Over $420M North American Forest Fund from Japanese Investors Kicks Off

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Sumitomo Forestry, a top Japanese forestry company, has kicked off a bold initiative. They’ve launched a fund worth over $420 million to manage North American forests and create carbon credits. This move marks a significant step in the global fight against climate change.

The fund, amassing over $420 million, is the joint effort of 10 Japanese corporations, including Sumitomo Forestry. Their aim is to help reduce global carbon emissions by investing in forest management.

The nine other corporate investors of the fund include ENEOS Corporation, Osaka Gas Co., Tokyo Century Corp., Japan Post Holdings, Ltd., Nippon Yusen Kaisha, Fuyo General Lease Co., Sumitomo Mitsui Banking Corporation, Sumitomo Mitsui Trust Bank, and Unicharm Corporation. 

Increasing the Value of Forests 

The fund, called “Forestry Fund I”, will buy and manage 130,000 hectares of forest mostly in North America by 2027. It will be managed by Eastwood Forests, an expert in US forest funds management, and will run for 15 years. 

The participating Japanese companies invested in this fund through their US subsidiaries. Through the fund, they aim to expand the forests they are managing and contribute to fighting climate change.

Sumitomo Forestry plans to build the world’s tallest building made from timber harvested from sustainably managed forests.

Highlighting the significance of the fund, Sumitomo Forestry President Toshiro Mitsuyoshi said that:

“[The fund can] “not only create economic value through timber trading but also contribute to the global environment through forest preservation and expansion and to helping investors offset their carbon emissions.”

Despite recent criticisms thrown at forestry projects, forests still have a big role to play in capturing carbon to limit global warming. And large companies continue to promote forests as a natural climate solution. They support forestry initiatives as part of their net zero and other climate goals.  

Japan has also pledged to achieve net zero emissions by 2050. By expanding into North America, the Japanese corporations will also help increase the value of forests as carbon sinks. 

The fund they invest in will generate carbon credits worth around 1 million tonnes of CO2 a year on average.

High-Quality Carbon Credits from Sustainable Forest Management

The carbon credits that will be created by the fund will be of high quality because of sustainable forest management activities, promoting the various functions of forests. These include carbon absorption, biodiversity, and water resource conservation.

Companies that find it difficult to reduce their carbon emissions to zero after performing robust reduction measures can buy the credits the fund generates. 

Big companies, such as Microsoft Corp. and BP PLC, are also backing up and buying forest carbon credits. They use it either to offset their emissions or support nature-based climate solutions. 

The new forest fund will keep track of global trends in carbon credits to create high-quality offsets. In addition to conventional forest management for timber production, the fund will focus on performing sustainable forest management.

Improved Forest Management (IFM) is one way to promote sustainable forestry. IFM promotes the recovery of forest vegetation by leaving promising young trees. It also creates forests with a hierarchical structure with trees of different species and ages. 

Forestry projects accounted for 30% of the total carbon offset credits issued by voluntary registries in 2022. These projects come in various types including IFM, REDD+ (Reducing Emissions from Deforestation and Degradation), and afforestation/reforestation.

According to an analysis by Haya et al. (2023), IFM projects have generated 193 million carbon offset credits since 2008. That amount represents 28% of the total credits from forest projects and 11% of all credits generated in voluntary markets. 

Source: Haya et al. (2023). https://doi.org/10.3389/ffgc.2023.958879

The review also found that in countries that issued forest offset credits from IFM projects, almost all credits (94%) were in the U.S. Moreover, the majority of them are registered under the ARB (California Air Resources Board) compliance carbon offset program. Almost 50% of these forest carbon credits are from projects in the U.S. 

To date, most forest offset credits across all registries have been issued for cutting forest carbon losses by significantly reducing tree harvests compared to baseline scenarios. 

Late last year, an Oak Hill Advisors-led consortium also bought 1.7 million acres of US timberland for $1.8 billion to reduce logging and improve forest carbon deals.

Overall, forestry projects like sustainable or improved forest management can potentially reduce carbon emissions and capture carbon in many ways. By restoring forests, enhancing biodiversity, promoting standing forests, etc., they can significantly contribute to mitigating global warming. Carbon offset credits have the potential to create important incentives to achieve this potential.

The carbon credits generated by the Sumitomo Forestry-led forest fund will be distributed to the investors.

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Samsung Reports Net Zero Progress, Pledges Over $5B by 2030

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Samsung Electronics, the world’s biggest mobile phone maker, is almost a third through its goal to be net zero as it ramped up its sustainability efforts in 2022 and pledged more than $5 billion to decarbonize its consumer electronics operation.

The South Korean tech major achieves 31% in its transition to meet its target by 2030, up 11% from 2021. 

Samsung’s Carbon Emissions

Technology companies, which have a significant impact on people and economies, have also been one of the largest carbon emitters. The industry has a carbon emission of 2%-3% of global emissions in 2021, which is close to aviation’s footprint.

But the tech sector has been spending huge efforts in cutting down its carbon footprint, with major companies committed to slashing their carbon emissions and targeting net zero emissions. 

