The latest move in the sustainable aviation fuel (SAF) sector is Boeing’s partnering with Norway’s Norsk e-Fuel to help develop one of Europe’s first large-scale Power-to-Liquids (PtL) facilities.

This partnership aligns with the aviation industry and ICAO member states’ goal to reach net-zero carbon emissions by 2050. Also, Boeing’s investment will boost SAF production in the Nordics and globally.

Steve Gillard, Boeing’s regional sustainability director for Europe, Middle East, Türkiye, Africa and Central Asia.

“Our support of and collaboration with Norsk e-Fuel underscores the importance of using fossil-free energy to accelerate SAF production, which is key to reducing aviation’s carbon emissions towards 2050. Our partnership to advance e-fuels will help mobilize the commercialization of SAF in the Nordics and across the world, increasing accessibility and availability for our customers as we help build a robust SAF ecosystem.”

Boeing and Norsk e-Fuel Power Up Sustainable Aviation

Norsk e-Fuel, a Norway-based company that supplies fuels to the aviation industry, is pioneering SAF production through its innovative Power-to-Liquids (PtL) process. The company aims to accelerate the transition to renewable aviation by producing electro-SAF (e-SAF).

So What is e-SAF? 

Well, this advanced fuel is created by using fossil-free power to generate green hydrogen, which is then combined with recycled CO₂ from biogenic sources. Notably, the CO₂ is extracted from the air using innovative Direct Air Capture (DAC) systems.

• The result is a synthetic jet fuel that reduces greenhouse gas emissions by over 90% compared to traditional jet fuel.

Revolutionary Tech Powers Sustainable Fuel Production

Norsk e-Fuel combines cutting-edge technologies to create sustainable aviation fuel (SAF). The process includes Axens and Paul Wurth’s advanced Reverse-Water-Gas-Shift (RWGS) and Fischer-Tropsch units, along with the Gasel® upgrading unit. All these technologies boost energy efficiency and reduce emissions.

Second, Sunfire’s innovative electrolyzer, based on Solid Oxide Electrolyzer Cells (SOEC), uses steam and CO₂ to produce renewable syngas in one step. Next, the Smart integration of waste heat increases plant output, delivering 30% more fuel with the same energy input compared to gas-fired systems.

Lastly, Climeworks adds direct air capture technology to remove CO₂ directly from the atmosphere. Powered by renewable energy, it uses advanced filters to capture and release CO₂ for use or storage. Together, these technologies transform aviation fuel into a cleaner, greener solution.

Scaling Up: Large-Scale Facilities for a Cleaner Future

As a project developer, Norsk e-Fuel is establishing large-scale production sites to meet the aviation industry’s demand for sustainable fuels. The company works with strategic investors and key partners to bring industrial-scale Power-to-Liquid production to life. Its efforts focus on building a new value chain for sustainable fuels to drive renewable aviation forward.

Lars Bjørn Larsen, CCO of Norsk e-Fuel remarked on this partnership, saying:

“Our goal is to make e-fuels competitive with and eventually replace fossil fuels in critical infrastructures as SAF needs to become readily accessible and affordable for advancing aviation’s decarbonization. Boeing’s investment will further accelerate our project pipeline and will facilitate the broader aviation industry’s transition to net-zero emissions.”

Boeing’s investment in Norsk e-Fuel will aid the EU’s SAF volume targets. It will also boost energy security and the long-term competitiveness of aviation in the Nordic region. Overall, this collaboration has the potential to shape policies for the global SAF industry’s economic viability.

• READ MORE: British Airways Commits £9M to Carbon Removal Credits. Can this Propel Aviation to Net Zero? 

Clearing the Skies with SAF

Sustainable aviation fuel (SAF) is transforming the way aircraft are powered by offering a cleaner energy source. It helps reduce the aviation industry’s carbon footprint and dependence on fossil fuels. Despite its benefits, SAF made up only 0.53% of global commercial fuel use in 2024, as per the press release.

