Gold prices climbed to new highs on Monday, with December futures reaching a record $4,014.60 per ounce. The yellow metal stayed strong as investors sought safety amid global uncertainty and a prolonged U.S. government shutdown.

Goldman Sachs raised its December 2026 gold price forecast from $4,300 to $4,900 per ounce, citing steady central bank purchases and renewed investor interest in gold-backed ETFs. Spot gold has surged 52% so far this year, supported by a weaker U.S. dollar and rising geopolitical tensions.

But first, let’s take a closer look at gold ETFs — what they are and why so many investors are turning to them.

What Are Gold ETFs and Why Are They Popular?

Gold Exchange-Traded Funds (ETFs) mirror the market price of physical gold without requiring investors to hold the metal themselves. Each ETF unit typically represents one gram of 99.5% pure gold, traded on stock exchanges just like shares.

Key features of gold ETFs include:

• Backed by physical gold stored in secure vaults
• Real-time pricing and easy trading through Demat accounts
• No storage or making charges
• Lower transaction costs and high liquidity
• Transparent pricing that tracks the spot gold rate

Central Banks and ETFs Fuel the Gold Price Rush

Reports say that China’s central bank has played a major role in driving gold demand. In September, the People’s Bank of China (PBOC) added to its gold reserves for the 11th month in a row, increasing holdings to 74.06 million troy ounces from 74.02 million in August. The value of these reserves also jumped to $283.29 billion, up from $253.84 billion the previous month.

Goldman Sachs expects central banks to keep buying gold, with around 80 tonnes forecast for 2025 and 70 tonnes for 2026, as emerging economies continue to diversify away from the U.S. dollar.

At the same time, strong inflows into gold ETFs are supporting the rally, giving investors an easier and safer way to gain exposure to rising gold prices.

• SPECIAL READ: Gold’s Next Gear: 3 Charts Every Serious Investor Should See

Top Gold ETFs to Watch: IAU, GLD, and GDX

Gold ETFs provide a practical, cost-effective, and transparent way to invest in gold, avoiding the hassle of storage, insurance, and purity verification.

iShares Gold Trust (IAU)

IAU is one of the largest gold ETFs with around $72.7 billion in market capitalization. Each share represents roughly 0.01 ounces of gold, making it affordable for small investors. With a low expense ratio of 0.25%, IAU offers cost-effective access to physical gold.

However, it does not follow a specific ESG (Environmental, Social, and Governance) framework since it directly holds bullion. Any sustainability impact stems from the gold mining and refining practices behind the physical gold it stores.

SPDR Gold Shares (GLD)

GLD is the world’s largest gold ETF, managing about $129 billion in assets. Each share equals one-tenth of an ounce of gold, stored in vaults in London, New York, and Zurich, backed by custodians like JPMorgan Chase and HSBC. It is known for its high liquidity and tight spreads.

SPDR Gold Shares has removed many barriers to investing in gold, such as buying, storing, and insuring it. The fund provides direct exposure to physical gold, minus expenses, without relying on derivatives that carry extra credit risk.

It allows investors to easily access the gold market and include it in their portfolios, offering a strategic way to diversify risk due to gold’s low or negative correlation with other assets.

Like IAU, GLD does not integrate ESG criteria but depends on the ethical and environmental practices of gold suppliers and refiners.

VanEck Gold Miners ETF (GDX)

GDX differs from IAU and GLD as it invests in leading gold mining companies instead of holding physical gold. Managing around $22.54 billion in assets, GDX tracks major miners such as Newmont and Barrick Gold.

The fund provides leveraged exposure to gold prices through miner performance. Since it involves mining operations, ESG factors play a more direct role covering carbon reduction, responsible sourcing, labor safety, and community development.

Sustainability Perspective: Physical Gold vs. Gold Miners

Physical gold ETFs like IAU and GLD mainly reflect the sustainability impact of gold mining through their bullion holdings. They don’t actively engage in ESG initiatives. In contrast, GDX connects investors directly to mining companies that can influence sustainability outcomes through operational decisions.

Investors focused on responsible investing should assess the ESG performance of individual mining companies within funds like GDX. This approach allows for more transparency and accountability in evaluating how sustainable practices affect returns and risk exposure.

