On April 8, 2025, U.S. President Donald Trump signed a new executive order called “Protecting American Energy from State Overreach.” The order directs the federal government to stop states from enforcing laws related to climate change, greenhouse gas emissions, and ESG (Environmental, Social, and Governance) policies. This move could change how states fight climate change in the future.

What Does the Executive Order Say?

The new executive order gives power to U.S. Attorney General Pam Bondi. She must identify state laws that focus on:

• Climate change
• Carbon and greenhouse gas emissions
• Environmental justice
• ESG initiatives
• Carbon taxes and cap-and-trade programs

If any of these state laws are found to be “illegal” or go against federal law, the attorney general is ordered to take steps to block or stop them. Bondi has 60 days to report back to the President with actions taken and any further recommendations.

Why Did Trump Issue the Order?

According to the order, Trump’s goal is to support “American energy dominance.” This means making it easier to produce oil, gas, coal, critical minerals, nuclear, and other energy sources inside the U.S. Trump believes some state climate policies make energy more expensive and harm national security. 

The order states:

“These state laws and policies weaken our national security and devastate Americans by driving up energy costs for families coast-to-coast, despite some of these families not living or voting in States with these crippling policies.”

Trump further says that states like New York and Vermont have passed laws that unfairly punish fossil fuel companies. These states want companies to pay for their past role in causing climate change. The executive order calls these efforts “extortion” and says they are unconstitutional.

California’s cap-and-trade system was also named. Under this system, businesses must buy credits if they go over their carbon limit. Trump’s order says this creates extra costs and makes it hard for companies to operate.

How Did States React?

Some states strongly disagreed with Trump’s action. Governors Kathy Hochul (New York) and Michelle Lujan Grisham (New Mexico) responded with a joint statement. Both are leaders of the U.S. Climate Alliance, a group of 24 governors committed to fighting climate change. They said:

“We will keep advancing solutions to the climate crisis that safeguard Americans’ fundamental right to clean air and water, create good-paying jobs, grow the clean energy economy, and make our future healthier and safer.”

In short, they believe states have the right to protect the environment and will continue to do so, even if the federal government tries to stop them.

Support from the Oil and Gas Industry

The American Petroleum Institute (API), a trade group for the oil and gas industry, welcomed Trump’s move. API said the order would stop states from illegally punishing companies that provide energy to American families.

Ryan Meyers, a senior vice president at API, said, “We welcome President Trump’s action to hold states like New York and California accountable.”

What Are the Legal Issues?

The executive order could start new legal fights between states and the federal government. In the U.S., both state and federal governments can pass laws. But the Constitution limits how much states can control things like interstate commerce and foreign trade.

Trump’s order argues that state climate laws break these rules. For example, if New York tries to fine a company for emissions that happened in another state or country, it may be seen as overstepping its power.

Still, legal experts say it’s unclear how far the federal government can go to stop these state laws. Past efforts to block climate lawsuits have had mixed results. For instance:

• Lawsuits by New Jersey and New York were dismissed this year.
• Lawsuits in California and Hawaii are still ongoing.
• The U.S. Supreme Court refused to dismiss climate lawsuits in 2024.

States With Climate Targets Could Be Affected

As of now, 14 states have set net-zero targets to reduce emissions by midcentury. These include large states like California, New York, and Illinois. The new executive order could challenge their ability to enforce those goals.

States like California also require companies to report their climate risks. These climate disclosure rules could also be blocked by Trump’s order.

• RELATED: SEC Finalizes New Climate Disclosure Rule: Here’s What’s New

ESG Policies in the Crosshairs

The order also mentions ESG rules. These are policies that consider environmental and social factors when making business or investment decisions.

Since 2021, at least 41 states have introduced ESG-related laws. Twenty states have passed anti-ESG laws. These laws try to stop the use of ESG factors in investments.

Only 8 states have passed pro-ESG laws, which support clean energy and responsible investing. Trump’s order may be used to block pro-ESG laws or stop investors from avoiding fossil fuel companies.