• In Europe, the RefuelEU SAF initiative is driving change. It aims to gradually increase SAF’s share to 6% by 2030 and 70% by 2050.
• For e-SAF, like the fuel Norsk e-Fuel produces, the targets are even more ambitious—1.2% by 2030 and 35% by 2050.

ReFuelEU Aviation, part of the EU’s Fit for 55 package, promotes SAF as the most effective way to lower aviation emissions. Fuel suppliers must blend SAF with traditional jet fuel at EU airports. This regulation supports the EU’s climate goals and will cut aviation CO2 emissions by over 60% by 2050 compared to 1990 levels.

The increased use of SAF also improves air quality by reducing harmful pollutants like CO, NOx, and PM, especially near airports. By embracing SAF, the aviation industry takes a major step toward a sustainable, cleaner future.

Boeing’s “Avoid First, Remove Second” Strategy to Cut Carbon Emissions

Boeing follows an “Avoid First, Remove Second” strategy to lower its carbon footprint. The focus is on avoiding Scope 1 and Scope 2 emissions by using renewable energy, energy-efficient systems, and sustainable aviation fuel (SAF). For emissions that are hard to reduce, Boeing invests in permanent carbon removal to support long-term carbon reduction.

Over the past four years, Boeing has voluntarily offset emissions from its manufacturing sites and business travel. In 2023, these offsets met strict global standards, ensuring they were measurable, verified, and tracked. Boeing also followed the aviation sector’s CORSIA framework for offsets.

The company plans to cut fossil fuel use by investing in renewable energy, energy-efficient infrastructure, and conservation efforts. For harder-to-reduce emissions, Boeing will increase investments in permanent removal technologies.

Sustainability Target

Boeing aims to cut greenhouse gas emissions by 55% by 2030. By the end of 2023, it reduced Scope 1 and Scope 2 emissions by 26% from 2017 levels. It also plans to use 100% renewable electricity to boost clean energy use and conservation efforts.

5 Key Areas to Decarbonize Aerospace

The company’s sustainability report also revealed that they are working with customers and governments to achieve net-zero emissions by 2050. And they are focussing on five key areas:

1. Fleet Renewal: New airplanes are 20%-30% more efficient than older ones.
2. Operational Efficiency: Boeing helps improve flight operations, air traffic management, and maintenance to cut emissions by up to 10%.
3. Renewable Energy: Research on SAF and renewable energy drives sustainability in aviation.
4. Advanced Technology: Boeing invests in cleaner designs, efficient propulsion, and advanced digital tools.
5. Market-Based Measures: The company offsets emissions from business travel and invests in permanent carbon removal projects.

As Boeing brings its leadership in the SAF industry to this strategic partnership, Norsk e-Fuel adds its advanced technology and a strong network of partners. This includes Norway’s largest air carrier, Norway. Together, they aim to make sustainable aviation a reality, supporting global efforts to achieve net-zero carbon emissions by 2050.

• LATEST: Verra Launches CORSIA Label Guidance for Aviation Carbon Credits

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However, the rapid growth of AI workloads and data centers poses challenges, raising concerns about the effectiveness of these strategies.

AI’s Growing Carbon Cost: Can Microsoft Keep Up?

The rise of generative AI has dramatically increased demand for data centers, the backbone of AI model training and deployment. These facilities are energy-intensive, housing thousands of servers that consume vast amounts of electricity. 

Microsoft’s emissions have surged nearly 30% since 2020, largely due to indirect emissions from constructing and outfitting new data centers. These emissions, also known as Scope 3, represent more than 96% of the big tech’s total footprint.

The company’s $80 billion investment in infrastructure expansion this year alone underscores the scale of AI-driven growth.

• SEE MORE: Microsoft’s $80B Investment to Set the U.S. AI Innovation on Fire

This trend is not unique to Microsoft. A study by Morgan Stanley estimates that global greenhouse gas (GHG) emissions from data centers will triple by 2030 due to generative AI. 