Gold’s Shine Isn’t Fading Anytime Soon: A Smart Safe-Haven Investment

It’s now clear that the gold price is hitting record highs due to central banks buying more, strong ETF inflows, and ongoing global uncertainty. Because of this, ETFs like IAU, GLD, and GDX give investors different ways to invest in gold, depending on their needs for liquidity, cost, and even sustainability.

At the same time, the market is watching for possible Federal Reserve rate cuts and dealing with economic uncertainty. Gold’s appeal as a safe-haven asset remains strong. And Goldman Sachs’ higher forecast adds to investor confidence — the gold story is far from over.

Also, institutional investors are increasingly using gold ETFs to balance portfolios and protect against stock market swings. Experts recommend investing gradually and diversifying, especially after gold’s sharp price jump. Long-term investors like these ETFs because they are affordable, simple, and easy to manage.

Plus, rising interest in gold is encouraging some investors to explore other commodity ETFs, such as silver and industrial metals, to spread their risk.

In short, gold ETFs are a favorite in 2025 for their simplicity, transparency, and ability to protect against inflation and market ups and downs. Both retail and institutional investors see them as a safe and reliable way to invest in uncertain times.

• READ MORE: Gold Price Today Surges to All-Time High at $3,671 as Miners Push ESG and Carbon Reduction Goals

The post Top Gold ETFs to Watch Now as Gold Prices Break $4,000 — IAU, GLD, and GDX Lead the Pack appeared first on Carbon Credits.

In October 2023, Shizen Energy Inc. signed a 20-year virtual power purchase agreement (VPPA) with Microsoft (MSFT stock) to provide renewable energy from a 25 MWac solar farm in Inuyama City, Aichi Prefecture. As with other global deals, this VPPA helped Shizen Energy secure funding for the Inuyama project.

Now the company has recently announced an expanded partnership with Microsoft. It currently has 100 MW in Renewable Energy Purchase Agreements across four solar projects in Japan.

Building on this success, Microsoft signed three additional 20-year agreements for solar plants in Kyushu and Chugoku, further advancing both companies’ renewable energy goals.

Rei Ushikubo, Executive Officer of Shizen Energy, said,

“Following the Inuyama Project, we are honored to have signed long-term agreements with Microsoft for several new projects. We believe that securing financing from domestic and international financial institutions for these projects is proof of the growing presence of Renewable Power Purchase Agreements in the Japanese market. We will continue to prioritize our power purchase agreement business to support our customers’ decarbonization efforts.” 

Shizen Energy Delivers Efficiency Across Four Solar Plants

Shizen Energy has already started operations at one Kyushu plant. The remaining projects are under construction, including its site and wholly-owned EPC subsidiary, Shizen Engineering Inc. All four projects will operate under Shizen Operations Inc., which manages asset operations and maintenance.

The company is also handling project coordination, financing, and asset management, while its subsidiaries manage EPC and O&M. This integrated approach allows the company to deliver large-scale projects efficiently and reliably.

Earlier, it was revealed that the Inuyama Solar Power Plant stands as the largest single-asset solar project in Japan to reach financial close under a VPPA. The project had received ¥10.9 billion in non-recourse financing from Societe Generale, marking the first international funding for a Japanese VPPA-linked renewable project.

Inuyama City Solar Project

Global Expansion and Innovation

Shizen Energy aims to accelerate the global shift to renewable energy under the motto “We take action for the blue planet.” The company has expanded projects to Southeast Asia and Brazil and introduced advanced energy technologies, including microgrids, virtual power plants (VPPs), and smart EV charging systems through its proprietary EMS.

It has generated more than 1 GW of renewable energy worldwide and earned recognition as Forbes Japan’s top startup in 2024. With these milestones, the company continues to lead both domestic and international corporate renewable markets.

Boost to Microsoft’s 100% Renewable Energy Goal

This deal is Microsoft’s first renewable energy purchase in Japan. And these REPAs help Microsoft move toward 100% renewable energy for its operations by 2025.

By adding clean energy to Japan’s electricity grid, the tech giant is contributing to both corporate sustainability and grid decarbonization.

Adrian Anderson, General Manager, Renewable and Carbon Free Energy at Microsoft, had said,

“Shizen Energy’s expertise and presence in the Japanese market is enabling our first renewable energy purchase in Japan and it’s great to see near-term supply for our 100% renewable energy goal. A commercial structure like this is important to promoting grid decarbonization in the country.”

