Areim Raises $977 Million to Drive Green Data Center Expansion in the Nordic Region

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Swedish data center operator EcoDataCenter has secured €450 million ($521 million) in new funding from its owner, Nordic investment firm Areim. EcoDataCenter will use the new capital to grow its operations. This includes building a new 150MW data center campus in Östersund, Sweden. 

The investment shows that more companies want sustainable data infrastructure. They are looking for greener solutions for their digital operations.

A Major Step in Sustainable Data Center Growth

The newly raised capital is part of Areim’s dedicated data center fund, the Areim DC Fund, which has now reached a total of €900 million ($977 million). The fund was oversubscribed and drew in Nordic and international institutional investors. This boosts EcoDataCenter’s status as a leader in green data center development.

EcoDataCenter has aimed to build top-notch, eco-friendly data centers since its inception in 2015. The company opened its first facility in Falun in 2019. Since then, it has expanded to several locations in Sweden.

EcoDataCenter is fully owned by the Areim DC Fund as of 2023, following a series of strategic mergers and acquisitions.

Nordic Green Tech Gets a Boost: A Game Changer 

With the latest round of funding, EcoDataCenter plans to expand its presence in the Nordic region. The company currently operates 5 data centers across three locations:

  • Falun,
  • Piteå, and
  • Stockholm.

Now, it is developing a new mega-campus in Östersund, which will provide an additional 150MW of capacity. It is among the lowest carbon-intense grids in the world, with just 15g CO2eq/kWh. Watch the video below to learn more about this massive green data center development. 

This big expansion responds to the growing need for sustainable digital infrastructure. The campus will be built in phases, with the first 20 MW expected to be completed by 2026.

The company just signed a hosting deal with GPU cloud provider CoreWeave. This shows its strong commitment to AI and high-performance computing (HPC) applications.

More Than Just Storage: Green Future of Data Centers 

Data centers play a critical role in today’s digital world, powering everything from cloud computing to streaming media. However, their rapid growth comes with environmental concerns due to high energy consumption and carbon emissions.

By 2030, data centers could contribute up to 2.5 billion metric tons of CO₂ emissions annually, per a Morgan Stanley report. Goldman Sachs also has similar projections for data center power requirements, as shown below. 

data center power demand by GS

Sweden‘s data center market is growing fast, expected to reach $2.73 billion by 2029. With major players like Microsoft, Oracle, and Amazon Web Services investing in Swedish facilities, local firms like EcoDataCenter and Evroc are also expanding their presence.

The Swedish government aims for carbon neutrality by 2045, influencing data center operations to prioritize sustainability. 

One of the key drivers behind Sweden’s growing data center market is its abundant renewable energy supply. The country generates over 98% of its electricity from low-carbon sources, including hydropower, wind, and nuclear energy. This clean energy mix makes Sweden an attractive destination for data center operators looking to reduce their carbon footprint.

EcoDataCenter is at the forefront of addressing this challenge. Its facilities use cutting-edge technology and renewable energy sources to reduce their carbon footprint. The company blends energy efficiency with sustainability. This makes it a top choice for businesses seeking eco-friendly data solutions.

  • The company is leading the charge in sustainable data center operations by leveraging 100% renewable electricity. This is primarily sourced from hydropower (75%) and wind (25%).

Moreover, the company has significantly reduced carbon emissions by using wood-based construction. This approach cuts embodied carbon by nearly two-thirds compared to traditional materials. Its innovative waste heat recovery systems also help avoid emissions while supporting local district heating.

Notably, EcoDataCenter’s Scope 1 emissions totaled 160 tonnes CO₂e. This comes mainly from backup diesel generator tests, while Scope 2 market-based emissions were just 1 tonne CO₂e due to its use of 100% renewable electricity. Scope 3 emissions account for 98% of the company’s total emissions.

EcoDataCenter 2023 GHG Emissions

ECoDataCenter carbon GHG emissions 2023
Source: EcoDataCenter Report

The company also reduced refrigerant-related emissions to 0.84 tonnes CO₂e and aims to be 99% fossil-free by 2028. These efforts position EcoDataCenter as a frontrunner in climate-conscious digital infrastructure.

Areim and EcoDataCenter have raised about €1.2 billion ($1.3 billion) in funding in the last two years. This shows that investors have strong confidence in the company’s strategy. 

Peter Michelson, CEO of EcoDataCenter, remarked:

“We are establishing one of the most exciting companies in the Nordics…Through our platform, we have formed partnerships with some of the world’s leading companies, which reinforces investor trust in what we do.”

AI, Cloud & Carbon Cut

EcoDataCenter’s focus on sustainability has attracted major industry players. In 2024, the company partnered with AI hyperscaler CoreWeave to build one of Europe’s largest AI clusters in Falun.

Soon after, EcoDataCenter quickly locked in a new mega site. This site has over 240MW of capacity. It will help expand their data center operations even more.

Leif Andersson, founder of Areim and Chairman of EcoDataCenter, emphasized the significance of this investment:

“It is a strong confirmation of our ability to raise capital of this scale. We will continue to drive the market for how digital infrastructure should be built together with our customers…”

The Role of Carbon Credits and Energy Efficiency

The data center industry is under increasing pressure to reduce its environmental impact. As global data usage grows, so does the need for efficient and sustainable data storage solutions. 

Beyond energy efficiency, carbon credits have emerged as a key tool for data centers seeking to balance their emissions. Tech giants like Microsoft are investing in carbon credits to offset their emissions. For instance, Microsoft has partnered with Brazilian start-up Re.green to restore parts of the Amazon and Atlantic forests.

The tech giant has a 25-year deal to buy 3.5 million carbon credits. This plan is valued at around $200 million. It’s part of a larger effort to lessen the environmental impact of its AI-powered data centers.

Also, companies like Google and Equinix are finding ways to reuse heat from data centers. They aim to warm nearby homes and businesses. Google’s Finland facility, for example, supplies heat to 80% of local households.

Marathon Digital Holdings is investing in heat recovery solutions in Finland. Equinix is doing the same in Paris.

Challenges and Future Outlook

Even with progress in green technology, data centers struggle to balance energy needs and sustainability goals. The industry must keep innovating. Focus on areas like renewable energy integration, better cooling techniques, and carbon offsetting strategies.

Collaboration between industry stakeholders, governments, and communities will be essential to drive the transition toward sustainable digital infrastructure.

The data center industry’s commitment to sustainability is evident through initiatives like EcoDataCenter’s expansion, Microsoft’s carbon offset programs, and innovative energy efficiency measures. As digital infrastructure grows, using sustainable practices is vital. It helps reduce environmental harm and supports global climate goals.

With strong financial backing and a clear vision for sustainable growth, EcoDataCenter is set to redefine how data centers operate. Its growth will meet the rising demand for cloud and AI computing. It will also set new standards for environmental responsibility in the industry.

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The Future of Antimony: Rising Prices, Supply Chain Risks, and Demand Growth

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Antimony

Antimony is vital for many industries, including batteries, solar panels, flame retardants, and ammunition. Antimony sulfide, or Stibnite, is the principal ore of antimony and is mainly used in all these sectors. The U.S. depends almost entirely on imports, mainly from China, to meet its needs.

Countries with the largest reserves of antimony worldwide as of 2023          (in metric tons)

antimony reserve
Source: Statista

Let’s examine the demand and supply trends for antimony and their impact on prices this year.

What’s Driving Antimony Demand?

Antimony’s demand has risen due to increasing industrial use and China’s dominance in production. The silver white metal is crucial in solar panels. It makes perovskite solar cells work better by helping them absorb more light and convert energy more effectively. It also enhances thermal stability, helping panels endure extreme conditions.

In energy storage, liquid-metal batteries use antimony to store and distribute excess solar power. As solar installations grow, antimony’s role in the energy transition will expand.

The U.S. Department of Defense (DoD) uses antimony in more than 200 types of ammunition. This includes percussion primers and armor-piercing rounds.

Some key uses of antimony include:

  • Antimony alloys improve the durability of lead-acid batteries in military vehicles.

  • Its flame-retardant properties enhance the fire resistance of military uniforms and equipment.