Powering AI queries, which can consume 10x more energy than traditional queries, is straining energy grids and pushing tech giants’ sustainability promises out of reach.

Morgan Stanley projects that these energy-hungry facilities will emit 2.5 billion metric tons of CO₂ equivalent gases by 2030. U.S. data center expansion could increase emissions by 200 million metric tons annually, accounting for over half the global build-out. 

Globally, a 200% growth in data centers may lead to an additional 400 million metric tons of CO₂ emissions. This highlights the environmental challenge of AI’s accelerating energy demands, pressuring tech companies like Microsoft to tackle it effectively. 

Re.green Partnership: Restoring Forests, Offsetting Emissions

In its quest to offset emissions, Microsoft has leaned heavily on carbon credits. One notable initiative is its partnership with Brazilian company Re.green, aimed at restoring degraded land by replanting native species. 

• RELATED: Shell and Microsoft Are The Biggest Carbon Credit Buyers in 2024: What Projects Do They Support?

Their latest agreement, signed in 2025, secures 3.5 million tons of carbon removal credits over 25 years. This deal builds on a 2024 agreement for 3 million tons of credits over 15 years. Combined, these contracts involve replanting 10.7 million seedlings across 16,000 hectares in Brazil.

Re.green specializes in ecological restoration and high-quality carbon offsets. Its partnership with Microsoft focuses on restoring 33,000 hectares across the Amazon and Atlantic forests. Since their collaboration began in May 2024, they’ve planted over 4.4 million native seedlings, covering 80 species, on 11,000 hectares of degraded land.

The recent initiative targets western Maranhão and eastern Pará in the Amazon, along with southern Bahia and Vale do Paraíba in the Atlantic Forest. It aims to enhance ecological balance by improving landscape connectivity, supporting species flow, genetic diversity, and processes like seed dispersal and pollination.

Re.green CEO Thiago Picolo hailed the collaboration as proof of the growing carbon credit market, stating, 

“This collaboration serves as tangible evidence that this market not only exists but has significant potential for growth in Brazil.”

Notably, the Financial Times estimates the deal’s value at $200 million based on recent market analysis.

Carbon Credits and the Greenwashing Claims

While carbon credits are a popular tool for offsetting emissions, they have faced criticism. Detractors argue that such credits allow companies to continue emitting GHGs while outsourcing the responsibility of reduction. 

Critics label this practice as “greenwashing,” a sentiment amplified by reports that Microsoft’s AI and cloud services have been marketed to fossil fuel industries to aid resource exploration.

Microsoft is not alone in this scrutiny. A report highlights how major cloud providers, including Microsoft, Amazon, and Google, lack transparency in their carbon emissions data. 

Emissions from data centers are often underestimated and could be much higher than officially reported by big tech.  

From 2020 to 2022, Google, Microsoft, Meta, and Apple’s company-owned data center emissions were likely 7.62 times higher than reported, according to a Guardian analysis. This discrepancy stems from using renewable energy certificates (RECs), which allow companies to claim renewable energy use even if the energy isn’t consumed onsite. 

RECs enable firms to report “market-based” emissions, which are significantly lower than “location-based” emissions—those directly produced at data centers. 

Without RECs or carbon offset credits, Microsoft’s and other tech giants’ true emissions reveal a troubling trend. If these big tech companies were a single country, their combined 2022 emissions would rank 33rd globally, between the Philippines and Algeria. This highlights the environmental impact of growing data center demands and raises concerns about transparency in emissions reporting.

Balancing Innovation with Sustainability: Microsoft’s Challenge

Microsoft’s dual focus on AI innovation and sustainability highlights the tension between technological advancement and environmental responsibility. The company’s significant investments in infrastructure and carbon credits underscore its commitment to addressing these challenges. 

However, the rapid pace of AI development risks outstripping these efforts, making it difficult to achieve carbon-negative goals by 2030. While initiatives like carbon credits and renewable energy investments are steps in the right direction, the rising energy demands of AI underscore the need for systemic change. 

