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Michael Okoroafor will end a decade-long career at the spice and herb maker McCormick when he retires as chief sustainability officer on July 1. Okoroafor will be replaced by his colleague Kathy Rostkowski, currently the company’s vice president of global sustainability.
Okoroafor departs with McCormick showing good progress on some if not all of the climate goals he helped oversee during his tenure.
Climate progress
The company, which is headquartered in Hunt Valley, Maryland, has committed to reducing Scope 1, 2 and 3 emissions by 43 percent by 2030, relative to a 2020 baseline. It’s also aiming to hit net zero by 2050. Both goals have been validated by the Science Based Targets initiative.
In 2023, the most recent year for which it has released data, McCormick reported a 40 percent reduction in Scopes 1 and 2 alongside an 11 percent drop in Scope 3. It’s also making strong progress toward goals for sustainable sourcing of ingredients and recycling, but is off course on a commitment to reduce water use.
Rostkowski joined McCormick in 2021 to lead the company’s ESG efforts, known as its Purpose-led Performance Program. She previously spent eight years working in projects, partnerships and engagement roles at the U.S. Agency for International Development.
Rostkowski holds three environmental engineering degrees: a Bachelor of Science from Yale and a Master of Science and PhD from Stanford. She also recently completed the Strategic Chief Sustainability Officer Program at Stanford University’s Graduate School of Business.
McCormick has close to $7 billion in sales and employs 14,000 people in 29 countries.
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Microsoft remains “pragmatically optimistic” that it will meet its commitment from five years ago to become carbon negative by 2030, despite reporting a 23.4 percent cumulative increase in its total greenhouse gas emissions since that time.
That’s according to the company’s May 29 2025 environmental sustainability report, in which two of the tech giant’s senior executives describe that increase as “modest” compared with its 168 percent increase in energy use and 71 percent growth in revenue over the same time period.
“Microsoft remains steadfast in our dedication to achieving the company’s 2030 environmental sustainability commitments,” said President Brad Smith and Chief Sustainability Officer Melanie Nakagawa in a joint foreword.
Microsoft has promised to cut its emissions in half by 2030, compared with 2020, and to remove more carbon dioxide than it emits during that time frame. It has also promised to be water positive, achieve zero waste and protect ecosystems.
The company doesn’t have a corporate net-zero commitment, as defined by the Science Based Targets initiative, the de facto standards setter. It was one of nearly 250 well-known companies to have its “target removed” in spring 2024, after failing to submit a plan that would meet SBTi’s standard. “We remain engaged with SBTi and hope this entity involves practitioner feedback more comprehensively going forward while maintaining a robust governance process and remaining in close coordination with the Greenhouse Gas Protocol updates,” the company said in a statement responding to questions from Trellis.
Pragmatic optimism explained
Microsoft does have near-term SBTi goals: to cut the emissions intensity for its Scope 3 footprint from things such as productions and use of its products by 30 percent as a percentage of revenue compared with a 2017 baseline year; to avoid an absolute growth in Scope 3, which accounted for 97.3 percent of its footprint in FY2024; and to source 100 percent renewable electricity.
So far, it has met just the last one, by procuring more than 34 gigawatts in carbon-free energy since 2020 — 19 in 2024 alone.
The company’s confidence comes from its long experience in creating entirely new markets, Nakagawa said during an interview. Microsoft, which recently celebrated its 50th anniversary, is spending billions to make sustainability a core value. Among other things, it’s buying low-carbon steel, concrete and construction materials. It has allocated more than $793 million for new climate technologies and is now the largest single buyer of carbon removal credits, worth more than 30 million metric tons.
Those investments have helped cut Microsoft’s footprint from purchased energy and its own operations by 30 percent since 2020.
“We remain pragmatically optimistic, and over the next few years, we want to continue to scale these markets, not only to reach our goals and for our benefit, but frankly, for the world,” she said.
Signs of progress
Microsoft actually reported a modest 1.8 percent year-over-year decrease in its carbon footprint for its 2024 fiscal year, which ended June 30. The company disclosed total emissions of 14,857,000 metric tons of carbon dioxide equivalent compared with 15,130,000 for FY2023.
That achievement is barely discussed as part of the report narrative, and that’s intentional. As more countries and regions adopt policies for mandatory corporate disclosure, Nakagawa explained, corporations will be required to report more thoroughly on progress since their baseline year. Companies must show that they are making the sorts of investments that steer emissions reductions in the right direction, she said.
