Copper has re-entered the spotlight. Prices on the London Metal Exchange surged to a record $14,527.50 per metric ton on January 29 and continue to hover above $13,000. That rally did not happen by chance. Instead, it reflects a powerful mix of AI-driven demand, tight global supply, and rising geopolitical risk.
Today, copper sits at the center of the electrification and digital revolution. From AI data centers and electric vehicles to renewable power grids and defense systems, the red metal powers it all. As a result, investors, miners, and manufacturers are repositioning for what many now call a structural copper deficit.

AI and Electrification Are Redefining Copper Demand
The global critical minerals market is entering a new phase. According to the International Energy Agency (IEA), the sector could grow two to three times by 2040. That expansion may require between $500 billion and $600 billion in new capital investment.
Electric vehicles need roughly four times more copper than traditional combustion cars. Wind turbines and solar farms require vast cabling networks. Meanwhile, grid upgrades demand heavy copper wiring to handle rising electricity loads.
AI-powered hyperscale data centers consume enormous amounts of copper for power distribution, cooling systems, and grounding infrastructure. A single large AI facility can require up to 50,000 metric tons of copper. That is three to four times more than a conventional data center.
J.P. Morgan estimates that copper demand from data centers alone could reach around 475,000 metric tons in 2026. That represents an annual increase of about 110,000 tons.
- S&P Global study projects that global copper demand will grow from 28 million metric tons a year in 2025 to 42 million metric tons by 2040 – an increase of 50% above current levels.

Major tech players are already securing supply. In January, Amazon Web Services signed a two-year agreement with Rio Tinto to purchase domestically produced copper from an Arizona mine. The deal marked one of the first direct links between low-carbon copper and AI infrastructure development.
Deficit or Surplus? Analysts Clash Over Copper’s Outlook
While demand accelerates, supply struggles to keep pace. Analysts now describe copper’s imbalance as structural rather than cyclical. J.P. Morgan projects a refined copper shortfall of roughly 330,000 metric tons in 2026.
Meanwhile, the International Copper Study Group (ICSG) expects the market to shift to a 150,000-ton deficit after previously forecasting a surplus of 209,000 tons.

Even Goldman Sachs recently called copper the commodity with the highest growth potential this year, labeling it a “core target of the AI and electrification supercycle.” It projected that the copper market would record a surplus of around 160,000 metric tons this year. As a result, supply and demand are moving closer to balance. Given this outlook, the bank does not expect the global copper market to slip into a sustained shortage anytime soon.
Mining projects face permitting delays, rising capital costs, and operational disruptions. Ore grades are declining at several mature mines. Political tensions in key producing regions have also added uncertainty.
For example, Freeport-McMoRan continues working to restore full operations at its massive Grasberg complex. The company expects production to ramp up in the second quarter of 2026, with about 85% of operations restored by the second half of the year. However, full recovery across all mining zones may not happen until 2027.
Freeport’s new smelter also remains on standby after a previous fire, though management expects concentrate intake to resume later in 2026. These challenges illustrate a broader trend: supply is not flexible enough to respond quickly to demand shocks.
US Inventories Surge, But Global Tightness Persists
Interestingly, the United States experienced a sharp rise in refined copper imports during 2025.
As per the latest reports, after the White House postponed its decision on tariffs, the price gap between U.S. copper traded on the CME and copper traded on the LME quickly narrowed. As a result, the trading opportunity disappeared for a short time. However, copper imports into the U.S. soon picked up again.
In December alone, nearly 200,000 metric tons entered the U.S. market. According to the World Bureau of Metal Statistics (WBMS), total U.S. refined copper imports reached 1.4 million tons in 2025. That marked a year-on-year increase of 730,000 tons.
Similarly, according to Benchmark, earlier in 2025, the price gap between U.S. and global copper prices rose to nearly $3,000 per ton. That large difference pulled huge volumes of copper into the country.
It estimates that more than 730 kt of copper is effectively “trapped” in the U.S. This surge created a sizeable inventory build inside the country.