Achieving climate goals will require not only financial investments but also a commitment to transparency and accountability. As Microsoft navigates this complex landscape, its approach will shape the future of sustainable innovation in technology.

• READ MORE: 2025: The Year Clean Energy Dominates with Record $670 Billion Investment, Trumping Oil & Gas

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In a move that sparked global controversy, President Donald Trump has again withdrawn the United States from the Paris Agreement on climate change. This decision, announced immediately after his second-term inauguration, has sent shockwaves through international climate circles. 

The withdrawal shifts the global balance in climate action as well as raises questions about the second-biggest emitter’s role in addressing one of the most pressing challenges of our time. With fossil fuel policies dominating Trump’s second term, will this setback jeopardize global decarbonization goals?

What is the Paris Agreement and What is America’s History with It?

The Paris Agreement, signed in 2015, is a landmark international pact aimed at limiting global warming to below 2°C, with efforts to keep it to 1.5°C. The agreement is non-binding, meaning nations aren’t legally required to cut their climate emissions. Instead, each country sets its own emissions targets and strategies for achieving them.

The United States played a pivotal role in shaping the Paris Agreement, signing it in 2015 under President Obama. The country pledged to reduce greenhouse gas emissions by 26-28% below 2005 levels by 2025. 

To meet these goals, policies like the Clean Power Plan and federal investments in clean energy were introduced. However, in 2017, President Trump announced the country’s withdrawal, citing economic concerns. 

Despite rejoining under President Biden in 2021, progress has been inconsistent. Notably, the U.S. committed $3 billion to the Green Climate Fund. But it only delivered $1 billion, leaving a funding gap for developing nations.

U.S. Withdrawal Shakes Global Climate Action: What’s at Stake?

The United States is the second-largest carbon emitter globally, behind China, contributing about 15% of the world’s total GHG emissions. Its participation in the Paris Agreement has always been crucial for global climate efforts.

Trump’s executive order declared the U.S.’s withdrawal effective immediately, bypassing the standard one-year notice period required under the agreement. This swift exit has left many nations scrambling to adjust their strategies, particularly those that depended on U.S. leadership and funding.

Under President Biden, the country committed to reducing its emissions by 50-66% by 2035 and achieving net-zero emissions by 2050. These ambitious goals were a cornerstone of the global push toward sustainable development.

The withdrawal halts progress on these targets and eliminates billions of dollars in climate financing for developing countries. These funds were vital for supporting vulnerable nations in their fight against rising sea levels, extreme weather events, and other climate impacts.

• Notably, U.S. emissions fell only 0.2% last year despite Biden’s $1.6 trillion climate agenda.

Trump’s pro-fossil-fuel stance threatens to reverse these modest gains, raising concerns about long-term environmental and economic impacts.

While the Paris Agreement is nonbinding, its symbolic and practical importance cannot be overstated. It has driven global investments in renewable energy, encouraged technological innovation, and fostered international collaboration. Since its adoption, wind and solar energy have grown exponentially, and clean energy investments have nearly doubled compared to fossil fuels. 

However, global emissions remain far from the reductions needed to meet climate targets—the U.S. withdrawal risks undermining this fragile progress at a critical juncture.

Interestingly, multibillionaire Elon Musk, who is a Trump cheerleader once posted on X in 2017 during Trump’s first exit:

“Climate change is real. Leaving Paris is not good for America or the world.”

Trump’s Fossil Fuel Agenda: A Step Forward to “Energy Dominance”, But a Step Backward for Climate Goals

Central to Trump’s decision is his administration’s prioritization of fossil fuels. During his second inaugural address, he declared a “national energy emergency” and emphasized the need to increase oil and gas production. 

“We will drill, baby, drill,” he proclaimed, signaling a sharp pivot from the clean energy policies of the previous administration.