Among the major tech companies, Samsung has the biggest footprint of over 20 million metric tonnes (Mt) of CO2 equivalent in 2021. 

Samsung Electronics strongly rely on fossil fuels, which is significantly responsible for its carbon footprint. More than 80% of its power consumption is from non-renewable, fossil-fuel-based sources. Both its Scope 1 and 2 emissions for constructing manufacturing lines have been rising as shown below.

Another research by Electrics Hub further shows that the Seoul-based company emits more pollution than any other tech company. Its carbon footprint is equivalent to the emissions of 4.3 million cars on the road each year. 

According to the same report, Amazon, the world’s biggest e-commerce firm, came second with 16.2 million Mt of CO2. This makes the giant retailer the largest polluter among the “Big Five” tech companies, including Alphabet, Apple, Meta, and Microsoft. The four remaining companies emitted much lower CO2e compared to Samsung. 

They emitted 6.6 million, 1.0 million, 3.1 million, and 4.9 million Mt of CO2e, respectively. 

The tech industry has a crucial role to play in the world’s quest to net zero emissions by 2050. The major players, in particular, have a big influence in impacting the sector’s transition to a low-carbon future. 

Thus, the shift towards a climate-focused company means Samsung has a huge task to do. Its latest Sustainability Report outlines the ways in which the company has been tackling this matter. 

Samsung’s Net Zero Pledge and Strategy

Samsung has committed to net zero emissions by 2050, pledging over $5 billion to decarbonize its consumer electronics operation. 

Still, that target is 10-20 years later than Apple, Google, and Amazon. Apple aims to reach net zero by 2030, Google by 2030, and Amazon by 2040. 

Yet, Samsung has set various ambitious goals as part of its net zero strategy. Highlighting its commitment to sustainability, Jong-hee Han, chief executive and vice chairman of Samsung noted in its report:

“Growing environmental and socio-economic risks coupled with geopolitical uncertainties have reinforced our belief that sustainability needs to be a key force for driving our competitiveness and technological innovation… We aim to mitigate carbon emissions by using our innovative technologies and maximising resource circularity across the life cycle of our products.”

A big part of its sustainability and net zero quest is Samsung’s “New Environmental Strategy” launched in September last year. It aims to tackle global environmental issues through its technologies.

The initiative has three major pillars, namely:

Joining the global drive to fight climate change, 
Supporting the implementation of a circular economy, and 
Addressing environmental challenges through technological innovation.

In particular, the tech major plans to boost the share of renewables in its energy mix. For its Southwest Asia operations, Samsung aimed to match electricity consumption with renewable energy production by 2022. That goal comes later for Central and Latin America and Africa, by 2025 and 2027, respectively. 

Samsung has already achieved this target in China, the U.S. and Europe.

Moreover, the tech giant will further invest in new technologies that reduce process gasses produced by semiconductor manufacturing. It’s one of the areas that account for most of Samsung’s emissions. The company hopes to implement the necessary technology in its production facilities by 2030.

Other net zero strategies of Samsung are to:

optimize the energy efficiency of its products,
increase water recycling during manufacturing, and 
develop carbon capture technology.

For unavoidable emissions, Samsung are buying carbon offset credits as part of its climate adaptation efforts since 2013. These carbon credits are from different carbon reduction projects, including low-carbon cooking stoves, landfill gas treatment, and nature-based solution projects.

Here are the firm’s net zero and sustainability targets at a glance.

How Does Samsung Progress Towards Net Zero? 

Samsung shows that it’s serious about its net zero pledge and is making strides toward it. 

In 2022, the company achieved 10.16 million tonnes of CO₂e reduction (Scopes 1 and 2) compared to 2019 levels. That’s a whopping 59% increase from the previous year.

Also, the tech giant became a member of the RE100, a global movement pursuing a 100% renewable energy system. 

This commitment was proven by completing its transition to using renewables in Samsung’s Device eXperience (DX) divisions in Brazil, India and Vietnam. This is in line with the largest smartphone maker’s plan to utilize sustainable energy at its sites outside South Korea.

DX is the division that is making the Apple iPhone’s rival Galaxy smartphone series.

The South Korean major reported 8,704GWh of renewable energy consumed globally, reaching a transition rate of 31%.

Moreover, Samsung has increased the amount of recycled resin in its product and packaging plastic components by 200% (99,000 tonnes). Its Galaxy S6 phone is made with 99.9% recyclable material and comes in recyclable packaging. This innovation won the Sustainable Materials Management (SMM) Champion Award by the US Environmental Protection Agency. 

It also puts the company on track with its target of using recycled resin in 50% of plastic parts by 2030 and in all plastic components by 2050.

When it comes to water resource preservation, Samsung managed to reuse 117 million tonnes of water in 2022, up 29% from 2021. 

Lastly, the major tech company is working with various organizations to further improve its sustainability efforts. For instance, it partnered with the popular brand Patagonia to make a washing machine that minimizes the environmental impact of microplastics. 