A Shift in Federal Climate Policy

Trump’s action marks a big change from the previous administration. Under President Biden, the U.S. supported climate action:

• Biden kept the U.S. in the Paris Climate Agreement.
• The Securities and Exchange Commission (SEC) defended rules on climate risk reporting.
• Federal agencies joined global climate networks.

Trump’s administration has done the opposite, and it has:

• Pulled the U.S. out of the Paris Agreement again.
• Paused federal funding for many climate programs.
• Stopped defending the SEC’s climate rules in court.

READ MORE: Donald Trump Exits Paris Agreement, Again: What It Means for the U.S. and the World?

What Happens Next?

It’s still not clear how much power the executive order will have. Attorney General Bondi will likely face legal challenges from other states. Courts will have to decide if the federal government can stop states from enforcing climate rules.

In the meantime, states say they won’t back down. They plan to keep fighting climate change and protecting their rights.

Trump’s new executive order has opened a new chapter in the fight over climate change in the U.S. It could reshape how states create and enforce environmental laws. The oil and gas industry supports the move, but many states and legal experts are ready to push back.

• FURTHER READING: Trump’s New Tariffs Wipe Out $2.5 Trillion: How Can It Stall America’s Clean Energy Future?

The post Trump’s New EO Sparks A New Battle Over States’ Climate Power appeared first on Carbon Credits.

New York State has proposed a new rule requiring large companies and facilities to report their greenhouse gas (GHG) emissions. This rule is not intended to reduce emissions immediately but to improve data collection to understand where emissions are coming from. That data will help the state take stronger action in the future.

This rule is an early step in the state’s climate plan, especially as it prepares to launch a “cap-and-invest” program in 2025. The reporting rule would start with emissions data from 2026, and companies would have to submit reports in 2027. The New York State Department of Environmental Conservation (DEC) leads this effort.

Who Would Need to Report?

The rule would apply to many types of businesses that emit large amounts of greenhouse gases. This includes not only facilities that directly release pollution into the air but also companies that supply fuels or other products that create emissions later.

• Any business that emits 10,000 metric tons or more of carbon dioxide equivalent (CO₂e) per year must report. For comparison, that’s about the same as the emissions from 2,200 gas-powered cars in one year.

Types of companies and facilities that may need to report include:

• Power plants
• Waste incinerators and landfills
• Large industrial factories that burn fossil fuels
• Natural gas compressor stations
• Heating fuel and gasoline suppliers
• Fertilizer and lime distributors
• Anaerobic digesters and other waste treatment systems

According to the DEC, thousands of entities across New York could fall under the rule. These businesses will need to measure their emissions or use standard methods to estimate them. Some may already report this information to federal programs, which they can reuse for state reporting.

Refer to this factsheet to know more about the said mandatory reporting.

Why the Rule Matters

The state needs accurate data to meet its climate goals under the Climate Leadership and Community Protection Act (CLCPA). This law, passed in 2019, sets some of the toughest climate targets in the country. New York aims to:

• Reduce greenhouse gas emissions by 40% below 1990 levels by 2030
• Reach 85% emissions reductions by 2050
• Get 100% clean electricity by 2040

Accurate data is needed by the state to understand emissions sources and their scale. Right now, the DEC says data is incomplete for many parts of the state’s economy. Some sectors—like transportation, heating fuels, and industrial processes—have gaps in reporting. This rule will help fill those gaps.

How the Reporting Will Work

Companies will need to submit their emissions through an online reporting system developed by the DEC. The agency is also creating a reporting tool to help companies figure out if they are required to report and how to do it correctly.

For example, companies may be asked to report:

• Direct emissions from their own facilities
• Indirect emissions from fuels they sell or transport
• Activities that lead to other forms of carbon pollution

Some reports may need to be verified by a third party. This is to make sure the data is correct and can be trusted for future climate programs. The rule also allows companies to submit data they already send to federal or state programs, making the process easier and less costly.

The Cap-and-Invest Connection

This reporting rule is tied to New York’s upcoming cap-and-invest program. That program, expected to begin in 2025, will place a cap on total greenhouse gas emissions across the state. Emitting entities have to buy “allowances” for the emissions they produce. The fewer allowances available, the more companies will pay if they go over their limits.