There are also bright spots in Microsoft’s Scope 3 data, i.e., cumulative decreases in emissions related to these categories:
Waste generated in operations
Business travel
Employee computing
Downstream transportation and distribution
Use of sold products
End of life treatment of sold products
Downstream leased assets
Most of these categories account for less than 2 percent of Microsoft’s Scope 3 breakdown, except for use of sold products, which adds up to almost 12 percent of the total.
Microsoft’s two biggest Scope 3 categories are purchased goods and services (about 34 percent of the 2024 total) and capital goods (almost 41 percent).
What’s in store
To chip away at its two biggest Scope 3 categories, Microsoft is turning to its suppliers.
For example, the company is adopting a hybrid approach to data center construction that substitutes mass timber materials for concrete. This cuts the embodied carbon footprint of new facilities by 65 percent compared with traditional processes. Microsoft is also adopting chip-level cooling technologies. That one design change will help the company slow down the pace of new construction (because less space is needed for cooling equipment); decrease the amount of energy required for operations; and avoid significant evaporation of freshwater.
Microsoft’s expectations of suppliers are being built into contracts. One of its power purchase agreements with renewables developer Engie, for example, requires that solar panels be reused or recycled.
Microsoft’s new code of conduct includes a requirement for its biggest supply chain partners to transition to 100 percent carbon-free energy by 2030. So far, 89 facilities that manufacture Microsoft’s hardware — such as tablet computers, gaming consoles or accessories — have bought into renewables. That helped cut 232,000 metric tons of carbon dioxide equivalent.
Next up: a program, coming in July, that will help Microsoft suppliers procure certificates that give them credit by supporting sustainable aviation fuel.
https://sustainable-future.org/wp-content/uploads/2025/03/cropped-trellis_favicon_180x180.png3232sustainablefuturehttps://sustainable-future.org/wp-content/uploads/2024/06/Untitled-design-117-300x94.pngsustainablefuture2025-05-29 16:10:002025-05-30 20:48:36Microsoft is not backing off its 2030 climate goal
It often feels like there’s no area of business that artificial intelligence isn’t about to disrupt. But for those interested in focusing attention on where the technology might have particular impact, a slew of grants from the Bezos Earth Fund provides useful pointers.
The fund has allocated up to $100 million to its AI Grand Challenge for Climate and Nature, designed to identify and accelerate projects that leverage artificial intelligence to tackle pressing environmental challenges. The first recipients, 24 of which received $50,000 each, were announced last week in the areas of sustainable proteins, biodiversity and power grid optimization.
Moving the needle
The philanthropy, founded by Jeff Bezos in 2020 with a remit to distribute $10 billion in a decade, had previously worked with academic experts to select the three focus areas. Among the selection criteria was the requirement that AI had been applied to create initial prototypes in the domain, explained Amen Ra Mashariki, the fund’s director of AI data and strategies, who added that “a nice nudge with investment and engagement would really scale and move the needle.”
The projects are early-stage by the standards of corporate partnerships, but they signpost future developments worth tracking. Among the successful applicants were:
A tool being developed by the University of Leeds in the U.K. that will aid in the transformation of food waste into protein by identifying ideal microbes and fermentation settings.
OLiMPuS, a project from Wageningen University in the Netherlands to build an open-source AI platform to discover plant and fermented proteins that mimic the texture of milk and meat. The platform is designed to accelerate the development of animal-free alternatives and replace trial-and-error approaches with data-driven design.
A drone imagery tool that deploys AI to monitor over 500 threatened timber species and detect illegal logging. The system, known as BGCI-US, will offer real-time enforcement data to protect global forests.
Simulations of carbon removal strategies, including ocean alkalinity enhancement, developed by Yale University. By speeding up site selection and impact modeling, the simulations have the potential to accelerate deployment of these climate solutions.
A Cornell University AI platform that manages electric vehicle charging and discharging in real time, transforming vehicles into a distributed energy storage system. The tool aims to align EV use with grid demand to scale storage of renewable energy.
Livestock GPT, a generative AI system to support methane reduction on dairy farms, starting with an open methane data platform. The system, also developed by Cornell University, includes a chatbot that will provide feed and management advice to farmers, particularly in emerging economies.
The organizations will now work with outside experts to develop more detailed proposals for how they will use AI, which must be submitted next month. “We will then select up to 15 to receive $2 million to implement that work,” said Ra Mashiriki.
The full list of grants for the AI Grand Challenge, together with other recipients of the $2.7 billion disbursed so far by the fund, is available on the organization’s programs page.