  • It is used in semiconductors for infrared sensors and night-vision devices. These are crucial for defense technology.

Antimony demand

However, despite demand from various industries, there’s a global supply crisis of this critical metal.

A Looming Global Antimony Supply Shortage

According to the U.S. Geological Survey (USGS),

  • In 2023, the total global antimony mine production was approximately 83,000 tons. China produced around 40,000 tons, accounting for 48% of the global supply.

China’s Supply Shrinks 

China is the biggest antimony producer, but its output has dropped sharply. 2023’s output as a decrease from 60,000 tons (55% share) in 2022. The decline is mainly due to mine closures and stricter environmental rules.

Hunan, a major antimony-producing province, halted production from March to June. This pause was for environmental inspections. Further industrial accidents in Hunan and Guizhou disrupted mining early in 2023. Consequently, China’s declining output has significantly contributed to the current global supply shortage.

Moreover, China is tightening its grip on antimony exports to secure its position in global supply chains. This comes after the U.S. imposed restrictions on critical technologies like advanced chips. China has employed a similar strategy with germanium, gallium, graphite, and rare earths.

The U.S. Relies Heavily on Imports

The U.S. has antimony deposits in states like Idaho, Montana, Utah, Arizona, and Alaska. However, environmental and economic issues have slowed domestic production. The Stibnite Gold Mine in Idaho was the largest antimony producer but shut down in the mid-1990s. Efforts to restart it are uncertain due to environmental concerns, especially river pollution risks.

By 2020, the U.S. had completely stopped mining antimony. Instead, it relied on recycling, mainly from lead-acid batteries. A facility in Montana processed imported material, but recycled sources only met 18% of the demand. The rest came from imports. In 2023, no sellable antimony was mined in the U.S., according to the University of Technology Sydney (UTS).

Recent reports show that Military Metals acquired the Last Chance property on February 19, 2025. This highlights the urgent need to secure antimony for defense. The rising demand, along with supply issues, has led to a significant price surge.

Antimony production
Source: U.S. Geological Survey

Russia’s Production Faces Uncertainty

Russia is another key antimony producer contributing to the supply crunch. USGS estimates that Russia held 17.5% of global antimony reserves in 2023, totaling 350,000 tons. However, actual production was much lower, at just 4,300 tons.

The Minor Metals Trade Association (MMTA) highlighted that most of Russia’s antimony is a byproduct of gold mining. Polyus, the largest gold producer in Russia, reported 27,075 tonnes of antimony output in flotation concentrate. However, Western sanctions after Russia’s 2022 invasion of Ukraine have made trading with Russian suppliers more difficult, further tightening global supply.

Political Instability Disrupts Myanmar’s Output

Myanmar, the fourth-largest antimony producer in 2023, also faced supply disruptions due to political turmoil. The country accounted for about 5% of global antimony production, according to USGS.

Here’s a comparative chart of 2022 Vs 2023 antimony producers across the world:

                               Global Antimony Production 

Antimony
Source: USGS

Market Growth Trends 

  • Research and Markets revealed that the global demand for antimony is projected to grow from $2.5 billion in 2024 to $3.5 billion by 2030, at a CAGR of 6.2%,

Additionally, the U.S. antimony market is expected to expand significantly, reaching an estimated value of USD 106.57 million by 2032. This growth primarily be driven by the rising demand for OSHA-regulated flame-retardant clothing. Other demand drivers like lead-acid batteries, electronics and plastics, etc. will also push future demand of antimony.

Antimony demand

Regional Market Overview

According to a Fortune Business Insights study,

  • Asia-Pacific leads with a 64.36% market share in 2023. This trend will keep going. The automotive and electronics sectors are growing. This increases the demand for antimony flame retardants and alloys. China will remain the top producer.

Antimony
Source: Fortune Business Insights

  • North America and Europe together account for over 40% of global antimony demand, mainly in automotive and plastics. Europe produces antimony oxide but relies on imports from China and India. The rising need for lead-acid batteries is boosting growth in this region. North America has a strong demand for flame retardants. This is because of strict workplace safety rules.

The Future of Antimony Supply

Australia is becoming a key player in the antimony market. Larvotto Resources, which runs the Hillgrove Gold-Antimony Project, has seen its share price rise. Additionally, the U.S. is working with resource-rich countries such as Australia, which could potentially close the supply gap. This partnership also aims to reduce reliance on China for critical minerals.

Earlier CarbonCredits reported that it’s not just the U.S. but countries worldwide are taking steps to reduce their reliance on Chinese antimony.

Over two years, global antimony drilling activity totaled 625 holes, with 88 yielding significant intervals. Australia dominated with 444 holes, including 65 significant finds, reflecting its active exploration sector. The USA followed with 44 holes and 10 significant intervals. Antimony drilling

Other contributions came from Canada, Bolivia, New Zealand, and Namibia. Emerging interest in regions like Bosnia, Indonesia, and Slovakia highlights a global push to secure antimony resources, driven by rising demand in energy and defense sectors.

In the U.S., the Department of Defense awarded $15.5 million to Perpetua Resources to explore antimony production from the Stibnite Gold Project in Idaho. 

Similarly, Spearmint Resources in Canada has doubled its acreage at the George Lake South Antimony Project, recognizing the mineral’s strategic value.

Additionally, antimony can be sourced through recycling. Reusing antimony from industrial waste and other sources may help create a more stable supply in the long term.

As demand from renewable energy and defense sectors rises, securing a steady supply of this crucial mineral will become extremely vital.

Tajikistan: The Rising Star

With supply dwindling in China, Russia, and Myanmar, Tajikistan is emerging as the world’s second-largest antimony producer.

  • In 2023, it produced 21,000 tonnes, covering 26% of the global supply, according to USGS.

A significant mine in Tajikistan, owned by a U.S. company, is now Europe’s largest supplier of antimony metal. Talco Gold, a joint venture of Tajik Aluminium Co and China’s Tibet Huayu Mining, has boosted production too. Talco Gold’s processing plant opened in April 2022. However, it faced delays from the COVID-19 pandemic.

The impressive output shows Tajikistan potential to boost production volumes and sort supply challenges of antimony in the near future.

Antimony Prices Rally: Where Do They Stand in 2025?

Antimony prices have surged since April 2024 due to a severe supply shortage. According to Fastmarkets, prices in Rotterdam rose at their fastest rate in over 40 years. In May, the Shanghai Metals Exchange reported prices reaching $17,588 per metric ton, a 54% increase in 2024.

By June 14, prices in Europe climbed to $22,700 per ton, a rise of more than 75% from 2023.

antimony price
Source: Fastmarkets

The surge comes from a supply shortage in China, Russia, and Southeast Asia. At the same time, demand is rising in the solar sector, fire retardants, and military uses.

Recent posts on X show that the shortage is still affecting availability. Prices have reached $51,500 per ton in 2025. Some market speculation suggests that prices could reach $100,000 per ton.

antimony price

This price rally was confirmed by Military Metals Corp’s CEO, Scott Eldridge, who said,

“The antimony spot price has yet again achieved a new all-time high, now trading at $51,500 USD per ton. Antimony investment opportunities are limited to mining equities with no ETF or futures contracts available to investors, furthermore the mining equities are limited to a few high-caliber companies.”

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The Biochar Gold Rush: Why Companies Are Scrambling to Lock in Carbon Credits

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The Biochar Gold Rush: Why Companies Are Scrambling to Lock in Carbon Credits

Companies worldwide are under pressure to meet their 2030 net-zero targets, and high-quality carbon removal solutions are becoming scarce. Biochar offers a promising solution. It’s a carbon-rich material made by heating organic waste in low oxygen. This process is called pyrolysis.

Biochar lasts long and captures carbon. It also boosts soil health and helps crops grow better. However, new research from Supercritical shows that access to high-quality biochar carbon credits is getting tighter. Early adopters are securing their supply with long-term agreements.

Supercritical CEO, Michelle You, remarked: 

“This isn’t just about buying carbon removal—it’s about securing future access in an increasingly competitive market. Companies signing offtakes today are gaining supply security and cost stability, while those waiting on the sidelines or relying on spot purchases will face shrinking availability and escalating prices.”

