Climeworks, Japan Airlines (JAL) Sign ‘First’ CORSIA-Compliant Carbon Removal Deal

Climeworks, Japan Airlines (JAL) Sign ‘First’ CORSIA-Compliant Carbon Removal Deal

Japan Airlines (JAL) has signed a carbon removal deal with Climeworks Solutions that the companies describe as the world’s first designed to meet the requirements of the International Civil Aviation Organization’s (ICAO) Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA).

The deal is a new step for carbon removals in aviation. It combines several types of carbon removal with additional direct air capture (DAC) credits from Climeworks.

The companies, however, did not disclose the value or volume of credits covered by the deal. JAL and Climeworks said their research found no earlier purchase agreements of this type.

The deal comes as airlines face growing pressure to cut emissions. Airlines are working on aircraft efficiency, better operations, and sustainable aviation fuel (SAF). Carbon removals can help address emissions that remain after these measures.

JAL Targets CORSIA-Compliant Carbon Removals

Under the agreement, Climeworks Solutions will source a portfolio of carbon removal projects that are selected to meet ICAO requirements for CORSIA Eligible Emissions Units.

The portfolio will include methods such as soil carbon sequestration and biochar. JAL will also buy separate carbon removal credits from Climeworks’ direct air capture operations. This matters because CORSIA has specific rules for which carbon credits airlines can use.

Not every carbon credit in the voluntary carbon market qualifies for CORSIA. ICAO reviews carbon credit programs against requirements covering environmental and social integrity.

Approved programs and eligible unit types can then supply emissions units for specific CORSIA compliance periods. That makes the JAL deal different from a standard corporate carbon removal purchase.

However, the companies’ wording matters. They describe the agreement as a purchase of carbon removal credits designed to meet CORSIA requirements. The announcement does not give a specific number of credits that have already been canceled against a CORSIA obligation.

Why CORSIA Could Reshape Aviation’s Carbon Market

CORSIA is ICAO’s global system for addressing CO₂ emissions from international aviation. The system requires covered airlines to cancel eligible emissions units against their calculated offsetting requirements.

CORSIA began its pilot phase in 2021 and entered its first phase in 2024. Its second phase starts in 2027 and runs through 2035. For 2024–2035, ICAO sets the sector-wide baseline for offsetting at 85% of 2019 emissions from international aviation covered by CORSIA.

CORSIA implementation overview ICAO

Airlines can reduce their CORSIA obligations through eligible fuels and other measures. They can meet remaining requirements by canceling CORSIA Eligible Emissions Units approved by ICAO. This creates potential demand for carbon credits that meet CORSIA’s eligibility rules.

ICAO currently lists eight programs approved to supply eligible emissions units for the 2024–2026 first phase. They include the American Carbon Registry, Architecture for REDD+ Transactions, Climate Action Reserve, Global Carbon Council, Gold Standard, Isometric, the Premium Thailand Voluntary Emission Reduction Program, and Verra’s Verified Carbon Standard.

However, approval of a program does not mean every credit from that program can be used. Individual credits depend on several factors. These include the program, project activity, methodology, vintage, and other conditions.

Carbon Removals Enter Aviation’s Compliance Pipeline

The JAL-Climeworks agreement also shows how the carbon market is changing. For years, most corporate demand for carbon removals came from the voluntary carbon market. Companies bought removals to address residual emissions or support longer-term climate goals. Regulatory systems are now creating another potential source of demand.

Climeworks launched its compliance-focused Solutions offering in July 2026. The service helps companies find carbon removal portfolios. These portfolios work with frameworks like CORSIA, Article 6.2 of the Paris Agreement, and the EU’s Carbon Removal and Carbon Farming Certification Framework.

The JAL agreement is the first major deal publicly announced by Climeworks under this expanded strategy. For the carbon removal industry, the importance of the deal goes beyond the number of credits sold.

It shows how developers and buyers can build carbon removal portfolios around a specific compliance system. That could become more important as governments and international organizations set clearer rules for which carbon removals can be used in regulated markets.

JAL Pairs Removals With SAF and Efficiency for Net Zero

JAL is not using carbon removals as its only way to cut aviation emissions. The airline says aircraft efficiency, operational improvements, and SAF remain priorities.

Noriko Ogawa, Executive Officer and Chairperson, Japan Airlines, noted:

“As the first airline to secure CORSIA-compliant carbon removals, we are proud to lead the industry toward net-zero emissions. While reducing emissions through aircraft renewal, operational innovations and the use of SAF remains our top priority, high-integrity carbon removals are essential to address residual emissions. Through this pioneering partnership with Climeworks, we aim to accelerate the adoption of high-quality solutions across international aviation and contribute to a sustainable future for air travel.”

JAL has set a target of reducing its FY2030 aircraft CO₂ emissions by 10% from FY2019 levels to 8.28 million metric tons. It also targets SAF equal to at least 10% of total fuel use by FY2030. JAL said SAF accounted for 1% of its fuel use in FY2025.

JAL Net Zero
Source: JAL

The airline has also used CORSIA-eligible credits.

JAL said in its latest sustainability disclosures that it met its FY2025 target of keeping net aircraft CO₂ emissions below its FY2019 level. The airline used several measures, including more fuel-efficient aircraft, operational improvements, SAF, and carbon credits.

The new agreement, therefore, adds carbon removals to a broader decarbonization strategy. It does not replace direct efforts to reduce aviation emissions.

DAC Adds a Longer-Term Carbon Removal Bet 

The second part of the deal focuses on direct air capture. DAC uses machines to remove CO₂ directly from the air. The captured CO₂ can then be permanently stored, depending on the project and its storage method.

Climeworks operates the Mammoth DAC facility in Iceland. The company sees engineered carbon removal as a long-term way to deal with emissions that are difficult to eliminate.

JAL’s decision to buy Climeworks DAC credits alongside the broader CORSIA-focused portfolio gives the deal two different elements. The CORSIA-focused portfolio provides access to carbon removal methods designed around aviation’s compliance system.

The DAC purchases support a commercially scaling engineered carbon removal technology. These approaches, therefore, represent different parts of the growing carbon removal market.

JAL Climeworks carbon removal

A New Carbon Removal Market Takes Off in Aviation

The JAL-Climeworks deal does not mean that all carbon removals can now be used for CORSIA. Yet, the agreement shows that airlines are starting to look beyond traditional carbon offsets. They are also seeking carbon removal portfolios designed for specific compliance systems.

JAL and Climeworks call this deal the world’s first CORSIA-compliant carbon removal purchase agreement. The announcement does not establish that the credits have already been canceled for a CORSIA obligation. Still, the deal provides an early example of how carbon removals could move from the voluntary market into aviation’s regulated carbon market.

For carbon removal developers, the opportunity is to produce projects that meet increasingly detailed regulatory requirements. Airlines face the challenge of securing enough eligible units and the need to cut emissions. This can be done with more efficient aircraft, improved operations, and sustainable aviation fuel.

As CORSIA enters its second phase in 2027, these requirements could become an increasingly important source of demand for high-integrity carbon removal projects.

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Could Geothermal Be the Next U.S. Power Breakout? DOE Pours $99M Into 21 Projects

The U.S. geothermal energy market could be entering a new phase as the Department of Energy (DOE) moves to unlock resources that conventional geothermal plants cannot easily reach.

