Are EVs Truly Green? How Battery Recycling is Powering a Cleaner Future

battery recycling

Recycling helps recover valuable materials, cut waste, and support clean energy. With stricter sustainability rules, governments are pushing for greener solutions. EV companies are also focusing on battery recycling. This helps lower supply chain emissions and cut their carbon footprint.

Thus, battery recycling has become essential for a greener future. We have studied the Lithium-ion battery recycling report by the Chemical Abstracts Service aka CAS (a division of the American Chemical Society) and Deloitte. It provides insights into key growth drivers, emissions impact, and the current and future outlook of the market. Let’s dive in!

What’s Driving the EV Battery Recycling Market?

EV batteries have valuable metals, such as lithium, cobalt, and nickel. However, getting rid of them is difficult and this is where recycling comes in use. Thus, the rising need for these energy metals is the key driver for the EV battery recycling market.

This approach reduces waste, conserves resources, and supports a more sustainable supply chain. As demand for EVs grows, so does the need for efficient battery recycling to lessen reliance on mining.

Notably, strict environmental rules are also driving manufacturers to adopt greener practices. Advancements in recycling technology are helping recover more metal. This makes the process cheaper and better for businesses. On a global scale, many countries are promoting a circular economy.

                        Supply and demand gap for critical minerals

supply and demand critical minerals
Source: IEA Global Critical Minerals Outlook 2024, Deloitte research

Asia-Pacific Leads in Battery Recycling

In 2023, Asia-Pacific led the battery recycling market. High EV adoption in China, Japan, and South Korea increased demand for recycling. The region produces many end-of-life batteries as a major EV and battery manufacturer.

Strong government support, incentives, and environmental awareness are driving growth. Investments in recycling technology and infrastructure further strengthen the region’s lead. This is evident from more patents than research papers.

Geographical distribution of publications in the field of lithium-ion battery (LIB) recycling

China battery recycling
Source: CAS Content Collection

The Top Player: Brunp Recycling Technology

China’s Brunp Recycling Technology, a subsidiary of CATL, is a top player in battery recycling. The company focuses on four major areas of battery material development:

  • Ultra-High Nickel: Increases nickel content while reducing cobalt to boost battery capacity.

  • High Voltage: Raises the charging voltage limit while maintaining safety and performance.

  • Intelligent Management: Uses digital tools and smart systems for efficient operations.

  • Emerging Materials: Develop new materials for various applications, continuously improving energy density.

These advancements help improve battery performance, efficiency, and sustainability. Notably, Japan’s Sumitomo Metal Mining follows as another key company in this field.

Global Regulations Powering Battery Recycling

Governments are tightening laws to improve battery recycling. Policies like Extended Producer Responsibility (EPR) require manufacturers to handle waste management. EPR makes producers responsible for collecting and recycling their lithium-ion batteries. This encourages sustainable manufacturing and proper disposal.

New rules in the EU, U.S., and Asia are shaping the industry:

China’s Leadership

China introduced key recycling laws as early as 2016. In 2018, the Ministry of Industry and Information Technology (MIIT) set strict rules for battery handling, recycling traceability, and technical standards. The 2020 Solid Waste Pollution Law stopped waste imports and boosted recycling. Also, the Circular Economy Development Plan (2021-2025) prioritizes battery reuse. In 2024, MIIT suggested new standards for recycling waste batteries. They are now being reviewed.

EU Regulations

In 2023, the EU launched New Battery Regulations. These rules address the whole lifecycle of batteries, from design to end-of-life. By 2027, manufacturers must recover 50% of lithium from old batteries and 80% by 2031. Companies need to track their batteries’ carbon footprint and meet recycling content targets by 2025. Additionally, by 2027, a digital battery passport will improve transparency and traceability.

U.S. Policies

The Environmental Protection Agency (EPA) regulates lithium-ion battery (LIB) recycling under the Resource Conservation and Recovery Act (RCRA). In 2023, the U.S. issued federal guidelines clarifying how hazardous waste laws apply to LIBs. The EPA plans to introduce a dedicated LIB recycling policy by mid-2025.

India and South Korea are working on policies to support LIB recycling.

Making EVs Greener: Decarbonizing the Battery Supply Chains

The report has highlighted the most critical information on EVs. EVs have no tailpipe emissions. However, making their batteries does create a lot of carbon emissions.

  • Lithium-ion battery production accounts for 40-60% of an EV’s total emissions. 

Top automakers are now focusing on sustainable sourcing and recycling. As EV demand rises, battery recycling will be crucial for cutting carbon footprints and securing raw materials. And this is why regulators and investors are also pushing for cleaner supply chains.

Slashing Emissions and Saving Resources

Recycling lithium-ion batteries is much better for the environment than mining new metals. A study from Stanford University, published in Nature Communications, found that recycling creates less than half the emissions of traditional mining. It also uses only one-fourth of the water and energy.

The benefits are even bigger when recycling scrap from manufacturing. Scrap-based recycling created just 19% of the emissions, used 12% of the water, and needed only 11% of the energy compared to mining. Using less energy also means fewer air pollutants. So, battery recycling is a cleaner and smarter choice.

  • The study concluded that recycling reduces greenhouse gas emissions by 58–81% and cuts water use by 72–88%.

The CAS report also published a 2023 study by Fraunhofer IWKS that evaluated the life-cycle environmental impact of three major battery recycling methods- Pyrometallurgy, Hydrometallurgy, and Direct recycling. The two significant deductions are:

  • Recycling 1 kg of lithium batteries can reduce carbon emissions by 2.7 to 4.6 kg CO₂ equivalent.
  • Direct recycling is the most effective method for the environment.

      Life-cycle environmental impacts of different recycling routes of LIBs

battery recycling carbon emissions
Source: Fraunhofer IWKS, CAS report

Making Battery Recycling Profitable

Battery recycling has three phases: high-cost investment, break-even, and strong profits. Initially, recyclers invest heavily to set up facilities and meet regulations.

They can start making money by cutting costs, recovering valuable metals, and reducing waste. Costs depend on transport, labor, battery design, and recycling methods. Recyclers can stay profitable by automating tasks, lowering transport costs, and using advanced technology.

Batteries with valuable metals like cobalt and copper, such as NMC and NCA, offer quick returns. In contrast, LFP batteries provide better long-term benefits when reused before recycling.

Choosing the right recycling method—pyrometallurgy, hydrometallurgy, or direct recycling—can boost efficiency. Studies show recycling offers environmental benefits worth $3 to $11 per kWh. However, this also depends on carbon pricing and market trends.

                              Net recycling profit comparison

battery Recyling
Source: Laura Lander, 2021

Subsequently, recyclers should focus on improving their processes. They also need to form partnerships to strengthen their business.

The Future of Battery Recycling: Turning Challenges into Opportunities

Battery recycling faces hurdles like high costs, complex processes, and inefficient collection. Various battery designs and hazardous materials add further challenges. New technology, digital tools, and teamwork in the industry are making recycling cheaper and easier.

Polaris Market Research reports the EV battery recycling market was $8.89 billion in 2023. It is set to grow from $11.09 billion in 2024 to $65.71 billion by 2032, with a 24.9% annual growth rate.

battery recycling

Digital Tools Improve Efficiency

Traditional recycling relies on slow, expensive, and unsafe manual processes. Digital tools are transforming this by tracking materials, automating sorting, and improving disassembly. These innovations enhance efficiency and help companies comply with strict regulations, reducing legal risks.

For example, digital twins optimize processes, blockchain ensures traceability and cloud platforms enable real-time tracking. Umicore uses AI and cloud solutions. CATL, on the other hand, uses blockchain to track materials.

Similarly, companies like Redwood Materials, BYD, and Toyota use AI to predict optimal recycling timelines.

The Power of Industry Collaboration

The disrupted supply chain remains a major challenge. In China, only 25% of retired EV batteries go through formal recycling channels. Companies are making batteries easier to recycle. They are also working together in the supply chain to solve this issue.

