U.S. Nuclear Industry Set for Big Changes as Government Plans to Cut Red Tape

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U.S. Nuclear Industry Set for Big Changes as Government Plans to Cut Red Tape

This is a special guest editorial from Katusa Research.

The U.S. nuclear power industry is about to experience its biggest shift in decades. The White House plans to announce new executive orders that could make the Nuclear Regulatory Commission (NRC) largely powerless. These orders let the Department of Energy (DoE) and Department of Defense (DoD) skip the NRC’s strict rules. This will speed up the construction of new nuclear power plants.

For over 5 decades, the NRC has been the main government agency overseeing nuclear plant safety and licensing. But many experts and industry leaders say the NRC’s complicated rules and slow approvals have stopped new nuclear plants from being built.

The NRC’s licensing process has grown from a simple 50-page document to an overwhelming 1,100 pages. The last approved reactor needed about 12,000 pages of paperwork. It also had millions of supporting documents.

Because of these heavy rules and outdated 1970s standards, the NRC hasn’t approved any new nuclear plant designs since 1978. Former NRC Commissioner Jeffrey Merrifield said the agency “doesn’t know when to stop” with new regulations. This is a major reason why new nuclear projects struggle to move forward.

US nuclear power electricity vs nuclear reactors
Source: Katusa Research

Why Both Political Parties Support Nuclear Energy

For the first time since President Nixon, both Democrats and Republicans agree on supporting nuclear power. Democrats want nuclear energy to help fight climate change and reach net-zero carbon goals. Republicans see it as vital for U.S. energy independence and creating new jobs.

Nuclear power is key to 3 big goals for the U.S.:

  • Nuclear Exports. The U.S. can regain leadership in exporting nuclear technology, which is expected to be a $1.9 trillion global market by 2050. Currently, China and Russia control two-thirds of this market.
  • National Security. Nuclear power supports the supply chain for nuclear weapons and is crucial for defense.
  • Energy Security. Nuclear energy offers a reliable, self-sufficient power source, helping reduce dependence on foreign energy.

Because of these reasons, Congress has passed multiple laws over the past decade to force the NRC to update and speed up its licensing process. But progress has been slow.

Other countries like Canada and the UK have already updated their nuclear approval systems. Canada is investing heavily in next-generation nuclear technology to amplify its clean power supply.

In 2024, the U.S. Congress passed the ADVANCE Act, which pushes the NRC to modernize. It aims to make reviews for advanced nuclear reactors simpler and faster. Still, the NRC has struggled to implement these changes.

Power Shift to the Department of Energy and Defense

The new executive orders will shift power away from the NRC and give more control to the Department of Energy and the Department of Defense. Both agencies strongly support nuclear energy and have large budgets to back new projects.

US federal nuclear energy budget
Source: Katusa Research

In 2022, the DoE started a $6 billion Civil Nuclear Credit Program. It aims to extend the life of current reactors and support new types of nuclear reactors. It’s also giving $1.5 billion to reopen the Palisades nuclear plant—the first such reopening in U.S. history. The DoE’s former secretary, Jennifer Granholm, said the U.S. needs to triple its nuclear reactors by 2050.

The DoD also uses nuclear power for its massive energy needs and owns mobile nuclear reactors. It can take risks that private companies cannot and has a budget that could fund enough nuclear power to cover 85% of U.S. electricity demand.

The DoD and DoE plan to team up and invest in advanced nuclear reactors. They aim to connect a new reactor to the grid in 3 years.

Why This Could Be a Historic Moment

These moves could kickstart a nuclear renaissance in the U.S., similar to the scale of the Manhattan Project during World War II. The government has signed contracts with companies to build advanced reactors by 2029. Billions of dollars in funding are expected to flow to this sector.

Experts believe this push will lower the cost of nuclear energy by about 60%, making it more competitive with other power sources. This could open new doors in uranium mining, nuclear fuel production, infrastructure, and nuclear tech investment.

What This Means for Private Nuclear Companies

The expected executive orders could be a game changer for private companies working on nuclear technology. Startups and energy developers have struggled for years. They deal with long delays, high costs, and complex paperwork to get approval for new nuclear reactors. Some applications have taken more than 10 years and cost hundreds of millions of dollars before a single shovel hits the ground.

With the NRC pushed aside, companies might finally have a faster path to approve and build new designs. This is key for startups creating advanced nuclear reactors and small modular reactors (SMRs). SMRs are smaller, safer, and easier to build than traditional plants.

Now, instead of waiting for NRC approval, companies may be able to work directly with the DoE or the DoD. These agencies are more supportive and flexible. They already have funding programs, partnerships with developers, and a goal to build advanced reactors quickly.

Private firms like TerraPower, X-energy, and Oklo have been waiting for years to move forward. Under the new system, these companies could see faster permits, more government contracts, and easier access to funding. They may even get a chance to work on national defense or grid reliability projects led by the DoE or DoD.

This shift could spark a wave of innovation, job creation, and clean energy development across the country. If it works, it could also encourage more investors to put money into nuclear startups—knowing the government is serious about getting projects built.

The Clock Is Ticking

With the new executive orders expected soon, the nuclear industry and investors have limited time to prepare for this wave of change. Many believe this could be one of the most important energy transitions in decades and offer profitable opportunities for those ready to act.

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Svante Opens World’s First Gigafactory for Carbon Capture in Canada

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Svante Opens World's First Gigafactory for Carbon Capture in Canada

Svante Technologies, a Canadian carbon capture company, has launched the world’s first commercial-scale gigafactory for carbon capture filters. This is a big step in the fight against climate change.

Located in Burnaby, British Columbia, the facility officially opened in May 2025. The factory will help speed up the use of carbon capture and storage (CCS) technologies by making the production of carbon filters faster and more cost-effective.

With rising global emissions and increased focus on net-zero goals, Svante’s new plant offers a timely solution. The gigafactory is built to capture millions of tons of carbon dioxide (CO₂) every year. It helps industries cut their carbon footprint and meet regulations. As the carbon capture market continues to grow, the facility could help change how industries respond to climate change.