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A newly released report from NGO E2 tallied $4.5 billion worth of cancelled clean energy investments in April. This brings total cancellations to $8 billion in the first quarter of 2025. The report’s release coincides with the passage of the House’s version of the Budget Bill, proposed legislation that essentially revokes the majority of clean energy investment and manufacturing credits introduced in the 2022 Inflation Reduction Act.
“If the tax plan passed by the House last week becomes law, expect to see construction and investments stopping in states across the country as more projects and jobs are cancelled,” said Michael Timberlake, communications director at E2.
Four projects were cancelled in April: two in the battery/storage sector, one in EV production and one an offshore wind project:
Stellantis (Illinois) — a $3 billion battery plant and large parts distribution hub.
SungEel HiTech Co. (Georgia) — a $37 million lithium battery recycling facility.
RWE (California, New York, Louisiana) — a $1.1 billion investment from the German wind developer.
Juniper Power (Massachusetts) — $170 million in promised investments in a lithium battery storage plants.
Credit uncertainty, combined with the Trump administration’s ever-fluctuating tariffs and supply chain woes, has hit the battery storage and recycling industry particularly hard. In May, battery recycling startup Li-Cycle declared bankruptcy and Atlas Public Policy reported that more battery projects have been cancelled in Q1 2025 than the past two years.
[Connect with more than 3,500 professionals decarbonizing and future-proofing their organizations and supply chains through climate technologies at VERGE, Oct. 28-30, San Jose.]
https://sustainable-future.org/wp-content/uploads/2025/03/cropped-trellis_favicon_180x180.png3232sustainablefuturehttps://sustainable-future.org/wp-content/uploads/2024/06/Untitled-design-117-300x94.pngsustainablefuture2025-05-29 14:27:532025-05-30 20:48:37Report: $4.5 billion in clean energy investments cancelled in April
The Science Based Targets initiative (SBTi) is in the midst of updating its corporate net-zero standard. This might sound like an arcane technical exercise, but what’s decided here will have major consequences for how companies shape, deliver and communicate their climate strategies for the next decade.
For many corporates, version 1.0 of the standard was a helpful reference point. It gave form and discipline to emerging climate strategies and helped boost ambition. But it also had major gaps, particularly around Scope 3 emissions, the role of carbon credits and how to deal with emissions that can’t yet be reduced.
That’s where version 2.0 comes in. The draft proposals are extensive and rightly so. Getting to net zero requires a credible, science-based framework that sets expectations for companies while also giving them the tools to succeed. But as it stands, the draft could improve in three important areas. Here’s why they matter and what needs to change.
Make room for realism when targets are missed
It’s inevitable that some companies will fall short of their near-term targets. This isn’t a smear, but rather an acknowledgement that emissions reduction is challenging and many businesses are working in uncharted waters. Decarbonizing supply chains and operations is complex, particularly in hard-to-abate sectors and setbacks will happen.
What businesses need is a pathway to stay aligned with the SBTi standard when they underperform without letting ambition slip. The draft standard allows this in limited circumstances, but only for Scope 1 emissions. That’s too narrow; Scope 2 and 3 underperformance must be addressed too, with consistent rules and safeguards.
Corrective measures shouldn’t lower the bar. Companies must explain underperformance, show how they’re addressing it and compensate transparently where needed. The use of high-quality carbon credits, whether for reductions or removals, can be part of that toolbox. Not every company needs the same route, but all should be held to the same standard of integrity.
Mandate interim removal targets
One of the most debated parts of the draft is whether to require companies to start purchasing carbon removals before 2050. In climate and business terms, this is a no-brainer. If residual emissions need to be neutralized in the net-zero year and every year after, companies should be building capacity and momentum now. It’s also essential for scaling the market for removals, which are needed to neutralize residual emissions.
What’s proposed in the draft is a halfway step: interim targets that companies can opt into, rather than being required to set. That creates uncertainty for investors and delays the demand signal needed to scale the market.
What’s needed is a clear requirement for companies across all sectors to set annual interim removal targets for Scope 1 and ideally Scope 2 emissions. These shouldn’t be cumulative, but progressive: building year by year, signalling steady investment and delivery.
Furthermore, nature-based removals must be explicitly included. Forests, grasslands and soils have been sequestering carbon for millennia and keeping global temperatures in check. Recognizing their role isn’t just a nod to tradition — it’s a matter of practical sense. They’re scalable, available now and often directly linked to companies’ sourcing landscapes. Their inclusion would make interim targets more feasible and cost-effective, especially for smaller businesses and those in emerging markets.
Take responsibility for ongoing emissions
The third area that needs more work is what to do about ongoing emissions that fall outside targets or yearly emissions while decarbonization is underway.