• RELATED: New York to Cap-and-Invest $1B Carbon Credits from Big Polluters

Money raised from this system will go into a Climate Action Fund to pay for clean energy projects, home energy improvements, and transportation upgrades. It will also help protect low- and moderate-income households from higher energy prices.

The reporting rule is a key part of getting that system ready. If the state doesn’t know how much a company is emitting, it won’t be able to manage the cap properly or ensure the rules are fair.

Responding to Federal Rollbacks

The emissions reporting rule also prepares New York to stay on track, even if federal rules change. The U.S. Environmental Protection Agency (EPA) already has a greenhouse gas reporting program. However, some experts have raised concerns that future federal policy changes could affect the reliability of existing programs.

DEC Acting Commissioner Amanda Lefton said the rule will help New York “fill the data gaps left behind by proposed federal rollbacks” and make sure the state has “accurate and reliable data.” She further noted:

“The proposed Reporting Rule will enable us to collect the information necessary to develop effective strategies that reduce harmful air pollution and direct investments where they are most needed, while also protecting New York’s consumers and economic competitiveness.”

• READ MORE: Trump’s EPA Cancels $20 Billion in Climate Funding: What It Means for Clean Energy

Public Input and Next Steps: A Step Toward Climate Action

The proposed rule is now open for public comment. The DEC is collecting comments until July 1, 2025, and is holding public events to explain the rule and get feedback. These include:

• Two public webinars
• Three in-person hearings
• Two virtual hearings

After the comment period, the DEC will review all suggestions and release a final version of the rule. If approved, companies will start collecting data in 2026 and submit their first reports in 2027.

While this rule doesn’t lower emissions on its own, it is an important foundation for climate action. It will help New York:

• Measure progress toward its goals
• Create stronger climate policies
• Promote compliance with climate regulations
• Support clean energy investments
• Protect vulnerable communities

With better data, New York can make smarter decisions about where to spend money, where to reduce pollution, and how to support people affected by climate change.

Governor Kathy Hochul has also proposed a $1 billion “Sustainable Future Fund” that would use money from the cap-and-invest to support job training, home retrofits, public transit, and renewable energy in disadvantaged areas.

In the years ahead, the emissions data gathered under this rule will guide all of these efforts.

New York’s proposed GHG emissions reporting rule is a big step toward building a cleaner, more sustainable future. By requiring large emitters to report their emissions, the state is preparing for bigger programs to reduce pollution and invest in climate solutions. It aims to balance regulatory accountability with support mechanisms for affected businesses.

The post New York Requires Large Emitters to Report Their Greenhouse Gas Emissions appeared first on Carbon Credits.

More companies and governments are investing in carbon removal technologies to help them reach net-zero emissions. With stricter climate rules and companies feeling pressure to reduce carbon footprints, carbon removal stocks are becoming appealing investment options.

Why Carbon Removal Stocks Are Gaining Traction in 2025

Carbon removal companies work to take carbon dioxide (CO₂) from the air. They either store it for good or change it into useful products.

Carbon removal is different from carbon offset initiatives. While offsets balance emissions by reducing them elsewhere, carbon removal actively eliminates CO₂. This makes it essential for industries that struggle to cut emissions.

The carbon removal sector could grow quickly in the next few years. More policymakers, companies, and investors are showing support to scale up the industry. In 2025, here are the top four carbon removal stocks worth watching and keeping on your radar. Let’s break down each one of them, what technology they’re innovating, and other major initiatives. 

1. Net Power Inc. (NYSE: NPWR): Innovating Zero-Emissions Energy

Net Power Inc. is a U.S.-based clean energy technology company founded in 2010, specializing in generating reliable, on-demand electricity from natural gas with near-zero emissions. The company is revolutionizing the energy sector with its proprietary Allam Cycle technology.

It generates electricity from natural gas while capturing and storing CO₂ emissions. Furthermore, it can capture around 97% of CO₂ emissions during the process. This innovative approach also virtually eliminates other pollutants, including nitrogen oxides (NOₓ) and sulfur oxides (SOₓ).