Scaling Up: Inside the Burnaby Gigafactory

The 140,000-square-foot facility, named the Redwood City Gigafactory, is the first of its kind. Svante makes solid sorbent filters. These filters trap CO₂ from factories and even from the air. These filters are then integrated into carbon capture systems used in sectors such as cement, steel, hydrogen, and power generation.

Svante’s filter technology relies on a material called metal-organic frameworks (MOFs). These materials are known for their high surface area and ability to trap gas molecules like CO₂.

Compared to traditional systems, Svante’s filters are lighter, more compact, and faster to produce. They need less energy to regenerate. This leads to lower costs and fewer emissions during operation.

The facility can produce filter modules to capture up to 10 million tonnes of CO₂ each year, according to company estimates. That’s roughly the equivalent of taking over 2 million gasoline-powered cars off the road each year.

The Redwood factory is designed for rapid manufacturing and can scale up production as demand grows. The factory uses automation and digital tools. It also monitors data to boost quality control and cut waste.

Partnerships and Financial Support Fuel Growth

The construction and launch of the gigafactory would not have been possible without strong public and private backing. Svante raised $318 million in total since 2007, including a major $145 million Series E fundraising round in 2022.

Investors include: Chevron New Energies, United Airlines Ventures, Samsung Engineering & Construction, Temasek, GE Vernova, and Breakthrough Energy Ventures.

In addition to private investment, the Government of Canada contributed CA$25 million through its Strategic Innovation Fund. This funding sped up factory construction. It also shows Canada’s commitment to leading in carbon management technologies.

Beyond financing, Svante is also working with several partners to expand its reach. Here are some of their major partnerships:

  • Samsung E&A signed a joint development agreement to build skid-mounted modular carbon capture plants.

  • Climeworks, a direct air capture company, is using Svante filters for its next-generation CO₂ removal systems.

  • Tenaska, a U.S. energy firm, is working with Svante to develop end-to-end CCS projects that include capture, transportation, and storage of CO₂.

  • BASF signed a commercial agreement to supply Svante with CALF-20, an advanced MOF sorbent used in its filter systems.

These partnerships lower project risk, simplify deployment, and encourage CCS technology use in various sectors.

Market Drivers and Industry Demand

Demand for carbon capture technology is growing rapidly. According to BloombergNEF, the global market for carbon capture and removal could reach $100 billion by 2030. This growth comes from stricter climate rules, net-zero goals, and rising investment in clean tech.

  • If all the planned carbon capture projects are built and running by 2030, they could remove around 279 million tons of CO₂ a year—still just 0.6% of the emissions the world produces today.

global carbon capture projection 2030

For many industries—especially heavy emitters like cement, steel, and oil refining—carbon capture is one of the few practical solutions to reduce emissions. These sectors usually have few choices for using renewable energy. They need solutions that fit into their current infrastructure.

The International Energy Agency (IEA) states that to stay on track for net-zero emissions by 2050, the world will need to capture over 1.2 billion tonnes of CO₂ per year by 2030. Today, only about 50 million tonnes are captured annually.

carbon capture capacity by 2030 IEA
Source: IEA Report

Facilities like Svante’s gigafactory are crucial to scaling up the supply chain and meeting this growing need.

In the United States, the Inflation Reduction Act has also increased interest in carbon capture. The law boosts the value of the 45Q tax credit to $85 per tonne of CO₂ captured and stored. This financial support has made projects more attractive to investors and energy companies.

Building a Carbon Capture Economy

The launch of Svante’s gigafactory is more than a milestone for the company—it signals a shift in how carbon capture solutions can be delivered. Svante focuses on mass production, modular systems, and global partnerships. This approach aims to make carbon capture cheaper, faster, and more scalable.

CEO Claude Letourneau remarked:

“We’re also proud to launch this transformative manufacturing facility in Canada, which allows us to bring the supply chain to our shores and bring carbon management solutions closer to the needs of emitting industries in North America.”

Also, Svante’s method helps create a carbon market. Here, captured emissions become tradable carbon credits. As carbon pricing rises, expected to exceed $50 per tonne in some markets by 2026, industries may invest more in carbon removal for the long term.

The Redwood facility’s success could lead to new ways to use carbon. Captured CO₂ might be turned into fuels, building materials, or other products. This circular economy model can help industries not only reduce their footprint but also find new revenue streams.

Laying the Foundation for a Cleaner Future

Svante Technologies’ new gigafactory marks a major development in the carbon capture industry. As countries race to meet climate goals, scalable solutions like Svante’s are becoming essential. The Burnaby plant will focus on innovation, teamwork, and quick production. It will be vital in cutting industrial emissions.

By combining advanced materials with modern manufacturing, Svante is helping to make carbon capture more practical and affordable. Its efforts contribute to a growing movement to reduce global emissions and move toward a cleaner, more sustainable economy.

The post Svante Opens World’s First Gigafactory for Carbon Capture in Canada appeared first on Carbon Credits.

How EV Adoption is Reshaping Global Oil Demand: IEA’s 2025 Outlook and 2030 Forecast

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EV

For decades, oil was the backbone of global transport. It powered nearly every vehicle, pushing oil demand ever higher. Infrastructure significantly grew around extraction, refining, and distribution. But with mounting concerns over emissions and climate change, the search for cleaner alternatives gained momentum. Electric vehicles (EVs) have emerged as a game changer in this shift.

IEA recently published its Global EV Outlook 2025, where it has predicted,

  • By 2030, EVs are set to replace more than 5 million barrels of oil per day (mb/d) globally, with China’s expanding EV fleet making up half of that impact.

Let’s deep dive into this report and understand how the rise of EVs is impacting global oil demand.

The Rise of EVs and Its Impact on Global Oil Demand

By the end of 2024, the global electric car fleet reached nearly 58 million, more than triple the number in 2021. These EVs now make up about 4% of the global passenger car fleet.

The trend is strongest in China, where roughly 1 in 10 cars is electric. In Europe, the ratio is 1 in 20, but growing fast.

The UK, the second-largest car market in Europe, saw EVs take nearly 30% of new car sales in 2024. This rise was driven by the new Vehicle Emissions Trading Scheme, which required 22% of new car registrations to be battery electric or hydrogen fuel cell models.

