The European Union’s (EU) upcoming carbon border tax is causing waves of anxiety among British green energy producers. As per the new directive, “British wind and solar farms exporting power to continental Europe from 2026 could face CO2 fees, despite producing no emissions, unless the UK and EU agree to amend the carbon border tax.”
Thus, industry leaders fear that this new policy could penalize the UK’s green energy sector. They are apprehensive that their efforts to combat climate change could be undermined, potentially disrupting trade relationships.
What is the Carbon Border Tax?
The EU’s carbon border tax, officially known as the Carbon Border Adjustment Mechanism (CBAM), is designed to prevent “carbon leakage”. This happens when companies shift production to countries with weaker climate regulations, thereby undermining global efforts to reduce emissions. The tax aims to level the playing field by imposing fees on imported goods from countries with less stringent climate policies.
Will the EU CBAM Impact British Renewable Exports?
A few days ago, Reuters reported that industry experts revealed how charges outlined in a little-known clause of the CO2 levy law could impact the revenues of renewable energy projects in the UK. This could further add to already-high EU power prices and even lead to higher emissions.
Andy Berman, deputy director of the industry group Energy UK pointed out that it’s a two-way problem. She added,
“(It) disincentivizes clean power in the UK at the moment in which we’re trying to ramp up the provision of clean power, and it’s going to increase (power) prices in northern Europe.”
Catherine Stewart, the UK Treasury’s deputy director for trade policy also expressed her views on EU’s tax policy by stating,
“It is an issue that we are conscious of and one that we have raised, that the UK has raised, with the EU.”
Despite the UK’s commitment to reducing emissions and its robust green energy sector, industry leaders fear that the carbon border tax might negatively impact British companies. The concern is that the tax will be applied to all imports, regardless of the exporting country’s green credentials and carbon footprint.
source: Carbon Border Adjustment Mechanism – European Commission (Europa.eu)
Let’s elaborate on the potential impact on the renewable industry and trade relations at large.
Economic Feasibility at Risk
Analysts warn that the additional costs could render it “uneconomic” to export surplus clean power from Britain to Europe, especially during periods of low demand, high renewable generation, and low power prices.
Aurora Energy Research’s analysis, shared with Reuters, indicates:
- Up to 3 GWh of renewable power could be curtailed by 2030 if the fee discourages exports. This capacity is enough to supply 2,000 homes annually.
- Adding a tax on exports essentially reduces the profit margin every time exports occur. By 2030, the carbon border fee could reduce the revenue British renewable projects earn for their power by 5%.
The research firm highlighted key facts about the renewable capacity buildout based on government policy and market forces.
1. Increasing power demand
Europe aims to decarbonize and achieve Net Zero emissions by 2050, primarily by electrifying its economy and expanding renewable energy to cut emissions. Growing demand for Power Purchase Agreements (PPAs) boosts investment in renewables. Enhanced energy efficiency lowers power demand.
2. Strong policy support and Government ambition
Government ambition pushes deploying renewables and robust policy support fosters investor confidence. Sudden policy changes or lack of support can harm investor confidence in renewables within a country.
3. Rising fuel and carbon prices
High gas prices have led to a switch back to coal generation. New market players have increased speculation and volatility, a trend expected to continue. Independent Commodity Intelligence Services (ICIS) estimates carbon prices will reach €90 per tonne by 2030.
4. Phase-out of thermal capacity
As Europe phases out coal and older, unabated gas assets to meet decarbonization goals, it creates opportunities for low-carbon alternatives to meet rising power demand. The retirement of thermal capacity strains system requirements like frequency and voltage control, which cannot be fully met by renewables alone.
Impact on Wholesale Prices and Emissions
Market Screener has reported two interesting analyses:
Aurora Research: The company analyzed the consequence of the reduction in cheap British electricity exports. It can potentially spike wholesale power prices by up to 4% in markets like Ireland and Northern Ireland which rely heavily on UK imports.
AFRY Services: The research firm indicated that if European countries increase coal and gas power generation to cover the shortfall, CO2 emissions could rise by 13 million tonnes annually. This increase is equivalent to the emissions of 8 million cars.
The figure shows that: Failure to remove renewables barriers leads to 80% higher CO2 price in 2030 significantly raising wholesale electricity prices for European industry & consumers.
sources: Aurora Energy Research, EIKON, S&P
- MUST READ: UEFA’s Green Goals: $7.6M Climate Fund for EURO 2024 Carbon Footprint (carboncredits.com)
Can Renewable Exports Avoid CO2 Fees?