The Biochar Land Grab: Why Supply is Disappearing

Biochar turns agricultural waste into stable carbon. When buried in soil, it can stay there for centuries. This makes biochar one of the most effective carbon dioxide removal (CDR) methods available today. 

Biochar is popular with 80% of CDR buyers as it is affordable and scalable. This makes it a smart choice for cutting emissions and boosting environmental health.

Despite these benefits, biochar production faces significant supply constraints. The latest Supercritical report, Locked in or Left Behind? Biochar Offtakes in 2025, highlights that 62% of the 2025 high-quality biochar supply is already locked into offtake agreements, with nearly 30% secured through 2026. 

biochar carbon credits in offtakes
Source: Supercritical Report

Companies must act now in this tight market. If they don’t, they risk missing out on affordable carbon removal credits.

Offtake Agreements: The Smartest Play in Carbon Removal

An offtake agreement is a long-term purchase contract that allows companies to secure future carbon removal credits before they are issued. These agreements help biochar suppliers feel secure financially. They can scale up production. Buyers benefit, too, as they get stable prices and a guaranteed supply.

Companies with multi-year offtake agreements save up to 31% compared to those buying credits on the spot market. People who depend on one-time purchases are seeing costs go up. They also face a shrinking supply of good-quality credits.

With biochar prices increasing 18% in 2024, securing long-term agreements has become the most strategic way to manage carbon removal costs.

Biochar Market Trends and Future Outlook

The demand for high-quality CDR solutions is expected to skyrocket in the coming years. According to Supercritical’s research:

  • Global demand for durable carbon removal is expected to hit 40–200 MtCO₂ each year by 2030. However, the current supply falls far short of this need.
  • Biochar accounted for 86% of all CDR deliveries in 2024, proving its reliability in the market.
  • If just 10% of companies with Science Based Targets initiative (SBTi) commitments began buying carbon removal credits today, the market would need to grow 25 times its current size.
biochar purchased and delivered 2024
Source: Supercritical Report

The biochar carbon credits market has experienced notable growth in recent years. This reflects an increasing corporate focus on sustainable practices and carbon removal strategies.

Pricing Trends

Biochar carbon credits command significantly higher prices compared to the broader voluntary carbon market. 

In 2023, transaction prices ranged between $100 and $200 per metric ton of CO₂ equivalent, with an average price of around $150. This contrasts with the overall voluntary carbon market average of $5.80 per metric ton in the same year.

Future Outlook

Forecasts by MSCI Carbon Markets suggest that demand for biochar carbon credits could increase 20-fold over the next decade. However, this anticipated growth may lead to short-term price compression due to rising supply and competition, with prices potentially softening before strengthening again up to 2035.

As net-zero deadlines near, organizations that wait to get carbon credits will face tougher competition. Prices may rise, and they might not get any supply at all. This is very important. Updated SBTi guidelines will likely add interim carbon removal targets. This will increase demand even more.

Who is Leading the Biochar Offtake Movement?

Large corporations are already securing multi-year offtakes to future-proof their carbon removal strategies. Microsoft, Google, and Stripe have bought a lot of biochar credits. This ensures they get high-quality supplies at steady prices.

biochar offtake agreements 2024-2025
Source: Supercritical Report

Other companies have followed suit, recognizing that offtakes are the key to maintaining cost-effective and reliable carbon removal solutions.

A few notable biochar offtake deals include:

  • Google & Varaha (India): The largest biochar offtake agreement to date.
  • Charm Industrial (USA): A 100,000-tonne multi-year biochar removal contract.
  • Exomad Green (Bolivia): 70,000 tonnes secured over a seven-year contract.

These deals show that big buyers are eager to secure supply. They want to act before the market tightens further.

Waiting Could Cost Big: Spot Market vs. Offtakes

While some companies may prefer to buy carbon credits on the spot market, this approach comes with significant risks. The biochar market is splitting. Early movers are getting the best supply, but latecomers must fight for what’s left.

Key risks of relying on spot purchases include:

  • Higher Prices: Biochar prices have increased at a 29.2% compound annual growth rate (CAGR) over the past four years, and price volatility is expected to continue.
  • Limited Supply: As of 2025, more than 60% of available high-quality biochar is already locked into offtakes, leaving little room for new buyers.
  • Lower-Quality Projects: Companies waiting to purchase on the spot market may be forced to accept lower-quality credits, which may not meet the highest standards for durability and effectiveness.

In contrast, companies with offtake agreements today are protecting their net-zero goals. They ensure a steady supply of high-quality biochar credits at clear prices.

biochar pricing spot vs offtake
Source: Supercritical Report

The Urgency to Act Now

Biochar is becoming a top choice for large-scale carbon removal. However, its supply is quickly vanishing due to long-term contracts.

As prices rise and demand exceeds supply, companies must act now. If they don’t, they might be priced out or miss out on quality removals.

For organizations serious about meeting their net-zero commitments, securing biochar carbon credits via offtake agreements now is not just a smart move—it’s essential. As the market continues to evolve, those who take action today will shape the future of carbon removal, while those who hesitate risk being left behind.

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SolarBank Moves Forward with 7.2 MW North Main Community Solar Project in New York

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SolarBank Moves Forward with 7.2 MW North Main Community Solar Project in New York

Disseminated on behalf of SolarBank Corporation.

SolarBank Corporation (NASDAQ: SUUN; Cboe CA: SUNN, FSE: GY2) has announced a major step forward in the development of its 7.2 MW DC ground-mount solar power project, known as the North Main Project, in Wyoming County, New York. The project has finished the Coordinated Electric System Interconnection Review (CESIR). This important step allows the company to move forward with the permitting process.

SolarBank Corporation is an independent renewable and clean energy project developer and owner. It specializes in distributed and community solar projects across Canada and the United States. 

The company develops solar, Battery Energy Storage System (BESS), and EV Charging projects. These facilities supply electricity to utilities, commercial, industrial, municipal, and residential off-takers. 

SolarBank has a development pipeline exceeding one gigawatt. It has successfully developed renewable energy projects with a combined capacity of over 100 megawatts. 

After securing the needed permits and funding for North Main, SolarBank plans to start building the community solar project. This project will provide clean energy to around 850 homes. The project should also qualify for incentives from the NYSERDA NY-Sun Program. This will help its financial and operational success.

Bringing Affordable Clean Energy to Communities

Community solar projects like North Main play a crucial role in the transition to renewable energy. Community solar is different from traditional rooftop solar. It lets both renters and homeowners enjoy solar power benefits. They don’t need to install panels on their properties. 

Moreover, participants can subscribe to the project. They will receive credits on their electricity bills. This lowers their energy costs and supports renewable energy growth.

Current Market Landscape and Growth Projections

As of June 2024, the United States has about 7.87 gigawatts (GW) of community solar capacity. This capacity is spread across 44 states and the District of Columbia.

In the third quarter of 2024, the community solar segment installed 291 megawatts direct current (MWdc). This is a 12% increase compared to the same period in the previous year. This growth underscores the sector’s resilience and expanding appeal.

community solar installations and forecast

Looking ahead, the U.S. Department of Energy has set an ambitious target to achieve 25 GW of community solar capacity by 2025. This was a target of the prior Federal administration but most community solar projects are developed with the support of state and local governments. The Coalition for Community Solar Access expects the U.S. to exceed 30 GW of community solar by 2030. This shows strong growth potential for the sector.

Wood Mackenzie forecasts that the national community solar market will grow at an average rate of 5% annually through 2026. However, a subsequent average annual contraction of 11% is anticipated through 2029. This shows that near-term growth is strong. Yet, long-term sustainability may need strategic actions and policy support. 

SolarBank is focusing on community solar, aiming to provide clean, affordable energy to thousands of homes. This initiative supports the company’s mission to speed up renewable energy use in North America.

A Strong Partnership with Solar Simplified

SolarBank has teamed up with Solar Simplified. They are a leading provider of services for community solar programs. They focus on customer acquisition, enrollment, and management.

Solar Simplified works with SolarBank to make sure community solar projects are fully signed up. This way, they can boost revenue right from the start.