With flexible credit borrowing allowed, manufacturers achieved nearly 20% EV sales. Norway led with near-total electrification. 88% of new cars sold were fully electric, and another 3% were plug-in hybrids.

As a result, Norway’s oil demand from the road fell 12% from 2021 to 2024. Denmark also saw a big jump, with EVs reaching 56% of new car sales in 2024 and nearly 100,000 units sold.

Meanwhile, Denmark is also seeing strong progress. In the latest figures, the share of electric cars jumped by 10 percentage points, reaching 56%, with nearly 100,000 EVs sold.

EV sales
Source: IEA

Oil Demand Drops as EV Fleet Grows Rapidly

Surge in EVs on roads came heavy on the oil industry. IEA says that electric vehicles slashed oil demand by over 1.3 million barrels per day (mb/d) in 2024.

It was a steep 30% jump from 2023, and the present figures are nearly equal to all the oil Japan currently uses for transportation.

Passenger cars and small vans classified as light-duty vehicles (LDVs) drive most of this shift. Today, they account for 80% of the oil displaced by EVs. By 2030, their share will slightly drop to 77% as electric trucks and buses gain traction.

This is because of the rapidly evolving batteries and stronger charging infrastructure, these heavy-duty vehicles will likely displace nearly 1 mb/d of oil within the decade.

EVs Cut Costs and Boost Energy Security

IEA analysts highlighted that even if global oil prices fall to $40 per barrel, EVs remain cost-effective especially with home charging. This way drivers can continue saving money by switching to electric vehicles.

In China, fast public charging costs about twice as much as charging at home. Yet, EVs still offer better fuel savings than gas-powered cars. As more people choose EVs, countries reduce their oil use and become less vulnerable to price shocks. This shift not only saves money but also strengthens national energy security.

Strong Policies Keep EV Adoption on Track

Although trade tensions, slow economic growth, and oil price drops may hurt overall car sales, these issues affect the market size more than the EV share. In China, steady government support and affordable EV prices continue to drive sales forward.

Meanwhile, in Europe, even though EVs cost more than traditional cars, long-term policies and past crisis responses help keep the market moving.

Additionally, Norway planned to raise taxes on traditional internal combustion engine (ICE) cars and plug-in hybrids (PHEVs) from April. This was meant to boost EV sales and help the country reach its goal of 100% zero-emission car sales by the end of 2025.

The 2025 EV outlook shows strong momentum. Despite economic uncertainty, EVs continue to grow thanks to smart policies, lower battery costs, and better infrastructure. As countries push for cleaner transportation, EVs are helping the world move toward a more sustainable, low-carbon future.

With over 58 million electric cars already on the road by the end of 2024—and more to come—the transition is well underway. This shift not only transforms the oil market but also puts the world on a clearer, more energy-secure path forward.

Global Oil Demand: What the Forecasts Say

We found the latest oil demand forecast in the International Energy Forum’s monthly comparative analysis of the oil market report. It highlights the following:

OPEC

OPEC expects oil demand to grow by around 1.3 million barrels per day (mb/d) in both 2025 and 2026. Almost all this growth will come from non-OECD countries, where demand is expected to rise by 1.2 mb/d each year. In contrast, OECD countries will see only a small increase of 0.1 mb/d annually.

EIA

The US Energy Information Administration (EIA) recently increased its 2025 forecast by 0.1 mb/d compared to last month. It now expects demand to rise by 1.0 mb/d next year. However, this is 0.4 mb/d lower than the estimate made in January 2025. For 2026, the EIA sees demand rising more slowly, by 0.9 mb/d.

IEA

The IEA has a more cautious view. It expects global oil demand to grow by 0.7 mb/d in 2025, even though OECD demand may fall by about 120,000 barrels per day. For 2026, the IEA sees demand increasing by 0.8 mb/d. According to its latest data, average yearly demand growth between 2022 and 2024 was just 0.3 mb/d.

oil demand
Source: IEF

To simplify it, the gap between the highest and lowest global oil demand forecasts is 0.6 mb/d for 2025 and 0.5 mb/d for 2026. These differences highlight the uncertainty that still surrounds future oil demand.

Furthermore, as electric vehicles gain popularity, governments are starting to feel the financial impact. Fuel taxes, which have been a key source of public funding for roads and transport, are shrinking. In 2022 alone, the global shift to EVs resulted in an estimated $9 billion drop in fuel tax revenues.

The post How EV Adoption is Reshaping Global Oil Demand: IEA’s 2025 Outlook and 2030 Forecast appeared first on Carbon Credits.

Gevo’s Q1 2025 Revenue Soars on SAF Demand, RNG Gains, and Carbon Credit Boosts

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saf

Gevo Inc., a leader in renewable fuels and chemicals, had a strong first quarter in 2025. The company is seeing early success in selling low-carbon fuels and has plans to make the business profitable in the future.

Notably, tax credits, project funding, and small SAF plant installations are driving its growth. These efforts will also help Gevo grow in the SAF market and reach its sustainability goals.

Gevo’s Revenue Surges on Acquisition, RNG Growth, and Carbon Credit Gains

Gevo’s Q1 2025 revenue hit $30.9 million, a significant increase from last year. This growth includes $22.8 million from the newly acquired Gevo North Dakota. It also features gains in renewable natural gas (RNG) and environmental credits.

The RNG segment earned $5.7 million, up $1.7 million from last year. This boost came from a favorable carbon intensity (CI) score from California’s LCFS program.

  • Environmental attributes sales totaled $5.4 million.

  • Gevo North Dakota produced 11.1 million gallons of low-carbon ethanol and sequestered about 29,000 metric tons of CO2.

  • RNG output reached 79,963 MMBtu, resulting in over 60,000 metric tons of LCFS credits.

Carbon Abatement Gains Market Traction

In Q1, Gevo recorded over 100,000 metric tons of carbon abatement, now viewed as a marketable product. This includes captured and sequestered carbon, plus emissions avoided from using low-carbon fuels. The company expects Section 45Z tax credits to further enhance its adjusted EBITDA in 2025.