To make its net zero ambition a reality, Samsung will invest $5.3 billion in those strategies by 2030. And as it’s making progress in this journey, it’s inspiring other companies to do the same.

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Capture6 Secures Over $8M Grant for Innovative Carbon Capture Technology

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In a significant boost to the carbon capture industry, Capture6, a California-based startup, has secured a grant exceeding $8 million from the California Energy Commission. 

This funding, the largest in the current round of the Commercialization Industrial Decarbonization (CID) Program, will propel the company’s groundbreaking Project Monarch at the Pure Water Antelope Valley (PWAV) Demonstration Facility.

Capture6 is a direct air capture (DAC) start-up specializing in climate resilience and industrial decarbonization. The company develops and commercializes highly scalable approaches to removing carbon dioxide.

Capture6’s Project Monarch will demonstrate the use of saltwater separation technology to remove CO2.

Producing Freshwater By Removing Carbon

Capture6 is revolutionizing the carbon capture sector with its unique, scalable technology. The startup’s approach integrates DAC with water treatment technologies and thus, creating a circular economy solution. 

This innovative process uses brine, a byproduct of water treatment facilities, to produce a solvent that captures atmospheric carbon dioxide. The result? A dual benefit of additional freshwater and reduced CO2 emissions, is a win-win for communities and the environment.

Water security is a global concern, with demand projected to surge by 55% by 2050. 

Traditional water sources, often high in salt and minerals, require significant treatment before use. The startup’s technology offers a solution to this escalating environmental crisis. 

By using salt water to create its carbon removal solvent, Capture6 can recover over 50% of freshwater from desalination waste brine. This process not only provides drinking and industrial water but also captures CO₂ and eliminates waste brine.

Capture6 Approach to Carbon Capture

The grant application was a collaborative effort, led by Capture6, with PSE Healthy Energy, Lawrence Berkeley National Lab, and Stantec. 

The Palmdale Water District (PWD) will partner with Capture6 to develop the PWAV Demonstration Facility. This facility will showcase Capture6’s cutting-edge technology and PWD’s advanced water purification through a visitor learning center and guided tours.

Berkeley Lab will play a crucial role in the project, developing a comprehensive monitoring, reporting, and verification protocol. They will also execute a life cycle analysis for the project, while PSE Healthy Energy will lead air pollutant assessments.

Dr. Ethan Cohen-Cole, CEO and co-founder of Capture6, expressed his gratitude for the grant, stating, 

“It represents one of the largest state-funded DAC investments to date. It confirms our process is viable in decarbonizing industries while at the same time reducing emissions and increasing freshwater supplies.”

Capture6’s Unique CO2 Removal Facility

The facility, named Pure Water Antelope Valley Demonstration Facility, which includes Capture6’s Project Monarch, will be the first fully integrated water management and CO₂ removal facility of its kind.

Project Monarch is a two-phase initiative with the ultimate goal of developing a large-scale commercial facility. The success of this project hinges on community support as well as positive outcomes from the demonstration facility.

Capture6’s carbon capture process has the potential for global replication. The company is actively pursuing opportunities, particularly in New Zealand, Asia, the Middle East, Canada, and across the US. The goal is to deliver high-value environmental and financial outcomes, including pure water, affordable carbon removal, and emissions reductions.

Here’s how the startup’s DAC process works, explained in the video below.



The CID Program is a key part of the California Energy Commission’s broader efforts to create a clean, modern, and thriving California. As the state’s primary energy policy and planning agency, the Commission plays a pivotal role in supporting the transition to a clean energy economy and reducing greenhouse gas emissions.

In conclusion, Capture6’s innovative technology and the recent grant from the California Energy Commission mark a significant stride in the fight against climate change. The company’s unique approach to carbon capture and water treatment could be a game-changer in the global effort to reduce CO2 emissions and secure water supplies. Stay tuned for more updates on this exciting development.

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Nvidia AI Tech Ramps Up Carbon Capture & Storage Predictions 700,000x

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Nvidia Corporation, a giant tech company that’s a leading supplier of artificial intelligence (AI) hardware and software, unveiled its new approach to carbon capture and storage (CCS) that scientists and engineers can use to accelerate carbon sequestration.

Carbon capture and storage, also called carbon sequestration, is one way to mitigate climate change by redirecting carbon deep underground. During the process, CCS scientists must prevent fracturing geological formations where carbon is injected, leaking CO2 into aquifers, or worse back into the atmosphere. 

That can happen if there’s too much pressure buildup due to the process of injecting carbon into the rock formations. This, and more, is what Nvidia’s Ai-powered technology addresses to help improve carbon sequestration.

Nvidia AI: Ramping Up Carbon Capture Modeling 700,000x  

CCS is one of few methods that industries like oil and gas, cement, and steel can deploy to decarbonize and meet their net zero targets. More than a hundred CCS facilities are under construction worldwide.

Traditional simulators for carbon sequestration are costly to own and require a lot of time to complete. Machine learning and AI models deliver the same level of accuracy but at reduced cost and time. 