In October 2023, Stellantis and Orano teamed up to recycle EV batteries and factory scrap in Europe and North America. Such collaborations are driving a more sustainable and scalable battery recycling industry.

Similarly, last December Li-Cycle Holdings Corp. resumed its collaboration with Glencore International AG, (a subsidiary of Glencore plc). Both companies will evaluate the feasibility of building a new Hub facility in Portovesme, Italy that could potentially produce critical battery materials such as lithium, nickel, and cobalt from recycled battery content.

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Greenpeace Faces $660 Million Verdict: A Turning Point for Climate Action?

Greenpeace Faces $660 Million Verdict: A Turning Point for Climate Action?

Greenpeace is facing a $660 million lawsuit by Energy Transfer Partners. The verdict is more than a legal case; it could change the climate movement significantly. The lawsuit came from Greenpeace’s involvement in the protests against the Dakota Access Pipeline (DAPL). This project has been controversial for its environmental and social effects.

The talk about the verdict often centers on free speech. But its wider effects on climate activism and the fight against fossil fuels mustn’t be overlooked.

The Dakota Access Pipeline and Its Climate Impact

The Dakota Access Pipeline is 1,172 miles long. It has sparked many environmental protests since it was built. The pipeline transports crude oil from North Dakota to refineries in other parts of the country.

Dakota Access Pipeline
Source: Wikipedia

Environmentalists say this project worsens climate change. It helps with fossil fuel extraction and burning. The Standing Rock Sioux Tribe and other activists opposed the pipeline. They feared oil spills could contaminate water sources and harm ecosystems.

Fossil fuel projects like DAPL contribute significantly to global carbon emissions. The pipeline can transport 570,000 barrels of crude oil daily. When burned, this oil releases millions of metric tons of CO₂ into the air each year.

Greenpeace opposes these projects because of the need to shift from fossil fuels to renewable energy. However, this legal verdict against the organization raises concerns about the future of climate advocacy.

Greenpeace’s Role in Climate Advocacy

For decades, Greenpeace has led the fight for the environment. They challenge companies and governments to act more decisively against climate change. The organization has been key in raising awareness about deforestation, ocean conservation, and the risks of relying on fossil fuels.

In the case of the Dakota Access Pipeline, Greenpeace supported Indigenous-led protests and helped amplify concerns about the project’s long-term environmental consequences. Energy Transfer claimed that the organization defamed them and stirred up protests. However, Greenpeace says their actions aimed to hold fossil fuel companies accountable for climate damage.

Mads Christensen, Greenpeace International Executive Director, noted:

“We are witnessing a disastrous return to the reckless behaviour that fuelled the climate crisis, deepened environmental racism, and put fossil fuel profits over public health and a liveable planet. The previous Trump administration spent four years dismantling protections for clean air, water, and Indigenous sovereignty, and now along with its allies wants to finish the job by silencing protest. We will not back down. We will not be silenced.”

Legal Threats Against Climate Activists and Climate Movement

This lawsuit shows a trend. Fossil fuel companies are using legal action more often to fight against environmental opponents. Big companies often use lawsuits called Strategic Lawsuits Against Public Participation (SLAPPs) to stop activism. SLAPPs can cost environmental groups a lot of money. This makes it tough for them to keep working.

Greenpeace’s legal battles are not unique. In recent years, companies like Shell, TotalEnergies, and ENI have also pursued legal actions against Greenpeace and other environmental groups. These lawsuits worry people. This could affect climate activists’ fight against high-emission industries.

The ruling against Greenpeace could have a chilling effect on climate activism. Environmental groups might hold back from challenging big fossil fuel companies if they worry about expensive legal issues. This could slow down efforts to hold polluters accountable and push for stronger climate policies.

The case also raises questions about how fossil fuel companies may use legal systems to avoid scrutiny. Companies like Energy Transfer can shift the conversation from their carbon footprint to the activists. This way, they avoid addressing the environmental and climate concerns raised by these groups.

Fossil Fuel Expansion vs. Climate Goals

While global leaders urge cuts in greenhouse gas emissions, fossil fuel projects keep growing. The International Energy Agency (IEA) has warned that to keep global warming below 1.5°C, no new oil and gas projects should be approved. Yet, pipelines like DAPL show that people keep investing in fossil fuels. This focus delays the shift to cleaner energy options.

Greenpeace’s opposition to such projects aligns with the broader climate science consensus that urgent action is needed. However, this lawsuit shows how fossil fuel companies fight back. They shift the focus from environmental issues to legal battles.

The growth of fossil fuel industries, especially oil and gas, creates major issues for global climate goals. This is because they emit a lot of greenhouse gases (GHG).

In 2023, CO₂ emissions from fossil fuels hit a record 37.4 billion metric tons. This is a 1.1% rise from 2022. The chart shows the industry’s emissions in the U.S.

fossil emissions in US 2023
Source: Stanford University
  • Specifically, oil and gas operations are responsible for around 15% of total energy-related emissions globally, equating to approximately 5.1 billion metric tons of CO₂ equivalent annually.

Moreover, the oil refining industry also plays a big role in GHG emissions. They rose from 1.38 billion metric tons in 2000 to 1.59 billion metric tons in 2021. ​

Methane, a potent GHG, is also a major concern in the oil and gas sector. Oil and gas operations in the United States release more than 6 million metric tons of methane each year. This worsens climate change because methane traps heat much better than CO₂. 

Burning fossil fuels for electricity and heat is the biggest source of global GHG emissions. It makes up 34% of the total. The industrial sector contributes 24% of global GHG emissions, primarily from on-site fossil fuel combustion for energy.

These stats highlight the urgent need for renewable energy. Companies must also adopt strict emission cuts to meet global climate goals.

A Precedent for Future Climate Activism?

This legal case could set a dangerous precedent. If other fossil fuel companies sue environmental groups, activism might become too expensive to continue. This would weaken one of the most powerful forces advocating for climate action.

Despite the setback, Greenpeace has vowed to continue its fight. The organization has filed an anti-SLAPP lawsuit against Energy Transfer in a Dutch court. They want to recover damages and legal costs from this case. The outcome of these legal battles could shape the future of climate advocacy and corporate accountability.

The $660 million verdict against Greenpeace is not just about free speech—it’s about the future of climate activism. As fossil fuel companies expand their legal tactics to counteract opposition, environmental organizations face increasing challenges in their fight for a sustainable future.

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Donald Trump Uses Emergency Powers to Boost U.S. Critical Mineral (and Coal?) Production

Donald Trump Uses Emergency Powers to Boost U.S. Critical Mineral (and Coal?) Production

President Donald Trump has signed an executive order to ramp up U.S. production of critical minerals. The order uses emergency powers under the Defense Production Act to increase financing, streamline permits, and encourage domestic mining and processing of minerals vital for national security and economic growth. 

The goal is to cut down on dependence on foreign suppliers, especially China. China leads the global supply chain for key minerals. The order has raised worries about its effect on the environment and how it matches climate goals.

What Are The Key Aspects of the Executive Order?

  • Defense Production Act for Critical Minerals

The executive order authorizes the use of the Defense Production Act (DPA) to provide financial support to U.S. mining and mineral processing projects. This includes loans and investments from the U.S. International Development Finance Corporation (DFC) and the Department of Defense. The goal is to speed up the production of key minerals. This includes lithium, cobalt, nickel, rare earth elements, and maybe coal.

  • Faster Permitting for Mining Projects

Trump’s order directs federal agencies to speed up the permitting process for new mining and processing facilities. The Department of the Interior has been tasked with prioritizing critical mineral production on federal lands. The administration wants to cut red tape. This will help private companies invest more in domestic mineral production.

  • Expanding the Scope of Critical Minerals

The order lets the National Energy Dominance Council add uranium, copper, potash, and gold to the list of critical minerals. Additionally, there is speculation that coal could be included. This can potentially lead to increased production of fossil fuels under the guise of national security.

Why Is the U.S. Expanding Mineral Production?