Yet, global supply remains tight. Much of the imported metal reflects precautionary stockpiling and strategic positioning rather than structural oversupply. Outside North America, deficits still loom large.
Therefore, while U.S. warehouses appear full, the broader market remains stretched.
Best Copper Stocks to Watch as the Deficit Deepens
With prices elevated and deficits emerging, mining companies are scaling up investments. Selective producers with strong balance sheets and operations in stable jurisdictions may benefit most if copper prices reaccelerate. In this global outlook, Canadian and allied-country producers enjoy added appeal.
For instance:
Teck Resources
The miner reiterated 2026 production guidance of between 455,000 and 530,000 tonnes. The company continues ramping up the Quebrada Blanca Phase 2 project in Chile, with peak capital spending nearing $2 billion. A proposed merger with Anglo American could create one of the world’s top five copper producers.
Hudbay Minerals
It reported record revenue and EBITDA in 2025. The company doubled its quarterly dividend and increased 2026 capital spending to support both sustaining operations and growth initiatives, including the Copper World project in Arizona.
Lundin Mining
Similarly, Lundin Mining delivered record revenue of $4.1 billion in 2025. Copper production reached over 331,000 tonnes at competitive cash costs. The company expects output to remain stable in 2026, while continuing to advance development projects across its portfolio.
Developers also see opportunity. Capstone Copper projects 2026 production between 200,000 and 230,000 tonnes. It plans significant sustaining and exploration investments to strengthen long-term growth. In addition, North American manufacturers are expanding. Revere Copper Products secured a $207.5 million credit facility in January to fund capacity expansion tied to electrification and data center demand.
So it’s clearly the industry is preparing for sustained strength.
Can Prices Stay Above $13,000?
The key question now is sustainability. A Reuters poll of 31 analysts published January 29 placed the median 2026 copper price forecast at $11,975 per ton. That figure sits well below recent peaks, yet it represents the highest consensus forecast ever recorded.
In other words, even cautious analysts expect historically strong pricing.
In conclusion, copper’s surge above $14,000 per ton signals more than a short-term rally. It reflects a big structural change. AI data centers, electrification, and energy transition projects are rewriting demand projections. At the same time, supply growth struggles under operational, political, and financial constraints.
Although price volatility will likely persist, the broader setup remains supportive. Producers with low costs, strong balance sheets, and exposure to stable jurisdictions may offer strategic advantages in this new cycle.
In many ways, copper has become the backbone of the AI and clean energy economy. And if current trends continue, the red metal’s supercycle may only be getting started.
READ MORE:
- Rio Tinto’s FY25 Profit Falls 14%, but Copper Projects and Sustainability Efforts Stand Out
- Copper Drives BHP’s $6.2B Profit Surge in FY26 Half-Year Results
The post Copper Prices Surge Above $13,000: Best Copper Stocks to Watch in 2026 appeared first on Carbon Credits.
Carbon Footprint
Climate Impact Partners Unveils High-Quality Carbon Credits from Sabah Rainforest in Malaysia
The voluntary carbon market is changing. Buyers are no longer focused only on large volumes of cheap credits. Instead, they want projects with strong science, long-term monitoring, and clear proof that carbon has truly been removed from the atmosphere. That shift is drawing more attention to high-integrity, nature-based projects.
One project now gaining that spotlight is the Sabah INFAPRO rainforest rehabilitation project in Malaysia. Climate Impact Partners announced that the project is now issuing verified carbon removal credits, opening access to one of the highest-quality nature-based removals currently available in the global market.
Restoring One of the World’s Richest Rainforest Ecosystems
The project is located in Sabah, Malaysia, on the island of Borneo. This region is home to tropical dipterocarp rainforest, one of the richest forest ecosystems on Earth. These forests store huge amounts of carbon and support extraordinary biodiversity. Some dipterocarp trees can grow up to 70 meters tall, creating habitat for orangutans, pygmy elephants, gibbons, sun bears, and the critically endangered Sumatran rhino.
However, the forest within the INFAPRO project area was not intact. In the 1980s, selective logging removed many of the most valuable tree species, especially large dipterocarps. That caused serious ecological damage. Once the key mother trees were gone, natural regeneration became much harder. Young seedlings also had to compete with dense vines and shrubs, which slowed the forest’s recovery.
To repair that damage, the INFAPRO project was launched in the Ulu-Segama forestry management unit in eastern Sabah.
- The project has restored more than 25,000 hectares of logged-over rainforest.
- It was developed by Face the Future in cooperation with Yayasan Sabah, while Climate Impact Partners has supported the project and helped bring its credits to market.
Why Sabah’s Carbon Removals are Attracting Attention
What makes Sabah INFAPRO different is not only the size of the restoration effort. It is also the way the project measured carbon gains.