Nvidia introduces its AI approach to carbon sequestration that CCS scientists can readily use in real-world applications through Nvidia Modulus and Nvidia Omniverse.

Nvidia’s AI-powered technology accelerates CCS modeling 700,000x using Fourier Neural Operators (FNO) architecture.

Nvidia’s Approach to CCS Modeling

Source: Nvidia website

FNO architecture provides more accurate predictions of pressure buildup and CO2 saturation. It’s 2x as accurate while needing only a third of the training data compared to other computer models. 

As such, the software helps CCS engineers to choose the best injection sites fast, identify the optimal spacing and depth of wells, as well as determine the best injection pressure and rate for the captured carbon. Moreover, engineers can visualize and optimize the entire inspection process through Nvidia Omniverse. 

With its superior computing abilities, Nvidia software increases the carbon sequestration simulation speed 700,000 times. A robust assessment for CO2 plume and pressure buildup usually takes about 2 years using numerical simulators. But with Nvidia’s FNO, it may take 2.8 seconds only. 

Trained Nvidia FNO models are available in a web application to provide real-time simulations for carbon capture and storage projects. 

Thus, AI technology enables various tasks vital in making CCS decisions.  

Improving Carbon Sequestration

Scientists use carbon storage simulations or modeling to pick the right CO2 injection sites and rates. Modeling also helps them optimize storage efficiency, control pressure buildup, and make sure that rock formations don’t get fractured. 

CCS engineers must also understand how the injected CO2 will spread through the ground, also called a CO2 plume. 

Nvidia technology was found useful by a study to achieve an AI-powered carbon capture and storage with interactivity at scale. Using it, engineers can interact with the models to guarantee the reliability and safety of a CCS project. A safe and accurate CO2 storage process can help reduce the amount of carbon escaping into the air. 

Here’s a video by Nvidia explaining the CCS process and how its AI technology can help accelerate things. 

FNO allows scientists to simulate how pressure levels build up and where CO2 spreads throughout the 30 years of injection. Acceleration using this AI-powered model speeds up the simulation process from ten minutes to just seconds. 

Without this technology, selecting injection sites for CO2 would seem like a shot in the dark.

AI for Net Zero

Achieving net zero emissions by 2050 requires a combination of different scalable technologies such as CCS. 

As per the International Energy Agency (IEA) report, the global planned carbon storage capacity rose by 80% in 2022. For the same year, there’s also a 30% increase in planned carbon capture capacity.

Recent innovations in AI, with models like Nvidia’s FNO, can help ramp up CCS modeling by orders of magnitude. This is crucial in helping CCS technologies scale up.

There are also other AI innovations used in the industry.

For instance, Ohio-based analytics company Aperture launched its Carbon Capture Space last year. It is an AI-powered platform that offers industry analysts and investors insights into 1,000+ technologies for CCS.

Nvidia’s Earth-2, which will be the world’s first AI digital twin supercomputer, will leverage the FNO models. This tech will further show how AI can help speed up the process of mitigating climate change.

The tech company now tops Tesla as AI revolution pushes its shares to record high, up 200%. ESG investors prefer it to other traditional assets, with over 1,400 ESG funds directly holding Nvidia, according to Bloomberg report.

Nvidia and its AI models will help tackle the climate crisis by contributing to global climate change mitigation efforts. Leveraging the AI revolution would be one way for the world to be on its track to net zero.

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North America’s Largest Biochar Plant Announced In Canada

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A consortium of Canadian and French companies, including Airex Energy, Groupe Rémabec, and SUEZ, are investing C$80 million to construct North America’s largest biochar production facility.

This initiative highlights the growing global recognition of biochar’s potential in carbon sequestration and soil enhancement.

The plant will be located along the north shore of the Saint Lawrence River in Port-Cartier, Quebec, Canada.

The Quebec Biochar Plant: A Major Step in Canada’s Decarbonization Efforts

The Port-Cartier facility is Canada’s first industrial-scale biochar production plant, marking a significant milestone in the country’s net zero efforts.

The first phase of the plant will be finalized in 2024. It will focus on transforming forestry waste into biochar, contributing to a circular economy, and playing a crucial role in the fight against climate change.

With an initial production capacity of 10,000 tonnes per year, the plant will triple its annual production capacity by 2026. This makes it the largest biochar plant in North America.

The consortium aims to produce 350,000 tonnes of biochar by 2035.

They have identified locations in Europe and Africa where they can access the input to produce biochar, as well as potential buyers.

The Project’s Impact and Plans

The facility, owned by CARBONITY, a joint venture equally owned by the three partners, will employ 75 people locally. It will produce carbon-rich biochar with high environmental qualities from the residual biomass of Groupe Rémabec’s operations.

The project will sequester 75,000 tonnes of carbon per year.

By sequestering carbon, biochar production will generate guaranteed, certified carbon credits. First Climate will then sell them on the voluntary carbon market.