A European Commission spokesperson stated that renewable power exports could avoid CO2 fees if they meet specific criteria and prove their origin. However, industry experts argue this is challenging. They assume that most electricity traded across interconnectors is anonymous, making it difficult to calculate the carbon content.
They have also voiced concerns, stating the tax penalizes sectors leading the fight against climate change. RenewableUK stressed the need for a system that rewards green energy credentials without unnecessary barriers. They called for policies that consider the actual carbon footprint of imports rather than applying a blanket approach.
Linking Carbon Markets: A Viable Solution
One potential solution is linking the EU and UK carbon markets, which would exempt UK power producers from the tax.
Alistair McGirr, SSE’s Group Head of Policy and Advocacy noted,
“Linking the carbon markets could prevent UK exporters from paying a tax to the EU that could otherwise benefit the UK budget.”
Despite this suggestion, neither Brussels nor London has shown enthusiasm for the idea.
Former UK climate change minister Graham Stuart also spoke in favor of linking carbon markets that could be explored under the post-Brexit Trade and Cooperation Agreement. The European Commission spokesperson added that the EU is open to linking its carbon market with others, but it “must stem from a mutual wish from both parties.”
Green Enhancing, Not Green Washing: Bolstering EU’s Carbon Markets
We discovered a significant aspect of tax implication on industry and consumers from the latest press release of the Council of EU.
Notably, the Council adopted its position on the Green Claims Directive to tackle greenwashing and help consumers make informed greener choices. The directive sets minimum requirements for substantiating, communicating, and verifying environmental claims. This move follows a 2020 study revealing that over half of environmental claims are vague, misleading, or unfounded. Thus, reliable, comparable, and verifiable claims are essential for informed consumer decisions.
Alain Maron, Minister of the Government of the Brussels-Capital Region, responsible for climate change, environment, energy, and participatory democracy has commented on this move,
“Today, we reached an important agreement to fight greenwashing by setting rules on clear, sufficient and evidence-based information on the environmental characteristics of products and services. Our aim is to help European citizens to make well-founded green choices.”
Organizations like Anew Climate, Rubicon Carbon, and others, hailed the EU’s progress on the Green Claims Directive (GCD) but called for further action to ensure it supports transparent and credible green claims, vital for achieving net zero. Key recommendations include:
- Reliable Green Claims: Ensure claims are reliable, comparable, and verifiable across the EU to prevent greenwashing.
- Simplified Framework: Avoid unnecessary administrative burdens and support the use of all types of carbon credits, not just EU-originated removal credits.
- Uniformity in Standards: Align with existing frameworks like the CRCF and ICVCM to avoid overlap and enhance international consistency.
They collectively believe adopting these measures will boost voluntary private-sector investment in climate mitigation. It would also advance the Green Deal and strengthen Europe’s competitive market.
source: EU-CBAM
This analysis emphasizes the need for dialogue between UK and EU policymakers to ensure the tax does not sabotage the global fight against climate change. Furthermore, a balanced approach is crucial for British Green Energy to recognize its efforts while minimizing trade disruption. Overall, the future of UK-EU trade and the global climate agenda hinges on achieving this equilibrium.
- FURTHER READING: EU Commission Backs Germany’s Renewable Hydrogen Plan with $380M Funding • Carbon Credits
The post EU’s Latest Carbon Border Tax Sparks Concerns for British Green Energy appeared first on Carbon Credits.
Fusion energy has spent decades on the sidelines of the global energy system. Scientists praised its potential, policymakers admired its promise, and investors waited patiently for proof that it could work outside the lab. Now, that long wait appears to be ending.
General Fusion’s planned listing on Nasdaq marks a clear shift in how fusion energy is viewed. The Vancouver-based company has agreed to merge with Spring Valley Acquisition Corp. III, a move that would make it the world’s first publicly traded pure-play fusion energy company. Once the deal closes, General Fusion is expected to trade under the ticker symbol GFUZ.
More importantly, the transaction signals that fusion is moving beyond theory. It is stepping into capital markets, where timelines, costs, and performance matter.
AI, Electrification, and Data Centers Are Driving a New Energy Boom
Electricity demand is rising faster than grids can comfortably handle. According to the International Energy Agency, global power demand could grow by 40-50% by 2035.
This surge is not coming from a single source. Instead, it reflects a mix of electrified transport, electric heating, advanced manufacturing, and rapid digital expansion.