Net Power’s modular plant design occupies about 15 acres per facility and offers scalability from 250 megawatts (MW) up to 2 gigawatts (GW). The company is aiming to deploy its first utility-scale power plant by 2028.

Unlike traditional natural gas plants, Net Power’s system prevents emissions from reaching the atmosphere, offering a potential breakthrough for clean energy production.

Operational Developments:

• La Porte Demonstration Facility: The company completed major plant upgrades and initiated the first phase of the equipment validation program with Baker Hughes. 

• Project Permian: Located near Midland-Odessa, Texas, this is Net Power’s first utility-scale project. Front-End Engineering and Design (FEED) work continued with Zachry Group and was on track to conclude in Q4 2024. The project aims for initial power generation between the second half of 2027 and the first half of 2028.

• Air Separation Unit (ASU) Partnership: Net Power announced Air Liquide as the ASU supplier for Project Permian, integrating this component into the overall plant design.

Strategic Initiatives:

Net Power has improved site evaluations for new projects in North America. This includes locations in Alberta, Canada, and several sites in the U.S. These efforts involve collaborations with natural gas producers, carbon sequestration providers, and data center developers.

The company signed a Limited Notice to Proceed (LNTP) with Baker Hughes. This deal is worth about $90 million. It covers the purchase of long-lead materials for the turboexpander and important equipment for the first utility-scale power plant. ​

These developments underscore Net Power’s commitment to advancing its clean energy technology. It is also expanding its project portfolio despite financial challenges.

2. Shell Plc (NYSE: SHEL): Leading in Carbon Capture Initiatives

Shell Plc, a global energy conglomerate, is making significant strides in carbon removal to align with its net-zero emissions targets. The company has pledged to reduce absolute emissions by 50% by 2030 compared to 2016 levels. Carbon removal, particularly carbon capture and storage (CCS), plays a critical role in achieving this goal.

CCS captures carbon dioxide (CO₂) from industrial processes. It stores the gas underground to stop it from entering the atmosphere.

Shell’s Major CCS Initiatives:

1. Quest Project (Canada): Since 2015, the Quest facility at Shell’s Scotford complex in Alberta has captured and stored over 8.8 million tonnes of CO₂. Shell is moving forward with the Polaris CCS project at Scotford. This project aims to capture about 750,000 tonnes of CO₂ each year. It will cut emissions from the refinery by up to 40% and from the chemicals complex by 22%. ​

2. Northern Lights Project (Norway): In collaboration with Equinor and TotalEnergies, Shell is investing $714 million to expand the Northern Lights carbon storage facility. This expansion will boost CO₂ injection capacity from 1.5 million to over 5 million tonnes each year. It will tackle nearly 10% of Norway’s annual emissions.

3. Gorgon Project (Australia): As a partner in the Gorgon CCS project operated by Chevron, Shell contributes to one of the world’s largest CCS operations. By December 2023, the project had stored more than 10 million tonnes of CO₂.

4. Daya Bay CCS Hub (China): Shell, along with ExxonMobil and CNOOC, is exploring the development of a large-scale CCS hub in Guangdong Province. The proposed facility aims to capture up to 10 million tonnes of CO₂ annually, supporting China’s goal of carbon neutrality by 2060. ​

These initiatives reflect Shell’s commitment to deploying CCS technologies globally. It works with industry partners and governments to mitigate carbon emissions and support the transition to a low-carbon energy future.

Carbon Credit Market Leadership

Shell showed its commitment to cutting emissions by retiring 14.5 million carbon credits in 2024. Most of these credits backed forestry and land-use projects that aim to protect current carbon stores.

The company has invested in nature-based solutions. These include reforestation and wetland restoration, which both help enhance carbon sequestration.

3. Delta CleanTech Inc. (CSE: DELT): Specializing in Carbon Capture Solutions

​Delta CleanTech Inc., established in 2004 and headquartered in Calgary, Alberta, focuses on clean energy technology. The company specializes in carbon capture, utilization, and storage (CCUS). It also works on solvent and glycol reclamation, as well as carbon credit validation and management.

• Note: The company has changed its name to Regenera Insights.