Dr. Patrick Gruber, Gevo’s Chief Executive Officer, commented,

“We believe we can get to positive Adjusted EBITDA this year for the company. This is in spite of the perceived headwinds and noise in the marketplace. We have real products to sell now that we own our North Dakota plant. Gevo North Dakota produces ethanol, animal feed, corn oil, and importantly, carbon abatement. The carbon abatement value is generated by capturing CO2 and sending it more than a mile underground into what we think is the best well (or sequestration site) in the country. Having this carbon abatement available to us has opened up new doors in the marketplace as customers and partners don’t have to wait around for synthetic aviation fuel (“SAF”) projects to be built to start developing the market in a real sense. We have approval from the Internal Revenue Service to apply for the Section 45Z tax credit, so we will do that, and that should help meet our Adjusted EBITDA goals.”

New Jet Fuel Offtake Deals Signal Growth Path

In April, Gevo secured two new offtake agreements:

  • Future Energy Global (FEG) signed for 10 million gallons/year of SAF and its Scope 1 and 3 emissions credits.

  • Another buyer committed to 5 million gallons/year of SAF, separate from the associated carbon abatement credits.

These deals will help fund Gevo’s upcoming ATJ projects in the Dakotas, including the 30 MGPY modular ATJ-30 facility, which is already 50% contracted.

Dr. Gruber further emphasized that Gevo stands out in the ATJ space by using proven, scalable technologies to produce high-yield, low-cost jet fuel with a low carbon intensity. Backed by 100+ patents, Gevo’s innovation attracted Axens, which licensed Gevo’s advanced ATJ processes.

The company aims to conserve capital costs, build modular fuel plants, and license 100 patented technologies.

Verity Platform Expands Customer Base

Gevo’s Verity carbon tracking platform now counts Landus and Minnesota Soybean Processors as customers. This enhances traceability and regulatory reporting for sustainable agriculture.

Gevo is Paving the Way for a Low-Carbon Future

Gevo is a pioneer in low-carbon fuels and chemicals from renewable sources. Its advanced technology makes Sustainable Aviation Fuel (SAF), motor fuels, and eco-friendly materials. These products work well with current engines and infrastructure. This ensures an easy transition from fossil fuels.

Patented Ethanol-to-Olefins (ETO) process

In September, the U.S. Patent and Trademark Office granted Gevo a patent (U.S. Patent No. 12,043,587 B2) for its Ethanol-to-Olefins (ETO) process. This boosts its role in renewable fuels. This patent protects their advanced catalyst technology that efficiently converts ethanol into olefins.

 Gevo’s SAF Technology

GEVO
Source: Gevo

Gevo and LG Chem are collaborating to scale this process for chemical use. They want to improve the technology for business use. This creates a greener option to regular petrochemical olefins.

Their goal is to streamline fuel production by making larger olefins directly from ethanol in one step. These olefins can then be turned into transportation fuels using proven refining methods.

This innovation boosts efficiency, cuts energy use, and lowers costs. Most importantly, it helps achieve zero or even negative carbon emissions, making biofuels more sustainable.

SAF: The New Path to Net Zero

Through its Verity subsidiary, Gevo ensures transparency in sustainability tracking. As global jet fuel demand rises, SAF presents a significant opportunity to cut emissions and promote a cleaner future.

Its proprietary ATJ technology is a game changer for its cost efficiency and environmental impact. It can produce jet fuel at prices competitive with traditional oil-based options while achieving ultra-low to net-zero carbon intensity.

  • The system can offset over 600,000 metric tons of CO₂ annually—three times more carbon than the amount of fuel produced.
  • It cuts fossil natural gas use by 65%, making it highly energy-efficient.

Thus, cutting carbon emissions through renewable fuels and chemicals is their main goal. Gevo runs one of the biggest dairy-based renewable natural gas plants in the U.S. It also has an ethanol plant that uses carbon capture technology.

GEVO EMISSIONS

With active carbon capture, proven SAF pathways, and new market partnerships, Gevo can expand its renewable energy business and reach profitability this year.

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Microsoft’s Mega Move: 18 Million Carbon Credit Deal with Rubicon Carbon

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Microsoft’s Mega Move: 18M Carbon Credit Deal with Rubicon Carbon

Microsoft has made a significant move for its climate goals. It signed a deal with Rubicon Carbon to buy 18 million tonnes of carbon removal credits. This will happen over the next 15 to 20 years. These carbon credits will come from Afforestation, Reforestation, and Revegetation (ARR) projects around the world.

The agreement is one of the largest of its kind by a single company and shows how big corporations can help scale climate solutions. Microsoft has entered into many similar carbon removal deals starting early this year. 

Rubicon Carbon, a leading carbon credit management firm backed by TPG Rise Climate, will manage the projects and ensure they meet high scientific standards. With this deal, Microsoft is funding climate efforts that may not have received investment otherwise.

Tom Montag, CEO of Rubicon Carbon, emphasized the importance of the deal, saying:

“Addressing climate change requires more than good intentions—it requires capital deployment at scale. This collaboration serves as a blueprint for how the financial sector can meet the urgency of the moment while also generating strong financial returns.”

Why Carbon Removal Matters

Carbon removal is the process of taking carbon dioxide (CO₂) out of the atmosphere and storing it in natural or engineered ways. Reducing emissions is important, but scientists say we also need carbon removal to reach global climate goals.

Nature-based solutions like planting trees are some of the most affordable and scalable options available today.

According to Microsoft, carbon removal plays a key role in their goal to be carbon negative by 2030. That means removing more CO₂ than the company emits. To reach this goal, Microsoft has committed to using a blend of natural and technological solutions.

Microsoft 2030 carbon negative goal

This deal focuses on ARR projects—planting trees and restoring vegetation to capture carbon from the air. These projects often get ignored because of low funding. However, Microsoft’s long-term purchase helps make sure they are built and cared for.