The U.S. gets 70% of its rare earth minerals from China. This makes the supply chain weak for important industries like defense, electronics, and renewable energy. China has also imposed export controls on key materials like gallium and germanium. This further increases the urgency for the U.S. to secure its own resources.

Critical minerals are key for military use, particularly antimony. They support missile systems, fighter jets, and advanced communications technology. By expanding domestic production, the U.S. aims to strengthen its defense capabilities and reduce the risk of supply chain disruptions.

Lastly, lithium, cobalt, and nickel are crucial for battery storage, electric vehicles (EVs), and renewable energy infrastructure. Boosting local production of these materials can speed up the clean energy shift and cut down on fossil fuel use.

Global Market Trends and U.S. Critical Mineral Production and Consumption

The global demand for critical minerals has been on the rise, driven by the transition to clean energy technologies. In 2023, lithium demand surged by 30%, while nickel, cobalt, graphite, and rare earth elements also saw significant increases. 

Investment in critical mineral mining grew by 10% in 2023; however, this was a slowdown compared to the 30% growth observed in 2022. This is partly due to declining prices putting pressure on producers.

investment in critical minerals 2023 IEA
Source: IEA

The United States has significant mineral resources but remains heavily dependent on imports for many critical minerals. According to the U.S. Geological Survey’s 2024 Mineral Commodity Summaries, the U.S. was 100% import-dependent for 15 nonfuel mineral commodities and over 50% import-dependent for 49 such commodities. 

America import reliance on critical minerals

For instance, aluminum consumption in 2024 reached 4.3 million metric tons, underscoring the nation’s reliance on external sources. For other minerals, refer to the following table for US 2023 consumption and production per USGS report. 

US critical minerals production and consumption 2023
Source: USGS 2024

Trump’s recent executive order targets several critical minerals, including:​

  • Rare Earth Elements (REEs): Essential for electronics, defense systems, and renewable energy technologies.
  • Lithium: Vital for battery production in electric vehicles and energy storage systems.​
  • Nickel: Used in stainless steel and battery manufacturing.​
  • Cobalt: Important for battery electrodes.
  • Graphite: Used in batteries and fuel cells.

Economic, Environmental, and Climate Implications

The EO has a significant impact on mining companies. Shares of U.S. mining companies surged following the announcement. 

MP Materials, a rare earth miner, saw its stock rise by 4.6%, while coal producer Peabody Energy gained more than 2%. However, Australian and Chinese mining companies experienced stock declines, reflecting concerns over reduced demand for imported minerals. 

The decision also has the potential to spur international trade conflicts. China and other major mineral-exporting nations may view this policy shift as a direct threat to their economic interests. This could lead to trade tensions and potential retaliatory measures, further complicating global supply chains.

Environmental Concerns and Climate Impacts

Mining and processing critical minerals contribute about 8% of global carbon emissions. Copper production emits 4.6 tonnes of CO₂ per tonne, while nickel ranges between 12 and 78 tonnes per tonne. However, these emissions do not negate clean energy benefits—EVs still produce half the lifecycle emissions of gasoline cars. Using low-carbon electricity can further lower these emissions. ​

Coal’s potential inclusion as a critical mineral raises concerns. Fossil fuels from federal lands accounted for nearly 25% of U.S. CO₂ emissions over a decade. Expanding mining on public lands risks habitat destruction and toxic contamination, with 22,500 abandoned mine sites already leaking harmful chemicals.

Securing critical minerals is key for national security and clean energy. Yet, experts also stress the need for sustainable practices. This includes recycling, improved mining tech, and carbon-cutting ideas. For example, using CO₂ to weaken rocks could make mining carbon-negative.

The Biden administration used the Defense Production Act before. This was to boost the production of battery materials in the U.S. The goal is to cut emissions and support renewable energy. In contrast, Trump’s order may list coal and other fossil fuels as critical minerals. This could slow down efforts for net-zero emissions and hurt global climate leadership. 

Expanding fossil fuel extraction on federal lands may worsen climate change, undermining progress toward emission reduction targets. ​

Conclusion: A Double-Edged Sword?

Trump’s executive order to boost critical mineral production is a significant policy shift that aims to reduce dependence on foreign sources, enhance national security, and support key industries. However, the inclusion of coal and the potential rollback of environmental safeguards raises concerns about its impact on climate goals.

As the U.S. moves forward with this strategy, it must find a balance between securing essential minerals and ensuring sustainable, environmentally responsible development. The outcome of this policy will shape not only the country’s economic future but also its role in global efforts to combat climate change.

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Aramco’s First-Of-Its-Kind Direct Air Capture Plant Powers Saudi’s Net-Zero Mission

Aramco

Aramco, a top player in energy and chemicals, has teamed up with Siemens Energy. Together, they have launched Saudi Arabia’s first Direct Air Capture (DAC) test unit. The plant can remove 12 tons of carbon dioxide from the atmosphere each year. This initiative is a big step. It will help reduce Saudi emissions and promote carbon capture technology for a more sustainable future.

Ali A. Al-Meshari, Aramco Senior Vice President of Technology Oversight and Coordination, said:

“Technologies that directly capture carbon dioxide from the air will likely play an important role in reducing greenhouse gas emissions moving forward, particularly in hard-to-abate sectors. The test facility launched by Aramco is a key step in our efforts to scale up viable DAC systems, for deployment in the Kingdom of Saudi Arabia and beyond. In addition to helping address emissions, the CO2 extracted through this process can in turn be used to produce more sustainable chemicals and fuels.”

                                Saudi Arabia Emissions

saudi arabia carbon emissions

Aramco and Siemens Energy Push for Cost-Effective DAC Expansion

The press release revealed that Aramco will use the facility to test advanced CO2 capture materials for Saudi Arabia’s climate. The company also wants to lower costs. This will make DAC technology more affordable and easier to expand in the region.

Siemens Energy is a global leader in energy technology. The company helps industries and nations cut emissions in their energy sectors. They create reliable, affordable, and sustainable energy systems.

By partnering with Siemens, Aramco can quickly scale up its DAC technology. This move will pave the way for larger DAC projects in the future.

Expanding Carbon Capture Efforts

This initiative aligns with Aramco’s broader carbon capture strategy, a key element in its goal to achieve net-zero Scope 1 and Scope 2 emissions across its wholly-owned operated assets by 2050.

It is focusing on both point-source CO2 capture and removing CO2 from the air. This is part of its circular carbon economy approach.

Building One of the World’s Largest CCUS Hubs

This launch followed the announcement when Aramco, Linde, and SLB signed a deal in December last year. They will develop one of the biggest Carbon Capture, Utilization, and Storage (CCUS) hubs in the Jubail industrial zone. Aramco has a majority stake of 60%, with Linde and SLB each owning 20%.

Starting in 2027, the Jubail CCUS hub will capture up to nine million metric tons of CO2 per year. This hub will initially capture nine million metric tons of CO2 each year. It will take emissions from three Aramco gas plants and other industrial sources.

Future phases will boost capacity even more. This reinforces Aramco’s commitment to cutting emissions and promoting sustainability. By sharing CO2 transport and storage, industrial emitters can reduce costs and risks. They also benefit from economies of scale.

Aramco’s Innovative Carbon Capture Technologies 

Other than the Jubail CCUS hub, Aramco has more innovative CCUS projects in its portfolio. They use the latest and cutting-edge technology and smart solutions to tackle emissions.

Hawiyah NGL CCS plant 

The Hawiyah NGL plant captures 45 million standard cubic feet of CO2 daily. CO2 moves 85 kilometers to the Uthmaniyah oil reservoir. There, it increases oil production and stores carbon underground. This is part of Aramco’s long-term carbon management strategy.

Mobile Carbon Capture technology

Aramco is making vehicles cleaner. Its Mobile Carbon Capture technology traps up to 25% of a car’s CO2 emissions. The captured carbon is stored on board and later unloaded at fuel stations for recycling or sequestration.

The company is also developing cleaner fuels and engine technology. Aramco doesn’t see CO2 as waste. Instead, it transforms it into valuable resources for new materials and energy.