Solar Simplified takes care of all customer operations. This lets SolarBank focus on growing its renewable energy portfolio and launching more projects each year. 

Overcoming Challenges in Solar Development

The North Main Project is a big step forward, but challenges still exist for large-scale solar projects. The project depends on three key steps:

  • getting a community solar contract,
  • obtaining permits, and
  • securing third-party financing.

Also, changing government incentives and policies about solar power can affect how financially sound future projects will be.

Navigating the US-China Solar Trade Landscape

The solar industry has been heavily affected by U.S.-China trade tensions, with President Donald Trump issuing an executive order on February 1, 2025 imposing a 10% tariff on imports from China, which has since doubled to 20%. This move builds on former President Joe Biden’s tariff hikes from 25% to 50%, effective January 1, 2025, bringing total duties on Chinese solar polysilicon, wafers, and cells to 70%.

China dominates the global solar panel supply chain, producing over 80% of the world’s photovoltaic (PV) modules. Dependence on Chinese imports has led to increased costs and supply chain challenges for many U.S. solar developers.

Source: IEA

However, SolarBank has positioned itself to mitigate the effects of these trade disputes. By prioritizing domestic manufacturing, SolarBank not only avoids tariff-related cost fluctuations but also contributes to strengthening the U.S. solar supply chain.

In an exclusive interview, SolarBank’s CEO Dr. Richard Lu emphasized the company’s edge on this matter, stating: 

“We want to do our part to “Make America Great Again”. Solar energy is the power that we can deliver at a low cost in a timely manner, and we want to use “Made in the USA” solar panels to achieve our strategic goal. The Made in the USA panels demonstrate our commitment to supporting domestic production for the clean and renewable energy industry. For the sector, it will enable the industry to meet its demand with domestic supplies.”

SolarBank is dedicated to growing renewable energy in North America with the following project pipeline. It uses its skills in solar, battery storage, and EV charging projects to meet this goal.

SolarBank projects
Source: SolarBank

Innovative Projects and Market Expansion

SolarBank is committed to innovation. It has teamed up with Viridi to turn a landfill in Buffalo, New York, into a solar farm. This project will have a capacity of 3.06 MW and include a 1.2 MWh battery energy storage system.

This project shows the company’s commitment to turning unused sites into renewable energy sources. It provides clean energy to the community and helps tackle environmental issues. 

SolarBank is also planning a move into the growing data center market. This market is expected to hit $395 billion by 2030. Using its renewable energy expertise, the company plans to create and partner on data centers. This will help meet the industry’s huge energy needs with scalable and eco-friendly solutions.

SolarBank’s commitment to renewable energy continues to drive meaningful progress in the community solar sector. The North Main Project and other new developments are helping the company expand clean energy access and support sustainable infrastructure across North America. SolarBank leads the way to a cleaner energy future through partnerships, expanding markets, and tackling industry challenges.

This report contains forward-looking information. Please refer to the SolarBank press releases entitled “SolarBank Provides Update on 7.2 MW North Main Project in Wyoming County, New York.”; “SolarBank Partners with Viridi on Combined 3.06 MW Solar and 1.2 MWH Battery Energy Storage Project Located in Buffalo, New York.”; and “SolarBank Announces 2024 Highlights”.

Disclosure: Owners, members, directors, and employees of carboncredits.com have/may have stock or option positions in any of the companies mentioned: None.

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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Trump’s Tariffs on Canada, China, and Mexico: A Risky Bet for U.S. Critical Minerals and Aluminum?

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trump tariff

Tariffs can encourage companies to invest in domestic production and create jobs. At the same time, they can also spark trade wars, leading to job losses in affected industries. Their economic impact is certainly complicated. At present, the U.S. is in a major tariff conflict with Canada, Mexico, and China after President Trump raised tariffs significantly.

He imposed a 25% duty on imports from Mexico and Canada and doubled tariffs on Chinese goods to 20%. This led to new trade disputes with important partners. Industry experts say these tariffs could affect $2.2 trillion in annual trade, impacting many industries.

But Trump firmly believes these tariffs aim to reduce the trade deficit. By making imported goods costlier, they are pushing Americans to buy local products.

  • As per nbcnews, in 2024, Mexico, China, and Canada account for 42% of U.S. imports, making them key players in any trade conflict.

US. trade China Cananda Mexico

How Canada, China, and Mexico Fired Back

Canada reacted quickly. Prime Minister Justin Trudeau announced 25% tariffs on $20.7 billion worth of U.S. goods. He plans to expand these tariffs if the current ones remain. This mainly affects energy and minerals.

Similarly, China responded with 15% tariffs on some U.S. farm products like cotton, wheat, corn, and chicken. They added a 10% tariff on other goods, including dairy, fruits, vegetables, pork, beef, and soybeans. These tariffs will start on March 10. As per credible news sources, China’s commerce ministry also limited exports to 15 U.S. companies and added 10 U.S. firms to its “unreliable entity list.”

These trade barriers follow a pattern from earlier administrations. Last year, the White House decided to raise tariffs on Chinese semiconductors to 50%, while duties on Chinese electric vehicles quadrupled to over 100%. A new set of 25% tariffs on aluminum and steel will take effect soon, escalating tensions further.

Mexico’s President Claudia Sheinbaum stated the country has backup plans to handle U.S. tariffs.

u.s imports

U.S. Dependence on Imported Critical Minerals

A  report from the Center for Strategic and International Studies highlights the U.S.’s reliance on imports for critical minerals. The U.S. relies entirely on imports for 12 of the 50 identified critical minerals and for over 50% of another 29.

Consequently, tariffs on Canada, Mexico, and China could raise costs for the U.S. These nations supplied 41% of U.S. metal and mineral imports in 2023. China leads the global production of 29 critical minerals and controls processing for rare earths, graphite, lithium, cobalt, and copper and is a major supplier for the U.S.

U.S. CHINA critical minerals

Doug Ford Warns of Nickel Cutoff Over U.S. Tariffs

Ontario Premier Doug Ford ripped off Trump’s exorbitant tariff rates on Canada. He threatened to halt nickel and electricity exports to the U.S. in response to the 25% tariffs on Canadian goods set to take effect tomorrow.

In an interview with NBC News NOW on Monday, Ford called the tariffs an “absolute disaster” for both nations, warning they would create “massive problems” for residents on both sides of the border.

Ford said,

“We will respond strongly and we don’t want to. “On the critical minerals I will stop shipments going into the U.S. for nickel. I will shut down manufacturing because 50 per cent of the nickel you use is coming from Ontario.”

He further opined,

”You need our uranium, you need our potash, you need our high-grade nickel. I will stockpile our high-grade nickel, that 50 percent of your military and manufacture needs. Your aluminum, your steel, your lumber. It will be an absolute disaster and this is all due to one person. That is President Trump.”

U.S. Aluminum Imports and Tariffs: Impact on Costs and Supply Chains

Domestic production of aluminum is just one third of its needs. According to Statista, the United States imported about 4.8 million metric tons of aluminum for consumption in 2024.

Mexico and Canada supply around 90% of U.S. aluminum scrap imports. The U.S. heavily relies on aluminum and steel imports, with Canada providing 58% of aluminum and 23% of steel imports.

Meanwhile, the apparent consumption of aluminum totaled about 4.3 million metric tons. Canada is a top aluminum supplier to the U.S., sending most of its primary aluminum for use in American manufacturing.

Imports of aluminum for consumption in the United States from 2010 to 2024 (in 1,000 metric tons)

Aluminum import U.S.

Disrupting these supply chains will raise costs for industries such as automotive manufacturing. In this industry, parts often cross borders several times before the final assembly.

Tariff History Repeats Itself

The U.S. aluminum sector has faced trade measures before. In 2018, then-President Donald Trump imposed a 10% tariff on imported aluminum and 25% on steel to boost domestic production. These tariffs later extended to the EU, Canada, and Mexico.

In August 2024, under President Joe Biden, aluminum tariffs rose to 25%, increasing the U.S. Midwest premium by over 30%. Trump’s potential re-election could lead to further tariff hikes, creating market uncertainty.