On September 21, the DOE announced more than $99 million for 21 projects across the U.S. The funding will support field tests of enhanced geothermal systems (EGS) and exploration drilling designed to find and confirm new geothermal resources.

Kyle Haustveit, DOE Under Secretary of Energy, said:

“These projects will empower American innovators to unlock the tremendous geothermal resources beneath our feet. Under President Trump’s leadership, we’re advancing next-generation geothermal technologies that can lower costs, strengthen American energy dominance, and turn more of our vast domestic geothermal resources into reliable and affordable power.”

U.S. Geothermal Is Still a Small Market

The Energy Department is supporting geothermal innovation to unlock more of the U.S.’s domestic energy resources. Geothermal can.

Even though geothermal remains a relatively small part of the U.S. power mix, it can provide reliable, around-the-clock power. This further helps to meet rising electricity demand and strengthen energy security.

US power

The latest data from the U.S. Energy Information Administration (EIA) show how much room geothermal has to grow.

  • The U.S. had about 2.68 gigawatts (GW) of utility-scale geothermal capacity as of June 2026. Geothermal plants generated 7.78 billion kilowatt-hours during the first half of 2026, down about 1.1% from the same period in 2025.

In all of 2025, geothermal generated about 16 billion kilowatt-hours, roughly 0.4% of total U.S. utility-scale electricity generation.

California remains the largest geothermal power market, accounting for about 68.6% of U.S. geothermal generation in 2025. Nevada followed with 24.7%, while Utah, Hawaii, Oregon, Idaho, and New Mexico supplied the rest.

The numbers show both the strength and limitation of today’s geothermal industry. Existing projects are concentrated in areas with favorable underground heat, fluids, and natural permeability.

US geothermal

But next-generation geothermal aims to change that.

Five Projects Will Test Enhanced Geothermal Systems

EGS can expand geothermal power into new areas. First, developers drill deep into hot underground rock. Then, they create pathways that let water flow through the rock. As the water heats up, it returns to the surface and can generate electricity.

enhanced geothermal
Source: DOE infographic

The DOE selected five projects for field-scale EGS testing:

  1. Fervo Energy will drill, complete, and stimulate EGS wells in Elmore County, Idaho. The project will also deploy a high-temperature geophone system designed to operate at or above 200°C and use seismic and geochemical data to study the engineered reservoir.
  2. Zanskar Geothermal and Minerals will test a horizontal injection well at the Lightning Dock geothermal field in New Mexico. The project aims to improve pressure support in an existing hydrothermal reservoir while also accessing heat from nearby impermeable rock.
  3. AlterG Resources will test EGS in Nevada using a deep horizontal well pair. The project will compare two hydraulic stimulation approaches, providing data on how different completion methods perform at commercially relevant depths.
  4. The University of Utah will develop and test an EGS doublet at the Dixie Valley West geothermal field in Nevada. The goal is to determine whether an engineered reservoir next to an existing geothermal system can deliver sustained circulation and useful thermal output.
  5. Quaise Energy will conduct an EGS demonstration near Newberry Volcano in Oregon. The site will target bottomhole temperatures of about 265°C to 365°C, pushing geothermal drilling into temperature ranges where conventional tools and materials face greater technical challenges.

Together, these projects could provide real-world data on drilling, reservoir stimulation, temperature, fluid flow, and long-term performance.

Why the Resource Potential Is Getting Attention: 2050 Forecast

The resource potential is much larger than today’s installed capacity suggests.

A 2025 U.S. Geological Survey assessment estimated that the Great Basin alone could contain about 135 GW of EGS electric-generation potential in the upper six kilometers of the Earth’s crust, assuming sufficient technological progress to commercialize these resources.

  • The DOE has separately estimated that the U.S. could reach at least 90 GW of geothermal electricity capacity by 2050 with major advances in EGS technology.

However, EIA said that geothermal will contribute to around 1% of total U.S. electricity generation in 2050, with an estimated
generating capacity of 7 GW to 9 GW.

EIA geothermal

That gap between today’s roughly 2.7 GW of capacity and the potential resource base explains why exploration and field testing matter.

The immediate goal is not simply to build more geothermal plants. It is to reduce the uncertainty around finding resources, drilling into them, creating productive reservoirs, and operating them reliably.

Not an Instant Power Shift, But a Long-Term Push 

The DOE says geothermal can provide firm and flexible electricity, making it a potential complement to variable sources such as wind and solar. And this characteristic could become increasingly valuable as U.S. electricity demand rises from data centers, manufacturing, electrification, and other large loads.

The new projects also create a growing pool of public subsurface data. The DOE plans to make information from the field tests and exploration work available through its Geothermal Data Repository.

For the geothermal industry, that could help turn individual drilling campaigns into a broader learning curve.

The $99 million program will not immediately transform the U.S. power market. But it targets some of geothermal’s biggest development hurdles: finding resources, drilling deeper, improving reservoir performance, and proving that next-generation systems can work outside traditional geothermal hotspots.

If those technical risks fall, the U.S. geothermal opportunity could extend well beyond the small group of states that dominate the market today.

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Meta (Stock) Signs 144-MW Texas Solar PPA With Apex as Data Center Power Demand Surges

Meta (Stock) Signs 144-MW Texas Solar PPA With Apex as Data Center Power Demand Surges

Meta and Apex Clean Energy have signed a power purchase agreement (PPA) for a new 144-megawatt (MW) solar project in Gonzales County, Texas.

Called Starling Solar, the project is expected to begin commercial operations in 2027. Meta will receive the project’s environmental attributes, including its renewable energy certificates (RECs). Apex says Meta’s commitment will support new solar capacity that would not otherwise be built.

The deal is the seventh transaction between Meta and Apex, taking their combined clean energy portfolio to about 1.2 gigawatts (GW) across Texas, Virginia, Illinois, Kansas and Iowa.

The agreement comes as Texas prepares for major growth in electricity demand, driven by data centers, manufacturing and other large power users. Urvi Parekh, head of renewable energy at Meta, remarked:

“We appreciate Apex’s partnership in helping us bring a total of one gigawatt of new renewable energy to the grid across Texas, Virginia, Illinois, Kansas, and Iowa. This new solar project will support our commitment to 100% renewable energy and will help bring jobs and investment to the local community.”

Starling Solar Adds New Texas Capacity

Starling Solar will be built in Gonzales County, southeast of San Antonio. Apex expects the project to begin operating in 2027, although the ERCOT interconnection queue lists an anticipated commercial operation date of January 2028. The schedule can change as the project moves through the grid-connection process.

The financial terms of the PPA have not been disclosed.

Apex estimates the project could generate about $27 million in tax revenue over its lifetime, including $15.6 million for local schools. It also expects more than $26.3 million in payments to landowners and between 400 and 450 construction jobs.

The deal arrives as Texas faces a sharp increase in electricity demand. ERCOT’s preliminary 2026 long-term forecast puts potential electricity demand at about 367,790 MW by 2032.

texas utility-scale solar
Source: Inside Climate News

For comparison, the state’s record peak demand was 85,508 MW in 2023. ERCOT says the forecast is preliminary and can change as large-load projects develop.

Data centers are a major driver. Meta is expanding its Texas data center footprint, including a planned 1-GW facility in El Paso. Meta expects to invest more than $10 billion in the project. That growth is creating more demand for new electricity generation. Solar is one of the fastest-growing power sources on the Texas grid.