Natural Carbon Sinks

Nature is a key ally in Aramco’s fight against emissions. The company is restoring and planting millions of mangrove trees. These natural carbon sinks absorb CO2, boost biodiversity, and conserve water. They are also building algae ponds and photobioreactors. These will help capture more CO2, beyond just trees.

ARAMCO SUSTAINABILITY INVESTMENT
Source: Aramco

Aramco’s Commitment to a Low-Carbon Future

Aramco is dedicated to cutting emissions while supplying the world’s energy needs. The company invests in low-carbon projects to help Saudi Arabia reach net-zero emissions by 2060.

It also plans to achieve net-zero Scope 1 and Scope 2 greenhouse gas (GHG) emissions for its wholly owned assets by 2050, as per its sustainability report.

Emission Reduction and 2035 Target

  • Upstream carbon intensity (2023): 9.6 kg CO2e per barrel of oil equivalent (boe).

  • Scope 2 emissions (2023): 13.0 MMtCO2e under a market-based calculation.

  • 52 MMtCO2e targeted reduction by 2035 from its operations.

Aramco emissions
Source: Aramco

Aramco follows a structured approach focused on five key areas to achieve these targets. We explain them below:

1. Energy Efficiency

It focuses on energy efficiency to reduce emissions. The goal is to cut 7 MMtCO2e each year through energy-saving measures. Here are some techniques:

  • Optimizing oil and gas operations to reduce waste.
  • Using digital tools and AI to track energy use and find areas to improve.

Historic impact – Since 2000, Aramco’s Energy Management Program cut emissions by 31.43 million metric tons of CO2 equivalent (MMtCO2e) and aims to

2. Flaring and Methane Reduction

Reducing gas flaring and methane leaks is a top priority. They have invested in technologies like advanced sensors and satellite monitoring to quickly detect and fix methane leaks. The gas would otherwise be burned or released into the atmosphere.

  • Flare gas recovery – In 2023, Aramco recovered 8.9 billion standard cubic feet (scf) of flare gas, preventing unnecessary emissions.

Notably, Aramco has one of the lowest upstream methane and flaring intensities in the global energy industry. Additionally, their upstream methane emissions decreased by 5.1%
despite an increase in natural gas production.

aramco methane emissions
Source: Aramco

3. Carbon Capture and Storage (CCS)

As explained before, Carbon capture and storage is a major part of Aramco’s emissions reduction plan. With large-scale CCS projects in the pipeline, they aim to store up to 14 MMtCO2e per year by 2035.

The Jubail CCS Hub will play a major role in supporting the Kingdom’s target of capturing 44 MMtCO2e per year by 2035.

4. Expanding Renewables

Aramco is diversifying its energy portfolio. It invests in solar and wind power. The company is also exploring geothermal energy. This aims to further reduce emissions.

  • Major investments – By 2030, Aramco plans to develop 12 gigawatts (GW) of solar and wind energy.

In January 2024, Aramco’s 1.5 GW solar project, one of the largest in the region, became fully operational. Its goal is to invest in research that makes renewable energy cheaper and more efficient.

5. Natural Climate Solutions

Third-party studies show Aramco’s mangrove projects have absorbed about 445,000 tons of CO2. Their algae farms and other biological methods capture CO2 from the air effectively.

  • Carbon credit portfolio: They are also working on high-quality carbon offset projects. This helps balance emissions from tough-to-reduce sectors.

In conclusion, Aramco and Siemens Energy’s partnership is all set to transform Saudi Arabia’s carbon capture efforts. This collaboration marks a major step toward a cleaner, more sustainable future.

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Tesla’s Avoided Emissions Are Up to 49% Overstated, A Study Claims

Tesla's Avoided Emissions Are Up to 49% Overstated, A Study Claims

Tesla has established itself as a leader in the fight against climate change. It often emphasizes its role in cutting greenhouse gas (GHG) emissions by promoting electric vehicles (EVs).

In 2023, the company claimed its fleet helped avoid 20 million metric tons of carbon dioxide equivalent (CO2e) emissions. A recent study by Greenly, a firm specializing in carbon footprint measurement and management, however, questions this figure. They estimate the real avoided emissions at 10.2 to 14.4 million metric tons, which is 28-49% lower than Tesla’s claims.

What’s the basis for Greenly’s claim? Let’s find out, and how this may impact Tesla’s position and the entire industry.

Breaking Down Tesla’s Avoided Emissions Calculations

Tesla calculates avoided emissions by comparing its EV fleet to a similar fleet of ICE (internal combustion engine) vehicles. The process follows these steps:

  1. Fleet Size Calculation. Using sales data, Tesla estimates the number of active vehicles in its fleet. By the end of 2023, Greenly estimated this number to be around 5.35 million Teslas worldwide.
  2. ICE Emissions Comparison. Tesla assumes that ICE vehicles emit an average of 445 grams of CO2e per mile in the U.S. and 459 grams in Europe, based on data from Consumer Reports.
  3. EV Emissions Calculation. Tesla estimates U.S. emissions from electricity generation at 116 gCO2e/mile. But Greenly, using IEA data, finds a much higher figure of 206 gCO2e/mile.
  4. Manufacturing Emissions. Tesla estimates that making an ICE vehicle releases 10 metric tons of CO2e. In contrast, an EV generates 20 metric tons, mainly because of battery production.

Tesla found that in 2023, swapping ICE vehicles for its EVs cut emissions by 20 million metric tons. Now, let’s uncover Greenly’s calculations.

Greenly’s Findings and Discrepancies: A Reality Check for Tesla?

Greenly reanalyzed Tesla’s approach using independent emissions factors and found significant discrepancies. These include the following analysis findings:

Overestimation of ICE Vehicle Emissions. Tesla’s emissions factor for ICE vehicles is 445-459 gCO2e/mile. This is much higher than the UK standard for large diesel cars, which is 415 gCO2e/mile. This difference suggests that Tesla might have overstated the emissions avoided.

Underestimation of Grid Emissions. Tesla uses a lower emissions factor for electricity at 116 gCO2e/mile. In contrast, the IEA calculates it at 206 gCO2e/mile. This suggests Tesla might have underestimated the emissions from charging its EVs.

Mileage Assumptions: Tesla assumes its EVs travel 200,000 miles over 17 years. If this assumption were lowered to 150,000 miles, Greenly found that avoided emissions would drop significantly to 6.9 million metric tons.

  • After adjustments, Greenly estimated Tesla’s real avoided emissions at 10.2-14.4 million metric tons. This is much lower than Tesla’s reported 20 million metric tons.

What This Means for the EV Industry’s Climate Goals

EVs are widely recognized as key to reducing transportation-related GHG emissions. In 2023, the sector was the world’s second-largest source of GHG emissions with 8.24 GtCO₂. Road vehicles are the top polluters.

By 2023, the growing use of EVs helped cut CO₂ emissions from new vehicles by 11%, bringing the average down to 319 grams per mile—the lowest ever recorded. The chart below shows the difference in GHG emissions for an EV and gas-powered car.

GHG emissions of EV vs gasoline car
Source: EPA

However, accurate carbon emissions accounting is crucial. It helps maintain credibility and shows the industry’s real environmental impact.

Tesla’s potentially inflated claims could have several consequences for the broader EV market

Regulatory Scrutiny:

Exaggerating avoided emissions may result in more regulatory scrutiny of EV makers’ climate claims. If Tesla’s reports are misleading, policymakers might require stricter checks on EV carbon reduction claims.

Investor and Consumer Trust:

The EV industry has gained from high public and investor trust. This confidence comes from the promise of major emission cuts. Greenly’s findings might hurt this trust. This could make investors wary of supporting EV companies. It can also lead consumers to doubt the environmental benefits of leaving ICE vehicles behind.

Competitive Pressures:

Tesla’s competitors, including BYD, Rivian, and traditional automakers like Ford and BMW, are also marketing their EVs as low-emission alternatives. If a big player is caught exaggerating claims, it could push all EV makers to get third-party checks on their environmental impact.

