing 350 million passenger vehicles from the roads. (Source: International Energy Agency, 2023)
  • Forest Protection: 225 million hectares of forest saved, equivalent to the size of the Democratic Republic of Congo. (Source: International Energy Agency, 2023)
verra cooking carbon credits
Source: The Buyer’s Guide to High-Qual
ity Cookstove Carbon Credits

Cookstove Credits for Corporations

Companies looking to enhance their ESG performance can also invest in high-quality cookstove projects to offset emissions and meet carbon reduction commitments.

These projects offer a credible solution under key frameworks such as the Paris Agreement, CORSIA, the ISO Net Zero Standard for Corporates, the Science-Based Targets Initiative (SBTi), the IETA Guidelines for High Integrity Use of Carbon Credits, and the Oxford Offsetting Principles.

Beyond Emissions Reductions

Clean cooking initiatives offer more than just emissions reduction. They tackle critical social, environmental, and equity challenges. These projects promote climate justice by expanding clean energy access in underserved regions while advancing global sustainability goals.

They also improve fuel efficiency. Unlike traditional stoves, they generate the same heat using less fuel, reducing dependence on wood and charcoal. This shift lowers deforestation rates, helping to protect and restore forests.

Preserving forests supports biodiversity, carbon sequestration, water regulation, and soil stabilization. With less wood harvested for cooking, degraded land recovers, fostering reforestation and ecosystem regeneration. Some projects even incorporate tree-planting programs to amplify environmental benefits.

verra cookstove credits
Source” The Buyer’s Guide to High-Qual
ity Cookstove Carbon Credits

Along with Verra, ICVM also approved two other cookstove methodologies by Gold Standard while rejecting many others. With the rise of voluntary carbon markets, stricter rules ensure that clean cookstoves cut emissions in a real, measurable, and practical way.

The post Verra’s Cookstove Credits Get ICVCM Green Light – Boosting Carbon Market Trust appeared first on Carbon Credits.

Top 3 Tech Stocks to Watch Out for Smart Investments in 2025

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tech stocks 2025

As technology continues to drive innovation and disrupt industries, certain companies stand out for their growth potential and market leadership. By 2025, the tech landscape will focus on artificial intelligence, cloud computing, and green technology. And among many opportunities, some stocks stand out. These companies have visionary leaders, new tech, and strong finances. They will lead the next wave of change.

Let’s dive into why these top 3 tech stocks could be game-changers for investors in 2025

Microsoft Corporation (MSFT): Smart Investments in AI Partnerships

Microsoft also posted its financial results for the quarter ending December 31, 2024, fueled by strong performance in its AI and cloud segments. The performance snapshot is explained below:

Revenue reached $69.6 billion, a 12% increase compared to the same period in 2023. Its operating income grew 17% to $31.7 billion. Net income rose 10% to $24.1 billion, with earnings per share at $3.23.

The company has invested heavily in AI and has developed AI tools like Copilot, which anyone can use at their fingertip. Analysts further predict that 70% of Microsoft’s installed base will adopt its AI solutions within the next three years. Subsequently positioning the company for substantial long-term profitability.

StockStory reported that shares of Microsoft surged 4% following President Trump’s announcement of the $500 billion Stargate Project. 

MICROSOFT
Source: MSN, Nasdaq data

Sustainability Goals 

In 2023, Microsoft expanded its contracted renewable energy portfolio to over 19.8 GW across 21 countries. The company secured 5 million metric tons of carbon removal to reach net zero by 2030.

microsoft emissions
Source: Microsoft

Data Centers Efficiency and Fleet Electrification

Apple (AAPL): A $3.5 Trillion Tech Giant on the Rise

Apple revealed its fiscal 2025 first-quarter results, showcasing a positive performance. The company reported $124.3 billion in quarterly revenue, marking a 4% increase compared to the same period last year. Additionally, diluted earnings per share rose by 10%, reaching $2.40.

Apple Shares Surge

However, Apple’s shares jumped following the earnings announcement, which indicates its future growth trajectory and investor confidence.

Another turning point for Apple was the release of the Chinese AI DeepSeek R1 recently. The AI tool quickly climbed to the top of the iOS app store, surpassing ChatGPT and even Meta’s AI tools. Consequently, Apple’s shares rose by over 3%, making CEO Tim Cook $23 million richer.