At the same time, artificial intelligence has become a major driver of energy. Data centers now consume enormous amounts of electricity, and demand continues to climb. In the United States, the Department of Energy estimates that data center power use could double or even triple by 2028.
Solar and wind have expanded quickly and remain essential to decarbonisation. However, they depend on the weather and daylight. Batteries help smooth supply, but they cannot yet support large-scale, long-duration demand on their own. As a result, the need for clean, reliable baseload power is becoming urgent.
This is where fusion enters the conversation.
Why Fusion Energy Stands Apart
Fusion works by combining light atoms, usually hydrogen isotopes, to release energy. It is the same process that powers the sun. Unlike nuclear fission, which splits heavy atoms and produces long-lived radioactive waste, fusion generates far less waste and carries no risk of meltdown.
The International Atomic Energy Agency estimates that fusion can produce four times more energy per unit of fuel than fission and nearly four million times more energy than coal or oil. Just as important, fusion fuel is abundant and widely available.
These features make fusion attractive not just as a clean energy source, but as a foundation for long-term energy security.
General Fusion’s Different Path to Fusion Power
While many fusion developers rely on massive superconducting magnets or powerful laser systems, General Fusion has taken a different route. The company focuses on Magnetized Target Fusion, or MTF, a design intended to simplify fusion hardware and reduce costs.
MTF creates a hot plasma and stabilises it with magnetic fields. Then, instead of squeezing the plasma with magnets or lasers, the system mechanically compresses it using a liquid lithium liner. This rapid compression raises temperature and pressure to fusion conditions.
General Fusion argues that this approach avoids some of the complexity that has slowed other fusion concepts. It also allows the use of existing industrial materials, rather than highly specialised components. Over time, this could make fusion power plants more durable and more affordable.
LM26 Marks a Critical Step Forward
In early 2025, General Fusion announced a major milestone. The company had designed, built, and begun operating Lawson Machine 26, known as LM26. This system represents the world’s first large-scale MTF fusion demonstration built at a commercially relevant size.
LM26 operates at half the diameter of a future commercial reactor. It mechanically compresses plasma using a lithium liner, closely mirroring how a full-scale plant would function. The machine aims to reach several critical technical targets, including heating plasma to 10 million degrees Celsius, then to 100 million degrees Celsius, and ultimately achieving the Lawson criterion.
Reaching the Lawson criterion matters because it defines the conditions required for net fusion energy within the plasma. General Fusion plans to use proceeds from the SPAC transaction to advance LM26 testing and move closer to that goal.
Two Decades of Work Behind the Headlines
The company has spent 20 years developing fusion technology, steadily building both scientific credibility and engineering expertise.
During that time, General Fusion assembled a strong intellectual property portfolio, with more than 210 patents issued or pending. It also became one of only a few private fusion companies worldwide to publish peer-reviewed fusion results. Since its founding, it has raised more than US$400 million from institutional investors, strategic partners, venture firms, and government programs.
This long track record helps explain why investors are willing to back the company as it moves into public markets.
General Fusion’s Big Leap into Public Markets
The proposed business combination with Spring Valley Acquisition Corp. III implies a pro-forma equity value of roughly US$1 billion. The transaction includes about US$105 million from a committed and oversubscribed PIPE financing, along with US$230 million from SVAC’s trust account, assuming no redemptions.
The companies expect to complete the transaction in mid-2026, pending regulatory and shareholder approvals. After closing, the combined business plans to operate under the General Fusion name and list its shares and warrants on Nasdaq.
Spring Valley brings deep experience in energy and nuclear markets. Its leadership team has completed dozens of energy and decarbonization transactions and previously helped take NuScale Power public, marking the first listing of a small modular reactor company.
Strong Market Tailwinds Support Fusion
Beyond company-specific progress, broader market forces are pushing fusion forward. Electricity demand continues to rise as economies electrify. Governments are searching for clean energy sources that do not compromise grid stability.
Meanwhile, large technology firms are actively seeking reliable, carbon-free power to support AI growth.
- Industry estimates suggest the fusion energy sector could reach between US$40 billion and US$80 billion by the mid-2030s. If commercial deployment accelerates, the market could exceed US$350 billion by 2050.
Early fusion plants will likely focus on grid-scale baseload electricity, with hydrogen production and industrial heat applications following later.
However, General Fusion’s Nasdaq move does not mean fusion power is ready for mass use yet. The technology still faces major challenges, including scaling reactors, improving materials, and proving long-term reliability.