Solar Is Set to Surpass Coal

The shift in Texas’s power mix is already visible. The U.S. Energy Information Administration expects utility-scale solar generation in ERCOT to reach about 78 billion kilowatt-hours in 2026, compared with 60 billion kWh from coal.

  • In 2027, EIA forecasts about 99 billion kWh from solar versus 66 billion kWh from coal.

Solar supplied about 12% of ERCOT electricity in 2025, up from 4% in 2021. Coal’s share fell from 19% to 13% over the same period. Natural gas remains the state’s largest power source.

coal solar electric power generation

Starling Solar, therefore, enters a market where renewable generation is expanding even as total electricity demand climbs.

Meta Keeps Building Its Clean Power Portfolio

The Starling agreement is part of Meta’s wider clean energy strategy. The tech giant says it has matched 100% of its electricity use with clean and renewable energy since 2020. Its projects have added more than 30 GW of new clean and renewable energy to electricity grids around the world.

The company aims to reach net-zero emissions across its value chain by 2030. It also targets a 42% reduction in Scope 1 and 2 emissions by 2031, compared with 2021, while keeping Scope 3 emissions at or below the 2021 level.

Meta 2024 carbon footprint
Source: Meta

Renewable energy PPAs are an important part of that strategy as Meta’s data center demand grows. Yet, one important distinction is that Starling Solar is not a carbon credit project.

Meta will receive the project’s environmental attributes, including RECs. Those certificates represent the environmental benefits of renewable electricity generation. A REC is different from a carbon credit.

A carbon credit generally represents one tonne of greenhouse gas emissions reduced, avoided or removed under a specific methodology.

The Starling project will instead support Meta’s clean electricity strategy by adding new solar generation to the Texas grid. The Facebook owner will not physically receive every megawatt-hour generated by the project. The solar electricity will flow into the grid, while Meta receives the contracted environmental attributes.

New Projects and Additionality Matter

Meta has increasingly focused on agreements that help bring new clean energy projects onto power grids. That approach is important because simply buying certificates from existing renewable plants does not necessarily add new generation.

Long-term PPAs can help developers secure financing by providing greater certainty about future revenue. That can make it easier to build new solar, wind, and storage projects.

Starling fits this model. Meta’s long-term commitment gives Apex a major corporate buyer while helping support new generation in Texas. The approach also shows how corporate climate demand is becoming closely linked to physical power markets.

Meta Already Has a Large Texas Pipeline

The new agreement builds on Meta’s existing relationship with Apex. In 2023, Meta signed a deal for the full output of the 195-MW Angelo Solar project in Texas. Apex said its portfolio with Meta had then exceeded 1 GW across several states.

Meta has also signed large agreements with other developers. In 2025, Meta agreed to purchase 100% of the output from ENGIE’s 600-MW Swenson Ranch Solar project in Texas. That deal brought the Meta-ENGIE partnership to more than 1.3 GW across four Texas projects.

The company’s strategy is therefore spread across multiple developers and projects rather than relying on one source of renewable electricity.

The Starling deal also highlights the role of corporate PPAs in financing new renewable power. Large solar projects require significant upfront capital. A long-term buyer can provide revenue visibility, making the project more attractive to banks and investors.

This is increasingly important in Texas, where electricity demand is rising quickly but grid connections and transmission remain challenges.

ERCOT has introduced a new Batch Zero process for large electricity users requiring at least 75 MW. The system groups major projects for grid studies so ERCOT can better assess their combined impact and needed transmission upgrades.

The changes show how quickly Texas’s electricity market is evolving.

Meta Stock Moves Sharply Higher

Meta Platforms (NASDAQ: META) shares rose sharply around the time of the Apex announcement, but the move was not tied specifically to the Starling Solar deal. On September 21, Meta stock jumped 11.4%, adding about $192 billion to the company’s market value.

Meta stock price

The rally was driven largely by investor enthusiasm surrounding Meta’s AI strategy and its Muse AI assistant, which became the most-downloaded free app on Apple’s App Store.

The Bigger Carbon Market Connection

Starling Solar is not a carbon credit project, but it still connects to the broader climate market. Data centers and AI are driving electricity demand higher, while companies such as Meta face growing pressure to reduce the emissions linked to that power use.

Texas shows both trends at once. Solar generation is expected to overtake coal in 2026, while ERCOT is preparing for much higher future demand.

For Meta, the 144-MW Starling Solar deal adds another source of clean electricity and renewable attributes. For Apex, it provides a major corporate buyer for a new solar project. And for Texas, it adds renewable capacity as the grid prepares for a much larger electricity market.

The wider trend is this: large technology companies are increasingly using long-term renewable energy contracts to help finance new power capacity as AI, data centers, and electrification drive electricity demand higher.

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U.S. EV Sales Fall 47% in 2026: Tesla, Toyota and GM Battle for a 53% Electric Future

The U.S. electric vehicle (EV) market is going through a reality check.

New EV sales plunged 46.9% year over year in August 2026, according to Cox Automotive, even as the market showed some month-to-month improvement. Yet the latest outlook from the U.S. Energy Information Administration (EIA) paints a very different picture for the years ahead.

Under scenarios that include the EPA’s latest vehicle emissions standards, EIA projects battery-electric vehicles could reach about 53% of annual U.S. light-duty vehicle sales by 2032.

So, what is happening?

The answer is a market caught between a short-term slowdown and a potentially much bigger long-term transition.

EV Sales Are Down, But August Brought a Small Rebound

The latest numbers show just how sharply the U.S. EV market has changed.

Cox Automotive estimates that Americans bought 78,895 new EVs in August 2026. That was 2.5% higher than July, but still 46.9% below August 2025, when buyers were rushing to take advantage of the federal $7,500 EV tax credit before it expired. EVs represented 5.7% of total new-vehicle sales in August.

US EV SALES
Source: Cox Automotive

The second quarter tells a similar story.

U.S. EV sales reached 247,226 units in Q2 2026, according to Cox, up 14.7% from Q1 but down 20.5% from Q2 2025. The decline was smaller than the 27.3% year-over-year drop recorded in Q1, suggesting the market was beginning to stabilize after the post-incentive correction.

  • EIA’s own analysis shows battery-electric vehicles represented about 6% of new U.S. light-duty vehicle sales in Q2 2026, down from 7% a year earlier.

Interestingly, the broader electrification market is doing better than the pure EV numbers suggest.

Hybrids accounted for a record 16% of new light-duty sales in Q2 2026, while battery-electric and plug-in hybrid vehicles added another share. Combined, hybrids, EVs and plug-in hybrids represented 24% of new light-duty vehicle sales.

eia hybrod sales us ev

Tesla Still Leads, But Toyota Is Making Noise

Tesla remains the heavyweight in the U.S. EV market.

  • In August, Tesla (TSLA Stock) sold an estimated 40,816 EVs, giving it 51.7% of the U.S. EV market. But its sales declined 3.8% from July, while several competitors gained ground.
tesla tsla stock
Source: Tesla

Toyota was the standout.

The Japanese automaker sold 4,964 EVs in August, up 34.9% from July. Its updated bZ electric SUV was a major contributor. Chevrolet, Cadillac and Kia also posted month-to-month gains of 30.3%, 13.1% and 12%, respectively.

Toyota’s progress is particularly notable because it started from a much smaller EV base. Through the first eight months of 2026, Toyota had sold more than 22,500 bZ electric SUVs, compared with just 15,609 bZ4X units during all of 2025.