Key Business Areas

1. CO₂ Capture Technology: Delta provides CO₂ capture solutions using its LCDesign® technology. This technology is scalable for facilities that manage 1 to 1,000 tonnes of CO₂ daily.

2. Solvent and Glycol Reclamation: Through its subsidiary, PurificationRX, Delta provides solvent purification technologies aimed at reducing emissions and promoting material reuse.

3. Carbon Credit Services: Carbon RX, a subsidiary, focuses on carbon credits. It originates, validates, and streams these credits. The company is expanding from agriculture to many industries that capture and reduce carbon.

Strategic Initiatives and Partnership 

4. Mitsubishi Corporation (TYO: 8058): Advancing Global Carbon Capture Initiatives

Mitsubishi Corporation is working on big carbon capture and storage projects around the world. The company has set a target of achieving net-zero emissions across its global operations by 2050, with CCS playing a key role in this strategy.

Strategic Partnerships and Initiatives:

In January 2023, MC signed a Memorandum of Understanding with Nippon Steel Corporation and ExxonMobil Asia Pacific to study and establish CCS value chains in the Asia-Pacific region. This collaboration aims to capture CO₂ emissions from Nippon Steel’s steelworks in Japan. It also evaluates the infrastructure needed for storage in Malaysia, Indonesia, and Australia. ​

In March 2024, MC teamed up with ENEOS Corporation, JX Nippon Oil & Gas Exploration, and PETRONAS CCS Solutions. They will explore the feasibility of a CCS value chain from Tokyo Bay to Malaysia.

The project plans to capture around 3 million tonnes of CO₂ each year from industries in Tokyo Bay. It could expand to 6 million tonnes annually, with the goal of starting operations by 2030.

Carbon Credit Initiatives:

• NextGen CDR AG: MC teamed up with South Pole to create NextGen CDR AG. This company buys and sells carbon credits from carbon removal technologies, such as CCUS. This initiative will help implement these technologies on a large scale. It does this by creating new revenue streams through credit sales.

• Australian Integrated Carbon Investment: MC and Nippon Yusen Kabushiki Kaisha (NYK) bought a 40% stake in Australian Integrated Carbon (AIC). AIC aims to capture CO₂ by regenerating Australia’s native forests. The goal is to sequester up to 5 million tonnes of CO₂ each year. By 2050, the total target is 100 million tonnes.​

Through these strategic partnerships and investments, Mitsubishi Corporation shows a strong commitment to advancing carbon capture, storage, and removal technologies. All these help contribute to global decarbonization efforts and the realization of a low-carbon economy.

Conclusion

Investing in companies dedicated to carbon removal and capture, such as Net Power, Shell, Delta CleanTech, and Mitsubishi Corporation, offers potential for financial returns while supporting the transition to a low-carbon economy. These companies lead in creating and using key technologies to meet global climate goals.

What more, the carbon removal sector is expected to grow significantly in the coming decades. This growth is driven by increasing regulatory support, corporate net-zero commitments, and advances in technology.

As countries around the world tighten emissions rules, the need for carbon removal and direct air capture solutions will likely grow. This trend could set these carbon removal companies up for long-term success. Investors looking to join the clean energy shift will find these carbon removal stocks as great chances to be part of the next wave of climate innovation.

• FURTHER READING: What Is Carbon Dioxide Removal? Top Buyers and Sellers of CDR Credits in 2024

The post Top 4 Carbon Removal Stocks Set to Suck Up and Cash In appeared first on Carbon Credits.

China’s Ministry of Finance (MoF) issued its first sovereign green bond, denominated in Chinese currency to the value of USD824m, on the London Stock Exchange. This is China’s first green sovereign bond and also its first sovereign bond issued overseas. The move shows China’s rising role in global green finance.

This plan started taking shape in early 2024. In January, officials from China and the UK met to discuss green finance. Then, in February, China’s Ministry of Finance released a detailed green bond framework. It explained how the funds raised will contribute to mitigation and adaptation, natural resource protection, pollution control, and biodiversity preservation. This helped China start offering green bonds to international investors.