This project became possible thanks to the financial participation of the Quebec and Canadian governments. A federal official commented on this milestone, the Minister of Sport and Minister responsible for CED, said that:

“Government of Canada has made concrete commitments to demonstrate that a strong economy and a healthy environment go hand-in-hand. That is why Canada Economic Development for Quebec Regions (CED) is granting a repayable contribution of $3M to CARBONITY for its set-up project in Port-Cartier.”

Biochar: A Powerful Tool for Carbon Sequestration and Soil Enhancement

Biochar is a charcoal-like substance produced from plant matter. It’s created through a process called pyrolysis, where organic material is heated in a high-temperature, low-oxygen environment.

The result is a stable form of carbon that resists decomposition, effectively locking away carbon that would otherwise return to the atmosphere. When added to soil, biochar can significantly improve soil health, enhancing water retention, nutrient availability, and microbial activity. All these lead to increased crop productivity.

Moreover, the production of biochar can generate Carbon Dioxide Removal (CDR) carbon credits. These credits can be sold or traded, providing an additional revenue stream for biochar producers and incentivizing further carbon sequestration efforts.

Airex earlier this year raised $38M to increase capacity at another Quebec facility that torrefies biomass.

A Shift in the Carbon Credits Market

The construction of the Quebec biochar plant signifies a shift in the carbon credits market. As countries and corporations strive to achieve their carbon neutrality goals, the demand for effective carbon offsetting solutions is growing.

Biochar production offers a tangible, measurable way to offset carbon emissions. The carbon credits generated from this process can attract significant interest from environmentally conscious investors and corporations.

Used as a soil amendment, biochar offers several benefits, including carbon sequestration, increased nutrient retention, and optimized soil aeration and drainage. Its properties allow it to contribute to soil regeneration, limit the use of fertilizers and sustain water resources.

When added to concrete or asphalt formulations, biochar brings new functionalities to the final material while helping to reduce its carbon footprint, a key issue for the construction sector.

Lastly, the production of biochar at high-temperature and with oxygen-free pyrolysis will generate surplus energy in the form of steam or pyrolysis oil, which is reusable on site.

In summary, here are just some of the potential industrial uses of biochar:

Source: Osman et al. (2022). Environ Chem Lett 20. https://doi.org/10.1007/s10311-022-01424-x

The Future of Biochar and Carbon Management

The emergence of North America’s largest biochar plant in Quebec is a milestone in the world’s journey toward sustainable carbon management. It highlights the potential of biochar as a solution for carbon sequestration, waste management, and soil enhancement.

With the establishment of the Port-Cartier facility, the future of biochar and carbon management looks promising. The project shows the potential of biochar in sequestering carbon while setting a precedent for future initiatives in the sector.

As we continue to grapple with the challenges of climate change, such initiatives offer a beacon of hope, showing us that with innovation and commitment, a sustainable future is within our reach.

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Toyota Reveals Solid-State EV Battery with 745-Mile Range, Cuts Emissions by 39%

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Toyota reveals its solid-state EV battery technology which claims to have a 745 mile range and 10 minute charging time. Solid-state batteries can reduce the carbon emissions of electric vehicle (EV) batteries by 39%, but it needs 35% more lithium.

The world’s largest carmaker by sales caught the markets by surprise by announcing its plans to commercialize its solid-state battery technology by 2027. 

Toyota’s Next-Gen EV Battery Technology 

Last month, Toyota announced that as the next-generation EV continues to use new batteries, they’re “determined to become a world leader in battery EV energy consumption.”

This week, the Japanese carmaker, which has been lagging behind rivals in rolling out EVs, unveiled its solid-state battery breakthrough. The automaker said that it was able to simplify ways to produce the materials used in making solid-state batteries. 

Toyota further noted that this discovery will enable it to halve the size, cost, and weight of EV batteries. That also means significantly cutting charging times to 10 minutes or less while increasing the driving range to 1,200 kilometers (745 miles). Currently, the luxury brand Lucid Air holds the longest drive range of 516 miles. 

President of Toyota’s R&D center for carbon neutrality, Keiji Kaita, commented that they’re planning to achieve reductions both in their liquid and solid-state batteries. He further said that this new battery will be simpler to make than a conventional lithium-ion battery. 

The car company has been working on this technology since 2012 and it’s becoming a reality as Toyota now have over 1,000 solid-state battery patents – more than any other carmaker.

Noting Toyota’s announcement, analysts remarked that this could be a game-changer for the industry. And it can also help the Japanese carmaker be closer to the leading EV maker Tesla. Most of Tesla’s EV units are powered by conventional lithium-ion batteries using liquid electrolytes. 

Kaita also said they discovered ways to address the durability problems with EV batteries. And that they now are confident to mass-produce solid-state batteries by 2027 or 2028. 

Ford and BWM also tested these batteries late last year.

What are Solid-State Batteries?

Solid-state batteries are considered by industry experts as the most promising technology to fix major EV battery concerns. These particularly include charging time, driving range, capacity, and safety risks like catching fire.

Some experts call solid-state the “kiss of death” for gasoline- and diesel-powered vehicles.