Increased Aluminum Prices

The U.S. Midwest premium, a key indicator of aluminum tariff risk, has risen since Trump’s election win. S&P Global revealed the current price (as of February 25, 2024) for the US Aluminum P1020 Midwest Transaction Premium is 41.75 cents per pound.

If the government adds new tariffs, aluminum prices in the U.S. are likely to go up. This will increase costs for both manufacturers and consumers.

Midwest Transaction Premium (MWP) Price Historyaluminum U.S. TRUMP TARIFF

The U.S. and Canada both want to secure critical mineral supply chains, even with trade tensions. This is because collaborating in mineral exploration, processing, and production boosts long-term stability and economic security.

However, building new domestic processing facilities and securing alternative mineral sources will take years. Thus, short-term reliance on Canadian and Mexican metals is unavoidable.

Winners and Losers: The Effects of New Tariffs on U.S. Industries

The latest tariffs will have mixed effects across industries. Some domestic producers will benefit from less foreign competition, while others will face rising production costs. Goldman Sachs has recently rolled out an evaluation report that highlights the potential winners and losers of Trump tariffs.

Winners: Industries producing aluminum, steel, and oil and gas extraction will likely benefit the most. Higher tariffs on imports in these sectors will protect domestic producers. As these industries compete with imports, new tariffs will make foreign goods pricier, boosting demand for U.S.-made products.

trump tariff

Losers: The biggest losers will be secondary steel and aluminum producers and petroleum product manufacturers. These sectors rely heavily on imported raw materials. Higher tariffs on steel, aluminum, and oil will significantly raise their production costs. Midstream manufacturers of products like auto parts, beverage cans, and window frames will also feel the pressure.

trump tariff

Tariffs on Canadian and Chinese aluminum could disrupt global supply chains, raising costs for U.S. manufacturers. Supply shortages may arise as producers redirect exports to other markets. The long-term fix is to boost North American supply chains. We need to invest in local processing. Also, the U.S. and Canada must work together for steady access to key materials.

Can the U.S. Really Be Self-Reliant with Trump’s Tariffs?

Trade tensions are shaking up industries and slowing investments. Tariffs on key imports like steel, semiconductors, oil, gas, and medicine could hurt U.S. businesses more than those on Chinese goods.

Many American companies rely on these imports to stay competitive. If tariffs keep changing, businesses may hold back on investing due to rising costs and supply issues.

Industry experts speculate higher tariffs on critical imports could do more damage than those targeting China. The last trade war (2018-2019) showed how foreign retaliation can hit U.S. exports hard. More significantly the U.S. National security could also at risk—China has already cut off supplies of key minerals like gallium and germanium, which are essential for defense.

However, a possible solution lies in stronger U.S.-Canada ties with favourable tariffs. A stable North American supply chain for critical minerals can reduce reliance on foreign sources and protect both the economy and national security.

The post Trump’s Tariffs on Canada, China, and Mexico: A Risky Bet for U.S. Critical Minerals and Aluminum? appeared first on Carbon Credits.

RBC, BMO, TD: Who Wins the Canadian Big Five Banks’ Financial Face Off and Net-Zero Race?

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Canadian Banks Financial Face Off and Net Zero Race: Who's Leading the Charge?

The Canadian banking sector is under pressure to balance financial growth with sustainability. The Big Five banks of the country – Royal Bank of Canada (RBC), Bank of Montreal (BMO), Bank of Nova Scotia (Scotiabank), TD Bank, and Canadian Imperial Bank of Commerce (CIBC) – have all reported their latest earnings while advancing their climate commitments.

The Big Five banks’ financial results reflect the strength of the Canadian economy, while their sustainability and net-zero initiatives show how committed they’re to reducing carbon emissions.

But how do these Canadian banks compare? Let’s dive into their latest earnings and see who is leading the charge toward a greener future.

Financial Performance: A Competitive Landscape

Royal Bank of Canada (RBC): Record Earnings with Strong Performance

RBC reported a net income of CAD 5.13 billion in Q1 2025, up from CAD 3.52 billion in Q1 2024. Adjusted earnings per share (EPS) stood at CAD 3.62, surpassing analyst expectations of CAD 3.24.

  • Revenue: CAD 16.74 billion (up from 13.49 billion year-over-year)
  • Net Interest Margin (NIM): Not explicitly stated in available reports
  • Provision for Credit Losses (PCL): CAD 1.05 billion (up from 815 million)

RBC’s financial performance was bolstered by a strong wealth management division, which saw a 48% increase in income, and robust capital markets earnings. The acquisition of HSBC Bank Canada contributed an additional CAD 214 million to net income. 

Bank of Montreal (BMO): Solid Growth Amid Economic Challenges

BMO reported a net income of CAD 2.14 billion in Q1 2025, up from CAD 1.29 billion in Q1 2024. Adjusted earnings per share (EPS) stood at CAD 3.04, surpassing analyst expectations of CAD 2.41.

  • Revenue: CAD 7.28 billion (up from 6.22 billion year-over-year)
  • Net Interest Margin (NIM): Not explicitly stated in available reports
  • Provision for Credit Losses (PCL): CAD 573 million (slightly down from 585 million a year ago)

BMO’s financial performance was strong despite higher credit provisions. Its capital markets division contributed significantly, with a 45% increase in adjusted net income, reaching CAD 591 million.

Bank of Nova Scotia (Scotiabank): Facing Margin Pressure

Scotiabank’s Q1 2025 net income stood at CAD 2.02 billion, slightly lower than CAD 2.12 billion in Q1 2024. Adjusted EPS was CAD 1.68, missing expectations of CAD 1.70.

  • Revenue: CAD 8.16 billion (down slightly from 8.23 billion)
  • Net Interest Margin: Not explicitly stated in available reports
  • Provision for Credit Losses: CAD 955 million (up from 910 million)

While Scotiabank saw modest revenue growth, higher loan loss provisions and lower NIMs affected profitability. The bank’s Latin American operations performed well, helping offset domestic weakness.

TD Bank: Strong Performance Despite Loan Losses

TD Bank announced a net income of CAD 2.79 billion in Q1 2025, a slight decline from CAD 2.82 billion in Q1 2024. Adjusted EPS was CAD 1.55, remaining flat year-over-year.

  • Revenue: CAD 14.05 billion (up from 13.71 billion)
  • Net Interest Margin: Not explicitly stated in available reports
  • Provision for Credit Losses: CAD 1.21 billion (up from 1.02 billion)

TD’s performance was driven by strong deposit growth and capital markets revenue. However, increased provisions for credit losses reflect potential economic headwinds.

CIBC: Higher Earnings But Growing Risks

CIBC posted a Q1 2025 net income of CAD 2.18 billion, up from CAD 1.73 billion in Q1 2024. Adjusted EPS was CAD 2.20, above the consensus estimate of CAD 1.81.

  • Revenue: CAD 7.3 billion (up from 6.14 billion)
  • Net Interest Margin (NIM): Not explicitly stated in available reports
  • Provision for Credit Losses (PCL): CAD 573 million (down from 585 million)

CIBC’s earnings growth was supported by strong loan and deposit growth. Its capital markets unit saw a 19% increase in net income, reaching CAD 619 million. However, rising provisions for bad loans signal caution.

Carbon Emission Reductions and Sustainability Race: Who’s Leading?

As these Big Five Canadian banks are going after profits, they, too, are under pressure to go after their sustainable and net-zero goals. Let’s see what they’re doing to hit their climate goals.

Royal Bank of Canada (RBC): Advancing Towards Net Zero

RBC has pledged to achieve net-zero emissions in its operations and financed emissions by 2050. The bank is aligning its lending and investment activities with global climate targets, focusing on energy efficiency, sustainable finance, and emissions reductions.

RBC’s GHG emissions totaled 119,802 metric tons of CO₂e in 2023, reflecting a steady decline from previous years. The bank has committed CAD 500 billion in sustainable finance by 2025.

RBC GHG emissions 2023
Source: RBC Climate Report

As of 2023, RBC has allocated CAD 393 billion in sustainable finance, making progress toward its CAD 500 billion target by 2025.

RBC sustainable finance
Source: RBC Climate Report

The most valuable bank in Canada also used carbon offsets as part of its strategy to neutralize its operational footprint. 

