Amazon, alongside five other major companies, has committed to purchasing carbon offset credits to support the preservation of the Amazon rainforest in the Brazilian state of Para. This agreement, valued at around $180 million, marks a significant step toward protecting one of the world’s most vital ecosystems in the fight against climate change.

Amazon LEAF Coalition’s First Amazon Deal

The carbon credits will be purchased through the LEAF Coalition, a forest conservation initiative co-founded by Amazon in 2021 in partnership with other companies and governments, including the United States and the United Kingdom. This deal is the LEAF Coalition’s first agreement in the Amazon rainforest, the world’s largest tropical forest. It plays a critical role in curbing climate change by absorbing massive amounts of greenhouse gases.

The Para state government and the LEAF Coalition announced the agreement during New York Climate Week, where more than 900 climate-focused events were held alongside the UN General Assembly. 

Governor Helder Barbalho of Para shared details of the deal. He noted that the state will retain only the portion of the sales proceeds necessary to fund its ongoing efforts to reduce greenhouse gas emissions. The remainder of the funds will be distributed to local communities, including Indigenous peoples, former slave descendants, traditional extractivist communities, and family farms.

Barbalho emphasized the symbolic importance of the agreement, stating: 

“Clearly it sends an important message: A company with a name referencing the Amazon making its first purchase with a state in the Amazon.”

Supporting Nature Conservation Efforts and Indigenous Communities

Amazon will purchase carbon offset credits alongside other big companies such as drug and chemical maker Bayer, consultancies BCG and Capgemini, H&M, and the Walmart Foundation. The fund will help protect the Amazon rainforest from deforestation. 

Under the agreement, 5 million carbon credits will be bought at $15 per credit, which is well above the average price of $4.49 for credits linked to nature conservation, per Allied Offsets data. 

Chart from Allied Offsets; altered highlighting price of nature-based forestry

Each credit represents a reduction of one metric ton of carbon emissions through efforts to reduce deforestation in Para. This forest conservation initiative covers from 2023 to 2026. 

An additional 7 million carbon credits will also be made available for purchase by other companies. Governments from the U.S., U.K., and Norway have guaranteed a portion of these credits, committing to buying them if other corporations do not.

How Significant is This Carbon Offset Deal?

The Amazon rainforest is a critical carbon sink that helps mitigate climate change. However, Para has been the Brazilian state most affected by deforestation since 2005. Despite the challenges, there has been progress, with deforestation rates in Para decreasing since 2021. 

In the first eight months of 2023, an area larger than New York City was deforested in Para, representing a 20% decline from the previous year.

Para is also set to host the UN COP30 Climate Summit in 2025. This aligns with President Luiz Inácio Lula da Silva’s efforts to restore Brazil’s environmental leadership after years of increased deforestation. The hosting of COP30 reflects Brazil’s renewed commitment to environmental protection and sustainability.

For Amazon, this purchase aligns with its broader environmental initiatives and corporate responsibility goals. And that includes the Climate Pledge, which aims to achieve net zero carbon emissions by 2040.

Supporting Para’s nature conservation project through carbon credits is a big part of its carbon neutralization strategy. The retail giant is focusing on slashing carbon emissions within its operations as well as backing carbon-neutral initiatives. 

In 2023, Amazon cut its total carbon emissions by 3%, thanks to an 11% reduction in Scope 2 emissions (electricity) and a 5% decrease in Scope 3 emissions (supply chain). However, Scope 1 emissions (direct operations) rose by 7%, mainly due to increased transportation fuel use.

To tackle the increasing emissions, Amazon invests in various carbon neutralization efforts. The company partners with projects that protect tropical forests, such as the LEAF Coalition. It also supports programs that enhance forest carbon capture and improve local livelihoods while investing in new technologies for efficient carbon capture.

READ MORE: Is Amazon’s Carbon Goal Enough to Offset Its Financial Hiccups?

A Boost for Carbon Offset Markets

This deal comes at a time when global demand for carbon credits has slowed. However, major tech companies like Microsoft, Meta, and Google have recently invested in carbon offsets in Brazil, underscoring the growing recognition of nature-based solutions to combat climate change. 

Amazon’s statement about the purchase highlighted the importance of preserving tropical forests in addressing climate change. The company’s involvement in this deal, especially given its association with the rainforest through its name, sets a strong example for corporate involvement in environmental conservation.

