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BYD Sales Surges 272% in European Union as Tesla Slumps

Chinese automaker BYD continues its fast global expansion. In September 2025, the company’s sales in the European Union (EU) soared by 272 percent. In contrast, Tesla’s sales fell by 10.5 percent. This data comes from the European Automobile Manufacturers’ Association. The sharp contrast shows how BYD’s pricing strategy is reshaping the EV market and forcing global rivals to respond.

Pricing Power Drives Market Gains

In one year, BYD’s EU market share climbed from 0.4% to 1.5%. The company sold 13,221 vehicles in September, compared with Tesla’s 25,656. BYD has outsold Tesla in global battery-electric vehicles for four quarters in a row. It leads by about 388,000 units as of Q3 2025.

In the United Kingdom, BYD’s Dolphin Surf starts at £18,650, less than half the cost of a Tesla Model 3 at around £39,000. The price gap has opened the EV market to more consumers and pushed sales up tenfold year-over-year to 11,271 units in September 2025.

Analysts say BYD’s strategy is similar to the smartphone boom in the 2010s. Back then, Chinese brands gained global market share by offering high performance at lower prices. The same pattern is emerging in autos: BYD is now the top-selling car brand in Singapore, competing directly with Toyota and Hyundai.

The Secret Sauce: Vertical Integration at Scale

BYD builds about 75 to 80% of its vehicle components internally. It produces batteries, motors, semiconductors, and even its own car platforms. This level of vertical integration gives BYD three main advantages:

  • Lower costs by avoiding outside suppliers.
  • Supply-chain control, reducing risks from material shortages.
  • Faster innovation in battery and power systems.

At the center of this is BYD’s Blade Battery, a lithium-iron-phosphate (LFP) design known for safety and durability. Its cost advantage is about €10 per kWh compared with nickel-cobalt batteries used by many rivals.

The new second-generation Blade Battery will launch in 2025. It aims for 200 Wh/kg of energy density. With just five minutes of charging, it will add 400 kilometers of range.

BYD and others charging time

BYD has also secured lithium mining rights to ensure supply. It also operates the world’s largest car-carrier ship, which can move 9,200 vehicles at a time. This control helps the company keep prices low. It also maintains profit margins above industry averages.

Trade Barriers and Global Headwinds

Behind its strong performance, BYD still faces challenges abroad. The European Union started imposing anti-dumping tariffs of up to 45.3% on Chinese electric cars in 2024. They argued that state subsidies provide unfair advantages. In the United States, 25% tariffs and strict origin rules keep Chinese automakers out of the market.

To manage these barriers, BYD is building local factories. Its Hungary plant, set to open by the end of 2025, will have an annual capacity of 800,000 units and supply European markets directly.

Even with local production, BYD needs to price vehicles at about three times their China prices. This is necessary to remain competitive in Europe, where labor and logistics costs are higher.

At home, the company also faces slower growth. In September 2025, BYD delivered 393,060 vehicles, down from 419,000 a year earlier—its first monthly drop in years.

Analysts link this to domestic market saturation and stronger competition from rivals such as NIO, Xpeng, and Geely. To offset this, BYD is accelerating global expansion: 200,000 of its 1 million Q1 2025 sales came from overseas markets.

EV Market Outlook: Demand Still Accelerating

Worldwide, electric-vehicle sales are still climbing. The International Energy Agency (IEA) projects global EV sales will reach 17 million units in 2025, up from about 14 million in 2024. EVs could make up 45% of new car sales by 2030, driven by lower battery costs and stronger climate policies.

EV sales share by region 2030 IEA

Average battery pack prices dropped from US$151 per kWh in 2022 to about US$110 per kWh in 2025. They might fall below US$80 by 2030. This makes EVs cheaper than many gasoline cars.

BYD’s strong control over its supply chain positions it well to benefit from these trends. Its strategy of providing affordable electric and plug-in hybrid models allows it to adapt as markets shift at different speeds toward full electrification.

The Chinese carmaker outpaced Tesla in global pure electric vehicle sales in 2025. From January to September, BYD sold about 1.61 million units. This is 388,000 more than Tesla’s 1.22 million. BYD is expected to exceed 2 million sales in 2025, while Tesla needs a 50% increase in Q4 to match this milestone.