These batteries replace a liquid electrolyte with a solid material and use lithium metal instead of graphite at the anode. Here’s how Toyota’s solid-state battery differs from the current, liquid-based version and how it can change the industry.



Solid-state batteries offer high energy density, meaning they can store more energy with less materials. They also typically require no toxic materials.

More remarkably, research shows that this new technology can help mitigate the climate impact of EV batteries.  

As shown below, batteries made from most sustainably sourced materials can cut carbon emissions further down by 39%. This emission reduction could probably be due to simplified production processes and faster charging times. 

Moreover, more efficient mining methods such as extracting lithium from geothermal wells can also contribute to lower climate impacts. Solid-state batteries may need up to 35% more lithium than the current lithium-ion technology, but they use far less cobalt and graphite. 

Driving Up the Demand for More Lithium 

Lithium, also called white gold, is the unsung hero of the clean energy transition by powering up the EV revolution. Countries and major EV makers are scrambling to secure lithium. If solid-state batteries dominate the industry, demand for this critical mineral will soar up much higher than is currently projected. 

In the European Union, the bloc’s proposed Batteries Regulation for lithium requires responsible sourcing and recycling of the EV element. The EU policy will ensure that there’s enough lithium supply for solid-state batteries. European governments still need to finalize the regulation. 

In the U.S., the Inflation Reduction Act (IRA) incentivizes EV manufacturers that source their batteries locally or from free-trade partners. But the country needs to ramp up its domestic lithium supply to meet the skyrocketing demand. This is where rare lithium companies like the American Lithium Corporation come to the rescue. The company has two of the largest lithium deposits in the Americas.

According to an industry expert, improving the methods used in extracting and processing the raw materials in solid-state batteries, including lithium, is the key to slashing their climate impact. 

Toyota’s solid-state battery revelation didn’t disclose key details such as battery performance in cold temperatures, energy density, and raw materials. The giant carmaker aims to manufacture 3 million battery-electric units each year by 2030 — 50% with solid-state batteries.

Will Toyota’s battery breakthrough change its course and make it a leader in the EV revolution? That’s what the industry has to watch out for. 

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Indonesia’s Coal Emissions at Record High, Up 33% in 2022

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Indonesia’s coal emissions in 2022 hit a record high, as per preliminary analysis, which makes the country one of the biggest emitters of carbon from fossil fuels worldwide. 

The data analyzed was from the Indonesian Ministry of Energy and Mineral Resources (ESDM), showing that coal consumption in the country is highest ever in 2022 than any year. It jumped by 33%, from 559 million barrels of oil equivalent (BOE) in 2021 to 746 BOE in 2022. 

Highest Ever Growth in Coal Emissions 

As seen in the chart, coal has spiked up with a huge margin in comparison to other energy sources. This increase in coal burning also resulted in skyrocketing greenhouse gas emissions from coal and other fossil fuels. 

According to the Global Carbon Project, the organization that calculated CO2e emissions from Indonesia’s fossil fuel burning, the rise in coal caused the Asian country’s GHG emissions to increase massively by more than 20%.

The top 10 biggest carbon emitters haven’t seen this increase in the last fifteen years, says one senior analyst in the organization. 

Increases in oil and gas, plus coal, emissions bring Indonesia’s total fossil fuel CO2 emissions to 619 million metric tons. 

With these increases, Indonesia will be the world’s 6th-highest fossil polluter in 2022, up from the 9th place in 2021. The top 3 spots go to the U.S., Saudi Arabia, and Russia. 

If this trend continues this year, the Southeast Asian nation will hold the 6th spot, for sure. Still, the country’s CO2e footprint per capita (2.7 tonnes) remains lower than that of the United States (15 tonnes). 

Global average for emissions intensity is 7.5 tonnes per capita.

Indonesia is the 3rd-largest coal producer in the world and is a major coal consumer itself. And with new coal plants on the pipeline, the nation’s coal consumption will grow consistently until 2029. 

There’s also not enough intent and action to slow down coal mining in the country, more so decommission the mines. This is amid Indonesia’s commitment to reach net zero emissions by 2060. 

As per ESDM estimates, the country will produce more coal in 2023, at 694 million tonnes. That’s a 5% increase from the 2022 target of 663 million tonnes. This projection is largely due to the expected high demand from India and China, the country’s major coal export partners. 

Indonesia’s 2022 coal sales to Europe also reached historical highs. This is largely due to a shift to coal among European utilities prompted by high gas prices. The EU embargo on Russian coal because of its conflict with Ukraine enabled Indonesian suppliers to tap the European market. 

Is the Energy Transition Still Possible?

With the growing coal production and its carbon emissions, will Indonesia be able to still reach its energy transition targets?

The answer to this question is crucial as experts said that it significantly impacts the 1.5°C global temperatures threshold. After all, the Southeast Asian largest economy is one of the world’s largest emitters.

The country inked a landmark deal last year called the Just Energy Transition Partnership (JETP) in which developed nations (G7) will invest $20 billion in Indonesia to help it ramp up transition to renewable energy. 

