The semiconductor industry powers artificial intelligence, cloud computing, and modern data centers. Yet, it is also one of the most energy-hungry and resource-heavy industries. When Nvidia announced a $5 billion investment in Intel, with plans to co-develop chips that combine Nvidia’s AI technology with Intel’s CPU architecture, many see this as a big business move.

Adding to the spotlight, Nvidia also signed a $100 billion deal with OpenAI to supply advanced AI hardware for the next generation of AI models. However, these moves raise an important question: can such deals help reduce carbon emissions and improve sustainable computing?

The High Cost of Silicon: Why ESG Matters

Environmental, social, and governance (ESG) issues now play a major role in how technology companies are judged. Making chips requires huge amounts of water, energy, and chemicals.

Once built, the chips power data centers and AI systems that consume even more electricity. This makes sustainability a challenge for both chip production and chip use.

Both Intel and Nvidia have set ambitious climate goals. Intel has pledged to reach net-zero greenhouse gas emissions for Scope 1 and Scope 2 operations by 2040. The company further aims for net-zero upstream Scope 3 emissions by 2050. It also targets net-positive water use and zero waste to landfills by 2030.

Nvidia, which outsources chip production, promises to lower emissions in its products. It also wants suppliers to set science-based climate goals.

By the end of fiscal 2025, Nvidia used 100% renewable electricity in all its offices and data centers. This move cut its Scope 2 emissions to zero. In fiscal 2024, the company emitted 3,692,423 metric tons of CO₂ equivalent. This total includes emissions from Scopes 1, 2, and 3, showing its environmental impact.

Nvidia surpassed its supplier engagement goal. It worked with partners covering over 80% of Scope 3 Category 1 emissions, up from the initial target of 67%.

By joining forces with Intel, Nvidia gains access not only to its production capacity but also to its sustainability practices. Intel aims for cleaner supply chains and greener manufacturing. This effort could lower the impact of new joint chips.

• RELATED: Intel Stock Surges 9.8% on $2B SoftBank Deal: Can Its Net-Zero Push Power the Future of Chips?

Nvidia is “fabless” and usually relies on partners like Taiwan Semiconductor Manufacturing Company (TSMC). This partnership gives Nvidia more control over how chips are made, packaged, and delivered.

The recent OpenAI deal further emphasizes Nvidia’s role in high-powered AI while keeping sustainability in mind. The company will provide energy-efficient chips for OpenAI’s large AI tasks. This shows the importance of balancing AI development and reducing carbon emissions.

Power-Hungry AI: Cutting Emissions per Computation

The environmental impact of chips is not limited to their production. In fact, much of the emissions tied to semiconductors come from how they are used in practice. Large-scale AI training, for example, requires massive computing power and electricity.

As demand for AI continues to surge, the energy needs of data centers are climbing quickly. The International Energy Agency predicts that global data center electricity demand may double by 2030. This raises concerns about the carbon footprint of AI-driven growth.

Here, the Nvidia-Intel partnership could play a vital role. Intel has set a target to improve the energy efficiency of its processors by 10 times by 2030. Nvidia is also focusing on efficiency. They aim to cut emissions for each computation. This includes lowering carbon dioxide equivalent per petaflop of processing power.

The OpenAI deal adds another layer. Nvidia will supply AI chips to power massive models while aiming to maintain energy efficiency. This ensures that even as AI workloads grow dramatically, emissions per computation can stay lower than older technologies.

“Compute infrastructure will be the basis for the economy of the future,” said Sam Altman, cofounder and CEO of OpenAI. “We will utilise what we’re building with Nvidia to both create new AI breakthroughs and empower people and businesses with them at scale.”

• RELEVANT: NVIDIA Stock (NVDA) Surges: Driving AI Mobility and Cloud Growth with OpenAI and Oracle Partnerships

Nvidia and OpenAI: The $100 Billion AI Hardware Deal

Under its $100 billion deal with OpenAI, Nvidia will provide AI hardware for the next generation of large AI models. This agreement names Nvidia as the main supplier of specialized GPUs and AI chips for OpenAI’s large computing tasks.

The deal includes support for AI training infrastructure. It also covers software optimization and ongoing maintenance of data center operations.