Here, the draft proposes that companies opt into recognition for taking “beyond value chain mitigation.” In practice, this means that if a company chooses to invest in mitigation outside its footprint, for example, in forest protection or clean energy elsewhere, it can be recognized for doing so.
But recognition alone won’t cut it. All companies should take some level of responsibility for their ongoing emissions, even if it’s modest at first. And reporting on those plans should be mandatory, not optional. SBTi could align with frameworks such as the Voluntary Carbon Market Integrity Initiative on how claims are made.
There’s no need to reinvent the wheel, but there is a need to make sure companies can’t hide in the gaps.
Why this matters now
For companies, the new SBTi standard will set expectations not just for target-setting, but for disclosure, procurement, claims and investor engagement. It will affect how climate leadership is perceived, rewarded and regulated.
And for the rest of us, it will shape whether the private sector helps close the emissions gap in the decisive years between now and 2030, or whether it continues to overpromise and underdeliver.
This isn’t a debate about the fine print. It’s about whether we treat net zero as a long-term badge or a real-time discipline. Whether we build the carbon removal sector with integrity and demand. Whether companies are empowered — and expected—to act beyond their direct footprint.
There’s still time to get this right. The SBTi consultation is open until June 1. If you’re a company with a net-zero target, or thinking of setting one, this is your chance to help shape a more effective, credible and inclusive standard.
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https://sustainable-future.org/wp-content/uploads/2025/03/cropped-trellis_favicon_180x180.png3232sustainablefuturehttps://sustainable-future.org/wp-content/uploads/2024/06/Untitled-design-117-300x94.pngsustainablefuture2025-05-29 10:00:002025-05-30 20:48:38The SBTi net-zero update is falling short. 3 ways to fix it
In a bid to follow the Trump administration’s anti-climate agenda, EPA administrator Lee Zeldin attempted to unilaterally repeal congressionally approved funding from climate programs, including the National Climate Investment Fund (NCIF) and Greenhouse Gas Reduction Fund (GGRF). In response, one of the recipient coalitions of the GGRF, Climate United Fund, sued the agency and Citibank — a.k.a. the financial institution that houses GGRF deposits — for freezing all funds.
The case is important because it is bound to set the tone for similar lawsuits, not to mention precedent when it is ultimately resolved. But it can be difficult to follow the ins-and-outs of weekly updates, which is why Trellis has decided to do it for you.
Oct. 12, 2023: Climate United announces the submission of a proposal to the EPA for participation in the GGRF.
April 4, 2024: The EPA announces that it has chosen three organizations to disseminate the GGRF, with Climate United receiving $6.97 billion. (Power Forward and the Coalition for Green Capital are the other two.)
Oct. 1, 2024: Climate United awards Scenic Hill Solar $31 million from its Electric Drayage Truck program.
Nov. 1, 2024: Citibank is chosen as the keeper of GGRF funds, as a result of the Financial Agent Agreements (FAA) between the bank, Dept. of Treasury and EPA.
Nov. 19, 2024: Climate United announces the launch of its $30 million NEXT program.
Feb. 12, 2025: Zeldin posts on social media that he and his team “found” $20 billion in mishandled taxpayer funds — a snarky reference to the $20 billion NCIF.
Feb. 13, 2025: In an EPA press release, Zeldin calls for a termination of the FAA.
Feb. 18, 2025: Climate United requests funds from Citibank; that doesn’t happen.
March 4, 2025: Zeldin announces that Climate United’s funds are officially frozen.
March 8, 2025: Climate United files a complaint against EPA and Citibank with the U.S. District Court of the District of Columbia.
March 10, 2025: Climate United files a motion for a temporary restraining order against Zeldin, the EPA and Citibank.
March 11, 2025: The EPA sends Climate United a letter of termination, citing the agency’s obligation to “safeguard public funds.”
March 12, 2025: Climate United, the EPA and Citibank are heard in the U.S. District Court for the District of Columbia.
March 18, 2025: The U.S. District Court grants Climate United a temporary restraining order.
March 31, 2025: The U.S. District Court grants Climate United a seven-day extension on its restraining order.
April 15, 2025: Federal judge rules that the EPA unlawfully froze climate and infrastructure funds.
May 19, 2025: The three entities appear in the D.C. District Court of Appeals, with Climate United arguing that the agency should continue to be blocked from unilaterally canceling or rescinding the coalition’s funding.