The Billion-Dollar Carbon Credit Question

One of Tesla’s key revenue streams has been the sale of carbon credits to other automakers that do not meet emissions standards. Since Tesla produces only electric vehicles, it accumulates large amounts of regulatory credits.

The EV maker then sells these credits to companies still producing gasoline-powered cars. Tesla’s carbon credit sales have earned billions, with over $10.4 billion since 2017. Last year’s revenue was record high. This profit helps keep the company strong, especially in years with lower vehicle margins.

Tesla annual carbon credit revenue 2024

If Tesla’s avoided emissions claims are found to be inflated, it could undermine the credibility of its carbon credit sales. Regulatory bodies may set stricter rules for issuing and verifying carbon credits. This change could make it tougher for Tesla to profit from this market.

Also, automakers buying these credits might want more transparency. This helps them confirm they meet rules without depending on possibly inflated numbers. Any disruptions in this market could significantly impact Tesla’s bottom line.

Tesla’s Reputation at Stake: Environmental Claims Under Fire

Greenly’s findings come at a bad time for Tesla. The company already faces reputational issues because of CEO Elon Musk’s political activities. Plus, its stock price has dropped sharply. Musk’s controversial comments and changing political views have turned off some customers and investors. This has hurt Tesla’s brand image.

Moreover, Tesla’s stock has struggled in recent months, with share prices down over 25% year-to-date. The combination of financial struggles, leadership controversies, and now questions about its environmental impact could further erode confidence in Tesla’s long-term growth potential.

Moreover, governments worldwide are increasing scrutiny of corporate sustainability claims. If Tesla overstated its emissions reductions, it might face legal issues. This could include fines or losing access to incentive programs.

The Need for Transparency in Carbon Accounting

Tesla’s differences in avoided emissions estimates show a bigger problem: the EV industry needs independent and standardized carbon accounting. Without clear, verifiable methods for calculating avoided emissions, companies could mislead stakeholders about their true climate impact.

Greenly’s report says manufacturers should use 3rd-party audits for emissions claims. This is like how financial audits work to help keep their credibility. More rigorous carbon accounting would help:

  • Ensure that avoided emissions are not exaggerated to attract investment or government incentives.
  • Provide policymakers with reliable data to shape EV-related regulations.
  • Prevent backlash similar to the Dieselgate scandal, where automakers manipulated emissions data.

Tesla plays a big role in boosting EV adoption and cutting emissions. However, it’s important to check how accurate its environmental claims are. The Greenly report raises concerns about transparency in EV industry reporting.

As governments and consumers push for more rigorous climate accountability, automakers must ensure their emissions calculations are accurate and independently verified.

The post Tesla’s Avoided Emissions Are Up to 49% Overstated, A Study Claims appeared first on Carbon Credits.

Amazon Unveils Carbon Credit Investment Service: A Game Changer for Corporate Sustainability

Amazon has taken another major move in addressing climate change by launching a new carbon credit service on its Sustainability Exchange platform. This initiative helps businesses invest in quality carbon credits. It supports nature-based projects and advanced carbon removal technologies. Amazon aims to enhance transparency, credibility, and corporate participation in voluntary carbon markets by offering access to vetted credits. Amazon’s Next Big Sustainability Move Amazon is making big changes to reach net-zero carbon emissions by 2040. It will switch to carbon-free energy, electrify its delivery fleet, and boost energy efficiency in data centers. The retail giant has achieved its 100% renewable energy goal 7 years ahead of schedule.  RELATED: Amazon Expands Renewable Energy with 17 New Projects in Spain & First in Portugal Source: Amazon The company knows that cutting emissions is important. However, some emissions are hard to get rid of completely, where carbon credits come in. Carbon credits provide a mechanism to offset these unavoidable emissions by funding projects that capture or prevent carbon from entering the atmosphere. Amazon’s Chief Sustainability Officer, Kara Hurst, highlighted the need to tackle deforestation. It makes up 30% of global carbon emissions. She said that businesses can make real progress on their climate goals by investing in nature and technology for carbon removal. Hurst particularly remarked that: "However, the science is clear: We must halt and reverse deforestation and restore millions of miles of forests to slow the worst effects of climate change. We’re using our size and high vetting standards to help promote additional investments in nature, and we are excited to share this new opportunity with companies who are also committed to the difficult work of decarbonizing their operations." How the Carbon Credit Service Works The new service expands Amazon’s Sustainability Exchange. It gives companies tools to create and carry out sustainability plans. Qualified businesses can buy carbon credits to support their decarbonization efforts. Key aspects of the service include: Science-Based Carbon Credits. Amazon makes sure that all credits on the platform meet strict environmental standards. This way, they provide real climate benefits. Support for Nature-Based Solutions. Projects that focus on reforestation, forest conservation, and land restoration. These efforts absorb carbon from the air and boost biodiversity. Investment in Carbon Removal Technologies. Amazon supports solutions like direct air capture and biochar. These methods help store carbon for a long time. Access for Climate Pledge Signatories. Businesses that have committed to The Climate Pledge can use this service to meet their sustainability targets. Who Can Take Part in the Initiative? Amazon set strict rules for companies that want to purchase carbon credits on its platform. Businesses must perform the following actions to be able to participate: Set a net-zero target that includes: Scope 1: direct emissions Scope 2: indirect emissions from electricity use Scope 3: emissions from the value chain Measure and publicly report their greenhouse gas emissions regularly. Put in place decarbonization strategies in line with the latest climate science. Many companies have already joined the initiative. They include real estate firms like Seneca Group and Ryan Companies, consumer electronics brand Corsair, and the consulting firm Slalom. These businesses view Amazon’s platform as a trusted source of reliable carbon credits that can help them fulfill their climate goals. Impact on the Voluntary Carbon Market Amazon's move into the carbon credit market could bring big changes. The voluntary carbon market, where companies buy credits to balance out their emissions, has faced issues like unclear rules and low-quality projects. Amazon’s involvement could help fix these problems in several ways. Lately, fewer companies are buying carbon credits. They often doubt the projects are truly benefiting the environment. In 2024, the number of retired carbon credits stayed at about 175 million, the same as the past four years. Source: Sylvera Some businesses worry that carbon offsets are not always effective, which has hurt demand (retired credits). By offering only high-quality credits with strict verification, the retailer is working to rebuild trust in the market. Amazon’s entry into this space could also increase demand for carbon credits. When a major company like Amazon supports carbon credits, other businesses may feel more confident about using them. In 2024, investments in carbon projects hit $16.3 billion. This shows that companies will spend on climate solutions if they see them as real. Source: Abatable Additionally, Amazon’s leadership could push other large companies to create similar services. More competition in the carbon credit market can give businesses better choices. It can also direct more funds to projects that cut emissions.  However, the voluntary carbon market has faced challenges lately. Amazon’s success will rely on its ability to ensure transparency and create real impact. Amazon’s carbon credit service could help solve market problems. It may improve trust, boost demand, and encourage more businesses to invest in climate change projects. Carbon credits can be useful, but many people are skeptical. Critics say they let companies postpone needed cuts in emissions. To tackle these issues, Amazon makes sure that businesses focus on reducing real emissions before buying offsets. The company has also invested in Beyond Value Chain Mitigation (BVCM). This means they fund climate solutions outside their direct impact. Amazon has teamed up with the LEAF Coalition. Together, they have raised over $1 billion to protect tropical forests. Looking Ahead: The Future of Amazon’s Carbon Credit Initiative Amazon’s new carbon credit service shows a bigger move toward corporate responsibility in carbon markets. As demand for high-quality offsets grows, Amazon’s platform could play a vital role in scaling up investments in climate solutions worldwide. Yet, the long-term success of this initiative will depend on: Ensuring Market Integrity. Amazon must continuously track and improve the verification process for carbon credits. Encouraging More Corporate Participation. Expanding eligibility to a broader range of companies while maintaining high standards. Tracking Real-World Impact. Measuring and publicly reporting the climate benefits of the funded projects. Amazon’s Sustainability Exchange expansion provides businesses with a valuable tool to offset unavoidable emissions while driving investments in environmental solutions. With this action, Amazon's role in the voluntary carbon market is growing. Its leadership could set a new standard for responsible corporate action on climate change. Amazon Unveils Carbon Credit Service: A Game Changer for Corporate Sustainability

Amazon has taken another major move in addressing climate change by launching a new carbon credit service on its Sustainability Exchange platform. This initiative helps businesses invest in quality carbon credits. It supports nature-based projects and advanced carbon removal technologies.