Nvidia’s fine print states it will provide advanced GPUs over the years. This way, OpenAI can grow its AI systems smoothly and without delays. OpenAI will also commit to using Nvidia’s energy-efficient chips and adopt best practices to limit energy use per computation. Both companies will closely track power use and emissions. They will link efficiency gains to contract milestones.

The companies will work together to build advanced AI supercomputing systems, starting with the Nvidia Vera Rubin platform in the second half of 2026. They plan to roll out 10 gigawatts of computing power, creating one of the largest AI infrastructures ever.

This partnership emphasizes two points:

• AI demand is growing at an unprecedented speed, and

• There is increasing pressure to meet that demand while minimizing carbon emissions.

Nvidia is using high-performance, energy-efficient hardware to support OpenAI’s bold AI projects. This helps keep energy use and emissions low. The deal further boosts Nvidia’s role in driving sustainable AI growth. It aligns with its ESG and supply-chain efforts.

Following this announcement, Nvidia’s stock experienced a significant uptick. Shares surged over 4%, making it a top performer on major indices including the Dow, Nasdaq, and S&P 500. This surge reflects investor optimism about Nvidia’s strengthened position in the AI infrastructure market.

• SEE MORE: Top 4 Green AI Stocks You Shouldn’t Ignore in 2025 and Beyond

The Fine Print: Supply Chains and Scope 3 Hurdles

Even with progress, the semiconductor industry faces significant challenges in reducing its environmental footprint. Making advanced chips requires temperatures over 1,000°C. It also requires special chemicals and rare materials such as gallium, cobalt, and indium.

Modern fabs use a lot of energy. For example, one Intel fab can use up to 150 million kWh of electricity each year. This results in about 50,000 metric tons of CO₂ emissions annually.

Globally, semiconductor manufacturing produces over 400 million metric tons of CO₂ each year. This is about 1% of all global emissions. With demand for AI chips and cloud services growing, efficiency gains risk being offset.

McKinsey & Company’s analysis suggests that the industry must reduce Scope 1 and 2 emissions by at least 4.2% annually from 2020 levels to align with a 1.5°C trajectory by 2030. However, even with full implementation of current decarbonization measures, emissions could reach 89 million tons of CO₂e by 2030, falling short of the 54 million tons needed for net-zero by 2050.

Supply chains are an even bigger hurdle. Scope 3 emissions cover raw material extraction, supplier manufacturing, packaging, and logistics. They can account for 70–80% of a chipmaker’s total carbon footprint.

Nvidia has already engaged suppliers covering over 80% of Scope 3 Category 1 emissions, exceeding its initial 67% target. Yet, emissions from mining, wafer fabrication by foundries, transportation, and overseas assembly are still significant. For example, shipping a single ton of semiconductor wafers internationally can add up to 20 metric tons of CO₂.

Energy sourcing is also critical. Chips remain high-emission if produced or operated in regions reliant on fossil fuels. Training a large AI model, such as OpenAI’s GPT-4 or the future GPT-5, can use up to 1,000 MWh of electricity. This process may emit hundreds of metric tons of CO₂, depending on the energy source. It does not even include the energy for using the AI model.

A coal-powered data center with an efficient chip generates 17 kg of CO₂ per teraflop. In contrast, renewable-powered setups only produce 4–5 kg per teraflop. The Nvidia–OpenAI deal focuses on providing GPUs and AI hardware.

This new tech aims to boost energy efficiency. It could cut emissions per computation by 30–50% compared to older hardware. This shows that while chip-level efficiency is essential, a full lifecycle approach is necessary.

Emissions reduction relies on several factors. It depends on processor design, energy sources for manufacturing, supplier practices, and how data centers operate. Without cleaner grids and good supply chain management, much of the carbon-saving potential from new chips and AI workloads may be wasted.

Beyond Business: A Climate Play in Disguise

These partnerships show that top chipmakers now see sustainability as part of growth. Investors, customers, and regulators are increasingly focused on the carbon footprint of technology. Linking climate goals to high-profile deals shows that Nvidia and Intel view emissions reduction as a strategic priority.

The Nvidia-Intel partnership and Nvidia’s OpenAI deal could shape the chip industry’s climate impact. Intel’s clean manufacturing record and Nvidia’s efficient AI hardware can help reduce emissions in production and use.