Meanwhile, Ford’s Mustang Mach-E sold 15,484 units through August, down 55% from the same period last year.

The competitive picture is therefore changing, even with Tesla still controlling more than half of the market.

EIA Sees a Much Bigger EV Market Ahead

This is where the latest EIA outlook gets interesting.

The Annual Energy Outlook 2026 does not present one fixed forecast. Instead, EIA models several possible futures based on technology costs, markets, and policy assumptions.

  • In cases where the EPA’s Model Year 2027–2032 tailpipe emissions standards are incorporated, EIA projects electric vehicles could reach about 53% of U.S. light-duty vehicle sales by 2032.

But getting from more than half of annual sales to more than half of vehicles on the road takes much longer.

EIA estimates that EVs could represent roughly 40%–46% of the U.S. light-duty vehicle fleet by 2050 in cases that include those standards.

Without the standards, the outcome is dramatically different. EVs would reach only about 20% of annual light-duty vehicle sales by 2050, while their share of vehicles on the road would be around 18%.

There is a simple reason for the difference.

Cars stay on the road for a long time. EIA estimates new vehicles remain in use for an average of 18–28 years, depending on the vehicle type and how it is used.

That means even if EVs dominate new-car sales, gasoline vehicles will remain a major part of America’s fleet for decades.

EIA US battery vehicle sales

The Carbon Story Is Bigger Than EV Sales

The EV transition also matters because transportation remains one of America’s largest sources of energy-related carbon emissions.

  • EIA’s latest emissions data show that the U.S. transportation sector produced about 1.87 billion metric tons of CO₂ in 2025. Transportation emissions were essentially flat, as lower gasoline-related emissions offset higher emissions from diesel and other fuels.

EV emission

EVs are already beginning to affect the energy system.

  • EIA estimates U.S. light-duty EVs consumed about 11.2 million megawatt-hours of electricity in the first five months of 2026, including 9.3 million MWh from battery-electric vehicles and 1.9 million MWh from plug-in hybrids.

The longer-term impact could be much larger.

EIA projects transportation energy use will fall from about 27 quadrillion British thermal units in 2025 to between 21 and 25 quads by 2050, even as Americans drive more. In scenarios incorporating the EPA standards, transportation energy consumption falls by 13%–25%.

ev climate energy

That is an important climate-market story.

EVs don’t eliminate transportation emissions by themselves. Their climate benefit depends partly on the electricity used to charge them. But replacing gasoline-powered vehicles with increasingly efficient electric vehicles can reduce direct tailpipe emissions while shifting energy demand from petroleum toward electricity.

The EV Market Is Slowing. The Transition Isn’t Over

The U.S. EV market in 2026 looks very different from the boom years.

Sales are down sharply from last year’s incentive-driven highs. Tesla remains dominant, while Toyota, Chevrolet, Hyundai, Cadillac and other automakers are fighting for more market share. Hybrids are also capturing consumers who want better fuel economy without going fully electric.

But EIA’s 2050 outlook shows why today’s sales slump may not tell the whole story.

The bigger investment question is no longer simply how many EVs Americans buy this year.

It is how quickly electric vehicles, batteries, charging infrastructure and cleaner electricity can replace petroleum across the transportation system.

If EIA’s higher-adoption scenarios play out, 53% of new U.S. light-duty vehicles could be electric by 2032, while as much as 46% of the entire light-duty fleet could be electric by 2050.

For the EV and clean-energy industries, the road may be bumpier than expected. But the destination could still look dramatically different from today’s gasoline-heavy transportation system.

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Apple (AAPL) Stock Climbs as iPhone 18 Pro Goes Greener. Can 40% Recycled Content Reduce Its Carbon Footprint?

Apple’s newest iPhone arrives with more than a new camera and faster performance. Behind the glossy launch of the iPhone 18 Pro and iPhone 18 Pro Max is another story: how much carbon it takes to make, ship, and use a smartphone.

At the same time, Apple is pushing recycled materials deeper into the device, using renewable electricity across manufacturing and eliminating landfill waste at established final assembly supplier sites.

Let’s take a closer look at the emissions footprint of its latest gadget.

iPhone 18 Pro’s Carbon Footprint Starts at 63 kg

Apple calculates the iPhone 18 Pro’s footprint using a life-cycle assessment covering the device, components, packaging, and in-box accessories.

Its latest product environmental report puts a number on that footprint. Depending on the storage configuration, an iPhone 18 Pro generates between 63 kg and 109 kg of gross greenhouse gas emissions over its modeled life. For the Pro Max, the range is 69 kg to 114 kg.

The footprint rises with storage capacity.

They say production is the biggest source of emissions, accounting for 46% of the 256GB iPhone 18 Pro footprint. Non-electricity-related production, including materials and processes, accounts for 17%, while electricity contributes 29%.

Transportation represents 3%, customer use 13%, infrastructure for renewable energy generation 1%, and end-of-life processing less than 1%.

That breakdown shows why Apple is focusing so heavily on materials and supplier electricity rather than just making the phone itself more energy efficient.

iphone 18 carbon footprint
Source: Apple

40% Recycled Content Goes Inside the New iPhone

The iPhone 18 Pro and Pro Max contain 40% recycled content by mass, excluding packaging and accessories. This time, the company has also increased the use of recycled materials across individual components:

Apple says recycled materials generally have a lower carbon footprint than newly mined materials, making material recovery an important part of its product decarbonization strategy. Here’s the snapshot of the sustainable materials packed inside its latest gadget:

apple sustainability iphone 18
Source: Apple

50% of Manufacturing Electricity Comes From Renewables

Apple says 50% of the manufacturing electricity allocated to the iPhone 18 Pro and Pro Max comes from renewable energy.

That includes electricity procured by Apple or its suppliers through Apple’s Supplier Clean Energy Program. The company is ultimately working toward moving suppliers to 100% renewable electricity.

  • The phones also use 60% less energy than the applicable U.S. Department of Energy efficiency standard, according to Apple.

The 20W USB-C power adapter used for the models has measured efficiency of 87.4% at 100V, 88.0% at 115V and 87.8% at 230V. Its no-load power consumption is 0.04W across all three voltage levels.

Less Waste, More Fiber

Apple says all established final assembly supplier sites for the iPhone 18 Pro and Pro Max have been independently validated as Zero Waste to Landfill.

Under UL’s standard, suppliers need to divert at least 90% of waste away from landfill, with higher diversion rates qualifying for Gold and Platinum designations.

Packaging is also 100% fiber-based and uses recycled or responsibly sourced fibers.

The company is pairing that with stricter chemical controls. Final assembly suppliers must use safer cleaners and degreasers based on methodologies such as ChemFORWARD, GreenScreen and the U.S. EPA Safer Choice program.

Apple also says its materials, accessories and packaging are covered by its Regulated Substances Specification and that it conducts toxicological assessments of materials that have prolonged skin contact.

Apple’s Bigger Emissions Problem

The iPhone footprint is only one piece of Apple’s climate story.

According to Apple’s 2026 Environmental Progress Report, the company’s 2025 gross greenhouse gas emissions were about 15.3 million metric tons of CO2e, while net emissions after offsets were 14.5 million tons. It estimated that its environmental programs avoided 43 million metric tons of emissions in 2025.

Notably, product manufacturing accounted for 53% of Apple’s gross footprint

Apple says its gross emissions are down more than 60% from 2015, even though revenue has increased 78% over the same period. Its 2030 goal is to reduce value-chain emissions by 75% from the 2015 baseline before addressing the remaining emissions.