Amazon aims to enhance transparency, credibility, and corporate participation in voluntary carbon markets by offering access to vetted credits.

Amazon’s Next Big Sustainability Move

Amazon is making big changes to reach net-zero carbon emissions by 2040. It will switch to carbon-free energy, electrify its delivery fleet, and boost energy efficiency in data centers. The retail giant has achieved its 100% renewable energy goal 7 years ahead of schedule. 

Amazon net zero emissions 2040
Source: Amazon

The company knows that cutting emissions is important. However, some emissions are hard to get rid of completely, where carbon credits come in.

Carbon credits provide a mechanism to offset these unavoidable emissions by funding projects that capture or prevent carbon from entering the atmosphere.

Amazon’s Chief Sustainability Officer, Kara Hurst, highlighted the need to tackle deforestation. It makes up 30% of global carbon emissions. She said that businesses can make real progress on their climate goals by investing in nature and technology for carbon removal. Hurst particularly remarked that:

“However, the science is clear: We must halt and reverse deforestation and restore millions of miles of forests to slow the worst effects of climate change. We’re using our size and high vetting standards to help promote additional investments in nature, and we are excited to share this new opportunity with companies who are also committed to the difficult work of decarbonizing their operations.”

How the Carbon Credit Service Works

The new service expands Amazon’s Sustainability Exchange. It gives companies tools to create and carry out sustainability plans. Qualified businesses can buy carbon credits to support their decarbonization efforts.

Key aspects of the service include:

  • Science-Based Carbon Credits. Amazon makes sure that all credits on the platform meet strict environmental standards. This way, they provide real climate benefits.
  • Support for Nature-Based Solutions. Projects that focus on reforestation, forest conservation, and land restoration. These efforts absorb carbon from the air and boost biodiversity.
  • Investment in Carbon Removal Technologies. Amazon supports solutions like direct air capture and biochar. These methods help store carbon for a long time.
  • Access for Climate Pledge Signatories. Businesses that have committed to The Climate Pledge can use this service to meet their sustainability targets.

Who Can Take Part in the Initiative?

Amazon set strict rules for companies that want to purchase carbon credits on its platform. Businesses must perform the following actions to be able to participate:

  • Set a net-zero target that includes:
    • Scope 1: direct emissions
    • Scope 2: indirect emissions from electricity use
    • Scope 3: emissions from the value chain
  • Measure and publicly report their greenhouse gas emissions regularly.
  • Put in place decarbonization strategies in line with the latest climate science.

Many companies have already joined the initiative. They include real estate firms like Seneca Group and Ryan Companies, consumer electronics brand Corsair, and the consulting firm Slalom. These businesses view Amazon’s platform as a trusted source of reliable carbon credits that can help them fulfill their climate goals.

Impact on the Voluntary Carbon Market

Amazon’s move into the carbon credit market could bring big changes. The voluntary carbon market, where companies buy credits to balance out their emissions, has faced issues like unclear rules and low-quality projects. Amazon’s involvement could help fix these problems in several ways.

Lately, fewer companies are buying carbon credits. They often doubt the projects are truly benefiting the environment. In 2024, the number of retired carbon credits stayed at about 175 million, the same as the past four years.

carbon credit retirement 2024 sylvera
Source: Sylvera

Some businesses worry that carbon offsets are not always effective, which has hurt demand (retired credits). By offering only high-quality credits with strict verification, the retailer is working to rebuild trust in the market.

voluntary carbon credit retired and issued 2023

Amazon’s entry into this space could also increase demand for carbon credits. When a major company like Amazon supports carbon credits, other businesses may feel more confident about using them. In 2024, investments in carbon projects hit $16.3 billion. This shows that companies will spend on climate solutions if they see them as real.

Primary carbon market value
Source: Abatable

Additionally, Amazon’s leadership could push other large companies to create similar services. More competition in the carbon credit market can give businesses better choices. It can also direct more funds to projects that cut emissions. 

  • However, the voluntary carbon market has faced challenges lately. Amazon’s success will rely on its ability to ensure transparency and create real impact.

Amazon’s carbon credit service could help solve market problems. It may improve trust, boost demand, and encourage more businesses to invest in climate change projects.

Carbon credits can be useful, but many people are skeptical. Critics say they let companies postpone needed cuts in emissions. To tackle these issues, Amazon makes sure that businesses focus on reducing real emissions before buying offsets.

The company has also invested in Beyond Value Chain Mitigation (BVCM). This means they fund climate solutions outside their direct impact. Amazon has teamed up with the LEAF Coalition. Together, they have raised over $1 billion to protect tropical forests.

Looking Ahead: The Future of Amazon’s Carbon Credit Initiative

Amazon’s new carbon credit service shows a bigger move toward corporate responsibility in carbon markets. As demand for high-quality offsets grows, Amazon’s platform could play a vital role in scaling up investments in climate solutions worldwide. Yet, the long-term success of this initiative will depend on:

  • Ensuring Market Integrity. Amazon must continuously track and improve the verification process for carbon credits.
  • Encouraging More Corporate Participation. Expanding eligibility to a broader range of companies while maintaining high standards.
  • Tracking Real-World Impact. Measuring and publicly reporting the climate benefits of the funded projects.

Amazon’s Sustainability Exchange expansion provides businesses with a valuable tool to offset unavoidable emissions while driving investments in environmental solutions. With this action, Amazon’s role in the voluntary carbon market is growing. Its leadership could set a new standard for responsible corporate action on climate change.

The post Amazon Unveils Carbon Credit Investment Service: A Game Changer for Corporate Sustainability appeared first on Carbon Credits.

Westinghouse Expands Nuclear Power to Fuel Canada’s Clean Energy Future

Westinghouse

Nuclear energy removes 528 million metric tons of carbon dioxide from entering the atmosphere each year. That’s like taking 111 million cars off the road. Westinghouse is on a big mission to provide nuclear technology, products, and services worldwide.

The company is committed to building a cleaner, safer, and more sustainable future while strengthening Canada’s nuclear supply chain at every step. Recently, the company announced partnerships with UK-based Urenco and Canada’s Shawflex to expand its microreactor fleet.

Westinghouse and Urenco Team Up to Fuel the eVinci Microreactor

Westinghouse recently announced partnering with Urenco to power up their blueprint eVinci microreactor. Urenco will supply high-assay low-enriched uranium (HALEU) for five years to help the reactor’s rollout. This partnership aims to provide clean and reliable energy around the clock, anywhere.

Laurent Odeh, Chief Commercial Officer for Urenco reaffirmed the company’s commitment to supplying enriched uranium for both current and future nuclear reactors. He stated that they are proud to sign an agreement-in-principle with Westinghouse to support the eVinci microreactor.

Tarik Choho, President of Nuclear Fuel at Westinghouse noted,

“This is a key step in building our capabilities to supply advanced nuclear fuels. Urenco is a valued supplier of enriched uranium. They will play an important role in providing nuclear fuel for our eVinci microreactor, which is a safe, simple and economical clean-energy solution for a range of industries like remote mining, data centers, and off-grid communities.”

The Small and Mighty eVinci Microreactor:

The eVinci microreactor is a game-changer for clean energy. It can power data centers, mining sites, oil and gas operations, remote communities, industrial hubs, universities, and military bases. In the future, it could even be used for space missions, including powering operations on the Moon.