In addition to the carbon credit deal, Para’s state government is working to enhance supply chain transparency to combat deforestation. This is particularly true in the cattle industry. Cattle ranching has been a significant driver of deforestation in the region. 

Governor Barbalho further announced that by 2026, the Para government aims to have full traceability of cattle supply chains, helping to prevent illegal deforestation and ensuring sustainable land-use practices.

While the purchase of carbon credits alone will not solve deforestation challenges, it reflects the critical role that corporations can play in financing conservation initiatives. This $180 million collaborative approach, involving governments, corporations, and local communities, offers a model for how other regions could approach forest conservation and climate action.

READ MORE: The Pitfalls of Low-Quality Carbon Offsets: Are They a Threat to Our Planet?

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On September 20, the U.S. Department of Energy (DOE) announced over $3 billion in funding for 25 projects across 14 states. These initiatives are a part of the Biden-Harris Administration’s Investing in America agenda, which aims to boost domestic production of advanced batteries and essential materials like lithium.

Unlocking DOE’s $3B Boost for a Stronger U.S. Battery Industry

Notably, this effort builds on the administration’s previous commitment of nearly $35 billion to strengthen U.S. critical minerals and battery supply chains. The $3 billion in grants for these new projects will help expand EV and energy storage production while reducing reliance on foreign supply chains, particularly China’s.

Furthermore, the selected projects will be administered by the U.S. DOE’s Office of Manufacturing and Energy Supply Chains (MESC). The main goals of the funding are:

Build a robust domestic battery supply chain, including the production of key battery components like cathodes, anodes, and electrolyte materials. These elements are crucial for both current and next-generation battery technologies.
Focus on constructing, expanding, and retrofitting facilities for battery production, recycling, and the processing of critical minerals, such as lithium, graphite, and manganese.

U.S. Secretary of Energy Jennifer Granholm emphasized the importance of this initiative, stating,

“We’re witnessing a manufacturing revival in America, thanks to the Investing in America agenda. By establishing the U.S. as a leader in battery manufacturing, we’re not only creating high-paying jobs but also securing our energy future and strengthening our global leadership.”

Battery manufacturing investment in the United States from 1st quarter 2022 to 2nd quarter 2024

Source: Statista

READ MORE: The Clean Energy Powerhouses: US Lithium Imports Soar 49% and Argentina’s Copper Ambitions

Key Projects in Lithium Extraction and Recycling, A S&P Global Report

Arkansas and Texas

Among the new projects, the DOE awarded the two largest grants—$225 million each—for direct lithium extraction (DLE) initiatives. These projects will be based in Arkansas and Texas, both part of the Smackover Formation. SWA Lithium LLC, a joint venture of Standard Lithium Ltd. and Norway’s Equinor ASA, is one of the recipients. Their Arkansas-based project aims to produce 45,000 metric tons of battery-grade lithium carbonate per year.

The DOE also selected Terravolta Resources LLC for another $225 million grant for a DLE project located in the Texarkana region. This project will focus on producing 25,000 metric tons of lithium carbonate annually.

Another significant investment includes a $200 million grant to Cirba Solutions US Inc., which plans to build a lithium-ion battery recycling facility in Columbia, SC. The plant will recycle batteries from EVs, energy storage systems, and consumer electronics, processing up to 60,000 metric tons per year.

South Carolina and Michigan

The Cirba Solutions project is one of five selected facilities in South Carolina. It is joined by a $198.7 million grant awarded to EnerSys Advanced Systems Inc. to establish a new lithium-ion battery cell plant in Piedmont, SC, set to begin production in 2028 with an initial capacity of 5 GWh.

In Michigan, four projects were highlighted, including a $145 million grant for Revex Technologies Inc. to collaborate with Eagle Mine LLC, a subsidiary of Canada’s Lundin Mining Corp., on the REV Nickel Project. This initiative aims to process Eagle Mine waste and spent batteries to recover valuable materials.

Additionally, Mitra Future Technologies Inc. received a $100 million federal grant for a facility in Muskegon, focused on producing lithium iron phosphate cathode materials for electric vehicles, energy storage, and defense applications.