The tech giant has been the top buyer of carbon removal credits, purchasing 5 million tonnes in 2024 as seen below.

top carbon removal buyer 2024

Setting a New Standard for Carbon Markets

Each transaction under the agreement is a long-term “offtake.” That means Microsoft promises to buy credits in the future, giving developers financial certainty now. These types of deals are common in energy markets but are still new in the carbon market.

Microsoft and Rubicon also worked together to create a new evaluation framework for carbon credit quality. It includes Microsoft’s science-based standards and Rubicon’s existing due diligence tools. The credits must meet strict rules for impact, durability, and transparency.

Rubicon’s science team will use satellite data and remote sensing tools to track and verify carbon removal over time. This approach builds confidence in a market that has faced criticism for low-quality or unverifiable carbon credits in the past.

Brian Marrs, Senior Director of Energy & Carbon Removal at Microsoft, noted:

“We believe that project finance needs to be central to the voluntary carbon market. This deal signals the long-term demand for carbon removal necessary to mobilize infrastructure-grade investment and world-class execution.”

Fueling a Maturing Carbon Market

The voluntary carbon market—where companies buy carbon credits to meet sustainability goals—is growing fast. According to McKinsey & Company, global carbon credit demand could reach 1.5 to 2 billion tonnes per year by 2030, up from under 500 million in 2023. Yet, concerns about credit quality have held back investment.

Deals like Microsoft’s help build trust in the market by sending clear signals: there is real, long-term demand for high-quality removal. This helps project developers get loans, attract private funds, and plan bigger projects.

Nature-based credits are also more affordable than high-tech options like direct air capture (DAC), which can cost over $100 per tonne. In contrast, ARR credits often cost between $5 and $15 per tonne. You can find carbon prices for different types of credits on our page here.

Microsoft’s commitment to long-duration contracts gives these projects a better chance to succeed. It helps diversify removal technologies in the market. This is key for increasing global carbon removal capacity. The market has seen significant growth since 2020, as shown below. 

Durable carbon removal credits CDR purchases 2024

A Growing List of Corporate Climate Leaders

Microsoft is not alone in investing in carbon removal. Other major companies like Shopify, Stripe, and Alphabet (Google) have made similar commitments. They are working together to create the early market for permanent carbon removal. This can happen through nature or new technologies.

But Microsoft stands out for the scale and structure of its deals. Besides the 18-million-tonne deal with Rubicon, Microsoft has invested in carbon removal projects. These include DAC facilities and bioenergy with carbon capture and storage (BECCS).

The company’s 2023 sustainability report showed it contracted 1.4 million tonnes of carbon removal. About 40% of this comes from engineered sources. These investments are part of a bigger climate plan. This plan aims to cut Scope 1, 2, and 3 emissions in operations, the supply chain, and products.

The Road Ahead: Scaling Climate Solutions Through Partnership

Rubicon Carbon launched in 2022 with the goal of scaling high-quality carbon credit projects. Supported by TPG Rise Climate, it blends finance and climate science to help companies track their carbon footprints. The Microsoft partnership is its largest and most ambitious deal to date.

Jim Coulter, Founding Partner of TPG and Managing Partner at TPG Rise Climate, noted that this deal is not just about selling the credits, but also about reshaping how they fund climate action. 

The new evaluation framework aims to show how carbon markets can grow into reliable and scalable systems. Both parties hope to lead by example. This includes transparency, long-term planning, and science-driven impact assessments.

Looking forward, the success of this deal could encourage more companies to enter similar agreements. It might also create better financing tools for carbon project developers. This could strengthen standards in the voluntary carbon market.

Microsoft’s carbon credit agreement with Rubicon Carbon shows how corporate climate commitments can translate into meaningful global impact. By locking in 15- to 20-year purchases, the tech giant is helping fund carbon removal projects that can last decades.

The blend of business innovation, environmental science, and financial strategy sets a new path forward. As other companies watch this space, one thing is clear: carbon removal is becoming a core part of the climate solution, and Microsoft is helping to lead the way.

The post Microsoft’s Mega Move: 18 Million Carbon Credit Deal with Rubicon Carbon appeared first on Carbon Credits.

Actis Raises $1.7 Billion to Power Clean Energy and Digital Growth

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Actis Raises $1.7 Billion to Power Clean Energy and Digital Growth

Actis, a global investor in sustainable infrastructure, has raised $1.7 billion for its second Long Life Infrastructure Fund, called ALLIF2. This fund will back clean energy and electricity transmission. It will also support digital networks in fast-growing areas like Asia, Latin America, Eastern Europe, the Middle East, and Africa.

Actis has invested nearly half of its funds and is quickly backing real-world infrastructure. This will help cut carbon emissions and improve access to reliable energy and digital services. The company says these investments also provide strong long-term returns for investors.

Investing in the Future: Actis’ Clean Energy and Digital Projects

ALLIF2 focuses on current infrastructure projects, called “brownfield assets.” It does not build new ones from scratch. This approach helps improve what’s already working and reduces risk for investors.

So far, the fund has:

  • Bought 100% of Stride Climate Investments, a group of 21 solar power projects in India, one of the world’s fastest-growing energy markets.
  • Signed two major deals to buy electricity transmission assets in Brazil, where clean energy sources like hydro, wind, and solar make up nearly 90% of the electricity supply.

Focusing on solar energy and power transmission is a smart move. Solar power is booming in sunny places like India. At the same time, the world needs dependable transmission to carry clean electricity from generators to users.

Digital infrastructure, such as data centers and internet networks, is another key focus for Actis. These systems are vital for today’s economies. This is especially true in areas with limited digital access.

Why Investors Are Paying Attention

Actis says there’s strong investor interest in its fund because of its focus on long-term, stable income. Many of the fund’s backers are large pension funds, sovereign wealth funds, and insurance companies from around the world. These groups are looking for safe, steady investments that can perform well even during economic uncertainty.

Actis uses “availability-based contracts” and inflation-linked revenues to reduce risks. That means the fund earns money based on how available a service is — such as electricity delivery — rather than on how much people use it. These contracts provide a safety net during slow economic times.