Furthermore, it’s different from traditional nuclear plants. It comes fully built in a factory. Then, it is packed in a container for easy shipping and setup. It operates just like a battery with minimal moving parts.

  • eVinci can produce 5MWe with a 15MWth core design. The reactor core can run for eight or more full-power years 24/7 before refueling.

Net Zero Goals and Safety Standards

The eVinci microreactor provides carbon-free energy. It doesn’t need water cooling, which makes it an eco-friendly power option. This partnership shows how the companies are helping countries meet their net-zero targets.

  • Each reactor cuts up to 55,000 tons of CO2 each year. This helps lower carbon footprints significantly.

After use, spent fuel is sent back to the manufacturer or stored in deep geological repositories (DGR) for safe, long-term storage. Additionally, Westinghouse ensures high safety standards even in unexpected scenarios. This is due to advanced features that lower failure risks. They make it a reliable and eco-friendly energy source.

This small, easy-to-use reactor could change the game for industries and communities. It provides reliable, carbon-free power anywhere on Earth or even beyond.

Westinghouse and Shawflex Partner to Deploy Advanced Reactors

Westinghouse Electric Company has partnered with Shawflex for new nuclear power projects in Canada and beyond. Shawflex will supply cables, connectors, and assemblies for Westinghouse’s AP1000®, AP300™, and eVinci™ reactors under this agreement.

Shawflex, located in Rexdale, Ontario, has supplied electrical wire and cable for over 40 years. The company specializes in designing complex cable systems for the nuclear industry. Shawflex is moving to a bigger facility in Vaughan, Ontario. This change will help them meet rising demand. It will also expand production and improve support for nuclear projects.

Jarrod Shugg, Vice President and General Manager at Shawflex, said,

“Shawflex’s nuclear wire, cable, and assembly solutions are a great fit for Westinghouse’s advanced nuclear power projects. We are ready to leverage our high-quality Canadian manufacturing and decades of nuclear experience in support of Westinghouse’s vision to expand the power of clean energy around the globe.”

The AP1000: More Power, More Prosperity

Westinghouse, owned by Brookfield and Cameco, has the only fully developed Generation III+ reactor in Canada and it’s ready for use. The AP1000 reactor can power over 750,000 homes with one unit. A four-unit plant could supply electricity to at least three million homes.

Building a four-unit AP1000 plant would greatly boost Canada’s economy. It would add $28.7 billion CAD to the GDP during construction. Once up and running, the plant would generate CAD 8.1 billion each year. It would also create 12,000 full-time, high-quality jobs.

Canadian firms will have a chance to work on more than 30 AP1000 reactors planned worldwide. No other Western reactor technology has such a clear and promising path for growth.

Moving on businesses can prepare for future investments in Westinghouse’s AP300® Small Modular Reactor (SMR).

A Carbon-Free Path for Canada

This project will also enhance Canada’s nuclear capacity. Notably, the AP1000 provides carbon-free energy, supporting Canada’s goal of reducing emissions by 45–50% below 2005 levels by 2035.

According to WNA, Nuclear power generates about 15% of Canada’s electricity, with 17 reactors—mostly in Ontario—providing 12.7 GWe of capacity.

CANADA nuclear
Source: World Nuclear Association

Canada plans to expand its nuclear capacity by building both large-scale reactors and SMRs. For years, the country has led in nuclear research and technology, exporting its reactor systems and supplying a major share of the world’s medical radioisotopes for diagnosis and cancer treatment.

The post Westinghouse Expands Nuclear Power to Fuel Canada’s Clean Energy Future appeared first on Carbon Credits.

SBTi’s Version 2.0 Standard Pushes Companies to Net Zero: What Are the Key Updates?

SBTi’s Version 2.0 Standard Pushes Companies to Net Zero: What Are the Key Updates?

The Science Based Targets initiative (SBTi) has released a draft update of its Corporate Net-Zero Standard. This framework helps companies set and reach science-based emissions reduction targets.

The 132-page document, Corporate Net-Zero Standard Version 2.0, shares important updates. These changes focus on flexibility, accountability, and aligning corporate actions with global temperature goals.

The draft is open for public feedback until June 1, 2025, after which it will undergo further revisions before final approval. 

SBTi Chair Francesco Starace emphasized the importance of the net zero standard overhaul, noting:

“The draft standard addresses complex, emerging issues and lays the foundation to enable more companies to move further and faster towards net zero. Working hand-in-hand with stakeholders across the ecosystem to seek and consider a diverse range of views, we aim to produce a standard that is both rigorous and practical, and works for businesses and the planet. With a limited carbon budget left, this is more important than ever.” 

The Major Revisions in SBTi’s Net-Zero Standard

The new draft has several key changes. These include Scope 3 emissions accounting, carbon removal targets, and governance expectations.

SBTi draft corporate net zero standard
Source: SBTi

Stronger Requirements for Scope 3 Emissions

Scope 3 emissions, which cover indirect emissions from a company’s value chain, have long been a challenge for corporations. Over half of the companies surveyed by SBTi said Scope 3 is their biggest hurdle to reaching net zero. The updated draft proposes new rules for this emission:

  • Large companies, those earning over $450 million, must set Scope 3 targets. This rule applies no matter how much they contribute to total emissions.
  • Businesses should identify high-emission activities. These should account for at least 1% of their Scope 3 footprint or exceed 10,000 metric tons of CO₂ annually.
  • The old fixed-percentage rules for Scope 3 targets are gone. Now, there’s a flexible system that highlights high-impact emissions categories.
  • Companies need to use their influence to make sure top suppliers set net-zero targets. This can be done through commitments to cut emissions or by using procurement practices that align with net-zero goals.

This approach seeks to balance what is doable and what is ambitious. It helps companies focus on the biggest sources of emissions in their value chains.

New Approach to Carbon Removal Targets

The draft also sets carbon removal targets to help reduce residual emissions. Companies can add high-integrity carbon removal efforts to their path toward net zero. Three pathways are under consideration in the updated standard:

  1. Mandating carbon removal targets alongside emissions reduction commitments.
  2. Providing recognition for voluntary carbon removal efforts in corporate strategies.
  3. Allowing flexibility in how companies address their residual emissions.

This proposal shows a significant change. It aims to include more carbon removal solutions in corporate net-zero strategies. This shift could boost investment in technologies like direct air capture and nature-based solutions.

Tighter Governance and Monitoring

To enhance credibility and accountability, SBTi is introducing stricter governance measures:

  • Large companies must set net-zero targets within 1 year of commitment, down from the previous 2-year timeframe.
  • Organizations will be subject to random audits to verify compliance.
  • Companies should check their baseline emissions every year. They need to update their targets if big changes happen, such as mergers or acquisitions.
  • A formal climate transition plan must be published within 12 months of target validation.

These measures aim to prevent greenwashing and ensure that companies remain on track to meet their commitments.

What Is the Potential Impact on Carbon Markets?

The new SBTi standard will likely impact voluntary carbon markets, corporate sustainability plans, and rules.

SBTi outcomes
Source: SBTi

Potential Boost for Carbon Credit Markets

One of the most debated aspects of the revised standard is its evolving stance on carbon credits. SBTi is looking for new ways to include Beyond Value Chain Mitigation (BVCM) in offsetting Scope 3 emissions, even though its use is still limited. This idea lets companies fund emissions reduction projects beyond their own operations. These include reforestation or carbon capture.

If SBTi accepts specific high-integrity carbon credits, demand may rise. This could lead companies to fund big mitigation projects outside their immediate operations. However, concerns remain about ensuring the integrity and permanence of these credits.

Implications for Corporate Climate Strategies

The proposed changes mean companies can’t just focus on overall emissions targets anymore. They need to take a more strategic and data-driven approach to manage emissions. Businesses will need to keep in mind these things:

  • Improve supply chain transparency and engagement to meet stricter Scope 3 requirements.
  • Invest in renewable energy and zero-carbon electricity procurement.
  • Consider carbon removal projects earlier in their net-zero planning rather than treating them as a last resort.