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On the West Coast

The DOE also selected Group14 Technologies Inc. to negotiate a $200 million award for a silane production facility in Moses Lake, Washington. This facility will manufacture silicon-based anode materials. Furthermore, Form Energy Inc. received a $150 million grant to support its production of iron-air battery storage systems at a factory in Weirton, West Virginia.

Meanwhile, Reuters reported Albemarle is slated to receive $67 million for a project in North Carolina aimed at producing commercial quantities of anode material for next-generation lithium-ion batteries. Additionally, Honeywell will be awarded $126.6 million to build a commercial-scale facility in Louisiana that will produce a key electrolyte salt essential for lithium batteries.

The media agency also noted that DOE intends to grant DOW Chemical Company $100 million to manufacture battery-grade carbonate solvents for lithium-ion battery electrolytes. Others in the pipeline include Clarios Circular Solutions, in partnership with SK ON and Cosmo Chemical will receive $150 million for a project in South Carolina to recycle lithium-ion battery production scrap materials from SK ON, the battery division of SK Innovation.

A Bold Step Toward Economic and Energy Security

John Podesta, Senior Advisor to President Biden for International Climate Policy, remarked on the importance of securing EV and battery supply chains.

 “The administration is using every tool available to onshore and ‘friend-shore’ supply chains. This will boost national security, strengthen our economy, and help combat the climate crisis,”

The press release mentions, the battery sector will see a total investment of $16 billion, which includes contributions from private companies. However, a significant purpose of the selected projects is job creation. Considering this, more than half of the 25 projects have committed to labor agreements and can potentially create 8,000 construction jobs and over 4,000 long-term operating jobs.

The next step for these projects involves a negotiation process with the DOE before funding is finalized. Environmental reviews will also be completed during this time. This groundbreaking investment boosts domestic battery manufacturing and strengthens the country’s leadership in the global clean energy transition.

Shifting Dynamics in the U.S. Battery Market

Batteries are crucial to enhancing the U.S. energy grid, powering homes and businesses, and supporting EVs. It’s a known fact that China has dominated the battery market, controlling key minerals like lithium, and rare earth elements. However, U.S. production is rising.

S&P Global forecasts suggest that domestic battery capacity will surge to 603 GWh by 2027 and 1,169 GWh by 2030, boosting the U.S. share of global battery capacity to 16%. In contrast, China’s share is expected to fall from 78% in 2023 to 58% by 2030.

The market research firm also noted, that China, which is the prime hub for big lithium-ion battery makers such as CATL and BYD, accounted for 82.2% of US battery imports in the second quarter of 2024.

The U.S. is intensifying efforts to boost domestic battery manufacturing by implementing robust measures to protect its interests. Furthermore, The Biden administration is introducing new tariffs on Chinese products, including lithium-ion batteries and EVs.

Lael Brainard remarked to S&P Global that these “tough, targeted measures” aim to counter unfair trade practices by China, enhancing the resilience of the U.S. supply chain. In response, China’s government criticized the tariffs, labeling them as a reflection of U.S. protectionism.

This effort not only propels the US battery industry forward but also drives innovation and minimizes dependence on foreign suppliers. All in all, it would position the country as a leader in clean energy, ensuring access to crucial materials, mainly lithium remains domestic.

READ MORE: US Imports of Lithium and Critical Minerals Drop Amidst Shifting EV Market 

The post DOE Supercharges the U.S. Battery and Critical Minerals Industry with $3 Billion Boost appeared first on Carbon Credits.

BC Hydro, the government-owned electric utility company, supplies electricity to 95% population of British Columbia. In April 2024, they called for acquiring 3,000 GWh of clean energy to bolster B.C.’s electricity grid. Quite surprisingly, the government recently announced an overwhelming response to BC Hydro’s call for clean energy. Independent producers across the province submitted proposals that boosted the capacity 3X more than what they expected, totaling 9,000 GWh.

Josie Osborne, Minister of Energy, Mines and Low Carbon Innovation

“We need more clean energy to power our homes, businesses and industries, to power growing communities and to power our future. Building an economy powered by clean, reliable and affordable electricity is one of the job-creation opportunities of our generation. Through regular calls for power and BC Hydro’s 10-year capital plan, we are creating over 10,000 construction jobs and driving sustainable growth across the province.”