Other protections include currency and interest rate protections. These safeguards make ALLIF2 appealing to global investors who want to support clean energy and keep their investments safe. Examples of the company’s clean energy portfolio include:

Actis Fund portfolio sample
Source: Actis

Actis Targets the World’s Fastest-Growing Regions

One of Actis’s big advantages is its focus on non-Western energy and digital markets. While many investors look to the U.S. and Europe, Actis sees high-growth potential in Asia, Latin America, Africa, and Eastern Europe. Torbjorn Caesar, Chairman and Senior Partner at Actis, remarked:

“We’re building real-world assets that are essential to national development, and pairing that with disciplined, long-term investment capital. It’s clear from our experience that regions outside the West, in the more populated and faster-growing parts of the world, are where compelling infrastructure opportunities can be found. That remains the case today.”

And Actis has the track record to back it up. Its first Long Life Infrastructure Fund (ALLIF1), launched in 2019, raised $1.3 billion. Since then, the company has handled over $26 billion in capital. After merging with General Atlantic in 2024, it now manages $108 billion in assets.

In 2025, investors are showing more interest in globally diversified strategies — especially those that offer stability and help meet climate and digital goals. That’s why ALLIF2’s focus on long-life, low-risk infrastructure in rising markets is so appealing.

Helping Countries Meet Climate and Energy Goals

Countries like India and Brazil are under pressure to expand energy access while also reducing carbon emissions. Investments like those from Actis help bridge that gap by funding clean energy and reliable grid systems.

For example, in India, solar power helps reduce dependence on coal and other fossil fuels. Actis’s solar projects will support India’s national goal of reaching 500 GW of non-fossil fuel power by 2030.

India annual solar manufacturing projections
Chart from SolarPower Europe

Likewise, in Brazil, new electricity transmission lines make it easier to move renewable energy across the country. It generates almost 90% of its electricity from clean sources. Better transmission cuts energy loss and lowers power outages.

Actis supports these clean energy projects to help countries grow sustainably. This also brings returns for its investors.

A Strong Start, and More to Come

Actis has already invested nearly half of its new fund. But it’s not stopping there. The company has a $2 billion pipeline of upcoming deals. This includes investments in solar, wind, transmission, and digital infrastructure.

Adrian Mucalov, Head of Long Life Infrastructure at Actis, said:

“Our strategy is built for the investor appetite we are seeing: infrastructure businesses in high-growth markets that have a solid operating track record with stable, downside-protected cash flows.”

That pipeline includes:

  • More solar energy projects in Asia and the Middle East
  • Additional transmission lines in Latin America and Africa
  • Growing digital infrastructure across emerging markets

These investments are not just good for business. They also help fight climate change, improve energy access, and create jobs in developing economies.

Looking Ahead: A Blueprint for Sustainable Investment

As climate concerns grow and economies shift toward clean energy, funds like ALLIF2 are likely to play a bigger role. Investors increasingly want portfolios that are resilient, green, and globally diversified.

Actis’s model — combining infrastructure improvements with long-term contracts and strong protections — is becoming a popular blueprint for others. It proves that clean energy and digital growth can be both profitable and low-risk.

Actis’s $1.7 billion infrastructure fund shows how investment capital can support global climate and development goals. The fund targets clean energy, power transmission, and digital access in fast-growing areas. This approach meets local needs and tackles global sustainability issues. It shows how smart and sustainable infrastructure investments can yield strong returns and create a cleaner, more sustainable world.

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UK’s 2035 Green Finance Vision: Leading the World in Carbon Credits

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The UK government has rolled out new plans to strengthen voluntary carbon and nature markets. These markets help businesses reduce emissions. They do this by funding eco-friendly projects. Examples include tree planting, electric vehicles, and forest protection.

The government wants to boost these markets. This will bring in private funding, boost climate efforts, and create new revenue for British businesses. Landowners and farmers will benefit the most.

According to the Department for Energy Security and Net Zero, the UK’s total greenhouse gas emissions in 2024 were around 371 million tonnes of CO2 equivalent. That’s 4% lower than in 2023, when emissions were 385 million tonnes.

Compared to 1990 levels, emissions in 2024 dropped by 54%. Carbon dioxide was the biggest contributor, making up about 78% of the total emissions.

Uk emissions net zero
Source: Department for Energy Security and Net Zero

A Global Role for the UK in Green Finance

BeZero Carbon says that the UK has long been a pioneer in carbon markets. Back in 2002, it launched the first national greenhouse gas trading system.

Internationally, it has helped shape carbon rules under the Paris Agreement, including at COP29. Recent data reveals that UK companies are the top users of voluntary carbon credits in the G7. They lead in both total volume and GDP comparison.

Turning Potential Into Progress

Currently, carbon and nature markets aren’t reaching their full potential. Many businesses are unsure how to use carbon credits effectively, and poor practices in the market have raised doubts. To address this, the government is creating a global framework. This will set clear standards for what makes a carbon or nature credit effective.

The new guidance will:

  • Define high-quality carbon credits

  • Ensure projects deliver real environmental benefits

  • Encourage companies to fully disclose how credits are used in sustainability reports

These steps aim to build confidence and help businesses invest in high-impact climate solutions. With the right conditions, the carbon market could grow to $250 billion and nature markets to $69 billion by 2050.

These new plans aim to make the UK a global leader in green finance. By creating a strong and trusted carbon market, the UK can attract more private investment, support climate goals, and help businesses shift to clean energy.

Taking climate action also brings major business benefits. Since July, the UK’s clean energy sector has drawn £43.7 billion in private investment.

According to the Confederation of British Industry (CBI), the net-zero economy grew three times faster than the rest of the UK economy last year, with over 10% more jobs created in the sector.

Carbon Credits in the UK

The Department for Environment, Food & Rural Affairs’ Woodland and Peatland Carbon Codes support local nature-based projects. These efforts have expanded, creating a solid foundation for growth. The government is also pushing engineered carbon removals through contracts for carbon capture and storage (CCS) technologies.

Climate Minister Kerry McCarthy said,

“Building up trust in carbon and nature markets is crucial to their success in driving meaningful climate action and real, lasting change for the environment. 

The UK is determined to spearhead global efforts to raise integrity in these markets so they can channel the finance needed to tackle the climate crisis and speed up the global clean energy transition.