Trump’s energy policies aim to dismantle regulations that limit fossil fuel development and expand domestic production. This approach includes reopening federal lands for drilling, rolling back environmental protections, and halting incentives for renewable energy. 

• RELATED: Trump’s “America First” Energy Agenda: The Critical Points You Must Know

Critics argue that these policies reflect a short-term focus on economic growth at the expense of long-term environmental sustainability.

Remarkably, an analysis suggests that U.S. greenhouse gas emissions would be 28% below 2005 levels by 2030 if Trump wins a second term and rolls back Biden’s policies, falling short of the 50-52% target. 

Under a Biden reelection, emissions would drop to around 43% below 2005 levels. Biden’s policies like the Inflation Reduction Act provided tax incentives for renewable energy projects and set ambitious standards for vehicle emissions and energy efficiency. Trump’s rollback of these policies could slow the adoption of green technologies and jeopardize the U.S.’s position as a leader in clean energy innovation.

In Trump’s scenario, U.S. emissions in 2030 would be about 1GtCO2e higher than under Biden, adding around 4GtCO2e cumulatively by 2030. These extra emissions would result in global climate damages exceeding $900 billion using the EPA’s carbon cost of $230 per tonne.

Resistance at Home

Coalitions of U.S. states, cities, and businesses are stepping up, vowing to meet climate targets despite federal inaction. The U.S. Climate Alliance, representing 24 states, pledges to cut emissions by 66% by 2035.

The America Is All In coalition, co-chaired by former Biden administration officials, represents states that account for nearly 60% of the U.S. economy. Gina McCarthy, the coalition’s co-chair highlighted these subnational actors’ vow to uphold the Paris Agreement’s targets, saying:

“By leaving the Paris Agreement, this administration has abdicated its responsibility to protect the American people and our national security…But rest assured, our states, cities, businesses, and local institutions stand ready to pick up the baton of U.S. climate leadership and do all they can — despite federal complacency — to continue the shift to a clean energy economy.”

Global Repercussions: A Ripple Effect on Climate Action

The international response to Trump’s withdrawal has been overwhelmingly negative. Climate advocates, scientists, and world leaders have condemned the decision, calling it an abdication of responsibility. 

This is particularly concerning ahead of the COP30 climate talks in Brazil, where nations are expected to review and strengthen their commitments under the Paris Agreement.

Globally, Trump’s decision could embolden other nations to scale back their climate ambitions. Countries heavily dependent on fossil fuels may see the U.S. withdrawal as a justification for delaying their transitions to renewable energy. Additionally, the absence of U.S. leadership could undermine trust and cooperation in international climate negotiations, making it more difficult to achieve collective action.

As the world faces unprecedented climate challenges, the need for decisive action has never been greater. Trump’s withdrawal highlights the fragile balance between economic interests and environmental responsibility. While some estimates and projections exist, the real effects of Trump’s fossil fuel agenda remain to be seen and the world is on watch. 

• READ MORE: Trump’s Second Term Sparks a Turning Point in ESG and Climate Disclosure Policies

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President Trump announced a major $500 billion private investment to boost artificial intelligence (AI) infrastructure in the U.S. He spoke at the White House, stressing the need to keep AI advancements in America to stay ahead of competitors like China. This ambitious initiative, called Stargate, is a joint venture of tech giants like OpenAI, SoftBank, and Oracle.

The White House was studded with top leaders like SoftBank CEO Masayoshi Son, OpenAI’s Sam Altman, and Oracle’s Larry Ellison. They joined Trump to discuss the venture’s potential to transform the industry.

Stargate AI Initiative Takes Off

The Stargate Project will deploy $500 billion over the next four years, with an immediate commitment of $100 billion. This investment will be used to build new AI infrastructure for OpenAI in the United States.

According to Trump, Stargate can generate over 100,000 American jobs almost immediately. He described this as a vital step toward re-industrializing the nation and ensuring strategic capabilities for national security.