Key emission reduction initiatives are:

  • Expanding financing for renewable energy and clean technology projects.
  • Increasing investments in green buildings and energy-efficient operations.
  • Strengthening partnerships in climate finance and transition investments.
  • Supporting industries in their transition to a low-carbon economy.

RBC remains committed to climate risk management and improving transparency in its sustainability disclosures. The bank continues to refine its financed emissions tracking and collaborates with businesses to meet shared net-zero goals.

Bank of Montreal (BMO): Charging its Net-Zero Ambitions

BMO has committed to achieving net-zero emissions in its operations by 2050. The bank has been carbon-neutral in its operations since 2010 and aims to cut its Scope 1 and 2 emissions by 30% by 2030 (from a 2019 baseline). The bank has achieved this by:

  • Upgrading heating and cooling infrastructure across its buildings.
  • Purchasing renewable energy certificates (RECs) to match 100% of its global electricity consumption.
  • Offsetting residual emissions through high-quality carbon credits, including projects like the Great Bear Rainforest conservation initiative..

In 2023, the bank’s total greenhouse gas (GHG) emissions stood at 101,960 metric tons CO₂e, down 12% from 2022 levels. The bank retired 45,918 tCO₂e of carbon credits in the same year as part of its emission reduction strategies. 

BMO carbon or GHG emissions 2023
Source: BMO Climate Report

Major climate actions include:

  • Issued CAD 10 billion in sustainability bonds.
  • Financed CAD 70 billion in sustainable lending projects.
  • Pledged to provide CAD 150 billion in green financing by 2025.
  • BMO’s Asset Management division offers multiple sustainable investment options, focusing on ESG-oriented portfolios.

BMO has pledged CAD 300 billion in sustainable financing and has surpassed this with CAD 330 billion issued as of 2023. 

The giant financier aims to support businesses transitioning to a low-carbon economy. In 2023, the bank expanded its emissions tracking for lending portfolios, including commercial real estate, and continues to refine its sustainability-linked lending framework.

Bank of Nova Scotia (Scotiabank): Carbon Intensity Reduction

Scotiabank aims for net-zero financed emissions by 2050 and a 40% reduction in operational emissions by 2030. In 2023, its operational carbon emissions were 110,000 metric tons CO₂e, down 9% year-over-year.

Scotiabank carbon emissions 2023
Source: Scotiabank Report

“font-weight: 400;”>>The Canadian bank has reduced energy consumption in branches and offices by 25% as part of its net-zero efforts. It has also financed low-carbon initiatives in Latin America

Scotiabank has set a target of providing CAD 350 billion in climate-related financing by 2030. In 2023, the bank provided CAD 36 billion toward this goal, bringing its cumulative total to CAD 132 billion since 2018.

Key climate initiatives include:

  • Developing an internal net-zero scoring system to assess client transition plans.
  • Setting interim emissions intensity reduction targets for the automotive manufacturing sector.
  • Intending to increase internal carbon price to further emission reductions.
  • Expanding financing solutions for renewable energy projects and electric vehicle adoption.

The bank also continues to reduce its own operational emissions by securing emissions-free electricity, implementing energy efficiency programs, and integrating climate risk assessments into its lending strategy.

TD Bank: Leading in Sustainable Finance and Decarbonization

TD Bank has the most aggressive green finance strategy among the four banks. It has pledged CAD 500 billion in sustainable and decarbonization finance by 2030, with nearly CAD 70 billion allocated in 2023 alone. 

TD has emitted a total of 117,317 metric tons of CO₂e in 2023, down 14% from 2022. The bank has already achieved a 28% reduction in operational Scope 1 and 2 emissions, surpassing its 2025 target of 25%.

TB bank carbon emissions 2023
Source: TD Bank climate report

The bank has retired 85,176 verified carbon reduction and removal credits, equal to the bank’s market-based Scope 1 and 2 emissions and Scope 3 category 6 (business travel) emissions.

More notably, the bank has one of the largest direct air capture (DAC) carbon credit purchases in the financial sector. It agreed to buy 27,500 metric tons of carbon removal credits over four years.

Also, TD Bank has expanded its financial emissions tracking across nine high-emission sectors, including energy, automotive, and agriculture. The financier has also improved climate risk assessment tools and developed a central data repository to track emissions reduction progress across its operations and client portfolio.

TD Bank financed emissions
Source: TD Bank climate report

Other Sustainability Highlights:

  • Launched the first net-zero branch in Canada, 
  • Invested CAD 20 million in community-based climate projects, and
  • 60% of power is sourced from renewable energy.

CIBC: Balancing Growth and Sustainability

CIBC is committed to reducing its Scope 1 and 2 emissions and achieving net zero. In 2023, its operational emissions stood at 71,031 metric tons CO₂e, a 5% increase from 2022.

CIBC carbon GHG emissions 2023
Source: CIBC Sustainability Report

Per CIBC’s sustainability report, the bank has set a 30% operational GHG reduction target by 2028 (compared to 2018 levels). It also aims to achieve carbon neutrality in operations by 2024. The bank is on track to meet this target through:

  • Increasing investments in renewable energy.
  • Expanding sustainable finance offerings, including carbon capture, hydrogen, and e-mobility financing.
  • Implementing energy-efficient technologies in offices.
  • Partnering with carbon capture firms for carbon offset projects.
  • Enhancing transparency in climate risk reporting and engaging with industry groups 

The bank has issued over CAD 157 billion in sustainable finance investments as of 2023. It has a target of 300 billion by 2030. 

CIBC helped finance sustainable infrastructure projects. This includes battery energy storage systems in the UK and big renewable energy deals.

Who’s Winning the Net Zero Race?

With all the sustainability initiatives and financing solutions provided by each bank, who wins the net-zero race? The chart below shows the comparison of the banks’ GHG emissions and sustainable finance progress as of 2023. 

Source: Companies’ Data

Overall, TD Bank and RBC lead with the highest sustainable finance commitment, while BMO has surpassed its financing goal. RBC is also making significant strides in sustainable finance and net-zero initiatives, leveraging its market leadership.

CIBC has made strong progress in both emissions reductions and sustainable investments. Meanwhile, Scotiabank continues expanding its climate financing but has the third-highest operational emissions among the five banks.

Conclusion: Balancing Profitability with Climate Commitments

The five major Canadian banks continue to navigate economic headwinds while strengthening their sustainability and net-zero initiatives. While financial results varied, all banks have made progress in decarbonization efforts, sustainable finance, and emissions reductions.

  • RBC leads in net income and is expanding climate finance and net-zero initiatives.
  • BMO remains a leader in carbon-neutral operations and financed emissions tracking.
  • Scotiabank is aggressively expanding climate-related finance and client net-zero assessments.
  • TD Bank is surpassing emissions reduction targets and making innovative carbon credit investments.
  • CIBC is strengthening its renewable energy financing and operational net-zero transition.

As regulatory pressure and investor expectations increase, these Big Five Canadian banks will need to accelerate their climate and net-zero strategies while maintaining profitability. Future progress will depend on expanding sustainable finance, improving emissions tracking, and supporting client transitions to a low-carbon economy.

The post RBC, BMO, TD: Who Wins the Canadian Big Five Banks’ Financial Face Off and Net-Zero Race? appeared first on Carbon Credits.

Lithium Prices Crash Below $10K, Hitting a 4-Year Low: Will the Market Rebound?

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Lithium Prices Crash Below $10K, Hitting a 4-Year Low: Will the Market Rebound?

The lithium market is experiencing a major price decline due to rising supply and weaker demand. In February 2025, the lithium carbonate CIF North Asia price fell below $10,000 per metric ton, dropping 4.5% to $9,550/t. This is the lowest level since February 2021. Analysts expect further cuts in production throughout 2025 to balance the market.

The price drop is mainly due to strong production in Chile and a post-holiday demand slowdown in China. Also, new lithium projects in Mali and Argentina boost global supply. This adds to the downward pressure on prices.

Why Are Lithium Prices Falling?

Several key factors contribute to the ongoing decline in lithium prices, ranging from oversupply to shifting market dynamics and policy changes.