From Diverse Projects to Economic Growth, BC Hydro Set to Revolutionize the Energy Landscape of British Columbia

Unlike other regions, British Columbia’s hydroelectric system offers a key advantage for integrating intermittent renewables like wind and solar. Hydroelectric dams, acting as energy reservoirs, can store water and release it when needed. This flexibility allows BC Hydro to balance the grid, ensuring consistent power amid adverse weather. Concisely, the hydroelectric dams are stable and reliable sources of clean energy.

The 21 submitted proposals cover a wide range of renewable sources, with approximately 70% focusing on wind power, 20% on solar, and 10% on biomass and hydroelectric projects.

The projects span almost every region of British Columbia, namely the southern Interior, central Interior, north coast, Peace Region, and Vancouver Island. The government also highlighted that this was the first competitive energy call in over 15 years.

As BC Hydro evaluates the proposals, electricity purchase agreements are expected by December. Construction of these clean energy projects could start by fall 2028, bringing an estimated $2.3 to $3.6 billion in private investment and creating 800 to 1,500 jobs annually across the province.

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Electricity Generation by Fuel Type (2021)

Source: Canada Energy Regulator

Ongoing Investments Driving BC Hydro’s Future

Chris O’Riley, president and CEO, of BC Hydro emphasized the significant changes they are making to enhance connections timeless in newly constructed homes and buildings.

He further added,

“In growing municipalities like Vancouver, where we are seeing substantial population growth and increasing residential, commercial and industrial customers clean electricity needs, we are embarking on significant upgrades to our electricity system, including adding new substations and expanding existing substations, transmission lines and distribution network to ensure we can continue to provide reliable and clean electricity to our customers.”

The company revealed that it is just not boosting clean electricity generation but also upgrading its transmission and distribution networks. In January 2024, the company rolled out a 10-year, $36 billion capital plan to expand infrastructure and support clean growth. These projects will create 10,500 to 12,500 jobs annually, while ensuring a stable energy supply as large projects, like the Site C dam, wrap up.

Site C dam artist render

Source BC Hydro

Furthermore, it will be holding competitive power calls every two years to keep pace with British Columbia’s growing economy and the need for renewable energy. This approach also fortifies the electrical grid and ensures that clean energy reaches homes, businesses, and industries while keeping electricity rates affordable.

In addition to increasing the electricity generation in the province, BC Hydro is also investing to expand and strengthen its transmission and distribution system through its capital plan. Upgrading BC Hydro’s electricity grid will ensure that clean power can be delivered to new homes, businesses, and industries when and where they need it.

SEE MORE: Canada’s 2024 Budget: Accelerating Towards a Clean Economy and Net Zero Future 

Latest: BC Hydro Unveils High-Powered EV Charging Stations

In its latest news release, the company unveiled its plans to expand its electric vehicle (EV) fast charging network, adding two new 180-kilowatt chargers in Vanderhoof. These chargers will help British Columbians transition from gas-powered vehicles to those that run on clean electricity.

George Heyman, Minister of Environment and Climate Change Strategy assured that,

“These new stations will help British Columbians travel quickly and reliably using clean energy,” stated. More charging options also contribute to our goal of reducing climate-changing emissions by 40% by 2030.”

Source: Climate Change Accountability Report, British Columbia

This initiative reflects the growing enthusiasm for EVs among British Columbians. With over 170,000 EVs already on the road, BC Hydro anticipates this number could soar to between 700,000 and 900,000 in the next decade.

Overall, BC Hydro’s clean energy goals are set to transform the landscape of British Columbia. This shift will create a greener environment, allowing both residents and businesses to thrive.

READ MORE: University of British Columbia and Powertech Pioneer $23M Hydrogen Fueling Station 

The post Can BC Hydro’s Clean Energy Push Transform British Columbia’s Power Grid? appeared first on Carbon Credits.

As artificial intelligence (AI) is taking over industries, its impact on global copper demand is becoming increasingly evident. BHP, the world’s largest mining company, has warned that AI’s growth and clean energy transition could aggravate an already looming copper shortage. With copper’s critical role in powering data centers, EVs, and renewable energy systems, the metal’s future availability is a growing global concern.