Globally, to date, Microsoft has contracted over 34 GW of renewable capacity across 24 countries, up from 1.8 GW in 2020, as highlighted in its 2025 sustainability report.

Last year, it further diversified its portfolio and added 19 GW of new renewable energy across 16 countries. Key expansions included:

• Brookfield Renewable Energy Framework – Delivering over 10.5 GW in the U.S. and Europe over the next five years.

• Wisconsin PPA with National Grid Renewables – A 250 MW agreement supporting a growing datacenter region, paired with a $15 million community fund for environmental resilience.

Some other global projects included a 415 MW solar facility in Germany, a 48.8 MW wind project in Ireland, and a 36 MW solar plant in Poland. These projects showcase our commitment to expanding clean energy capacity across diverse markets.

These investments allow Microsoft to expand renewable markets worldwide and support grid decarbonization in all regions where it operates.

SEE MORE: 

• Microsoft’s $6.2 Billion AI Bet in Norway for 100% Renewable Energy-Powered Computing
• Meta Powers U.S. Data Centers with Nearly 800 MW of Clean Energy Deal with Invenergy 
• Microsoft Invests in Clearloop’s Solar Projects to Drive Grid Decarbonization in America

Japan’s Renewable Energy Outlook

Data shows that Japan aims for 36–38% renewables in its electricity mix by 2030, but slower project development and rising electricity demand keep the share below 30%. Nuclear restarts and decommissioning of old thermal plants have helped reduce emissions by nearly 5% from 2023, reaching the lowest levels since 2015.

Most significantly, agri-solar projects, combining solar generation with farmland, are emerging as a key growth area. Japan has solar potential of 1,465–2,380 GW, far above the current installed capacity of 74 GW. Interestingly, local developers are aggregating small projects and securing financing, creating scalable, sustainable solutions for corporate PPAs.

Shizen Energy’s REPAs with Microsoft show the growing impact of corporate renewable procurement. The agreements attract international financing, provide long-term revenue certainty, and accelerate renewable deployment. Corporate PPAs help companies meet energy goals while supporting broader grid decarbonization.

Shizen Energy continues to expand solar, wind, biomass, and innovative energy solutions. Its integrated development, construction, and operations model ensures projects are delivered efficiently and effectively.

Together, Microsoft and Shizen Energy are shaping Japan’s corporate renewable energy market and proving that sustainable, commercially viable solutions are achievable.

• ALSO READ: Powering Up Japan: NTT’s Big Bet on Battery Storage Sparks a Greener Grid

The post Microsoft Expands Japan’s Green Grid with Shizen Energy’s 100 MW Solar Push appeared first on Carbon Credits.

Mercedes-Benz has partnered with Norwegian aluminium producer Norsk Hydro to reduce emissions in the manufacturing of its electric vehicles (EVs). The collaboration centers on using Hydro’s low-carbon aluminium, which is produced with renewable energy and recycled materials.

The deal is part of Mercedes’s plan to make production greener. It aims to reduce the carbon footprint of future EVs. This includes the new electric CLA model, which will be the first vehicle to feature Hydro’s aluminium.

This partnership shows how carmakers are changing materials and energy use. They aim to meet rising climate goals and consumer demand for cleaner cars.

The Partnership: How Green Aluminium Is Recasting Mercedes’ EV Blueprint

Norsk Hydro will supply Mercedes with aluminum that emits far less carbon than standard production. Hydro’s smelting sites in Norway run mostly on hydropower, which helps avoid fossil-fuel emissions.

Hydro says its low-carbon aluminum generates just hydropower for every kilogram of metal. In contrast, the global average is 16.7 kilograms. That makes it one of the lowest-carbon aluminum products available today.

For Mercedes, this has a direct effect. The company thinks using Hydro’s aluminum in the new CLA will reduce CO₂ emissions by about 40% compared to the old petrol version. This includes emissions from raw materials, manufacturing, and assembly.

This step supports Mercedes’s long-term goal to make all its passenger cars net carbon neutral by 2039. The target covers the full life cycle — from raw materials and production to driving and recycling.

Aluminum production makes up around 2% of global CO₂ emissions, says the International Energy Agency (IEA). Switching to cleaner aluminum can reduce CO₂ emissions by millions of tonnes annually in global supply chains.