Still, the results will depend on whether efficiency matches demand and if energy sources move to renewables. For now, these collaborations highlight how innovation and sustainability can go hand in hand.

• READ MORE: Microsoft Signs $19 Billion AI Deal With Nebius: Nvidia Scores Big as GPU King

The post NVIDIA’s Mega Deals with OpenAI and Intel Fuel Stock Performance and Sustainable Tech in 2025 appeared first on Carbon Credits.

Plug Power’s shares have taken off once again. The stock rose about 40% in just three days and more than 50% across the last eight trading sessions. The sudden rise has drawn strong attention from investors, many of whom see Plug as a key player in the fast-growing hydrogen economy.

This rally comes as the company extends major partnerships, reports stronger sales, wins government support, and pushes ahead with big clean energy goals. Plug Power wants to scale hydrogen production and help build a net-zero future.

A Big Rally in Plug’s Shares

Plug Power’s stock had been under pressure earlier in the year. But over the past week, shares rebounded sharply, climbing past the $2 level for the first time in months.

Several factors drove the surge. Interest rate cuts in the U.S. lifted clean energy stocks across the board. Plug also showed strong results in its electrolyzer business, with sales rising more than 200% year over year. Together, these updates gave investors new confidence in the company’s growth plans.

Another big driver was the news that Plug Power extended its deal with Uline, a major logistics company, through 2030. The long-term contract shows that big customers continue to rely on Plug’s hydrogen fuel solutions.

At the same time, Plug announced a new partnership with GH2 Global in Brazil, which will bring hydrogen-powered logistics to South America. These agreements strengthen Plug’s market reach and support its goal of building a global hydrogen network.

What Plug Power Does

Plug Power builds hydrogen fuel cells, electrolyzers, and storage systems. Its technology replaces fossil fuel engines and batteries in forklifts, trucks, and stationary power systems.

Fuel cells make electricity by combining hydrogen with oxygen, leaving only water vapor as waste. Electrolyzers create “green hydrogen” by splitting water with renewable electricity. This type of hydrogen has no carbon footprint.

Plug’s goal is to create a full hydrogen network — from making the fuel, to moving it, to using it in everyday machines. The company says this can cut emissions from industries that are hard to abate, like trucking and heavy industry.

Today, Plug has thousands of fuel cells in use, including in forklifts at major warehouses for companies like Walmart, Amazon, and now Uline. These real-world applications show how hydrogen can replace fossil fuels in everyday logistics.

Government Backing Fuels Expansion

Plug Power got a major boost when the U.S. Department of Energy approved a $1.66 billion loan guarantee. The money will fund up to six new hydrogen plants in the U.S. These plants will make liquid hydrogen using renewable energy, rather than fossil fuels.

The company is also expanding abroad. It has signed deals in Europe, Australia, and Asia to sell electrolyzers and supply hydrogen.

In Australia, Plug is working with Allied Green Ammonia to provide a massive 3 GW electrolyzer system, one of the largest announced projects to date.

With the global hydrogen market expected to grow from about $200 billion in 2023 to more than $600 billion by 2030, Plug hopes to capture a large share of green hydrogen. Governments worldwide are funding clean hydrogen as part of their climate plans, which provides Plug with both opportunities and competition.

• RELEVANT: EU Greenlights Nearly €1 Billion for Green Hydrogen Projects

Plug Power’s Climate Goals

While it does not have a direct net-zero target year, Plug Power has made clear climate commitments. The company says it wants to help build a net-zero economy while also reducing its own footprint.

Key goals and steps include:

• Producing 2,000 metric tons of green hydrogen per day by 2030.
• Supplying Amazon with liquid green hydrogen, helping the retailer meet its 2040 net-zero pledge.
• Completing a full Scope 3 emissions inventory to track indirect emissions from suppliers and customers.
• Using renewable power to run its hydrogen plants, avoiding reliance on natural gas.
• Recycling and reusing parts from fuel cells and electrolyzers to cut waste.

These steps show that Plug is tying its growth to climate progress. By scaling clean hydrogen, the company aims to replace dirty fuels, cut emissions, and support global net zero targets.

Hydrogen’s Role in the Global Transition

The rise in Plug’s stock reflects bigger trends in the clean energy transition. Hydrogen is now seen as a critical fuel for cutting carbon emissions in industries like steel, cement, aviation, and shipping.