Oversupply Floods the Market

Lithium production has been growing rapidly. In January 2025, Chile’s lithium exports increased by 22.8% month over month, flooding the market with additional supply.

Mali’s new lithium mines, Bougouni and Goulamina, will boost lithium output to 40,528 metric tons of lithium carbonate equivalent (LCE) in 2025. This accounts for 2.7% of the global supply.

Additionally, Argentina’s Ganfeng Lithium Group has started production at the Mariana brine project, adding another 17,420 metric tons of LCE annually. Argentina is now the top producer in the Lithium Triangle. This area includes Bolivia and Chile, which hold some of the richest lithium reserves in the world.

Benchmark Mineral Intelligence shows that the global weighted average price for lithium is dropping, as seen in the chart. This change reflects the increase in supply.

Lithium prices global weighted average
Source: Benchmark Mineral Intelligence

China’s Demand Woes

China, the world’s biggest buyer of lithium, saw a sharp decline in demand in early 2025. The Lunar New Year holidays slowed down industrial work. Many battery makers also postponed their purchases. This contributed to a 1.6% price drop for lithium carbonate in China, bringing it down to 76,100 yuan per metric ton by mid-February.

Additionally, the shift to lithium iron phosphate (LFP) batteries—which require less lithium than traditional nickel-based batteries—is reducing lithium demand. Companies such as Tianqi Lithium and IGO Ltd. have already halted expansion at their lithium hydroxide refineries due to weaker market conditions.

Benchmark Mineral Intelligence said lithium prices soared to $81,375 per tonne in China by December 2022. This spike pushed consumers to look for alternatives, such as LFP batteries.

Policy Uncertainty in the U.S.

The future of North America’s lithium supply chain is unclear, adding to the market pressure. The US Inflation Reduction Act (IRA) of 2022 gave tax credits for lithium from Canada and other allied countries.

Now, it is being reconsidered. The Trump administration also suggested a 10% tariff on energy exports from Canada, like lithium. If enacted, these tariffs could make lithium imports more expensive, limiting investment in the sector.

Currently, only 44.7% of US lithium demand is met by domestic production, rising to 76.4% when including Canadian supply. Any policy changes could significantly impact lithium prices and availability in North America.

Cheaper Lithium Sparks a New EV Price War

The decline in lithium prices has had a notable impact on battery manufacturing costs. The falling prices are closely linked to trends in the plug-in electric vehicle (PEV) and battery electric vehicle (BEV) markets.

Slower-than-expected EV adoption in key regions, driven by reduced government incentives and economic uncertainty, has weakened lithium demand. Automakers are adjusting production forecasts, leading to fluctuations in battery material purchases.

PEV sales
Source: S&P Global

Benchmark Mineral Intelligence reports that cell prices have dropped 73% since 2014. This decline comes from higher production volumes, new technology, and lower raw material costs. These factors let battery makers cut prices.

However, lower costs have made EVs cheaper. This could increase demand over time as forecasted below. Yet, the current oversupply of lithium makes it hard for producers to stay profitable.

global lithium carbonate equivalent demand 2017-2027

How the Industry Is Reacting to the Lithium Slump

The prolonged decline in lithium prices has led to significant industry reactions. The industry is responding to the ongoing slump with various strategies aimed at stabilizing the market. Big producers like Albemarle and SQM plan to cut back production. This move aims to stop further price drops. 

Some mining companies are delaying new projects, while others are cutting costs to remain profitable in the face of lower revenues. Smaller lithium miners are having a tough time. Those without strong financial support are struggling the most. Some have had to stop operations or look for mergers to survive.

In December 2024, Rio Tinto acquired Arcadium Lithium for €6.2 billion, consolidating its position in the global lithium market. This acquisition occurred amid an excess supply and significantly lower prices since their peak in 2022.

Despite these challenges, major mining companies expect lithium demand to rise in the next decade. This growth will be fueled by the shift toward electric transportation and renewable energy storage.

However, the oversupply is causing problems for smaller companies. Some have cut back or stopped their operations. Cutting subsidies in key countries has slowed EV sales growth. This means that only a production cut may raise lithium prices in the medium term.

Looking Ahead – When Will Lithium Prices Recover?

Despite the current challenges, there is optimism about the future of the lithium market. Industry analysts foresee a future increase in lithium demand, potentially leading to a market shift by the early 2030s, driven by infrastructure projects and the growth of green technology. Notable investments include Exxon Mobil and Tesla, seeking to capitalize on future lithium needs.

Goldman Sachs Research estimates the overall increase in data center power consumption from AI to be 200 terawatt-hours per year between 2023 and 2030. As AI use and high-performance computing grow, the need for lithium-ion batteries will rise. These batteries are key for backup power in big computing facilities.

Notably, S&P Global Commodity Insights predicts that the oversupply will make it hard for lithium prices to go up until the next decade.

lithium price forecast
Source: S&P Global

The lithium market is facing oversupply and falling prices. This is due to higher global production, reduced demand from key markets like China, and uncertainties in major economies.

While these factors present challenges in the short term, the anticipated growth in electric vehicle adoption and renewable energy storage solutions offers a positive outlook for lithium demand in the long run. Industry stakeholders must navigate these complexities carefully, balancing current market realities with future opportunities.

The post Lithium Prices Crash Below $10K, Hitting a 4-Year Low: Will the Market Rebound? appeared first on Carbon Credits.

Wells Fargo Abandons Net Zero Promise: What It Means for the Future of Green Finance

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Wells Fargo’s Net Zero U-Turn: What It Means for the Future of Green Finance?

Wells Fargo, one of the largest financial institutions in the United States, has made a significant shift in its climate strategy by abandoning its commitment to achieving net-zero financed emissions by 2050. It is the first major U.S. bank to do so. 

The bank has also dropped its interim 2030 targets for financed emissions. This is a big step back from its earlier climate goals. This decision fits a larger trend: Major financial institutions are changing their sustainability strategies, responding to outside pressures like political challenges and economic facts.

Why Wells Fargo Abandoned Its 2050 Net Zero Pledge

In a formal statement, Wells Fargo announced that it was discontinuing its sector-specific 2030 interim financed emissions targets and withdrawing its 2050 net zero commitment.

wells fargo 2030 targets
Source: Wells Fargo Climate Report

The bank mentioned several outside factors. These include changes in public policies, shifts in consumer behavior, and new technology. These reasons led to its strategic shift.

The bank stated:

“When we set our financed emissions goal and targets, we said that achieving them was dependent on many factors outside our control…Many of the conditions necessary to facilitate our clients’ transitions have not occurred.”

This change happens as the political backlash against net-zero policies in the U.S. grows. This trend follows President Donald Trump’s re-election. The administration is rolling back climate rules, which gives banks less reason to stick to strict decarbonization goals.

Wells Fargo’s choice reflects a wider trend in banking. For example, HSBC is also easing rules on fossil fuel financing.

Wells Fargo’s Emissions Reduction Strategy

Before Wells Fargo stepped back from net-zero promises, it was working hard to cut its operational emissions. The bank aims to cut its greenhouse gas (GHG) emissions by 50% by 2030. This target is based on its 2019 levels.

The bank is working to reduce its Scope 1 and 2 emissions, which totaled 641,026 metric tons (location-based emissions) in 2023. These emissions include direct emissions from its own operations and indirect emissions from the electricity it buys.

wells fargo GHG carbon emissions 2023
Source: Wells Fargo Climate Report

Key components of Wells Fargo’s emissions reduction strategy include:

  • 100% Renewable Energy Usage: Wells Fargo has been operating on 100% renewable energy since 2017 to power its global operations.
  • Energy Efficiency Measures: The bank invested in high-efficiency HVAC systems, LED lights, and smart energy management systems. These upgrades are in branches and offices to cut energy use.
  • Sustainable Building Initiatives: The company is investing more in LEED-certified buildings. They want all new corporate offices to meet high environmental standards.

Wells Fargo uses carbon credits to offset its emissions. The bank offsets its residual Scope 1 and Scope 2 emissions through the purchase of voluntary carbon credits registered under the Verra Registry’s Verified Carbon Standard (VCS) Program and the Climate Action Reserve Registry (CAR). These credits are used to compensate for emissions that remain after reduction efforts.