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https://sustainable-future.org/wp-content/uploads/2025/03/cropped-trellis_favicon_180x180.png3232sustainablefuturehttps://sustainable-future.org/wp-content/uploads/2024/06/Untitled-design-117-300x94.pngsustainablefuture2025-05-29 09:00:002025-05-30 20:48:39Climate United Fund vs. EPA vs. Citibank: A Timeline
Purchasing sustainable aviation fuel (SAF) just got a little easier, thanks to the release of an online platform that allows buyers to quickly compare price and other attributes of different fuels.
Fuels derived from waste cooking oil and other sustainable sources are at the heart of the aviation industry’s efforts to decarbonize, but purchasing SAF is nothing like booking a flight. Buyers, working individually or through the Sustainable Aviation Buyers Alliance (SABA), generally begin by asking SAF suppliers to submit proposals for vetting.
“Those are fairly time-consuming efforts,” said Andre de Fontaine, a managing director at the Center for Green Market Activation, one of the non-profits that runs SABA. “They take somewhere between 18 and 24 months to run.”
Members only
The alliance has moved to streamline the process with today’s launch of SAFc Connect, a platform containing information on carbon intensity, pricing, feedstock and other attributes of SAF certificates for fuels pre-vetted by SABA. The platform is open to alliance members, which include Amazon, Deloitte, Netflix among 32 other companies.
“Instead of running an RFP every year whenever they want to buy SAF certificates, they can now go into a managed database confident that the fuel has been vetted for quality criteria,” said de Fontaine.
At least five SAF providers — Alaska Air, Future Energy Global, International Airlines Group, Targray and Valero — will be part of SAFc Connect at launch. SABA expects up to double that number to come on board in coming months.
Book and claim
The scheme operates on a book-and-claim basis, meaning that buyers can use the certificates to offset Scope 3 aviation emissions without actually flying planes that burn SAF. This approach, also being used in maritime shipping and for rail freight, allows buyers to support sellers even if they cannot directly access the low-carbon transport on offer.
Although de Fontaine would not disclose likely prices, he noted that SABA’s last RFP, while not necessarily predictive of future prices, produced certificates in the range of $300 to $500 per metric ton of carbon dioxide. An economy-class round trip from New York to London creates around 0.6 tons of CO2, according to the International Civil Aviation Organization.
SABA has worked with corporate buyers to aggregate demand for over $400 million in SAF certificates since launching in 2021 and expects members using SAFc Connect to have immediate demand for around $30 million in certificates.
The alliance also recently released an RFP for next-generation sustainable fuels, including “e-fuels,” which can be synthesized from CO2 and water in a reaction powered by renewable energy. The move comes as some environmental groups continue to question the sustainability of fuels made from crops, a class of SAF that is expected to play an important role in the short-term growth of the market.
This story was updated on May 28, 2025 to more accurately reflect the price of certificates in SABA’s earlier RFP.
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https://sustainable-future.org/wp-content/uploads/2025/03/cropped-trellis_favicon_180x180.png3232sustainablefuturehttps://sustainable-future.org/wp-content/uploads/2024/06/Untitled-design-117-300x94.pngsustainablefuture2025-05-28 12:00:002025-05-30 20:48:39Buyers expected to spend $30 million at new sustainable aviation platform
A pioneering scheme to limit the growth of aviation emissions is facing increasing risks of non-compliance as the price of carbon credits rises.
Air travel became the first sector to agree to emissions targets on a global basis when the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) was adopted in 2016. Participating airlines must now cap their emissions at 85 percent of 2019 levels — any subsequent growth needs to be offset by purchasing CORSIA-approved carbon credits.
Airlines from countries participating in the first phase of CORSIA — which runs 2024 to 2026 and includes the U.S., European nations and others, but not China and Brazil — will need to purchase between 100 and 150 million tons of credits, according to a report by Allied Offsets, a carbon markets intelligence firm. But that will present challenges, the report concluded, because only 15 million credits currently meet CORSIA’s eligibility criteria.
High-value credits
This mismatch between supply and demand will drive up prices, but it’s not the only factor at work. CORSIA has set a relatively high bar for eligibility through its integrity criteria for credits and by limiting the credit registries involved. As a result, credits that make the cut are now seen as more valuable by all buyers, not just those in aviation. Retirement of CORSIA credits rose 200 percent annually between 2021 and 2024, Allied Offsets found, with airlines accounting for only 6 percent of those.
These forces have already propelled prices upwards. Only a single project has both met the CORSIA criteria and issued credits: a forestry scheme in Guyana that made 4.6 million credits available in February 2024. The price of those credits has since grown from around $5 to $20.