As Trump firmly believes in making America great again, he asserted once again, saying.

“What we want to do is keep it in this country. “China is a competitor, and we need to build this infrastructure here, fast. Emergency declarations will help us make this happen. These companies will have the support they need to produce the energy and resources required to complete this project quickly.”

The venture highlights the President’s strong commitment to strengthening the U.S. economy. Collaborating with prominent industry leaders, will only foster innovation, create jobs, and advance technology.

What’s Inside Stargate’s Collaboration and Leadership

SoftBank and OpenAI will take the lead in Stargate. SoftBank will oversee financial responsibilities and OpenAI will manage operations. Masayoshi Son will serve as chairman, bringing his visionary leadership to the table.

Japantimes reported Son’s exuberance during the announcement. He said,

“This is not just for business. This will help people’s lives. This will help solve many, many issues, difficult things that otherwise we could not have solved with the power of AI. This is the beginning of our golden age.”

The initial equity funders in Stargate are SoftBank, OpenAI, Oracle, and Abu Dhabi-based AI investment firm MGX. They will initially invest $100 billion. Additionally, Arm, Microsoft, NVIDIA, Oracle, and OpenAI are crucial technology collaborators.

The partnership builds on long-standing relationships, such as the collaboration between OpenAI and NVIDIA dating back to 2016 and OpenAI’s more recent ties with Oracle and Microsoft.

OpenAI’s continued use of Microsoft’s Azure platform will further enhance its ability to train cutting-edge models and deliver innovative AI solutions.

Beyond its economic and technological implications, Stargate represents a strategic asset for national security. With this initiative, Trump highlighted the need to safeguard the U.S. and its allies by pushing America to the top in the AI race.

Larry Ellison’s AI Promise: Texas Leads the Charge

Stargate is already making strides, with 10 data centers under construction in Texas. More sites are being evaluated across the U.S. for additional campuses, signaling a nationwide expansion.

Larry Ellison revealed that the Texas facilities would serve as the launchpad for Stargate’s vision. He spoke about the transformative impact of this technology on various sectors, saying.

“AI holds incredible promise for every American.”

Sam Altman’s Vision for AI’s Potential

Sam Altman, called Stargate “the most important project of this era.” During the announcement, he emphasized AI’s groundbreaking potential to address critical challenges, particularly in healthcare. Altman further shared his optimism about AI’s ability to revolutionize medicine, stating,

“As this technology evolves, we will see diseases cured at unprecedented rates.”

Apart from boosting industries, Stargate seeks to tackle real-world challenges by empowering creative minds to explore innovative AI applications. It also focuses on advancing healthcare, improving lives, and bringing lasting benefits to people worldwide.

• READ MORE: Microsoft, BlackRock, Global Infrastructure Partners, and MGX Form $100B AI Infrastructure Partnership

U.S. AI Investments and Innovations Driving 2025 

CarbonCredits earlier reported that promoting American AI exports and growing the domestic industry is a key focus for 2025. This will drive significant investments. President Trump’s 2019 executive order emphasized the importance of opening global markets for U.S. AI while safeguarding critical technologies. Since then, generative AI has rapidly advanced, with China’s growing AI dominance fueling intense competition between the two nations.

According to Grand View Research, the U.S. generative AI market, valued at $4.06 billion in 2023, is projected to grow at an impressive CAGR of 36.3% from 2024 to 2030, highlighting its immense potential and global impact.

As the year began, Microsoft announced an $80 billion investment in artificial intelligence, with over half of it dedicated to building cutting-edge data centers across the United States. Alongside Microsoft, tech giants like Meta, Google, and Amazon are also heavily investing in domestic AI and data infrastructure.

These investments are only fueling the nation’s ambition to lead the global AI race. Well, this is just the beginning and 2025 looks like a year of American AI’s golden era with massive projects like Stargate.

• MUST READ: Trump’s Bold $20 Billion AI Plan: Fueling America’s Data Centers with Foreign Capital 

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