In 2023, Wells Fargo retired about 86,044 metric tons of carbon credits to offset its residual Scope 1 and 2 emissions.

Wells Fargo not only aims for operational sustainability but also works to cut financed emissions. These emissions come from the businesses and industries it lends to. While it has now scrapped its sector-specific financed emissions goals, the bank had targeted emission reductions in high-impact industries, such as oil and gas, power generation, and automotive manufacturing.

A Changing Approach to Sustainability Financing 

Wells Fargo says it still cares about sustainability financing, even after rolling back its net-zero commitments. The bank promises to keep funding both traditional and low-carbon energy options. It will continue to support clients’ efforts related to climate change.

As of December 2023, Wells Fargo has about $55 billion in commitments. This amount goes to oil, gas, pipeline companies, and utilities. The bank has given more than $20 billion in renewable tax equity since 2006.

Wells Fargo sustainable finance progress 2023
Source: Wells Fargo Climate Report

Also, it has invested $178 billion in sustainable finance in the last three years. These investments include $16 billion in renewable energy projects and over $15 billion in clean transportation finance.

In 2021, Wells Fargo set a goal to provide $500 billion in sustainable financing by 2030. The bank confirmed that it will maintain this target despite scrapping its net-zero goals. It will also keep working on its goals to reduce Scope 1 and 2 emissions for better operational sustainability.

Impact on the Financial Sector

Wells Fargo’s move raises questions about the financial sector’s role in addressing climate change. Many banks promised to follow the Paris Agreement’s climate goals. However, making these goals happen has been tough.

High energy prices, economic worries, and investor demands for profit have changed priorities.

The bank’s withdrawal from the Net-Zero Banking Alliance (NZBA), a global coalition committed to financing emissions reductions, further signals a shift in strategy. Other big U.S. banks, like Goldman Sachs, have left the alliance. This shows a wider trend in the industry of stepping back from strict climate commitments.

Criticism from Climate Advocates

Wells Fargo’s choice has faced harsh backlash from climate activists and sustainability supporters. The Sierra Club has criticized the bank for breaking its climate promises. They say financial institutions are key to funding the shift to a low-carbon economy.

Greenpeace UK and other environmental groups agree. They say that financial institutions play a major role in shaping global climate efforts. When banks invest in fossil fuels instead of renewable energy, they hurt the climate crisis rather than help it.

Investor Reactions: Profit Pressures Take Priority

Wells Fargo’s strategic shift aims to keep investors confident and ensure profits. The bank’s leaders stress that they focus on meeting client needs. They also aim to ensure financial stability in a fast-changing economy.

Wells Fargo feels pressure from activist investors. One major player is Elliott Investment Management. They want the bank to deliver better returns. The bank’s share price has lagged behind rivals like JPMorgan Chase and Goldman Sachs. So, leaders are now shifting their focus back to core banking functions instead of ambitious climate goals.

The bank’s revised strategy includes:

  • Reducing operational costs and divesting $20 billion in assets by 2027.
  • Increasing fossil fuel financing, maintaining significant lending to oil and gas projects.
  • Shifting its renewable investments to a more selective and capital-light model.

What’s Next? Will Other Banks Follow Suit?

Although Wells Fargo has abandoned its financed emissions reduction targets, it continues to position itself as a key player in sustainable finance. The bank says it will still help clients with decarbonization strategies. It will keep investing in renewable energy where there are good opportunities.

However, the broader implications of this decision remain uncertain. The move might encourage other banks to rethink their net-zero pledges. This is especially true in areas where political pushback against climate policies is rising. But pressure from institutional investors and global stakeholders may lead to new commitments later.

As the global energy transition unfolds, Wells Fargo’s evolving strategy reflects the complexities financial institutions face in balancing profitability, regulatory landscapes, and climate goals. The bank still supports sustainable finance, but its move away from net zero shows that aligning finances with climate goals is a tall order.

The post Wells Fargo Abandons Net Zero Promise: What It Means for the Future of Green Finance appeared first on Carbon Credits.

Can Verra’s New Carbon Standard Make Rice Farming More Sustainable?

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rice emission

Verra recently introduced the Verified Carbon Standard (VCS) Methodology VM0051 to reduce greenhouse gas emissions from rice farming. Under this guideline, farmers will practice improved water and crop management practices in flooded rice systems.

Verra began developing this methodology in late 2023. They held a public consultation in 2024 with ATOA Carbon and external reviewers to refine VM0051. The new standard, “Improved Management in Rice Production Systems, v1.0, replaces the old Clean Development Mechanism (CDM) method AMS-III.AU. The previous method ended in March 2023.

Verra’s VM0051: A New Approach to Reducing Rice Emissions

Rice is a staple for over half the world’s population. Rice fields cover around 168 million hectares. But they also release a lot of methane, which is a potent environmental pollutant.

As mentioned before, VM0051 promotes sustainable farming techniques. These methods reduce methane emissions from rice farming and improve water and fertilizer use. The standard also provides social benefits by raising farmers’ income and helping women get training and financial services in agriculture.

Generate High-Quality Credits 

Verra’s VM0051 also aims to measure or quantify emission reductions more accurately. This method promotes actions such as enhancing rice varieties and using methanotrophic bacteria to cut down methane. By using VM0051, project developers can earn high-quality Verified Carbon Units (VCUs).

Subsequently, buyers or stakeholders will want these credits to help improve rice farming, boost food security, and meet their climate goals.

rice emissions
Sourced from ricenewstoday.com

Key Features 

Verra highlighted that farming practices must reduce emissions by at least 5% to qualify as a significant change. Projects must show additionality. They can achieve this by proving a regulatory surplus, overcoming barriers, or showing that these practices are uncommon in the area.

This new standard targets agricultural land management (ALM) projects. However, VM0051 prohibits practices that significantly reduce soil organic carbon. So, projects that want to increase or decrease SOC storage must use the VCS Method VM0042 instead.

Some major improvements over the previous CDM methodology include:

  • Stronger Additionality Criteria: The methodology introduces stricter guidelines for proving additionality, including the use of remote sensing data.
  • Expanded Project Eligibility: Eligible activities now include using methanotrophic bacteria, shortening cultivation periods, avoiding residue burning, planting low-emission rice varieties, and optimizing nitrogen fertilizer use.
  • Soil Protection Measures: Safeguards prevent soil organic carbon (SOC) loss due to new farming methods.
  • Comprehensive Emission Tracking: Monitor and quantify nitrous oxide (N2O) emissions, along with CO2 from fossil fuels and energy use.
  • Dynamic Baseline Setting: The methodology adjusts baseline emissions based on actual weather conditions.
  • Improved Guidance: It provides clear instructions for project area classification and emission reduction calculations.
  • Flexible Measurement Methods: Project developers can choose from different quantification approaches, including biogeochemical models.
  • Digital Monitoring and Verification: Promotes advanced tools like remote sensing, artificial intelligence, and machine learning to streamline project validation and verification.

Quantifying Emission Reductions

VM0051 provides three methods for measuring emissions:

  1. Biogeochemical Process-Based Models: These simulate how farming practices impact emissions.

  2. Direct Measurement: Field studies gather data on actual methane emissions.

  3. Default Equations and Emission Factors: Use standard emission factors for easy calculations. These are available for projects that emit less than 60,000 t CO2e per year.

How VCS Projects Can Transition

To switch from the discontinued AMS-III.AU method to VM0051, one can follow these steps. First, use the VCS Methodology Change and Requantification Procedure for past verification periods. Next, update the methodology through a Project Description Deviation for future monitoring.

Finally, ensure the project description aligns with VM0051 before applying for a new project registration.

Each project selects a method based on its size and emission sources. Table 4 in the methodology document lists all eligible quantification options.

Future Developments

Verra is creating a digital version of VM0051. You can find it on the Verra Project Hub. This tool will streamline project submissions with structured templates for data collection. Verra is also looking to integrate VM0051 into its upcoming Scope 3 Standard Program.

In conclusion, we can say that Verra’s new VM0051 helps cut greenhouse gas emissions from rice farming. As a result, it makes the industry more sustainable and, ultimately, supports climate goals.

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