The company’s innovation and focus on services ensure its long-term growth. From its revenue growth and stock highlights, experts indicate that Apple’s stock offers stability and long-term gains for investors.

Apple stock
Source: Nasdaq data

Sustainability Achievements

Apple aims to achieve carbon neutrality across its entire carbon footprint by 2030.

  • For 2023, Apple’s total net carbon footprint was down to 15,600,000 mtCO2e from 20,300,000 mtCO2e in 2022.
  • In 2023, the company’s suppliers procured 16.5 gigawatts of renewable energy, generating 25.5 million megawatt-hours of clean power. It avoided 18.5 million metric tons of greenhouse gas emissions
  • Apple continues to offset emissions through high-quality carbon credits, supporting projects that restore ecosystems and benefit local communities.

               Apple’s comprehensive carbon footprint 2023

Apple carbon emissions

NVIDIA (NVDA): Pioneering AI Innovation and Market Dominance

NVIDIA, the GPUs giant and leader in AI and machine learning applications, posted $39.3 billion in revenue for the fourth quarter of the fiscal year 2025. For the full year, the company made $130.5 billion, more than 2X its revenue from the previous year.

NVIDIA’s Data Center division was its biggest revenue source. It generated $35.6 billion in Q4, a 16% rise from last quarter and a 93% increase from a year ago. The data center revenue soared 142% for the year, reaching $115.2 billion, driven by strong AI demand.

For long-term investments, Nvidia’s stock looks profitable because demand for AI chips will only become stronger with Trump’s massive support for AI innovation.

NVIDIA stocks
Source: Google finance, Nasdaq data

Data Center Sustainability and Carbon Footprint

In 2024, NVIDIA’s total emissions were 3.69 million metric tons of CO2 equivalent.

nvidia

NVIDIA’s Blackwell GPUs are 20 times more energy-efficient than traditional CPUs for AI tasks. It’s DPUs cut power use by 25% by handling specific jobs better than CPUs.

The company plans to run all its offices and data centers on 100% renewable electricity by early 2025. It strongly supports solar energy and green buildings.

Fueled by innovation and market potential, these tech stocks of 2025 reflect optimism in potential investment in the technology sector. Last but not least, be it Apple, Microsoft, or NVIDIA, they have prioritized sustainability at every level, which is good for the planet and its people.

The post Top 3 Tech Stocks to Watch Out for Smart Investments in 2025 appeared first on Carbon Credits.

Microsoft and Climate Impact Partners Reveal Biggest Carbon Removal Deal in Asia

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Microsoft and Climate Impact Partners Reveal Biggest Carbon Removal Deal in Asia

Microsoft takes another significant step in its sustainability journey by partnering with Climate Impact Partners and Terra Natural Capital to support the Panna afforestation project in India’s Madhya Pradesh state. This initiative aims to plant up to 11.6 million native trees across 20,000 hectares, an area larger than Washington D.C., over the next 30 years.

The project aims to cut 3 million tonnes of carbon dioxide (CO₂) from the air. Microsoft will buy 1.5 million tonnes of verified carbon removal credits, which is half of what the project will produce.

Remarking on their big carbon removal initiative, Brian Marrs, Senior Director Energy Markets, Microsoft said:

“At Microsoft, we believe that high-quality, nature-based solutions are vital to addressing climate change. Panna forms an important part of our growing portfolio of carbon removal projects – our first in India and largest in the APAC region. The collaboration with Climate Impact Partners helps to ensure that millions more trees are planted, more carbon is removed from the atmosphere, more jobs are created, and more finance flows back to local communities.”

Climate Impact Partners is a leader in carbon market solutions, supporting over 600 carbon removal and reduction projects in 56 countries for more than 25 years. The company helps businesses offset emissions, drive carbon pricing, and achieve climate goals.

A Model for Sustainable Carbon Removal

The Panna afforestation project is a collaborative effort that brings together Climate Impact Partners’ expertise in project development, Terra Natural Capital’s financial backing, and Microsoft’s long-term commitment to carbon removal. This marks Microsoft’s largest carbon removal deal in the Asia-Pacific region and its first in India.