The company’s environmental programs avoided an estimated 43 million tons of emissions in 2025, including:

  • 26 million tons from supplier clean energy
  • 7 million tons from direct emissions abatement
  • 6 million tons from low-carbon materials
  • 2 million tons from supplier energy efficiency.

                                          Apple’s Emissions Data

apple sustainability emissions
Source: Apple

Apple Stock (AAPL) Rises as the iPhone 18 Pro Hits Stores

Apple shares closed at about $315.34 on September 9, according to market data reported after the launch. By September 11, shares had reached $332.27, representing a roughly 5.4% increase from the September 9 close.

On September 17, Apple shares closed at $337, according to market reporting, after gaining 1.4% that day as the phones approached their retail launch.

As trading began on September 18, AAPL was around $337, putting the stock roughly 7% above its September 9 closing level.

The market reaction, however, is being driven primarily by expectations around demand, pricing, and the premium iPhone mix rather than Apple’s environmental credentials. Early reports said carrier trade-in offers of as much as $1,200 were helping support demand for the new Pro models.

apple stock
Source: Stock Analysis

The Bigger Sustainability Test Is the Supply Chain

Apple’s iPhone 18 Pro shows how sustainability is becoming embedded in product design rather than treated as a separate corporate initiative.

More recycled metals, renewable electricity, fiber packaging, lower energy use, and supplier waste controls can all reduce the footprint of each device.

But Apple’s own numbers also show the scale of the challenge. Manufacturing remains the largest part of the iPhone’s carbon footprint, while product manufacturing and product use together account for 80% of Apple’s broader gross footprint.

The iPhone 18 Pro may therefore be greener by design, but Apple’s bigger climate challenge is making those improvements meaningful across hundreds of millions of devices and a global supply chain.

That is where the company’s 2030 target will ultimately be tested.

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Factorial Energy (FAC) Teams Up With Mitsui Kinzoku to Scale Solid-State Batteries

The top U.S. battery developer Factorial Energy (Nasdaq: FAC) is bringing in a major Japanese materials company as it works to take its solid-state battery technology from advanced testing to commercial production.

It recently announced a strategic partnership with Japan’s Mitsui Kinzoku Company to support industrializing its Solstice™ all-solid-state battery platform.

The deal brings together two different pieces of the battery puzzle. Factorial focuses on cell design and manufacturing processes, while Mitsui Kinzoku brings its experience in sulfide-based solid electrolytes.

Siyu Huang, CEO of Factorial, noted:

“Battery innovation can’t be done by one single company. It’s driven by the entire supply chain and, increasingly, by an entire industry coalition. Mitsui Kinzoku’s foundational electrolyte technology brings critical materials expertise to our work to move Solstice™ toward commercial deployment. We’re not just building a battery. We’re building the connective thread that helps the whole industry move forward together.”

Mitsui Kinzoku Brings Materials Expertise

Factorial will continue to lead the Solstice platform as a fabless battery technology company. Its work covers cell design, process development, supply-chain qualification, production-line integration, and manufacturing validation.

Mitsui Kinzoku will contribute its expertise in advanced battery materials.

The Japanese company is one of the few major producers of sulfide-based solid electrolytes, an important component in all-solid-state batteries. Its A-SOLiD™ technology has been under development since 2016, and the company is working toward mass production at a dedicated facility in Saitama, Japan.

A Major Player in Semiconductor Materials

Mitsui Kinzoku also has a major position in semiconductor materials. It is a leading producer of ultra-thin copper foil and estimates that it holds about 90% of the global semiconductor market for that type of foil.

The partnership gives Factorial access to an established materials supplier while allowing Mitsui Kinzoku to work with a U.S. developer that is already testing solid-state cells in vehicles and other applications.

Dr. Kiyotaka Yasuda, Senior Executive Officer, General Manager, Business Creation Division of Mitsui Kinzoku Company, Limited, says:

“I am very pleased that we have been able to enter into this joint development agreement with Factorial. Batteries are a key technology for realizing an electrified society, but significant technical challenges still remain. That is precisely why we believe it is necessary to go beyond the extension of existing technologies and take on the challenge of creating new value.”

“By leveraging Mitsui Kinzoku’s long-established expertise in materials and manufacturing technologies and combining it with Factorial’s advanced technological capabilities, we aim to accelerate the realization of next-generation batteries.”

Why sulfide electrolytes matter

Traditional lithium-ion batteries use a liquid electrolyte to move lithium ions between the electrodes. Solid-state batteries replace that liquid with a solid material.

But sulfide-based electrolytes are attracting attention because they can provide high ionic conductivity while supporting the thin battery designs needed for high energy density.

However, they also bring manufacturing challenges. Producing consistent layers, managing moisture sensitivity, and integrating the materials into existing battery production lines can be difficult.

This makes manufacturing know-how just as important as the chemistry itself.

Solstice Targets More Energy With Less Weight

Factorial says its Solstice platform can reach up to 450 Wh/kg and deliver up to 80% higher energy density than traditional lithium-ion batteries.

Higher energy density could allow automakers and other customers to choose between longer range and lighter battery packs.

The company is also working on the manufacturing side. Solstice uses proprietary dry-cathode processing, which Factorial says can reduce manufacturing costs and energy use compared with conventional wet-coating methods.

The platform is designed around several potential advantages:

  • Energy density of up to 450 Wh/kg, according to Factorial
  • Operation at temperatures up to 90°C
  • A sulfide-based all-solid-state electrolyte
  • Dry-cathode processing designed to simplify production
  • Compatibility with parts of existing lithium-ion manufacturing infrastructure

The last point could be particularly important. Battery companies have already invested billions of dollars in lithium-ion factories, so a solid-state technology that can use some existing equipment could potentially reduce the cost and time required to scale.

factorial solid state battery

Factorial Has Already Put Its Batteries to the Test

The company is not starting from a laboratory bench.

Testing with Stellantis

Factorial and Stellantis have been testing FEST® solid-state battery cells in North America. The technology was integrated into a Dodge Charger Daytona prototype as part of the development program.

Stellantis previously reported that Factorial’s 77 Ah FEST cells reached an energy density of 375 Wh/kg over more than 600 cycles.

The cells also demonstrated:

  • Charging from 15% to 90% in 18 minutes
  • Discharge rates of up to 4C
  • Operation from -30°C to 45°C

These results are from testing programs rather than mass-market production, but they show the stage the technology has reached.

Mercedes-Benz pushes range

Mercedes-Benz has also tested Factorial’s technology. A modified EQS equipped with Factorial’s solid-state cells traveled more than 1,200 kilometers, or about 745 miles, on a single charge during a road test.

The test showed why solid-state batteries continue to attract interest from premium automakers. More energy packed into a smaller and lighter battery could make long-range EVs easier to build without simply adding more battery cells.

The U.S. Solid-State Battery Market Is Still Young

Solid-state batteries remain a small commercial market in the U.S., but market researchers expect the sector to expand quickly as automakers move toward pilot production and early commercial applications.

  • According to Market Research Future, the U.S. solid-state battery market was valued at $147.83 billion in 2024. The market is expected to grow from $154.04 billion in 2025 to $232.44 billion by 2035. It represents a 4% CAGR during the period.

    us solid state battery
    Source: Market Research Future

Other forecasts, like Grand View Research, estimate that the U.S. solid-state battery market could reach $4.13 billion by 2033, with a 40.7% CAGR between 2026 and 2033.