China’s Green Bonds: A Journey That Began in 2014

China’s green bond journey started back in 2014. That year, Sean Kidney, head of the Climate Bonds Initiative, worked with China’s central bank on a task force. Their goal was to build a green bond market.

Since then, China has made huge progress. By 2023, the country was issuing more than USD 150 billion in green bonds every year. It also created clear rules, strong government support, and trusted agencies to check the quality of green projects.

Now, with its first sovereign green bond sold overseas, China is taking the next big step. This move shows that the country is ready to lead globally in green finance.

Part of Carbon Neutral Goals

Climate Action Tracker analyzed China’s emissions, and they are still rising. By 2030, they’re expected to be just 0.5% to 1.6% higher than earlier forecasts—reaching around 13.8 to 14.6 billion tonnes of CO₂.

In a more conservative outlook, emissions might peak before 2025 and then drop slowly—about 0.5% each year. But if China speeds up its shift to renewables and cuts back on coal, then it would lead to a faster decline to about 1% per year. Technically, it can save up to 750 million tonnes of CO₂ by 2030.

Still, even in both of these scenarios, China’s current climate policies aren’t strong enough to make a big dent this decade. To meet the 1.5°C climate goal of the Paris Agreement, China will need to boost its climate action in its next big policy plan (2026–2030).

Thus, this bond fits right into China’s national green plan and net-zero goals. Since 2013, China has followed the idea of “Ecological Civilization.” This means growing the economy while protecting nature.

China’s long-term sustainability plan includes major goals like the following:

• The Five-Sphere Integrated Plan
• The 14th Five-Year Plan (2021–2025)
• Peaking carbon emissions before 2030
• Reaching carbon neutrality by 2060

All of these support China’s “Beautiful China” vision that aims to make green development a key part of the country’s future.

Furthermore, China is using modern tools like artificial intelligence, smart tech, renewable energy, and carbon capture to make this successful. These technologies will help monitor the environment, save energy, and reduce pollution. They also support the growth of cleaner industries and smarter cities.

• MUST READ: China Revives Its Carbon Credit Market: Price Swings & Future Outlook 

Investors Can Now Join the Green Effort

This new green bond connects money with climate action. It gives investors a chance to support China’s green goals directly.

Apart from Government backing, businesses and local communities also play a big role. Green business ideas, government rewards, and public action all help push China toward a cleaner future.

More significantly, these bonds could help finance renewable energy projects, green transport systems, waste-to-energy plants, and climate-resilient urban infrastructure

Thus, this bond is more than a financial tool. It shows China’s commitment to building a greener, healthier world.

China Sets a High Bar for Its Green Bonds

China has created a green bond framework that meets top global and local standards. It follows both the China Green Bond Principles (2022) and the ICMA Green Bond Principles (2021 with the 2022 Appendix). By aligning with these trusted guidelines, China builds strong trust among investors—especially those who care about sustainability and ESG values.

The framework focuses on four main parts: how the money is used, how projects are chosen, how the funds are managed, and how results are reported.

All the money raised from these green bonds will go toward eco-friendly projects listed in China’s national budget. This includes building green infrastructure, funding ongoing green programs, offering tax breaks for clean initiatives, and supporting local governments working on climate action.

Furthermore, the MoF will track all fund transactions in an internal register. Every year, it will share reports showing where the money went and what environmental benefits it achieved. This clear reporting gives confidence to investors and shows that their money is used productively.

Paving the Way for Future Climate Investments

This debut is likely just the start. The Ministry of Finance has built a framework to support future green bond issuances. These could be bigger and offered in different currencies.

As interest in low-carbon development grows and China pushes for cleaner, high-quality growth, more green bonds from the government are expected to follow.

This crucial step paved the way for China to issue green sovereign bonds to global investors. It came at a moment when global sustainable debt is about to hit USD 6 trillion, following Climate Bonds standards.

• READ MORE: Experts Say China’s Emissions Peak Is Near: How EVs and Renewables are Playing a Big Part

The post China’s First-Ever Sovereign Green Bond Hits Global Market: Will It Power Its Net Zero Ambitions? appeared first on Carbon Credits.