India Panna afforestation
Image from Climate Impact Partners

The initiative is more than just a tree-planting effort. This is a big community project. It helps local farmers and communities. At the same time, it plays a key role in global carbon sequestration efforts.

The project is built to provide lasting environmental, economic, and social benefits. It uses several key strategies to achieve this, including:

  • Economic Empowerment: Farmers in the project will get a portion of the carbon credit revenue.
  • Sustainable Agriculture: They will offer training on climate-smart farming.
  • Biodiversity Boost: The project will plant native species. 
  • Water Conservation: They’ve built big water systems like ponds, borewells, and drip irrigation.

The project follows the latest Verra standards. It includes the Afforestation, Reforestation, and Revegetation Methodology (VM0047). This methodology is approved by the Integrity Council for the Voluntary Carbon Market (ICVCM) under the Core Carbon Principle (CCP) label. It got an ‘A’ rating from BeZero. It will also be verified under the Climate, Community, and Biodiversity Standard. This ensures it provides climate and social benefits.

More Than Just Trees: The Economic and Social Impact of Carbon Removal

Microsoft’s involvement in the Panna project underscores its leadership in the carbon removal sector. In 2024, the company retired 5.5 million carbon credits, making it one of the top buyers in the voluntary carbon market.

CDR Top10 Purchasers 2024

About 80% of these credits came from BECCS projects, which stands for Bioenergy with Carbon Capture and Storage. This shows Microsoft’s commitment to investing in new and reliable carbon removal technologies.

Carbon Dioxide Removal (CDR) is a critical component of global climate strategies. Simply reducing emissions is no longer enough to keep global warming below the 1.5°C threshold. The Intergovernmental Panel on Climate Change (IPCC) says the world needs to remove 5-16 billion metric tons of CO₂ each year by 2050 to meet this goal.

Microsoft’s purchase of 1.5 million tonnes of carbon removal credits from the Panna project aligns with its broader corporate commitment to becoming carbon-negative by 2030. This means the company aims to remove more CO₂ than it emits each year.

Microsoft 2030 carbon negative goal
Source: Microsoft

By backing projects like Panna, Microsoft cuts its carbon footprint. It also helps spread solutions that can work globally. Climate Impact Partners’ CEO emphasized the importance of this collaboration, saying:

“By securing a long-term supply of high-quality carbon credits, this model empowers companies like Microsoft to meet their ambitious climate targets, drive growth in the carbon removal market, and bring benefits to communities most impacted by climate change.” 

The Role of Carbon Markets in Scaling Solutions

The voluntary carbon market is projected to grow from $2 billion in 2023 to over $50 billion by 2030, with CDR credits playing a significant role. CDR credits are different from traditional carbon offsets.

Instead of just reducing or avoiding emissions, CDR credits actually remove CO₂ from the atmosphere. They also ensure that this CO₂ is stored for a long time. This makes projects like Panna crucial for achieving long-term climate stability.

Nature-based solutions, like afforestation, hold great promise. But scaling these projects can be challenging. Key factors to address include access to project finance, land availability, and long-term monitoring of carbon sequestration.

Terra Natural Capital comes in by providing financial support. This shows how new financing solutions can boost carbon removal efforts.

Scaling Carbon Removal: The Future of Corporate Climate Action

Microsoft’s commitment to the Panna afforestation project is commendable. However, challenges still exist in scaling these efforts. High costs for new carbon removal technologies, like BECCS and Direct Air Capture (DAC), can slow down their adoption.

DAC pulls CO₂ from the air and stores it underground. However, it is costly. Prices are over $600 per tonne because of high tech and operation costs.

To make CDR easier to access, costs need to go down. This can happen through new technology and larger production. Government policies and incentives are key to supporting growth in the CDR market.

carbon removal credits and price

The United States has started programs like the 45Q tax credit. Meanwhile, the European Union is working on a certification framework for carbon removal.

Microsoft’s partnership with Climate Impact Partners and Terra Natural Capital for the Panna afforestation project shows the company’s dedication to combating climate change through innovative carbon removal strategies. Microsoft leads by investing in big, community-focused projects like Panna. This sets a standard for others to follow and helps reach global climate goals.

The post Microsoft and Climate Impact Partners Reveal Biggest Carbon Removal Deal in Asia appeared first on Carbon Credits.