Many forest carbon projects issue credits in annual vintages based on year-by-year growth estimates. Sabah INFAPRO followed a different path. It used a landscape-scale monitoring system and waited until the forest moved through its strongest natural growth period before issuing removal credits.
- This approach gives the credits more weight. Rather than relying mainly on short-term annual estimates, the project measured carbon sequestration over a longer period. That helps show that the forest delivered real, sustained, and measurable carbon removal.
The scientific backing is also unusually strong. Since 2007, the project has maintained nearly 400 permanent monitoring plots. These plots have allowed researchers, independent auditors, and technical specialists to observe the full growth cycle of dipterocarp forest recovery. The result is a large body of field data that supports carbon calculations and strengthens confidence in the credits.
In simple terms, buyers are not just being asked to trust a model. They are being shown years of direct forest monitoring across the project landscape.
Strong Ratings Support Market Confidence
Independent assessment has also lifted the project’s profile. BeZero awarded Sabah INFAPRO an A.pre overall rating and an AA score for permanence. That places the project among the highest-rated Improved Forest Management, or IFM, projects in the world.
The rating reflects several important strengths. First, the project has very low exposure to reversal risk. Second, it has a long and stable operating history. Third, its measured carbon gains align well with peer-reviewed ecological research and independent analysis.
These points matter in today’s market. Buyers have become more cautious after years of debate over the quality of some forest carbon credits. As a result, they now look more closely at durability, transparency, and third-party validation. Sabah INFAPRO’s rating helps answer those concerns and makes the project more attractive to companies looking for credible carbon removal.
The project is also registered with Verra’s Verified Carbon Standard under the name INFAPRO Rehabilitation of Logged-over Dipterocarp Forest in Sabah, Malaysia. That adds another level of market recognition and verification.
A Wider Model for Rainforest Recovery
Sabah INFAPRO also shows why high-quality nature-based projects are about more than carbon alone. The restoration effort supports broader ecological recovery in one of the world’s most important rainforest regions.
Climate Impact Partners said it has worked with project partners to restore degraded areas, run local training programs, carry out monthly forest patrols, and distribute seedlings to support rainforest recovery beyond the project boundary. These efforts help strengthen the wider landscape and expand the project’s environmental impact.
That broader value is becoming more important for buyers. Companies increasingly want projects that support biodiversity, ecosystem health, and local engagement, along with carbon removal. Sabah INFAPRO offers that mix, making it a stronger fit for the market’s shift toward higher-integrity credits.

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Carbon Footprint
Bitcoin Falls as Energy Prices Rise: Why Crypto Is Now an Energy Market Story
Bitcoin’s recent drop below $70,000 reflects more than short-term market pressure. It signals a deeper shift. The world’s largest cryptocurrency is becoming increasingly tied to global energy markets.
For years, Bitcoin has moved mainly on investor sentiment, adoption trends, and regulation. Today, another force is shaping its direction: the cost of energy.
As oil prices rise and electricity markets tighten, Bitcoin is starting to behave less like a tech asset and more like an energy-dependent system. This shift is changing how investors, analysts, and policymakers understand crypto.
A Global Power Consumer: Inside Bitcoin’s Energy Use
Bitcoin depends on mining, a process that uses powerful computers to verify transactions. These machines run continuously and consume large amounts of electricity.
Data from the U.S. Energy Information Administration shows Bitcoin mining used between 67 and 240 terawatt-hours (TWh) of electricity in 2023, with a midpoint estimate of about 120 TWh.

Other estimates place consumption closer to 170 TWh per year in 2025. This accounts for roughly 0.5% of global electricity demand. Recently, as of February 2026, estimates see Bitcoin’s energy use reaching over 200 TWh per year.
That level of energy use is significant. Global electricity demand reached about 27,400 TWh in 2023. Bitcoin’s share may seem small, but it is comparable to the power use of mid-sized countries.
The network also requires steady power. Estimates suggest it draws around 10 gigawatts continuously, similar to several large power plants operating at full capacity. This constant demand makes energy costs central to Bitcoin’s economics.
When Oil Rises, Bitcoin Falls
Bitcoin mining is highly sensitive to electricity prices. Energy is the highest operating cost for miners. When power becomes more expensive, profit margins shrink.
Recent market movements show this link clearly. As oil prices rise and inflation concerns persist, energy costs have increased. At the same time, Bitcoin prices have weakened, falling below the $70,000 level.