BYD global sales vs tesla

BYD’s Financial Engine Keeps Humming

In 2024, BYD reported 777 billion yuan (US$107 billion) in revenue, up about 43% year-on-year. Net profit grew to roughly 30 billion yuan (US$4 billion). Margins improved thanks to internal battery production and steady demand across Asia and Europe.

BYD’s stock has reflected this growth but remains sensitive to policy news and trade developments. Analysts note that even small tariff changes or currency shifts can move the share price quickly.

Still, the company’s global EV leadership and diversified product lineup—spanning cars, buses, and trucks—offer long-term resilience.

BYD stock price BYDDY
Source: Yahoo Finance

Technology and Future Strategy

BYD continues to invest in next-generation batteries and solid-state chemistry. It is also expanding its plug-in hybrid (DM-i) models, which now account for nearly half of its domestic sales. These hybrids use smaller batteries but deliver very high fuel efficiency, appealing to consumers who are not yet ready for full EVs.

The company is focusing on software and self-driving systems. They aim to add AI features that compete with Western automakers. Its partnerships with ride-hailing firms in Asia and Europe could open new revenue streams in electric mobility services.

What’s Next for BYD — and the Industry?

Investors will keep an eye on several factors:

  • Tariff impacts in Europe and potential U.S. policy changes.
  • Battery-cost trends, which influence margins.
  • Domestic competition in China, especially in the mid-price EV segment.
  • Exchange-rate movements that affect export pricing.

Short-term risks exist, but BYD stands out in the EV market. Its vertical integration, cost leadership, and global presence boost its strength.

BYD’s rapid rise reflects a global shift in the auto industry. The company has combined low prices, in-house technology, and global reach. This mix has made established brands rethink their strategies. Even with trade hurdles, it remains on track to expand production, open new factories, and compete head-to-head with Tesla and legacy automakers worldwide.

If current growth trends hold, BYD may deliver over 5 million vehicles each year by 2026. Exports will make up an increasing portion of that total. For investors, the company represents both opportunity and volatility—an EV leader pushing the limits of cost, scale, and innovation in the race toward a fully electric future.

The post BYD Sales Surges 272% in European Union as Tesla Slumps appeared first on Carbon Credits.

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Designing an Insetting Program: A Step-by-Step Playbook for Procurement

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Insetting program design starts with your supplier map. The carbon claim comes much later.

Consider a coffee procurement team that funds a farm intervention before checking its sourcing data. The supplier aggregates coffee lots from several regions. The buyer lacks farm-level traceability. Another purchaser expects to report the same outcome. A more attractive project brochure solves none of these problems.

If the distinction between a value-chain intervention and a purchased credit is still open, read CCC’s Insetting vs Offsetting guide before you set the brief.

Insetting program design begins with the purchasing relationship and works outward. You need to decide 1) where an intervention belongs, 2) what business problem it addresses, 3) who pays for it, 4) how results will be measured, and 5) what the evidence will let you say about them. This five-step playbook turns that sequence into a procurement plan.

Step 1: Insetting program design starts with supplier mapping

Start with the commodities that matter most to your Scope 3 inventory and sourcing continuity. Ask finance for spend by supplier, sustainability for the emissions baseline, and category managers for origin and volume records. Then identify which suppliers can trace material to a jurisdiction, sourcing region, producer group, or individual land-management unit.

The level of traceability affects what you can account for. Under the GHG Protocol Land Sector and Removals Standard, the spatial boundary for purchased land-based products depends on the traceability associated with each volume. Farm-specific factors or removals require physical traceability through an acceptable chain-of-custody model. A contract with a tier-one trader, by itself, does not establish a link to the farms behind its deliveries.[1]

Build a first-pass table with five columns: commodity and annual volume; supplier and origin; current traceability level; land-use and production risks; and the business owner who can change the purchasing terms. Mark missing data plainly. A blank cell is cheaper to fix before a program starts than after a claim is drafted.

If your company sets an SBTi Forest, Land and Agriculture target (FLAG), keep its land-related target boundary separate from energy and industry emissions. The current FLAG guidance also requires relevant companies to assess primary deforestation-linked commodities in their value chains.[2]

Step 2: Choose a commodity and jurisdiction for a pilot

Select one supply corridor where the sourcing connection can be established and procurement has a reason to stay. A useful pilot has repeat purchases, suppliers willing to share records, an intervention matched to a diagnosed problem, and a defined plan to measure the result. Carbon potential alone is a poor selection rule if the supplier cannot deliver the crop your business needs.