If prices remain high there is a risk that airlines will view CORSIA as too expensive. “Our hypothesis is that there’s a world in which airlines just might not comply,” said Antonia Drummond, head of product at Allied Offsets. Compliance is expected to be higher in countries that have said they will impose penalties on airlines that drop out, which include the U.K. and Canada, and lower in Asia, where the costs of exiting the scheme will be lower. Airlines contacted by Trellis did not return a request for comment on the report’s findings.
No double counting
One deciding factor will be the ability of project developers to obtain the CORSIA-eligible label. There are plenty of projects with the potential to do so: The report estimates that supply could in theory reach 1.8 billion credits by 2027. The sticking point is that countries that host carbon credit projects must ensure that the emissions savings associated with the projects will not be netted again their own national inventories. Countries can do so by issuing what’s known as “Letter of Authorization,” but many, particularly less affluent ones, lack the capacity to formalize the process.
Other carbon experts were more confident that host governments will speed up their processes, allowing supply to catch up. Valerio Magliulo, CEO of Abatable, a company that helps customers navigate carbon markets, pointed to the sums available to host countries. He noted that a clean cookstoves project that was recently issued a Letter of Authorization by the Cambodian government is slated to generate 40 million credits. If these trade at $5 each, the project would be worth $200 million. “I’m pretty sure they’re going to find a way to sign a letter if they can bring in $200 million-plus of income,” Magliulo said.
The financial impact of the credit squeeze will be significant nonetheless. Abatable, which has run its own CORSIA forecast, estimates that the industry will need between 134 and 183 million credits during the first phase of the scheme, at a likely total cost of $1.7 to $3.1 billion. Demand will also increase when the scheme enters its second phase in 2027, at which point China, Brazil, India and others are expected to join.
https://sustainable-future.org/wp-content/uploads/2025/03/cropped-trellis_favicon_180x180.png3232sustainablefuturehttps://sustainable-future.org/wp-content/uploads/2024/06/Untitled-design-117-300x94.pngsustainablefuture2025-05-27 15:04:512025-05-28 08:15:22Airlines face tough choices as cost of emissions-scheme compliance rises
For much of the past two decades, the loudest voices in the debate over carbon capture and storage (CCS) were often the critics: The equipment was too expensive or too prone to breaking down. Perhaps most damning was the accusation that the technology would extend the life of fossil fuels and delay cleaner, longer-term solutions.
Now the dynamics have shifted. CCS projects are growing at record rates. The technology continues to improve, economic incentives have aligned and the growth of AI and data centers has increased demand. The critics have not been mollified, but the momentum is with the industry — suggesting that any company with hard-to-abate emissions in its supply chain should engage with the arguments.
“It’s been like a snowball rolling down a hill in terms of corporate interest and investment in the sector,” said Jessie Stolark, executive director of the Carbon Capture Coalition, an industry group.
Global growth
CCS offers a seemingly simple decarbonization solution: Rather than replace coal power stations, steel plants and other facilities that rely on fossil fuels, why not capture and store the carbon dioxide that the infrastructure emits? In many cases, this involves pushing the gas over an absorbent material, compressing the captured CO2 and piping it to a geological reservoir for permanent storage.
The idea is simple, but during the first half of the 2010s high costs and technological setbacks led to a decline in the capacity of projects in development. Then the tide turned. A federal CCS tax credit, known as 45Q, was made more valuable in 2018 and more valuable still, as part of the Inflation Reduction Act, in 2022. The number of projects operational or in development globally grew from 392 to 628 between 2023 and 2024, according to the Carbon Capture Coalition. The U.S. is the leader, with more projects than the next four countries — the U.K., Canada, Norway and China — combined.
Source: Carbon Capture Coalition
The Louisiana Clean Energy Complex, a hydrogen production facility under construction in Ascension Parish, illustrates the trend. Air Products, the industrial giant behind the project, says that 95 percent of the 5 million tons of CO2 emitted annually by the facility will be captured and stored, which the company claims makes it the world’s largest capture and permanent sequestration project.
Air Products did not return a request for more information, but an analysis published this month by the capture coalition puts capture and storage costs at between $100 and $200 per ton of CO2. The exact price depends on the maturity of the technology used and the concentration of the gas in the waste stream, with higher concentration streams — which includes hydrogen facilities — tending to have lower costs.