These principles will cement the UK as the global hub for green finance and carbon markets. This is an opportunity to deliver on the climate crisis and drive investment and growth in the UK as part of our Plan for Change.”

uk carbon credits

UK’s Carbon Market Strategy for 2035

A recent report titled “Making the UK the carbon markets capital of the world” from BeZero Carbon outlines what the UK could potentially achieve by 2035 if it leads in carbon markets:

  • Create 135,000 skilled jobs

  • Add £1 billion to tax revenue

  • Meet domestic carbon removal targets (13 million tonnes from engineered sources and 5 million tonnes from nature-based projects)

  • Attract £10 billion per year in private climate finance for international projects

To make this vision real, the UK must grow demand. The plan expects that by 2035, all major UK businesses will offset their remaining emissions. This includes both current and future emissions, using high-quality carbon credits. These would include nature-based and engineered solutions, sourced both from the UK and abroad.

What’s Needed to Get There?

To support this growth, the government should:

  • Integrate international and nature-based carbon removals into the UK Emissions Trading Scheme

  • Promote alignment with trusted standards like the Voluntary Carbon Markets Integrity Initiative (VCMI)

  • Use independent ratings to ensure credit quality

  • Develop smart regulations that encourage, not block, market expansion

UK carbon market
Source: BeZero Carbon

The report explains that carbon credit markets are more reliable now than five years ago. New monitoring and verification technologies reduce the risk of credits failing. These tools are backed by science and data. The COP29 Article 6 framework also helps prevent double-counting between countries and businesses.

The UK can lead in climate investment. It can support innovation and set clear rules. Carbon and nature markets can help cut emissions. They can also boost the economy and enhance the UK’s global role in green finance with the right efforts.

When the government, businesses, and communities team up, the UK can create a strong carbon market. This will create jobs, boost the economy, and support a greener future for generations to come.

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Shipping Toward Net Zero: Maritime Turns to Green Hydrogen and Ammonia

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Navigating Toward Net Zero: Maritime Industry Turns to Green Hydrogen and Ammonia

The maritime industry is entering a period of major change as global efforts intensify to cut greenhouse gas (GHG) emissions. The International Energy Agency (IEA) has highlighted the need for clean energy solutions—especially green hydrogen and ammonia—to help shipping cut emissions and reach climate goals.

Ships now emit about 3% of global greenhouse gases (GHG). So, there’s growing pressure to decarbonize fast. The IEA recently stated that we need urgent improvements in storage, safety rules, and policy support. These changes are essential for making these fuels viable for widespread use.

The industry’s goal is to reach zero emissions by 2050. However, the road to decarbonization is complex and demands progress in technology, safety, and policy. This is where green hydrogen and ammonia come in.

The Promise of Green Hydrogen and Ammonia

Green hydrogen is made using renewable energy, like wind or solar, to split water into hydrogen and oxygen. Ammonia, which can be made from green hydrogen, is another low-carbon fuel option.

Both fuels provide a cleaner option than fossil fuels. This is especially true for long-distance shipping, where battery-powered ships aren’t practical yet. These fuels are essential to meeting the International Maritime Organization’s (IMO) climate targets.

IMO shipping net zero roadmap
Source: IMO

The IMO aims to reduce shipping’s total annual emissions by at least 50% by 2050 compared to 2008 levels, and to peak emissions as soon as possible. Achieving these targets will require the wide-scale adoption of alternative fuels.

The IEA highlights that green hydrogen and ammonia can support these goals. However, industry players must tackle several key challenges:

  • Storage Challenges: Hydrogen is difficult to store due to its low energy density. It needs high-pressure tanks or must be cooled to cryogenic temperatures. Research is focused on safer and smaller storage methods. This includes metal hydride systems and compressed gas solutions.

  • Safety Concerns: Hydrogen is highly flammable, while ammonia is toxic. To avoid risks, ships need new safety systems, and crew members must receive updated training. The development of international safety standards will help guide proper handling and storage.

  • Cost Barriers: Green hydrogen is currently 2-3 times more expensive than traditional marine fuels. Ammonia is also costly to produce at scale. According to BloombergNEF, costs could drop by 2030 with scaling and technology advances. Reducing these costs will require financial support from governments and private investors.

Bloomberg further estimates that clean ammonia could represent 13% of global ammonia supply by 2030.

clean ammonia supply 2030

DNV, a global maritime classification society, says ammonia and hydrogen could be 60% of shipping fuel by 2050. This depends on policies that support their growth. Yet today, they account for less than 0.1% of total fuel use at sea.

Both clean fuels’ costs would go down by 2050, per IRENA’s projections.

ammonia cost projections

green hydrogen cost projection

 

 

 

 

 

 

 

 

 

 

 

Boosting Maritime Decarbonization Through Policy

Policy support is critical to drive the shift toward cleaner fuels in shipping. Experts and industry groups are calling on governments and international regulators to create favorable conditions for investment in green hydrogen and ammonia.

Proposed policy measures include:

  1. Clean Fuel Subsidies. Direct incentives can help shipowners adopt low-emission technologies and offset higher fuel costs.

  2. R&D Grants. Public funding can support research into fuel storage, fuel cells, bunkering infrastructure, and vessel designs optimized for alternative fuels.

  3. Carbon Pricing. Implementing a carbon tax or emissions trading system in the maritime sector can make green fuels more competitive.

  4. International Standards. Harmonized regulations across countries can prevent market fragmentation and ensure global progress.

Some countries are already taking steps. Norway has introduced zero-emission requirements for cruise ships in its fjords by 2026. The EU has included shipping in its Emissions Trading System (ETS) starting in 2024, requiring ships to pay for carbon pollution. The bloc has also launched the “FuelEU Maritime” initiative to promote green fuel adoption.

The IEA and IMO are also working with ports, shipbuilders, and fuel producers to design a shared roadmap for green fuel adoption. In addition to cargo vessels, ferries and cruise ships are being looked at as early candidates for green fuel use.