Compare candidate regions on land-use risk, supplier concentration, local rights and tenure, the availability of baseline data, and exposure to drought, erosion, or forest conversion. Check the relevant legal requirements separately. A nature project does not satisfy a due-diligence obligation merely because it has a carbon method attached.

Consider a coffee buyer sourcing from two districts. In the first, producer-group records identify the farms, while recent dry seasons have increased rejected green coffee lots. In the second, deliveries pass through several intermediaries and farm origins are unknown. Pilot shade management in the first district, with local agronomic advice and quality checks built into the plan. The buyer can trace purchases there and test the intervention against a defined sourcing problem.

Use a short decision memo to record why the selected corridor beats the alternatives, what remains uncertain, and what would stop the pilot. That memo is the first control against a project drifting toward whatever happens to photograph well.

Step 3: Design the supplier engagement and commercial model

The intervention needs an owner on each side of the contract. Decide who supplies planting material or training, who maintains the practice, who bears the cost if a harvest disappoints, and how long the buyer expects to purchase from participating suppliers. Where smallholders participate, budget cash flow and technical support for practices that offer a later return.

Put these terms in a supplier agreement or pilot addendum. It should cover eligible farms and volumes, consent to data collection, access for monitoring, any land or carbon rights that matter, benefit sharing, and what happens if the purchasing relationship ends. Ask local counsel and producer representatives to review the arrangement. The Accountability Framework is a useful reference for supply-chain work involving forests, ecosystems, and human rights.[3]

Avoid assigning an automatic carbon benefit to the buyer. The contract should say which party has the right to report each outcome, how overlapping claims will be checked, and how any issued credits will be handled. A reduction reported in a buyer’s inventory cannot simply be sold for someone else’s offset claim without an accounting review. SBTi FLAG guidance excludes purchased credits used as offsets from near-term FLAG target achievement.[2]

Set commercial measures beside environmental ones: delivered volume, rejection rate, supplier retention, and procurement cost. They tell you whether the program works as a supply-chain investment, even if carbon accounting takes longer to resolve.

Step 4: Build monitoring, reporting, and verification before rollout

Agree on the baseline and data flow before paying for a full rollout. Identify the land units or sourcing regions in scope, the practices that change, the records suppliers already keep, and the additional measurements the program requires. Decide which data can come from field visits, transaction records, or remote sensing, and who checks each source.

For carbon, separate three questions. Did the practice happen? Did emissions or removals change under an applicable method? Can the buyer attribute a defensible share to its purchased goods without double counting? The GHG Protocol’s 2026 guidance includes dedicated chapters on spatial boundaries, data and methods, evaluating actions, credited outcomes, and assurance.[1] These are distinct jobs. A photograph of a planted tree answers only part of the first.

CCC’s MRV and Additionality article explains the separate evidence questions a project reviewer will ask.

Create an evidence file for every reporting period: dated supplier and farm records, purchase volumes, methods and emission factors, uncertainty, quality checks, and changes from the baseline. Specify who can challenge the data and how corrections are recorded. If a project also seeks credit certification, keep project accounting and corporate inventory accounting separate. The GHG Protocol says its land standard focuses on entity-level inventories and does not set the rules for credit certification.[4]

Start with the minimum viable measurement design that can survive review. Add complexity when the pilot tells you which data actually changes a decision.

Step 5: Decide what can be reported and claimed

Insetting program design needs reporting rules before the marketing copy. Procurement, sustainability, finance, and legal should agree on four distinct outputs: operational performance; observed land or nature outcomes; inventory effects, if the accounting criteria are met; and any separately issued credits. One dashboard can display them, but they should not share a single unqualified headline.

SBTi FLAG guidance allows certain land-based removals within a company’s operations or supply chain to contribute to FLAG pathways, subject to criteria including permanence, traceability, data quality, and allocation. It does not allow purchased offsets to meet near-term FLAG targets.[2] Eligibility therefore depends on evidence and the applicable target rules, not on calling an activity “insetting.”

Draft a claims register. For each proposed sentence, record the period, boundary, data owner, calculation method, reviewer, and whether the result is measured, estimated, or still a goal. If the evidence supports only “we funded a pilot with 200 farms,” say that. Do not turn a funding fact into a verified emissions reduction.