This historic agreement will allow the country to limit power sector sectors to 29 million Mt by 2030. But this will be possible if Indonesian coal-fired power plants are retired and new projects are frozen. 

Adding more coal plants is part of President Joko Widodo’s flagship program to add 35 gigawatts to Indonesia’s national grid. The program calls for building hundreds of different kinds of power plants but most of the increase in capacity will be from coal-fired plants. 

One more major factor driving coal production up is the growing demand in the metals industry, particularly the nickel sector.

Complementing the Soaring Demand for Lithium-Ion Batteries

Indonesia is the world’s largest producer of nickel, a key element used in making lithium-ion batteries for electric vehicles and renewable energy storage.

The current administration wants to make the country an EV powerhouse. That means relying on Indonesia’s abundant nickel reserves, whose production also increased by 60% last year. 

Given that the nation’s power grid is largely run by coal (43%) and mining nickel is highly carbon intensive, it contributes largely to the rise in coal production and emissions. 

Moreover, the carbon per KwH of power generation in Indonesia is so much more than most other nickel producers. For example, comparing it to Canada, the Asian country will produce about 9x as much carbon per KwH of electricity.

Processing nickel requires smelters which are powered by coal-fired electricity plants, a.k.a. captive plants. New smelters were built in 2017 and started operations in 2019.

Unfortunately, retiring or replacing these plants are difficult; it needs investments in new infrastructure. And shutting them down means halting the smelters critical for processing battery-grade nickel. 

With that, it seems that Indonesia’s best hope to achieve its climate targets in the power sector is to stop building new fossil fuel plants and rather invest in renewable energy infrastructure. 

Last month, a group of global experts, Coal to Clean Credit Initiative (CCCI), announced they are developing a world-first “coal-to-clean” carbon credit program that incentivizes the transition away from coal-fired power plants to renewable energy in emerging economies.

The post Indonesia’s Coal Emissions at Record High, Up 33% in 2022 appeared first on Carbon Credits.

UAE to Invest $54B in Renewable Energy as Part of Net Zero Goal

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The United Arab Emirates (UAE) is planning to invest $54 billion on renewables over the next 7 years as part of its strategies to reach net zero emissions by 2050. 

The UAE approved its National Energy Strategy with the aim to triple its share of energy coming from renewable sources. The Middle Eastern country also sets its eyes on hydrogen as a key source of clean energy. 

This plan comes as the major oil-producing nation will host the upcoming COP28 climate conference in November. 

UAE National Energy Strategy

Same with other major oil producers, fossil fuels still outweigh the push for a cleaner energy system globally. And the UAE received huge scrutiny from various climate activists for choosing Sultan al-Jaber, ADNOC head, to lead COP28.

Yet, the country was the first to reveal its 2050 zero goal in the region. Big part of the target is approving the country’s National Energy Strategy 2050. 

Prime Minister Sheikh Mohammed appointed Mohamed Hassan Alsuwaidi, Abu Dhabi wealth fund CEO and Masdar’s deputy chairman, to oversee the $54 billion investment. 

Apart from relying more on renewables, other plans are to improve energy efficiency and promote the use of clean energy. 

The strategy’s objective is to support research and development programs in clean energy technologies, on top of driving investments in the sector. Specifically, the UAE hopes to achieve 14GW capacity of clean energy by 2030, up from 9.2GW current capacity. 

Moreover, the strategy’s objective is to gain up to $27 billion financial savings by 2030. Overall, it targets an energy mix combining different sources of clean energy to satisfy these energy goals: 

44% clean energy
38% gas
12% clean coal
6% nuclear

In the near-term, the Arabic nation seeks to increase its share of clean energy to 30% by 2031. In the long-term, it hopes to cut carbon emissions from power generation by 70% by 2050. 

At a glance, here’s the UAE’s energy strategy to reach net zero emissions by midcentury.

Last year, the Arab country inked a $100 billion clean energy deal with the U.S. Their PACE (Partnership for Accelerating Clean Energy) agreement will deploy 100GW of clean energy in the two countries as well as in emerging economies by 2035. Earlier this year, the partners announced a $20 billion investment to fund 15 GW of clean and renewable energy projects.

The UAE’s oil and gas giant had also committed $15 billion to invest in low-carbon projects to cut emissions and meet decarbonization goals.

Along its national energy strategy, the UAE Cabinet has also approved its National Hydrogen Strategy.

“Top 10” Hydrogen Producer 

The country’s hydrogen strategy seeks to make the UAE part of a global “top 10” hydrogen (H2) producer by 2031. This strategy builds on the previous roadmap unveiled during the COP26 climate talks in 2021. 

The goal is to produce 14 million to 22 million tons per year of hydrogen by 2050. Highlighting this plan, Sheikh Mohammed remarked:

“The strategy aims to promote the UAE’s position as a producer and exporter of low-emission hydrogen over the next eight years through the development of supply chains, the establishment of hydrogen oases and a national research and development centre.”