The difference between these estimates is significant. It also shows how early the industry is and how much future growth depends on commercialization.

Factorial’s Ecosystem is helping move the market forward

The U.S. is becoming an important testing ground for solid-state batteries because the country has major automakers, battery manufacturers, and government-backed efforts supporting domestic battery production.

Factorial is building its own network around that ecosystem. The company has worked with Mercedes-Benz, Stellantis, Hyundai, and Kia. It also has strategic backing from In-Q-Tel and POSCO Future M.

In July, it signed an MOU with SK On to explore bringing its solid-state battery technology into SK On’s global manufacturing network. This approach could help Factorial avoid building an entirely new manufacturing footprint from scratch.

Solid-State Batteries Could Go Beyond EVs

Electric vehicles remain one of the biggest potential markets for solid-state batteries, but Factorial is looking beyond cars. The company announced its first commercial aerospace order in July and is also developing applications for drones, defense, and robotics.

These markets have different battery requirements from passenger vehicles.

For an electric car, a lighter battery can improve range and efficiency. For a drone or aircraft, reducing battery weight can directly affect how long the vehicle can stay in the air.

Robotics could also become an important market as AI moves from software into physical machines.

Factorial describes this broader opportunity as an emerging “energy layer,” where batteries become a critical part of the infrastructure needed for electric mobility, aerospace and physical AI.

Factorial Moves Into Its Next Phase

Factorial’s Nasdaq debut in June 2026 under the ticker FAC marked another step in its commercialization strategy.

SOLID STATE BATTERY FAC stock factor energy

The partnership does not mean solid-state batteries are ready to replace lithium-ion cells across the market. Manufacturing scale, cost, durability, and supply-chain development remain major hurdles for the industry.

But the direction is becoming clearer.

Factorial has moved from developing battery chemistry toward testing cells in vehicles and other real-world applications. Its latest deal with Mitsui Kinzoku focuses on the next challenge: building a materials and manufacturing system that can support larger-scale production.

Last but not least, for FAC investors, that shift from laboratory performance to manufacturing execution could become one of the most important parts of Factorial’s next stage of growth.

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GSK Signs 8-Year Carbon Removal Deal With Varaha to Scale Regenerative Farming in India

GSK Signs 8-Year Carbon Removal Deal With Varaha to Scale Regenerative Farming in India

Global healthcare company GSK has signed an eight-year deal with Indian climate company Varaha to cut emissions and enhance carbon removal. It will support regenerative agriculture on 50,000 hectares of smallholder farmland in Punjab and Haryana.

The deal was structured by climate investment platform Earthly and covers more than 500,000 carbon credits. The project is expected to deliver about 100,000 tonnes of removal credits a year between 2028 and 2033. The wider agreement runs for eight years.

The project will help farmers move away from crop residue burning, intensive tillage and flood-irrigated rice farming. Instead, farmers will use practices such as direct-seeded rice, reduced tillage and crop-residue incorporation.

The deal is notable because it links carbon finance with three major issues in northern India: climate change, farm income and air pollution.

Adele Cheli, VP Environmental Sustainability at GSK, said:

“For GSK, environmental sustainability is core to business resilience and human health. This investment demonstrates how we’re progressing in our net-zero journey, whilst also delivering co-benefits for human health, nature and local communities.”

Carbon Finance Targets India’s Crop Burning Problem

Farmers in Punjab and Haryana often burn rice residue after harvest because they have only a short period to prepare fields for the next crop. India has been working to reduce the practice, and the number of farm fires has fallen sharply.

During the 2025 paddy season, Punjab recorded 5,114 farm-fire incidents, down 53% from 2024. Haryana recorded 662, also a 53% fall. Together, the two states recorded about a 90% reduction from 2022 levels.

farm-fire incidents india

Despite that progress, the government continues to identify crop-residue burning as an important source of seasonal air pollution in northern India.                                                                                            

The carbon project aims to address the economic reasons farmers burn the residue. Farmers will receive subsidized access to machinery and a share of carbon credit revenue.

That can help cover the extra cost and labour needed to manage crop residues without burning them. This makes the carbon market part of the solution rather than simply paying for an emissions calculation after the fact.

Regenerative Farming Targets Carbon, Water and Farm Income

The Varaha project is designed to generate both emissions reductions and soil carbon removals.

Reduced tillage can lower fuel use and soil disturbance. Direct-seeded rice can reduce the need for intensive field preparation and flooding. Incorporating crop residues into the soil can also return organic matter to farmland.

Varaha’s project has already reported results from an earlier monitoring period covering 42,000 hectares. The project estimated it avoided about 4,574 tonnes of PM2.5 emissions from crop burning. It also saved around 59.5 billion litres of water.

Moreover, participating households saw an average 12% to 16% increase in income. This rise came from higher yields, lower fertilizer costs, and carbon revenue.

The water figure is particularly notable. Across the 42,000-hectare monitoring area, the reported savings work out to roughly 1.4 million litres per hectare.

These figures are project results, not a guarantee for the full 50,000-hectare expansion. Future performance will depend on farmer adoption, weather, crop yields and verification.

The Project Uses Verra’s Agricultural Carbon Methodology

The project is registered under the Verra Verified Carbon Standard, using VM0042 Improved Agricultural Land Management. Earthly says it is also upgrading the project to version 2.2 of the methodology. The project is listed on the Verra system as Project 3346.

VM0042 covers greenhouse gas reductions and soil organic carbon removals from improved farming practices. These include reduced tillage, better fertilizer use, and residue and water management.

The updated VM0042 v2.2 is approved by the Integrity Council for the Voluntary Carbon Market as meeting its Core Carbon Principles (CCP) requirements. However, that does not automatically give every project or credit a CCP label. Projects must meet additional conditions at verification.

Those rules are important for agricultural carbon because soil carbon can be difficult to measure and can change over time. The updated methodology includes stronger requirements around baselines, additionality, leakage, and soil carbon measurement.

GSK Is Building a Larger Carbon Removal Portfolio

The Varaha deal fits directly into GSK’s broader climate strategy. The pharma giant plans to reduce 80% of greenhouse gas emissions from all scopes by 2030, using a 2020 baseline. Nature-based solutions will address the final 20%.

GSK net zero pathway
Source: GSK

It also targets net zero across its full value chain by 2045, including a 90% absolute emissions reduction and neutralization of residual emissions. GSK says it prioritizes carbon removals for its 2030 target and plans to use only carbon removals for its 2045 net-zero target.

The company announced that by the end of 2025, it had secured carbon credits for 8% of its expected residual emissions. This is 40% of the credits it anticipates needing.

GSK value chain carbon footprint
Source: GSK

The Varaha agreement, therefore, adds to a growing pipeline of nature-based carbon projects that GSK is developing ahead of its future residual emissions needs. Importantly, GSK says carbon credits are being used alongside direct emissions cuts, rather than as a replacement for them.

Agriculture Is Becoming a Larger Carbon Market

The deal also shows why agriculture is becoming an important part of the carbon removal market. Verra said in 2025 that around 200 projects were listed under earlier versions of VM0042. Together, those projects had the potential to issue an estimated 126 million tonnes of emissions reductions and removals annually.

That is potential supply, not actual issuance. Still, it shows the size of the pipeline being developed around improved farming practices.