What good looks like by year three

Treat year three as a review point, not a promised payback date. A mature pilot should have mapped participating supply volumes, a stable supplier agreement, a repeatable data collection process, and a comparison of commercial and environmental results against the baseline. It should also have a documented answer for outcomes that cannot be included in the buyer’s inventory.

Scale only where the pilot improves a sourcing decision and the evidence can follow the product. If neither condition holds, redesign the intervention or change the corridor. A disciplined program can conclude that a site is unsuitable. That is useful procurement intelligence.

Discuss your insetting program with CCC

Carbon Credit Capital designs nature-based supply chain investments around sourcing needs and measurable sustainability outcomes. Schedule a consultation with our carbon and sustainability experts to map your tier-one supplier network, FLAG exposure, and first pilot decision.

Sources

[1] GHG Protocol, Land Sector and Removals Standard, version 1.1, and companion Guidance, June 2026: https://ghgprotocol.org/land-sector-and-removals-standard ; https://ghgprotocol.org/land-sector-and-removals-guidance

[2] Science Based Targets initiative, Forest, Land and Agriculture Science-Based Target-Setting Guidance, version 1.2, March 2026, especially pp. 16–17, 37, and 41: https://sciencebasedtargets.org/resources/files/SBTiFLAGGuidance.pdf

[3] Accountability Framework initiative, Accountability Framework and guidance for companies: https://accountability-framework.org/

[4] GHG Protocol, Frequently Asked Questions: Land Sector and Removals Standard, questions 10 and 18: https://ghgprotocol.org/blog/frequently-asked-questions-land-sector-and-removals-lsr-standard

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The Strategic Case for Nature-Based Carbon Investments

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Nature-based carbon investments deserve consideration when they address a specific business dependency and produce outcomes you can measure. Imagine Moonbucks, a global coffee roaster planning next season’s espresso blend. It is considering natural Grade 4 coffee from Jimma, in southwestern Oromia, Ethiopia. Its sourcing decisions affect the roasting schedule and the cash tied up in coffee purchases. Moonbucks needs to understand which measures could protect that supply, what they would cost and how it would judge the results.

1. Define the sourcing problem before choosing a project

Moonbucks needs a dependable component for its espresso blend. Its procurement team wants continuity of volume and an agreed cup profile. Replacing a shipment at short notice could require new sample approval and changes to the blend, and given the schedules for cultivation, processing, and freight delivery, is practically impossible. Moonbucks needs to get this right, and its initial concern is inconsistent deliveries. It commissions an assessment of the supplying farms and post-harvest chain. The questions cover land condition, harvest availability and whether drying or storage problems are affecting saleable lots.

This distinction changes the investment brief. A tree-planting proposal cannot be assumed to fix drying problems. Better storage cannot restore eroded land. The team must establish which problem exists before selecting the response.

CCC’s guide to finding nature-based solutions in your supply chain explains where to look. Here, the next task is to turn a broad concern into a testable proposal.

2. Develop nature-based carbon investments around the actual supply chain

The assessment would trace Moonbucks’ purchases back through the exporter and supplying producer groups. Which farms supply the contracted lots? Who controls land-management decisions? How long does the buyer expect to maintain the purchasing relationship?

Furthermore, Jimma natural Grade 4 cannot be treated as interchangeable with every Ethiopian coffee. Moonbucks would need to test any substitute against its own blend and quality requirements.

Suppose Moonbucks’ assessment identifies an opportunity to maintain shade trees and restore vegetation along exposed streambanks. The IPCC describes agroforestry as a way to store carbon in vegetation and soil, with potential benefits for erosion control and water quality.1 Moonbucks would need local advice on species, growing conditions and maintenance before deciding how these measures fit its sourcing plan.

The proposal now has a defined sourcing connection and a candidate intervention. The next steps are to test its effect on production, assess carbon eligibility and build the financial case.

3. Compare the proposal with other ways to protect supply

WBCSD’s Nature-based Solutions Blueprint recommends comparing nature-based options with other responses across their benefits and costs.2 For Moonbucks, that means evaluating the landscape proposal alongside drying improvements, storage controls and alternative sourcing arrangements.

The product’s natural-process designation matters. Moonbucks should examine the drying and dry-milling chain alongside land conditions. Its team would check storage practices, contamination risks and incoming-lot quality to see whether problems arise before or after the coffee leaves the farms.

The revised proposal might combine land stewardship with separate post-harvest controls. Each component needs its own purpose and budget. A sustainability label should not obscure which activity is expected to solve which problem.