GHG Emissions and the Urgency to Act

The shipping industry emits over 1 billion tonnes of CO2 annually. Without action, emissions could rise by 50% to 250% by 2050, according to IMO projections. The IEC stresses that if these emissions are not reduced, they can hinder global efforts to limit warming to 1.5°C above pre-industrial levels.

To stay on track, the shipping industry must embrace low-carbon technologies and provide clear emissions reports. Many digital tools are being created to track emissions in real time. This helps companies stay accountable and make smart choices.

Some shipping companies have already begun testing hydrogen and ammonia-powered vessels. NYK Line and Maersk are testing ammonia-fueled ships. Others are looking into hybrid vessels that mix green fuels and batteries.

The Poseidon Principles, signed by over 30 global banks, require shipping lenders to align their portfolios with climate goals. This initiative puts additional pressure on companies to invest in cleaner ships or risk losing access to finance.

Trends Shaping the Clean Fuel Market

The market for green fuels is expanding rapidly, driven by both regulation and investor interest. IEA forecasts say the global hydrogen demand could reach over 6 Mtpa by 2030.

By 2050, the total demand for green hydrogen will reach 46 million tonnes, according to IRENA. About 74% of this will be used to produce ammonia, 16% for making methanol, and the remaining 10% will be used directly as hydrogen.

green hydrogen requirement for 2050
Source: IRENA

Ammonia demand is also expected to rise, especially in sectors like shipping and power generation. It can grow at an annual rate of 70% through 2030.

Key developments include:

  • EU Green Deal Initiatives. New climate laws are allocating billions of euros to fund clean energy, including maritime fuel infrastructure.

  • Private Investments. Companies such as BP, Shell, and TotalEnergies are investing in hydrogen production and supply chains. Maersk, the second-largest shipping company in the world, is investing in vessels powered by methanol and hydrogen. Other firms, like NYK Line and MOL from Japan, are testing ammonia-powered ships.

  • Green Corridors. More than 20 “green shipping corridors” are being planned worldwide. These include routes between Asia and Europe, and across the Atlantic. These corridors will enable ships to refuel with green fuels and test low-emission technologies.

These initiatives show progress. But to fully implement them, we need stronger partnerships. This includes working with governments, industries, and environmental groups.

In January 2024, the Global Maritime Forum announced that over 200 companies had joined efforts to decarbonize shipping, focusing on scalable fuel alternatives and supportive regulations.

Navigating Toward Zero Emissions

Decarbonizing the maritime sector is no longer optional. It’s a needed change due to environmental issues, investor demands, and new rules. The transition needs big investments and teamwork. But it also offers chances for new ideas and long-term savings.

The push for green hydrogen and ammonia is helping to reshape the industry’s future. These fuels offer a path to meet zero-emission targets while supporting cleaner global trade. With ongoing backing from governments, industry players, and the public, the move for maritime decarbonization is speeding up.

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Tackling Scope 3 Emissions with AI: A Smarter Path to Net Zero

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Energy companies are increasingly using artificial intelligence (AI) to cut Scope 3 emissions. These emissions come from their supply chain and the full lifecycle of their products. They include everything from material sourcing to product disposal.

Since these indirect emissions are hard to track, reducing them is a major challenge. However, with net-zero targets approaching, tackling Scope 3 emissions is a top priority.

AI helps simplify complex data and streamline operations. Companies can cut emissions while boosting profits. With smarter product design and optimized resource use, AI shapes a more sustainable energy future.

AI Is Making Scope 3 Emissions Measurable and Manageable

Scope 3 emissions include many indirect activities, such as suppliers’ energy use and customer product disposal. Their complexity makes them tough to reduce, but AI is changing that.

Machine learning and predictive analytics allow energy companies to find inefficiencies in their supply chains. AI tools automate data collection, making it easier to assess the carbon footprint of each activity. As Energy Central notes, this leads to smarter decisions that reduce emissions and improve operations.

The World Economic Forum highlights that AI could cut global greenhouse gas emissions by 5–10%. This is equivalent to the annual emissions of the European Union. However, they warn that increased AI use may raise electricity demand, so companies must balance their efforts carefully.

Boosting Profits While Cutting Emissions

AI isn’t just about sustainability; it also helps companies save money. Experts also believe that AI for energy management can see significant efficiency gains. Predictive maintenance, for instance, detects problems early, avoiding costly downtime and improving equipment performance.

AI optimizes energy use across systems, leading to lower costs and better output. The World Economic Forum estimates that AI-driven energy efficiency and smart grid solutions could unlock up to $1.3 trillion in economic value by 2030. This is a strong incentive for companies to invest in digital transformation.

However, the International Energy Agency (IEA) warns that AI’s reliance on data centers could add stress to power grids. Companies need to plan carefully to ensure sustainable growth without overloading infrastructure.

  • According to Grand View Research, the global AI in energy market size was valued at USD 8.75 billion in 2023 and is expected to grow at a CAGR of 30.1% from 2024 to 2030.

AI future

Smarter Product Design Reduces Lifetime Emissions

AI is changing how products are designed, built, and disposed of. Life Cycle Assessments (LCAs), once time-consuming, are now faster and more accurate thanks to AI.

AI tools can:

  • Automate the collection of product emissions data

  • Fill data gaps using predictive models

  • Customize carbon assessments for regional and supplier-specific conditions

Engineers can run AI simulations to test designs virtually. This cuts down on the need for physical prototypes. These simulations predict energy use, durability, and efficiency. They help companies create greener and longer-lasting products.

The result? Reduced operational emissions and a lower environmental impact throughout the product’s lifecycle.

The Grid of the Future: Smarter, Greener, AI-Driven

AI is also changing how energy is distributed. Smart grid technologies powered by AI balance supply and demand in real-time. This reduces idle power and waste, and provides reliable renewable energy access.

Additionally, it helps forecast energy needs and stabilize the grid. This leads to smoother integration of solar, wind, and other renewables. The World Economic Forum says AI boosts efficiency. It also future-proofs energy infrastructure by spotting and fixing problems early.

Apart from managing Scope 3 emissions, these advancements make AI a key driver in speeding up the energy transition. It builds a grid that’s both smarter and more sustainable.

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