Agricultural projects can also offer benefits that are difficult to obtain from some industrial carbon removal technologies. These include improved soil health, lower water use, better farm resilience, and additional income for farmers.

At the same time, they face measurement challenges. Soil carbon changes slowly and can vary between fields. Weather and farming practices can also affect results. That makes strong measurement and independent verification essential for buyers such as GSK.

GSK varaha carbon removal

A Long-Term Deal Gives Farmers More Certainty

One of the most important parts of the agreement is its length. Many voluntary carbon transactions are relatively short-term purchases. An eight-year commitment helps Varaha see future demand better. This can support investments in farm equipment, field support, and measurement systems.

That matters because farmers need to change practices before carbon benefits can be measured.

The project also includes ongoing reporting. Earthly says the agreement includes quarterly reporting covering carbon, water, farmer income, and community engagement through the project period. This wider reporting is becoming more important as buyers look beyond the number of tonnes generated.

The Deal Is a Test for High-Quality Farm Carbon

The GSK-Varaha agreement is significant because it moves beyond a small demonstration project. The planned 50,000 hectares represent a large expansion of regenerative farming in a region where crop burning, water use, and soil management remain major challenges.

However, the more important test will be delivery. The project must show that farmers maintain the new practices, that soil carbon gains are measured accurately, and that the claimed emissions reductions are independently verified.

For GSK, the deal adds a significant source of future removals as it works toward its 2030 and 2045 climate targets. For Varaha, it provides long-term demand to scale regenerative agriculture. And for India’s farmers, the model could create another source of income while reducing burning and improving soil management.

For the carbon market, long-term corporate commitments can help turn agricultural carbon projects into real investments in climate, farming, and public health.

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Biochar Carbon Removal Is Heating Up. Exomad Green and Carbonfuture Lock In 1.1M Tonnes Through 2035

The biochar carbon removal market is moving toward larger, longer-term deals as corporate buyers look for supply they can actually verify and receive. Exomad Green and Carbonfuture are now expanding their partnership to more than 1.1 million tonnes of biochar carbon removal supply.

The additional volume, which includes an allocation already secured for 2026, will be available to corporate buyers through Carbonfuture through 2035. The companies also reaffirmed more than 1.2 million tonnes already contracted for delivery under existing multi-year agreements.

The agreement comes as buyers increasingly focus on delivery records, traceability and independently verified tonnes rather than simply future production promises.

Exomad Green Adds More Biochar Supply

Bolivia-based Exomad Green produces biochar by converting sustainably sourced forestry and sawmill residues through industrial pyrolysis. The company operates facilities in Concepción and Riberalta and is developing another large-scale facility in Guarayos.

  • Its longer-term goal is to reach 1 million tonnes of annual carbon removal capacity. Its biochar carbon removal activity is certified under the Puro Standard’s Biochar Methodology, while Carbonfuture provides digital tracking for selected major agreements.

Exomad Green has also built a substantial delivery record.

The companies began working together in mid-2023, when Carbonfuture facilitated two Exomad Green transactions totaling 30,000 tonnes and 32,000 tonnes. At the time, both deals ranked among the largest biochar carbon removal agreements announced.

Since then, Exomad Green has delivered more than 400,000 tonnes of durable carbon removal. CDR.fyi data as of August 2026 placed it as the global leader by cumulative delivered durable carbon removal volume.

exomad green
Source: CDR.Fyi

Carbonfuture Connects Buyers With Carbon Removal Projects

Carbonfuture provides digital infrastructure for the carbon removal market. Its digital tools are capable of doing the following tasks:

  • tracks projects and tonnes across the removal lifecycle,
  • supports data transparency
  • third-party verification and credit issuance
  • connecting suppliers with corporate buyers.

The company works with suppliers across five continents and covers several carbon removal methods, including biochar, bioenergy with carbon capture and storage (BECCS), direct air carbon capture and storage (DACCS), and mineralization.

Some of its customers and partners include major climate-focused organizations such as Microsoft, Swiss Re and the World Economic Forum’s First Movers Coalition.

Exomad Green CEO Diego Justiniano said 2026 is putting greater focus on execution in carbon removal. He noted that buyers need reliable, verified tonnes delivered on schedule, not just ambitious capacity plans.

Biochar Demand Is Surging

The timing of the agreement reflects a broader shift in the biochar market.

Supercritical data shows that global biochar sales nearly doubled year over year in the first half of 2026, rising from 1.59 million tonnes across 624 deals in H1 2025 to 2.99 million tonnes across 280 deals in H1 2026.

The headline numbers hide an even sharper shift toward long-term procurement:

  • Total biochar sales rose 88% year over year to 2.99 million tonnes.
  • Offtake volume jumped 106% to 2.91 million tonnes.
  • Spot-market volume fell 54% to 81,000 tonnes.
  • Excluding Microsoft, total purchases climbed from 350,000 tonnes to 1.89 million tonnes.
  • Non-Microsoft offtake volume surged from 176,000 tonnes to 1.81 million tonnes, a 925% increase.

The result is a market where buyers are securing supply earlier instead of waiting for spot availability later in the year.

biochar
Source: Supercritical

By July 2026, 81% of high-quality biochar supply had already been committed through offtakes and exclusive agreements. The same threshold was not reached until October 2025. Supercritical also estimates that active enterprise RFPs could claim as much as 70% of the remaining unsold high-quality supply.

This does not mean the world lacks biochar projects. Hundreds of projects are developing capacity, but the amount of supply that meets stringent quality and delivery requirements is considerably smaller.

The research firm said its climate science team has evaluated more than 400 biochar projects, with only 13 passing its assessment.

Biochar Dominates Durable Carbon Removal

Biochar’s position in the broader carbon removal market has strengthened sharply in 2026.

CDR.fyi reported that the durable carbon removal market contracted 2.3 million tonnes in the first quarter, making it the largest Q1 on record. Biochar accounted for 93% of those contracted tonnes.

More than 113 buyers other than Microsoft contracted 1.3 million tonnes, while 145,000 tonnes of durable carbon removal were delivered during the quarter and just over 100,000 tonnes were retired.

durable CDR

Exomad Green was among the leading suppliers. In Q1, it secured a 500,000-tonne agreement with Supercritical and another 105,000 tonnes with undisclosed buyers through Senken, taking its total tonnes sold to just over 2.35 million tonnes at the time.

Production Is Scaling, Too…

Physical biochar production is also expanding rapidly.

  • The International Biochar Initiative’s 2025 Global Biochar Market Report estimates that global biochar production reached 520,810 metric tonnes in 2025, up from 180,150 tonnes in 2023. That represents an approximate 70% compound annual growth rate.
  • The report, based on responses from 930 stakeholders across 96 countries, projects global production could reach 3.5 million tonnes by 2027 and nearly 9.3 million tonnes by 2030.

Asia became the largest producing region in 2025, overtaking North America, while Africa recorded the fastest regional growth among the surveyed markets. South America ranked as the third-largest producing region.

Still, production growth and carbon removal supply are not the same thing. Buyers increasingly want projects with reliable feedstock, consistent production, strong monitoring and verification, and an established record of delivering credits.

That distinction is becoming increasingly important as corporate demand moves toward multi-year contracts.

Why The Deal Matters for Carbon Removal Investors

Exomad Green’s business is about more than selling carbon credits. It turns sawmill waste into biochar and gives it to local farmers and communities for free. The biochar can improve soil while also reducing open burning, air pollution, and fire risk.