The project develops as the evidence improves. Its scope should follow the diagnosis rather than preserve the first idea unchanged.

4. Establish what the carbon outcome could count toward

Moonbucks’ sustainability team now tests the proposed carbon case separately from the sourcing case. Is the objective a measurable change in Moonbucks’ value-chain emissions, verified credits for separate voluntary use, or distinct outcomes under carefully defined arrangements?

Scope 3 covers value-chain emissions. A purchasing relationship alone does not prove that a farm intervention can be included in Moonbucks’ inventory. The team needs an applicable accounting method, defensible boundaries and evidence supporting attribution.

SBTi’s FLAG Guidance (forest, land and agriculture), version 1.2, says purchased credits used as offsets cannot meet near-term FLAG or energy and industry targets. Eligible land-based removals are subject to accounting requirements.3 Moonbucks needs to test its proposal against those rules before including an outcome in its targets.

For Moonbucks’ Jimma proposal, maintaining existing trees and establishing new vegetation could involve different carbon questions. Specialists must examine the baseline and additionality, meaning what changes because the project proceeds. They must also assess measurement and the risk that stored carbon is lost. CCC’s MRV and additionality article introduces those tests.

Until that work is complete, Moonbucks should not budget an assumed Scope 3 reduction or credit-sale receipt. Direct emissions reductions remain the priority.

5. Build a financial case that survives weaker assumptions

Moonbucks’ finance team would now build a multi-year budget. UNEP’s State of Finance for Nature 2023 compares current finance with the investment needed to meet climate, biodiversity and land-restoration goals.4 The company would cost its proposed activities, farmer participation and ongoing monitoring. Verification, where required, is a separate expense. Maintenance and responsibility for replacing failed plantings must remain visible after the initial establishment budget ends.

Operational benefits need equally careful treatment. If fewer rejected lots reduce emergency purchasing, count that saving once. Do not add “supply resilience” as another financial benefit when it represents the same avoided cost.

Moonbucks should compare a base case with slower benefits, higher implementation costs and no carbon revenue. It should also distinguish production outcomes from quality and shipment outcomes. A single good harvest would not prove that the landscape intervention caused better delivery performance.

A project can remain worth funding even when its carbon case needs more work. That decision must rest on the operational evidence and the company’s objectives, without unsupported environmental claims.

6. Fund a pilot with a clear expansion decision

Moonbucks’ first approval would fund a bounded pilot, rather than commit the entire sourcing program. Before spending, Moonbucks would agree on participating farms, responsibilities and the evidence needed at review.

Its scorecard could track farmer participation, implementation costs and plant survival, alongside accepted coffee volumes and lot-quality results. Carbon measurements would follow the selected method. Farm-level traceability must connect the intervention to the actual sourcing relationship.

Suppose Moonbucks’ review later finds that storage changes explain most quality improvements, while the land measures need longer observation. Those findings would shape the next decision: expand the proven component, adjust the landscape work or pause further spending. They would not justify crediting all improvements to tree planting.

This gives nature-based carbon investments a practical place in a multi-year strategy. Funding increases as the evidence supports it, and the project can change direction before a larger commitment.

Discuss a sourcing opportunity with CCC

Carbon Credit Capital’s nature-based supply-chain investment service uses its Dual-Value Model to examine supply-chain economics alongside potential sustainability outcomes.

Schedule a consultation to discuss your sourcing exposure and the questions to resolve before allocating capital.

Sources

  1. Intergovernmental Panel on Climate Change (IPCC), Climate Change 2022: Mitigation of Climate Change, Chapter 7, Agriculture, Forestry and Other Land Uses, section 7.4.3.3 (Agroforestry).
  2. World Business Council for Sustainable Development (WBCSD), Nature-based Solutions Blueprint, 5 June 2024.
  3. Science Based Targets initiative (SBTi), Forest, Land and Agriculture Science-Based Target-Setting Guidance, version 1.2, March 2026, section 3.1.4, pp. 37–38.
  4. United Nations Environment Programme (UNEP), State of Finance for Nature 2023, 2023.
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How to buy plastic credits, and what to check before you do

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A plastic credit funds the collection of plastic waste in places where no formal system exists to collect it. Each credit represents a measured, independently audited quantity of plastic taken out of the environment or returned to use, tracked on a public registry.

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