The International Energy Agency says global demand for low-carbon hydrogen could grow sixfold by 2050. If the world is to reach net-zero emissions, hydrogen will play a major role.

Governments in the U.S., Europe, Japan, and South Korea all have hydrogen roadmaps. Billions of dollars in public and private money are being invested in the space. More than 1,000 hydrogen projects worldwide have already been announced or are in development.

Plug Power is positioning itself early. By building large-scale hydrogen plants, extending long-term partnerships, and expanding into new regions like Brazil, it is pushing to secure a role at the center of this global shift.

Opportunities and the Pains

The current rally shows strong investor interest, but Plug Power still faces hurdles. Some of the opportunities for the company are:

• Riding a global wave of clean energy policies that favor hydrogen.
• Serving companies that need low-carbon fuel to meet climate goals.
• Using government support to lower costs and expand faster.
• Building credibility with long-term deals, like those with Uline and GH2 Global.

But Plug also has to deal with these risks:

• Execution risks in building hydrogen plants on time and within budget.
• Supply chain challenges, especially for key components.
• Volatile market sentiment which often swings in clean energy stocks.

The company has struggled with cash burn in the past, which has made investors cautious. Achieving financial stability while scaling hydrogen production will be one of Plug’s biggest tests.

From Rally to Reality: What’s Next for Plug?

Plug Power’s stock surge was boosted by new demand, supportive policies, and investor optimism. Behind the rally is a company aiming to scale clean hydrogen while linking growth to climate goals.

The extension of its Uline partnership through 2030 and its new deal with GH2 Global in Brazil add credibility to Plug’s expansion plans. With targets like producing 2,000 metric tons of green hydrogen a day by 2030, Plug is moving fast.

The path is not without risks. Plug still needs to prove it can scale profitably. But its mix of bold expansion, clean energy focus, and climate commitments is putting the company at the center of the hydrogen transition. For investors, the stock’s surge signals growing belief that Plug Power can help shape the future of energy.

• READ MORE: Top 4 Hydrogen Startups of 2025 Powering the Net Zero Future

The post Plug Power Stock Soars 40% on Hydrogen Deals, DOE Boost and Climate Goals appeared first on Carbon Credits.

Singapore has announced that it will buy about US$76.4 million worth of carbon credits from international projects in Ghana, Peru, and Paraguay. The move reflects the country’s growing role in the global carbon market and its strategy to meet national climate targets. The credits will come from nature-based projects such as forest conservation and reforestation, which reduce or capture greenhouse gas emissions.

The government stated:

“These projects aim to reduce carbon emissions from deforestation, increase carbon sequestration of soil organic carbon stock in grasslands through sustainable management practices, and remove carbon emissions through the reforestation of degraded pastureland.”

Buying Carbon, Growing Climate Impact

The carbon credits will be bought through agreements signed under Article 6 of the Paris Agreement. This article allows countries to trade emission reductions across borders.

Investing in projects abroad helps Singapore reach its climate goals. It also supports other nations in funding sustainable development.

The total contract amounts to S$104 million (US$76.4 million), or about 2.175 million tonnes worth of credits. These credits will come from projects that protect rainforests, restore damaged land, and capture carbon in nature. Each credit represents one metric ton of carbon dioxide reduced or removed from the atmosphere.

Officials have emphasized that all credits must meet strict quality standards. Projects need to show that emission reductions are real, measurable, and verified by independent groups. They must also show benefits for local communities and biodiversity.

Why Singapore Is Buying Carbon Credits

Singapore is a small, urban country, ranked as the world’s 57th-biggest emitter by Global Carbon Atlas. It has little space for renewable energy or big nature projects. The nation is investing in solar power, efficiency measures, and new technologies. However, it still can’t meet its climate targets on its own.

Carbon credits allow Singapore to close this gap. By supporting projects overseas, the country can compensate for emissions it cannot cut at home. Officials have stressed that credits are not a substitute for domestic action. Instead, they are a way to complement local measures and move faster toward climate goals.

Singapore has pledged to cut emissions to 60 million tons of CO₂ equivalent by 2030, down from about 52 million tons in 2021, and to reach net zero by 2050. Buying high-quality credits is part of that plan.