BHP Predicts Soaring Copper Demand in The Future

BHP’s chief financial officer Vandita Pant has reported to Financial Times that the company predicts the global demand for copper to soar by 72% by 2050. This clearly shows a rising trend from 30.4 million tons in 2021 to 52.5 million tons annually. She further explained the surge to be driven by the increasing need for copper in electric vehicles (EVs), solar farms, and particularly, data centers powered by AI technologies.

Pant added,

“Today, data centers are less than 1 percent of copper demand, but that is expected to be 6 to 7 percent by 2050.”

Notably, AI applications, which require energy-intensive computing, are expected to increase copper demand by an additional 3.4 million tons each year by 2050. The copper dominates the power transmission and cooling systems that keep these facilities operational. As AI continues to drive the expansion of data centers, its infrastructure will rely heavily on copper, intensifying competition for the red metal.

To sum up, BHP right now sees a temporary weak copper demand but predicts strong long-term potential.

Global Copper Shortage an Imminent Challenge, Reports Financial Times

BHP’s concerns come amidst a broader conversation about the future of copper supply. A copper shortfall is expected in the medium to long term, triggering a race among mining companies to secure access to copper deposits.

Financial Times reported, that earlier this year, BHP failed to acquire Anglo American, a major copper producer, in a bid to strengthen its position in the copper market. Though the $49 billion offer was rejected, BHP continues to invest heavily in copper assets. In July 2024, the company teamed up with Canada’s Lundin Mining to acquire South America-focused Filo Corp. for $3 billion, securing copper-rich assets in Chile and Argentina.

Colin Hamilton, commodities analyst at BMO Capital Markets said,

“Data centers themselves are becoming incrementally less copper intensive, but getting the electricity to them, that is copper intensive”

Despite these efforts, global copper inventories have been declining. In CME warehouses, copper stock fell by 71% between March and July, reaching their lowest levels since 2008. Furthermore, new copper mines aren’t being developed quickly enough to meet rising demand, as it takes nearly more than a decade to actively set up a project. This lag in supply could lead to a significant shortage of copper in the coming decades.

Source: IEA

Is China’s Slowdown Holding Copper Prices Steady?

While the long-term outlook for copper remains robust, the short-term market is facing challenges. This year weak demand from China, the world’s largest consumer of copper, has weighed on prices. Copper is currently trading at around $9,207 per tonne, down 15% from its peak earlier this year. Media reports say that concerns about China’s property sector and slower-than-expected economic growth have contributed to this decline.

Most recently Bloomberg reported,

The latest 3-month closing price for LME copper is $9,515.00, reflecting a 1.22% increase.

Even The Wall Street Bank has projected copper prices to average $10,100 per metric ton in 2025 which is significantly lower than its earlier forecast of $15,000.

Source: Technopedia

However, analysts and mining executives agree that copper’s demand remains solid. The energy transition, driven by renewable energy projects and electrification, will be a key growth driver for copper demand. BHP expects that as the world advances towards its net-zero goals, the demand for copper will certainly spike, especially in developing countries.

READ MORE: Copper Prices Slump Below $9,000: What Does It Mean for Global Growth? 

A Race for Copper in the Age of AI: Who Are the Top Players?

As copper prices hit a two-month high, major mining firms like Anglo American, Southern Copper, Vale, Ero Copper, Rio Tinto (RIO), Antofagasta, Freeport-McMoRan, and Glencore gained the spotlight on the London Stock Exchange. Furthermore, the recent half-point rate cut by the U.S. Federal Reserve has contributed to broader gains in the metals market, making it an exciting time for copper investors.

Source: IEA

READ MORE: The World Needs 194 New Large Copper Mines to Reach Net Zero 

The growing influence of AI and the energy transition is reshaping the global copper market. BHP’s warnings about a potential shortage underscore the importance of securing copper resources for the future. As the demand for AI-driven data centers and clean energy solutions rises, industries are bracing up for the coming copper crunch.

We can see how significant sustainable mining and innovation in resource management have become more critical than ever. Copper, once only made for traditional industries, is now at the forefront of the global energy transition.

Well, the race to secure copper mines is on, with mining giants like BHP positioning themselves to meet the future needs of the tech world. Nonetheless, the question remains: Will the supply of copper keep up with the rapid advancements in AI and the shift toward renewable energy? Let’s wait and watch!

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The post Will AI Drive a Global Copper Shortage? BHP Rings the Alarm appeared first on Carbon Credits.