More million-ton projects
Other huge projects are coming soon. In early April, a consortium of companies announced plans for an ammonia plant, also in Ascension Parish, that will capture and store more than 2 million tons of carbon dioxide annually. (The parish is part of “Cancer Alley,” a heavily industrialized area with elevated rates of the disease.) Two weeks later, ExxonMobil revealed plans to capture 2 million tons of CO2 from a natural gas power plant near Houston, Texas.
The bullishness of CCS investors is also evident at the 140,000 square-foot factory opened in Burnaby, British Columbia earlier this month by Svante, a manufacturer of filters that capture carbon dioxide from industrial emissions.
The factory can produce enough filters to capture 10 million tons of CO2 annually and its opening follows a $145 million investment round for the company. A confluence of factors is driving the industry forward, said Claude Letourneau, Svante’s CEO, including tax credits and the green premium that some manufacturers can charge for low-carbon commodities, such as hydrogen.
Smaller companies with innovative solutions are waiting in the wings, hoping to ride the industry’s momentum. Carbon Clean, a London-based startup, has designed a capture unit that fits into a shipping container, which it says is half the size of conventional systems.
“The biggest challenge for implementing carbon capture is the real estate,” said Aniruddha Sharma, Carbon Clean’s CEO “Nobody has any space.” Following a successful test at a fertilizer plant in Abu Dhabi, the company is now working on further tests in Saudi Arabia and Canada.
Companies that have emissions from hard-to-abate sources — fertilizer, steel, cement — in their Scope 3 inventory stand to benefit from the reductions that CCS brings. And there are other reasons for sustainability professionals to track the technology, noted Sangeet Nepal, a technology specialist at the Carbon Capture Coalition.
The rising demand for uninterrupted supplies of low-carbon electricity can be met by gas power plants with CCS attached, for example. In December, ExxonMobil announced plans to build a gas and CCS facility in Texas to supply low-carbon electricity to nearby data centers.
CCS technology is also opening up new classes of carbon credits.
Svante is targeting its technology at pulp and paper facilities, some of which are using credit revenue to fund the installation of carbon capture. One recent project was funded by a purchase by Microsoft of credits covering 3.7 million tons of carbon dioxide over 12 years.
Criticisms linger
This progress has changed the narrative around CCS, but it has not altered the opinions of critics. They continue to question the calculations that underlie the claimed climate benefits of CCS, notably around the issue of where to draw boundaries when assessing the impact of the technology.
CCS equipment requires energy, for instance. Most developers hope to use renewables, thus avoiding additional emissions. But there’s an opportunity cost in doing so because those renewables could be used to replace fossil power plants, argued Mark Jacobson, an energy systems expert at Stanford University.
“You can’t just add things to the grid willy nilly,” said Jacobson. “There’s a queue. If you’re adding stuff and using it for carbon capture, you’re not replacing fossils on the grid.”
In one recent study, Jacobson and colleagues compared global decarbonization scenarios in which renewables were used to power either CCS or electrified versions of industrial facilities. After accounting for health costs due to air pollution from continued use of fossil fuels, along with other factors, they found that annual costs in the CCS scenario were at least nine times greater than the electrification alternative. Because CCS systems do not capture all the carbon dioxide that passes through them, atmospheric levels of the gas were also much higher.
Jacobson’s study is global in scope, but individual projects have also been criticized, including Air Products’ hydrogen facility in Louisiana. In a study published in March, researchers at the Institute for Energy Economics and Financial Analysis, a think tank, claimed that the benefits of the project rest on faulty assumptions about the amount of carbon that will be captured, leak rates of the methane feedstock and other factors. Once the assumptions are corrected, claims the institute, the project becomes a heavy emitter.
Just 10 years ago, debate of this nature played a role in slowing the deployment of CCS. But there is a sense among industry insiders that things have changed. The financial case for the technology has been rewritten. And while the Trump administration appears to have no interest in tackling climate change, backing from oil majors and GOP members in states that house capture projects means that CCS might be one decarbonization technology it can get behind.
“We are making the case,” said Stolark, “and we feel that carbon management squarely fits within this administration’s energy dominance framework.”
https://sustainable-future.org/wp-content/uploads/2025/03/cropped-trellis_favicon_180x180.png3232sustainablefuturehttps://sustainable-future.org/wp-content/uploads/2024/06/Untitled-design-117-300x94.pngsustainablefuture2025-05-27 14:26:562025-05-28 08:15:41Carbon capture hits a growth spurt as financial and other factors align
As you sip your morning coffee, you may not be aware that it could be harder to get that fresh cup in the near future. That’s because some studies suggest a 50 percent reduction in the number of regions suitable to grow coffee in the next two decades due to climate impacts.