For investors, the key point is growth. Exomad Green has already delivered more than 400,000 tonnes of carbon removal. It now has another 1.1 million tonnes available through 2035, on top of more than 1.2 million tonnes already covered by long-term deals.

The deal also shows how the biochar market is changing. Buyers want projects that can produce and deliver carbon removal, not just promise future supply. As demand grows, companies with proven production and long-term contracts could become increasingly important in the carbon removal market.

The post Biochar Carbon Removal Is Heating Up. Exomad Green and Carbonfuture Lock In 1.1M Tonnes Through 2035 appeared first on Carbon Credits.

Can Verra’s New Scope 3 Standard Program Turn Supply Chain Emissions Into Climate Finance?

Can Verra’s New Scope 3 Standard Program Turn Supply Chain Emissions Into Climate Finance?

Verra has launched a new Scope 3 Standard (S3S) Program that allows project developers to list climate projects linked to corporate value chains. The program, which started on September 15, helps companies measure, verify, and report emissions reductions.

This is important for projects that impact their supply chains or products. It also creates a new system for issuing Scope 3 Units (S3Us) tied to those outcomes.

The launch happens as companies feel more pressure to cut Scope 3 emissions. These emissions come from activities beyond their direct control. They include suppliers, purchased materials, product use, and other value chain activities.

Verra says Scope 3 emissions typically account for more than 75% of a company’s total carbon footprint. More than 40% of the world’s largest public companies have net-zero targets that include Scope 3 emissions. The new program aims to turn that large emissions challenge into a more structured market for investment in value chain projects.

Project Developers Can Now Join the Program

The first version of the S3S Program is now live, but it is being introduced in stages. At launch, project developers can pipeline-list projects on the Verra Registry using two approved methodologies:

  • S3S-VM0042 Improved Agricultural Land Management
  • S3S-VM0043 CO2 Utilization in Concrete Production

Future updates will allow projects to move through full registration, validation, and verification, after which Verra will issue S3Us.

This phased approach is important. Projects entering the program today are not automatically receiving Scope 3 Units.

Instead, Verra is first creating a pipeline of projects that meet the new framework. The next stages will add the systems needed to verify project results and issue units.

Project proponents can include project developers, companies reporting Scope 3 targets, government entities, and financial institutions. They must demonstrate the right to operate the project and the right to the resulting greenhouse gas reductions or removals.

What Are Scope 3 Units?

Under the new system, an S3U represents one tonne of carbon dioxide equivalent reduced or removed compared with a baseline scenario. Verra writes:

“S3Us represent the climate impact of projects’ emission reduction and removal activities. Companies that can demonstrate a credible value chain connection to the goods or services affected by the project can then request reportable S3Us that are designed for use toward their Scope 3 net zero claims.”

Each unit will also carry information about the project and its climate outcome. This can include the affected product, baseline type, leakage emissions, and reversal risk. The outcomes must be checked by an independent third-party validation and verification body.

This creates an important difference from a conventional carbon credit.

S3Us are designed around a specific company value chain rather than simply representing a tonne of emissions reduced somewhere in the economy. In the future version of the program, a company will need to show a verified connection to the good or service affected by the project. Verra will then use a verified allocation method to issue reportable S3Us to that company.

Those reportable units will be non-transferable between companies. That structure is designed to reduce the risk that several companies claim the same emissions reduction.

Agriculture and Concrete Get First-Mover Status

The two methodologies available at launch target areas with significant emissions reduction potential.

S3S-VM0042 covers improved agricultural land management. The methodology measures emissions reductions and soil carbon removals. It considers practices like reduced tillage, improved fertilizer use, residue management, water management, and cover crops.

Agriculture is key to corporate Scope 3 emissions. Food, agricultural goods, and raw materials often produce significant emissions in supply chains.

The second methodology, S3S-VM0043, covers the use of CO2 in concrete production.

The method can account for projects that use captured or waste CO2 in concrete and permanently embed it in the material. It can also recognize emissions reductions from using less cement, which is important because cement production is highly carbon-intensive.

The two methodologies, therefore, target very different value chains while using the same broader framework.

Why Scope 3 Is So Difficult to Cut

Scope 3 emissions are difficult because companies often have limited direct control over them. A manufacturer can improve the efficiency of its own factories, for example, but it cannot directly control how its suppliers produce raw materials. That makes supply chain projects important. And the fact that these emissions are often the largest, as the case with w2xw below.

McDonald's scope 3 emissions

The Science Based Targets initiative (SBTi) requires companies with significant Scope 3 emissions to set targets covering their value chains. Companies with Scope 3 emissions over 40% of total Scope 1, 2, and 3 emissions must set Scope 3 targets. These targets should cover at least 67% of those emissions using supplier engagement or reduction goals.

SBTi’s new Corporate Net-Zero Standard Version 2.0, released in June 2026, focuses more on how companies implement it. This includes operations, value chains, and capital allocation. It requires companies to apply integrity criteria to actions and market instruments used to support target implementation.

SBTi net zero standard v2 requirements

That creates a growing need for tools that can show whether investments in suppliers and value chain projects actually deliver measurable emissions reductions.

Verra Wants to Connect Climate Action With Finance

Verra says the new program is intended to help unlock investment in projects inside corporate value chains. The idea is simple: a company must reduce its Scope 3 emissions. At the same time, project developers need funding to carry out emissions reduction efforts.

A common measurement and verification system can help connect the two.

For example, a food company could support improved farming practices that reduce emissions linked to the agricultural products it purchases. A construction company could invest in a process that uses captured CO2 in materials that enter its supply chain.

The S3S framework aims to measure those results and provide a transparent record of the climate impact. That could create a stronger business case for projects that directly reduce a company’s own value chain emissions.

Verra Scope 3 Standard (S3S) Program
Source: Verra

S3Us Are Not Your Typical Carbon Credits

The launch also comes with an important limitation. An S3U is not simply a standard voluntary carbon credit that any company can buy and use for any purpose.

The program is built around a verified value chain connection. Verra says Version 2 will establish the process for companies to prove that connection and receive reportable S3Us for Scope 3 reporting.

This distinction is important as companies face growing scrutiny over climate claims.

The SBTi’s 2026 net-zero standard stresses that companies should focus on cutting direct emissions. They should use market tools as part of a broader strategy, not as a substitute for reducing their own emissions.

A Digital System Could Lower Project Costs

Verra is also taking a digital-first approach. Project processes will be managed through the Verra Project Hub and Registry.

The organization says streamlined requirements and, where appropriate, more focused verification could allow faster reviews and more frequent issuance at lower cost.

Lower verification costs could make small projects easier. Also, digital records help companies track projects and climate outcomes over time.

Scope 3 Enters a New Market Phase

Verra’s launch comes as companies face growing pressure to reduce and report Scope 3 emissions, which often make up most of their total carbon footprint. The new program gives developers a structured way to finance projects tied directly to corporate supply chains.

The launch is still an early step. Only two methodologies are available, while full registration, verification, and S3U issuance will be added through later updates. The program’s success will depend on whether companies use it at scale and whether projects deliver measurable emissions cuts.

For now, the Scope 3 Standard offers new infrastructure for value-chain climate action. Its long-term value will depend on strong measurement, clear links between companies and projects, and safeguards against double counting or overstated climate claims.

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