• SEE MORE: Singapore’s $1 Billion Carbon Credit Push: A New Path to Net Zero?

The Role of Nature-Based Projects

The credits Singapore will buy focus on nature-based solutions. These include protecting forests, restoring ecosystems, and preventing land degradation. Such projects are critical because they deliver both climate and social benefits.

Forests, for example, absorb carbon dioxide while also providing habitat for wildlife and resources for local communities. Reforestation creates jobs, improves soil health, and supports water cycles. Protecting land in Ghana, Peru, and Paraguay keeps these benefits going. It also helps avoid emissions from deforestation.

Analysts say nature-based credits are among the most popular in the voluntary carbon market (VCM). In 2024, they made up over 40% of global credits traded. They often sold for higher prices than energy-related credits.

Singapore’s Hub Ambition in Carbon Markets

The global carbon market is growing quickly. The VCM was valued at about US$2 billion in 2024 and could reach US$50 billion by 2030 if demand keeps rising.

Compliance markets, such as the European Union’s Emissions Trading System, are even larger. Singapore’s early participation positions it to benefit from this growth and to shape global standards.

Singapore has positioned itself as a regional hub for carbon trading and finance. In recent years, the country launched the Climate Impact X (CIX) exchange, a platform for trading high-quality credits. It also signed bilateral carbon credit agreements with countries such as Papua New Guinea, Bhutan, and Morocco.

Partnerships Stretching Across Continents

Singapore’s US$76.4 million purchase from Ghana, Peru, and Paraguay is part of a broader plan. This strategy aims to create a strong network of carbon credit partnerships under Article 6 of the Paris Agreement. These deals focus on getting high-quality credits. They also aim to boost climate cooperation and keep environmental integrity.

A key milestone was the Implementation Agreement with Ghana in May 2024. This agreement sets the rules for generating and transferring credits. It also required that 2% of credits be canceled at issuance and 5% of proceeds be directed toward Ghana’s climate adaptation.

In August 2025, Singapore signed its first transfer agreement with Thailand, its first such deal in Southeast Asia. This opens the way for Thai mitigation projects to supply credits for Singapore’s climate targets.

In September, a request-for-proposal boosted activity from four projects in Ghana, Peru, and Paraguay. They have support from GenZero, AJA Climate Solutions, Boomitra, and Mercuria Asia Resources.

Beyond these deals, Singapore is working with Bhutan, Chile, Vietnam, Papua New Guinea, and Rwanda on new agreements. These partnerships strengthen Singapore as a carbon market hub. They also direct funding into global climate action.

Through this growing network, Singapore is positioning itself as a trusted player in global carbon markets. It also supports partner nations in attracting funding for climate and conservation projects.

Benefits for Host Nations and Their Communities

For Ghana, Peru, and Paraguay, the deal brings funding for sustainable development. Forest protection projects often struggle with limited resources. Selling credits helps these countries pay for activities like patrols against illegal logging. They can also fund community programs and build infrastructure to support conservation.

Carbon finance also creates jobs in rural areas. Planting trees, restoring land, and managing conservation areas all require local workers. Communities can gain from revenue-sharing programs. These programs can help schools, health care, and water access.

By linking their projects to Singapore’s market, these countries gain more visibility and credibility. This can attract further investment from other governments or private companies seeking high-quality credits.

Global Signals From a Small Island Nation

The deal shows how international carbon markets are starting to scale. Under the Paris Agreement, countries can trade credits to meet national targets. This allows funds to move from rich countries with few natural resources to those with big forests and ecosystems.

Experts say such cooperation is essential. Meeting global climate goals will require both deep domestic emission cuts and large-scale protection of natural ecosystems. Carbon markets provide a way to finance the latter.

Singapore’s move could inspire other small but wealthy nations to follow. If successful, the model may become a blueprint for how developed economies can support climate action in developing regions while also meeting their own goals.

The purchase also boosts Singapore’s role as a carbon market hub and highlights the rising importance of international carbon finance. Credit quality and long-term effects remain a challenge. However, strict standards help this deal show that global partnerships can boost climate action and support sustainable development.

• READ MORE: Singapore and Japan Set New Rules for Carbon Credits and How They Shape Asia’s VCM

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