Pressure on Regulators to Align Standards

As SBTi’s framework gets stricter, regulators might feel pressure to match their policies to the standard. This could lead to:

  • Stricter mandatory reporting requirements for large corporations.
  • Increased scrutiny of corporate climate claims and carbon offset use.
  • Greater integration of voluntary carbon market mechanisms into national and regional climate policies.
SBTi standard system
Source: SBTi

The Key Challenges and What Comes Next

The proposed updates are a step forward for corporate net-zero strategies, but challenges remain:

Balancing ambition and feasibility can be tough. Some businesses might find it hard to meet the new rules, especially when it comes to Scope 3 emissions tracking.

Ensuring high-integrity carbon removal. The effectiveness of proposed carbon removal targets depends on rigorous verification and permanence criteria.

Industry adaptation. Companies will need time and resources to adjust to the new reporting and compliance standards.

SBTi is currently accepting feedback from corporations, NGOs, policymakers, and other stakeholders until June 1, 2025. The team will publish a second draft after this consultation phase, and they expect to receive final approval by 2026.

Companies that set new near-term targets in 2025 and 2026 can use the current Corporate Net Zero and Near-Term Criteria methods. However, from 2027 onward, all targets must follow Version 2.0.

SBTi’s updated net zero standard marks an important step in corporate climate governance. The new framework seeks to speed up real climate action. It does this by strengthening Scope 3 requirements, adding carbon removal strategies, and boosting accountability.

The standard has challenges, but it can greatly impact corporate sustainability and global carbon markets. Businesses need to get ready for these changes so they can stay credible as part of the global move to net zero.

The post SBTi’s Version 2.0 Standard Pushes Companies to Net Zero: What Are the Key Updates? appeared first on Carbon Credits.

BYD’s 5-Minute EV Charging: A New Era for Electric Cars or Just Hype?

BYD’s 5-Minute EV Charging: A New Era for Electric Cars or Just Hype?

BYD, the Chinese electric vehicle (EV) giant, shocked the automotive world with its latest battery technology. The company announced a breakthrough that allows its new batteries to charge in just 5 minutes, adding 400 kilometers (249 miles) of driving range. This could solve one of the biggest problems for EV owners—long charging times. 

The innovation has made waves in the industry, boosting BYD’s stock and putting pressure on rivals like Tesla. How does this new development impact the market? Is it for real? Let’s uncover the truth. 

Charging Ahead: The Rise of BYD

BYD, which stands for “Build Your Dreams,” is one of the world’s largest EV manufacturers. The company produces both battery-electric and plug-in hybrid vehicles and has seen rapid growth in recent years. It has surpassed Tesla in global EV sales in 2024 and continues to expand its presence worldwide.

BYD vs Tesla EV sales

The latest advancement in fast-charging technology has put BYD ahead of the competition. The company’s new charging system allows EVs to be powered up in almost the same time it takes to fill a gasoline car. This breakthrough could encourage more people to switch from traditional cars to EVs.

BYD’s founder Wang Chuanfu remarked on this announcement, stating:

“To completely solve users’ anxiety over charging, our pursuit is to make the charging time for EVs as short as the refuelling time for fuel vehicles.”

How Does the New Battery Work?

BYD’s new battery can receive one megawatt (1,000 kilowatts) of power, significantly cutting charging times. This is possible because the battery has lower internal resistance, reducing heat buildup when charging at high power. The first BYD models to use this technology will be the Han L sedan and the Tang L SUV.

For comparison, Tesla’s superchargers can provide enough power in 15 minutes for about 172 miles (277 km) of driving. Other Chinese competitors, such as XPeng and Zeekr, offer 5C and 5.5C charging systems that add about 280–342 miles (450–550 km) of range in 10 minutes. BYD’s new battery outperforms them all, making it the fastest-charging battery available.

BYD and others charging time
Source: Bloomberg

Market Impact: Tesla vs. BYD – Can Elon Musk Keep Up with China’s EV Giant?

This breakthrough has had an immediate impact on the stock market. After the announcement, BYD’s Hong Kong-listed shares jumped by 4.1%, reaching a record high. 

Investors think BYD’s new tech will boost its market position. It may also attract more customers who worry about charging their EVs.

Meanwhile, Tesla’s shares fell by nearly 5% following BYD’s announcement. The news has led many to question whether Tesla, once the leader in EV technology, can keep up with BYD’s rapid advancements. 

BYD stock vs tesla stock price

BYD and Tesla are in an intense battle for EV market dominance. While Tesla remains a global leader, BYD has surpassed it in key areas.

In Q4 2024, BYD sold 1.52 million vehicles, tripling Tesla’s sales. The company’s low costs and vertical integration give it a big advantage. This lets it make EVs profitably for less than $25,000 each. Tesla, on the other hand, still struggles with maintaining profit margins, especially as it relies heavily on China for sales.

The Chinese carmaker is also expanding rapidly into international markets, aggressively pushing into Europe and emerging markets. Its next-generation hybrid systems and ultra-fast charging technology further strengthen its competitive position. 

While Tesla still dominates in the U.S., BYD’s lower production costs and new battery advancements could help it gain further market share globally. As both companies continue to innovate, the EV race is far from over.

BYD’s Charging Network Expansion

To support its new ultra-fast charging technology, BYD plans to build more than 4,000 megawatt “flash-charging stations” across China. These stations will allow drivers to take full advantage of the five-minute charging capability.

The company hasn’t announced when the rollout will be finished. Still, it’s clear that BYD is putting a lot of money into infrastructure for its new battery technology.

Challenges and Limitations

Despite the excitement, there are some challenges to consider. Ultra-fast charging requires a lot of power, which could put pressure on electricity grids. Also, installing high-powered charging stations costs a lot. Many places still lack the needed infrastructure.

Another potential issue is battery health. Charging a battery at such high speeds could reduce its lifespan over time. However, BYD has stated that its new battery is designed to handle frequent fast charging without significant degradation.

This battery technology achievement is very significant to the increased adoption of EVs, considering that this clean tech transport is essential to achieving net zero and other climate goals. 

Beyond Speed – The Environmental Impact of EVs and Carbon Credits

Electric vehicles play a crucial role in reducing greenhouse gas (GHG) emissions. In 2021, plug-in EVs, including all-electric and plug-in hybrid models, prevented approximately 5.5 million metric tons of carbon dioxide (CO₂) emissions in the United States. This reduction is equivalent to removing over 1.1 million gasoline-powered cars from the road for a year.

GHG emissions of EV vs gasoline car
Source: EPA

The positive impact of EVs has grown annually. By 2023, the increased adoption of EVs contributed to an 11% decrease in CO₂ emissions from new vehicles, lowering the average to 319 grams per mile—a historic low.

Carbon credits further support emissions reduction by allowing companies to offset their GHG emissions. Automakers can buy these credits to meet environmental rules. This helps boost investment in clean energy and sustainable practices. 

Honda and Suzuki joined Tesla’s CO₂ emissions pool in 2025. They did this to meet the European Union’s strict CO₂ reduction rules. This move shows how carbon credits help companies comply and work together in the industry. BYD also teamed up with other carmakers in the EU for carbon credit pooling. 

EVs cut CO₂ emissions and carbon credits help companies hit their environmental goals. This speeds up the shift to cleaner transport. With more reduction in charging times, BYD’s breakthrough further helps slash the carbon pollution of the mobility sector. 

The Future of EV Charging

The introduction of ultra-fast charging technology is a major milestone in the EV industry. It addresses one of the biggest concerns for consumers—charging time. If BYD can successfully implement this technology on a large scale, it could drive higher adoption of EVs worldwide.

With countries pushing for stricter emissions regulations and phasing out gasoline cars, advancements like this could accelerate the transition to electric transportation. Other automakers will likely try to catch up, leading to further innovations in battery technology.

As the EV competition heats up, all eyes are on Tesla and other automakers to see how they respond. One thing is clear—BYD is shaping the future of electric mobility.

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