This is not a coincidence. Studies show a direct relationship between Bitcoin prices, mining activity, and electricity use. When Bitcoin prices rise, more miners join the network, increasing energy demand. When energy costs rise, less efficient miners may shut down, reducing activity and adding selling pressure.
This creates a feedback loop between crypto and energy markets. Bitcoin is no longer driven only by demand and speculation. It is now influenced by the same forces that affect oil, gas, and power prices.
Cleaner Energy Use Is Growing, but Fossil Fuels Still Matter
Bitcoin’s environmental impact depends on its energy mix. This mix is improving, but it remains uneven.
A 2025 study from the Cambridge Centre for Alternative Finance found that 52.4% of Bitcoin mining now uses sustainable energy. This includes both renewable sources (42.6%) and nuclear power (9.8%). The share has risen significantly from about 37.6% in 2022.
Despite this progress, fossil fuels still account for a large portion of mining energy. Natural gas alone makes up about 38.2%, while coal continues to contribute a smaller share.

This reliance on fossil fuels keeps emissions high. Current estimates suggest Bitcoin produces more than 114 million tons of carbon dioxide each year. That puts it in line with emissions from some industrial sectors.
The shift toward cleaner energy is real, but it is not complete. The pace of change will play a key role in how Bitcoin fits into global climate goals.
Bitcoin’s Climate Debate Intensifies
Bitcoin’s growing energy demand has placed it at the center of ESG discussions. Its impact is often measured through three key areas:
- Total electricity use, which rivals that of entire countries.
- Carbon emissions are estimated at over 100 million tons of CO₂ annually.
- Energy intensity, with a single transaction using large amounts of power.

At the same time, the industry is evolving. Mining companies are adopting more efficient hardware and exploring new energy sources. Some operations use excess renewable power or capture waste energy, such as flare gas from oil fields.
These efforts show progress, but they do not fully address the concerns. The gap between Bitcoin’s energy use and its environmental impact remains a key issue for investors and regulators.
- MUST READ: Bitcoin Price Hits All-Time High Above $126K: ETFs, Market Drivers, and the Future of Digital Gold
Bitcoin Is Becoming Part of the Energy System
Bitcoin mining is now closely integrated with the broader energy system. Operators often choose locations based on access to cheap or excess electricity. This includes areas with strong renewable generation or underused energy resources.
This integration creates both opportunities and challenges. On one hand, mining can support energy systems by using power that might otherwise go to waste. It can also provide flexible demand that helps stabilize grids.
On the other hand, it can increase pressure on local electricity supplies and extend the use of fossil fuels if cleaner options are not available.
In the United States, Bitcoin mining could account for up to 2.3% of total electricity demand in certain scenarios. This highlights how quickly the sector is scaling and how closely it is tied to national energy systems.
Energy Markets Are Now Key to Bitcoin’s Future
Looking ahead, the connection between Bitcoin and energy is expected to grow stronger. The network’s computing power, or hash rate, continues to reach new highs, which typically leads to higher energy use.
Electricity will remain the main cost for miners. This means Bitcoin will continue to respond to changes in energy prices and supply conditions. At the same time, governments are starting to pay closer attention to crypto’s environmental impact, which could shape future regulations.

Some forecasts suggest Bitcoin’s energy use could rise sharply if adoption increases, potentially reaching up to 400 TWh in extreme scenarios. However, cleaner energy systems could reduce the carbon impact over time.
Bitcoin is no longer just a financial asset. It is also a large-scale energy consumer and a growing part of the global power system.
As a result, understanding Bitcoin now requires a broader view. Energy prices, electricity markets, and carbon trends are becoming just as important as market demand and investor sentiment.
The message is clear. As energy markets move, Bitcoin is likely to move with them.
The post Bitcoin Falls as Energy Prices Rise: Why Crypto Is Now an Energy Market Story appeared first on Carbon Credits.
Carbon Footprint
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