The government expects to get 25% market share of low carbon hydrogen and derivatives in major import markets by 2030. It will initially focus on Europe, India, Japan, and South Korea, while also exploring export opportunities in other markets. 

To date, the Abu Dhabi nation is well on its way for low carbon hydrogen development with more than 7 projects planned to deliver 0.5 million tons per year. The details of each project are as follows:

The country’s ambition is to be a global leader in low carbon hydrogen and home to a robust hydrogen ecosystem. Low carbon hydrogen refers to H2 made with low carbon emissions pertaining to either of these two hydrogen technologies: 

Blue hydrogen from fossil fuels with carbon capture and storage 
Green hydrogen made through electrolyzer powered by renewable energy 

Hydrogen is the key enabler in UAE’s net zero strategy and here’s the timeline for making this goal a reality. 

Ultimately, the UAE government will invest over $163 billion by 2050 to meet the rising energy demand and ensure a sustainable growth for its economy.

The post UAE to Invest $54B in Renewable Energy as Part of Net Zero Goal appeared first on Carbon Credits.

Navigating the Path to Net Zero: VCMI’s Claims Code of Practice

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The Voluntary Carbon Market Integrity Initiative (VCMI) launched its Claims Code of Practice which aims to give companies a rulebook to follow for making credible climate claims using carbon credits on their path to net zero. 

VCMI first published the draft of the Claims Code in June last year. Since then, it went through beta testing by companies and rigorous consultations, and multi-stakeholder collaboration. 

A wide range of nonprofits, international organizations, companies, governments, and industry groups supported VCMI. Climate experts worldwide find the Code a welcome step forward for the VCM after it receives massive criticism. 

VCMI’s Claims Code promotes the use of the “contribution claims” model in financing climate actions through carbon credits. This approach builds market integrity and confidence in VCM as asserted by Rachel Kyte, Co-Chair of VCMI’s Steering Committee saying:

“Voluntary carbon markets bring considerable benefits as part of companies’ net-zero transition and as a means of financing climate transition worldwide… The Claims Code will give greater confidence and develop trust in those who use it. If you build integrity, trust will follow, and trust is the foundation of a high value, high impact market.”

The Code’s 3 Tiers of Corporate Claims

From the provisional bronze, silver, and gold, the final claim tiers or levels are now Silver, Gold, and Platinum. Each of them acknowledges investment in emission reductions and removals beyond corporate action to reach their net zero goals. 

Not all that glitters is gold because Platinum, not Gold, is the best available level for companies to claim. 

The chart shows the respective thresholds for each tier, representing the number of carbon credits retired (carbon emission reductions claimed). This is proportional to the remaining emissions in the year when a company makes a claim. Remaining emissions are emissions that remain in a given year as a company progresses towards its near and long-term targets.

VMCI will provide further guidance on this, particularly on the Measurement, Reporting, and Assurance (MRA) framework, additional claim tiers and claim names, in November 2023.

Making a VCMI Claim

To make a VCMI Claim, a company should go through these four steps:

Comply with VCMI’s Foundational Criteria
Choose which VCMI Claim to make from the 3 tiers
Buy carbon credits that meet quality thresholds – ICVCM’s Core Carbon Principles (CCP)
Disclose information and get 3rd-party assurance following the VCMI MRA Framework

In finalizing the Claims Code, the VCMI has been working with other major initiatives that drive corporate climate action. These include the Greenhouse Gas Protocol, the Integrity Council for the Voluntary Carbon Markets (ICVCM), Science Based Targets Initiative (SBTi), and Carbon Disclosure Project (CDP). 

A Code for High-Integrity Carbon Credit Market

When used with integrity, VCMs can accelerate climate mitigation and contribute significantly to the Paris Agreement goals and UN SDGs.

Thousands of companies are investing in the VCM to tackle their carbon emissions through high-quality carbon credits. Thus, it’s critical that the market has clear and transparent guidance on how to make voluntary use of carbon credits as part of their climate goals. 

VCMI Claims Code provides that guidance and more to prevent abusive use of carbon credits, e.g. greenwashing. It will bring integrity to the VCM and make it a powerful tool to get the world to net zero.

Allister Furey, CEO and co-founder of Sylvera commented on the launch of the Claims Code:

“The VCMI’s guidance is a solid step forward for resolving confusion and uncertainty around what claims companies can make about their climate action, and for overall climate action transparency with the inclusion of comprehensive requirements to disclose credit use.” 

The publication of this code of practice is indeed crucial in helping companies channel climate finance to credible climate action. But others also said that much more still needs to be done and carbon credits are not a silver bullet. There are other ways to invest in climate action.

Yet, the Code is a good starting point for entities looking to voluntarily use carbon credits toward their climate goals. By using it, companies can demonstrate their climate leadership, address reputation risks, and be ready to position themselves in a low-carbon transition.  

Ultimately, when paired with ICVCM’s Core Carbon Principles that guide the supply side of the market, VCMI’s Claims Code of Practice brings “end-to-end” integrity that allows for critical market development.

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