Why Aluminium Defines the EV Climate Race

Aluminium is a core material in EVs because it’s lightweight, durable, and helps improve driving range. However, producing it takes a lot of energy and often leads to high carbon emissions. This is mainly because smelting furnaces run on fossil fuels.

Switching to low-carbon aluminium cuts “embedded emissions.” These are the emissions created during material production, before a car even drives.

As global demand for EVs grows, the carbon footprint of materials has become a major focus. Aluminum production alone makes up about 2% of the world’s CO₂ emissions, says the International Energy Agency. Reducing this share can make a big difference in the total climate impact of electric mobility.

Hydro’s approach combines renewable electricity with recycled scrap, cutting both emissions and waste. Recycling aluminum uses just 5% of the energy needed for new production. This makes it a key part of a circular manufacturing system.

How Green Materials Are Reshaping Auto Supply Lines

The Mercedes-Hydro deal fits a larger pattern in the auto industry. Manufacturers are quickly working to decarbonize their supply chains. This effort supports both national and international climate goals.

In Europe, the EU Green Deal and CSRD now require automakers to report emissions from materials and suppliers. These are called Scope 3 emissions, which often make up over 80% of a car’s total carbon footprint.

Major competitors like BMW, Volvo, and Tesla have also announced partnerships for low-carbon metals. Volvo partners with SSAB to create fossil-free steel. Tesla gets aluminum from hydro-powered smelters in Canada.

Teaming up with Hydro helps Mercedes cut its emissions. It also strengthens Europe’s supply chain for sustainable materials. This cuts reliance on imports from high-emission sources.

Driving Through Headwinds: Scaling the Green Metal Revolution

Transitioning to low-carbon aluminum brings benefits but also practical challenges.

Hydro must ensure it can scale up production to meet Mercedes’s needs without raising costs too much. Producing green aluminum costs more than traditional metal. This is mainly because of the investment needed for clean power and recycling facilities.

Mercedes also faces logistical hurdles. It needs a stable and traceable flow of low-carbon aluminum across its global production network. Maintaining product quality while introducing new materials requires careful engineering and testing.

Yet, both companies see strong long-term value. Governments are tightening carbon limits and penalizing high emissions. This creates a chance for sustainable materials to offer a competitive edge. They also align with investor and consumer expectations for more responsible products.

Turning ESG Goals Into Action

This partnership boosts the sustainability credentials of both companies from an ESG perspective.

• Environmental: The collaboration aims to cut emissions from manufacturing. This is one of the toughest areas to decarbonize. It promotes renewable energy use and circularity through recycling.
• Social: It supports cleaner industry jobs and responsible resource management. Norway’s smelting, powered by hydropower, poses fewer risks to communities and the environment compared to coal-based operations in other places.
• Governance: Both companies promise clear emissions reporting, third-party checks, and easy-to-understand sustainability metrics. This is becoming a must for ESG compliance.

Mercedes and Hydro’s efforts show how ESG strategies are shifting from corporate promises to measurable action.

How Low-Carbon Manufacturing Is Steering the Auto Industry’s Future

This partnership may set a standard for the auto industry. As EV adoption increases, the focus on the environment will shift. It will look at total life-cycle emissions, not just tailpipe emissions. This includes everything from materials to recycling.

Experts expect global demand for low-carbon aluminum to increase by over 30% by 2030. This rise will be fueled by the automotive, construction, and packaging sectors. Hydro’s early investment in renewable-based production could give it a strong position in this market.

For Mercedes, the deal supports its broader “Ambition 2039” plan — a roadmap toward climate-neutral mobility. The company aims to cut supply chain emissions by at least 50% by 2030, compared with 2020 levels.

If the low-carbon CLA rollout works, similar materials might spread to all of Mercedes’ EVs, like SUVs and compact models.

The Mercedes-Benz and Norsk Hydro partnership marks a major step toward greener electric vehicle production. Mercedes is using low-carbon aluminum in its manufacturing. This helps cut emissions from both driving and the materials used to make its cars.

For Hydro, it validates years of investment in clean production and renewable energy. For the broader auto sector, it sets a clear signal: sustainability now extends beyond the battery — it starts with every component.

If more companies follow this model, the EV industry could move closer to true net-zero manufacturing, where innovation and environmental responsibility go hand in hand.

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