Food and agriculture companies are on the frontline of being affected by extreme weather. From impacts on crops, human productivity and animal welfare concerns to plastic packaging bans and human rights issues, agricultural companies face many challenges in their supply chains.
Investments in sustainability to address these issues are not only critical to the financial performance of food and agriculture companies, but essential to their ability to produce and sell products and services globally.
In a recent study by the NYU Stern Center for Sustainable Business (CSB) and Deloitte, researchers found the sector’s investments in tackling material sustainability challenges can drive margin improvements through cost reductions and revenue increases. The study analyzed 12 Return on Sustainability Investment (ROSI) sustainability strategies and surveyed 350 global food and agriculture executives across key segments of the value chain: processing, manufacturing, food services, restaurants and retail. The research highlights the main drivers of revenue growth at each step in the value chain, driven by consumer demand and strengthened through cross-chain collaborations.
A primary motivation: Reduce downside risk
In the survey, 79 percent of respondents reported revenue growth of more than 2 percent from investing in sustainability strategies, and 74 percent saw cost reductions of more than 2 percent. When asked where this value was realized, about 40 percent of companies said their primary motivation for these investments — both within their own operations and those of their suppliers — was to reduce downside risk.
However, many also saw unexpected benefits. At least 35 percent reported improvements in sales and marketing, operational efficiency and supplier relations. For instance, a major food processor that invested in sustainable palm oil sourcing — ensuring compliance with “No Deforestation, No Peat, No Exploitation” policies and improving traceability — achieved both risk reduction and business gains, ultimately realizing a 10-year net benefit of $72 million.
Consumer demand increases
Revenue gains from sustainability aren’t limited to upstream operations. According to CSB’s 2024 Sustainable Market Share Index, consumer packaged goods (CPG) with sustainable attributes accounted for 23.8 percent of market share — an increase of 9.2 percentage points since 2013.
These products are growing faster than their conventional counterparts, with a five-year compound annual growth rate of 12.4 percent, nearly double the 6.8 percent growth rate of the overall CPG market, despite carrying an average price premium of nearly 27 percent. In the food and beverage category specifically, the sustainability premium is even higher — by nearly 10 percent in 2023 — with certain products such as coffee and yogurt commanding premiums of 60 percent and 46 percent, respectively, according to the latest data available.
Highlighting the stakes, a senior vice president within the dairy industry noted, “If we don’t implement practice changes for lower-carbon milk, then our long-term penalty would be much greater because there won’t be a place on shelves for our product.”
Value chain collaboration
The food and agriculture industry is one of the biggest greenhouse gas emitters globally and its supply chains are very complex. This means that different sustainability strategies will have varying relevance for value chain segments. For example, processors selected improving food loss and waste management as a top strategy contributing to revenue increases, while retailers selected sustainable packaging solutions.
However, there are shared priorities that can foster collaboration across supply chain segments. For instance, sustainable and responsible sourcing ranked among the top three cost-reducing strategies in four out of five segments analyzed. Retailers were the exception — they didn’t list it as a top cost-saving measure, but did rank it as a leading strategy for generating revenue.
Considering this, it’s not surprising that 84 percent of survey respondents reported they’re co-investing to fund sustainability initiatives within the value chain. Our results found a positive association between companies that engage in pre-competitive collaboration and/or external partnerships and those that realized more than 5 percent revenue growth.
The future of food
The future of food and its enabling enterprises are dependent on continued access to water, nutrient-rich soil and labor. Robust, well-funded sustainability strategies are critical to maintain these valued resources and to provide opportunities for even greater financial performance. Our research suggests four steps for the industry include:
Act and adapt: Strategically position the company for the future with the agility to adapt to the changing landscape.
Drive progress in the face of uncertainty: Implement sustainability strategies because it’s good business and captures benefits well ahead of regulatory and reporting mandates.
Invest in enabling the environment: Create internal infrastructure to support the success of key initiatives.
Pursue collaboration: Identify the opportunities for co-investment and pre-competitive collaboration to capitalize on synergies in the value chain.
Investing in sustainable and regenerative agriculture practices can enable companies to build more resilient and sustainable food systems that protect the future of their business, the environment and the availability of nutritious products for generations to come.
https://sustainable-future.org/wp-content/uploads/2025/03/cropped-trellis_favicon_180x180.png3232sustainablefuturehttps://sustainable-future.org/wp-content/uploads/2024/06/Untitled-design-117-300x94.pngsustainablefuture2025-05-27 10:00:002025-05-28 08:15:41Sustainable food and ag practices lead to revenue growth for more than 70 percent of companies