Still, the listing marks a turning point. Fusion is shifting from a scientific experiment to a real commercial contender. Public markets will bring more funding, clearer timelines, and stronger scrutiny.
The next decade will determine whether fusion can move from demonstrations to operational power plants. With electricity demand rising and clean baseload options limited, fusion is finally stepping into the spotlight. The fusion era is no longer just an idea — it is starting to take shape.
The post General Fusion’s Nasdaq Listing Pushes Fusion Energy Into the Market Spotlight appeared first on Carbon Credits.
At the 2026 World Economic Forum in Davos, former U.S. President Donald Trump spoke in support of nuclear energy. His remarks highlighted nuclear power as a key part of energy security and clean energy supply, saying:
“We’re very much into the world of nuclear energy, and we can have it now at good prices and very, very safe…the progress they’ve made with nuclear is unbelievable, and the safety progress they’ve made is incredible…”
After these comments, nuclear and uranium stocks moved higher in early trading. Investors showed renewed interest in nuclear companies, especially those developing advanced technologies like small modular reactors (SMRs).
Stocks such as Oklo Inc. (NYSE: OKLO), NuScale Power (NYSE: SMR), and Nano Nuclear Energy (NASDAQ: NNE) saw price increases as traders responded to the pro-nuclear sentiment. This trend shows how energy markets are changing.
Many investors now view nuclear energy as a stable, low-carbon power source. This is important as demand grows from data centers and industries.
Oklo Takes Center Stage in the Nuclear Trade
Oklo has become one of the most-watched nuclear stocks in 2025. Oklo’s shares jumped after it signed a big deal with Meta Platforms. They plan to build a 1.2 GW advanced nuclear energy campus in Pike County, Ohio.
The deal positions Oklo to supply clean, reliable power for Meta’s data centers. Analysts described this binding agreement as reducing some business risks for Oklo.
In January 2026, Oklo stock kept rising after President Trump’s pro-nuclear comments at Davos. It hit intraday highs around January 22, with gains across the sector. Bank of America upgraded Oklo to a Buy rating, setting a price target of $111. This shows strong confidence in Oklo’s data center partnerships and regulatory progress.
Cathie Wood’s ARK Investment increased its stake in Oklo. They bought over 34,000 shares. This shows a rising interest from institutions in advanced nuclear technology. This purchase followed earlier acquisitions valued at more than $8.9 million, showing sustained investment interest.
Strong Rallies, Sharp Pullbacks
Despite strong gains, Oklo’s stock price has also seen pullbacks. At times, shares fell nearly 10% in a single week due to profit-taking after earlier rallies. Investors sometimes respond to news about sectors. For example, competitive technologies like geothermal power can provide clean energy alternatives for data centers.
Oklo remains pre-revenue, meaning it has not yet begun large-scale power production. The company aims to build its first commercial microreactor system between late 2027 and 2028. Until that point, investor focus remains on contracts, partnerships, and regulatory progress.
SMRs and Speculation: Two Very Different Nuclear Bets
NuScale Power (NYSE: SMR) is another company that benefited from the nuclear rally after Davos. The company’s shares jumped around 15% on early trading days in 2026, along with sector momentum.
The stock is drawing investor interest because of the rising focus on small modular reactor (SMR) technology. SMRs may be easier to deploy and scale than traditional large plants.
NuScale’s SMRs got design approvals from the U.S. Nuclear Regulatory Commission (NRC). This boosts confidence in their technology. Analysts expect the company’s revenue to continue rising as project work expands.
NuScale is a great example of how modular nuclear designs can provide reliable power for industrial and data center needs. Regulatory milestones for SMRs may accelerate deployment timelines through the rest of the decade.
Nano Nuclear Energy: Early Stage, Strong Moves
Nano Nuclear Energy (NASDAQ: NNE) is a smaller player that also saw stock gains as part of the sector rally. Its shares rose roughly 40% in one trading week amid news of technology deals between U.S. and U.K. partners, and Trump’s recent announcement. This price movement reflected broader investor interest in nuclear technologies and potential future revenues.
Nano Nuclear is still in the early stages without significant revenue, similar to Oklo’s position. Its valuation illustrates how speculative nuclear stocks can be, driven by future expectations about technology deployment and regulatory support.
Why Nuclear Is Back on Investor Radar
Supportive government policy is a key driver for nuclear stocks. In 2025, the U.S. administration moved to speed up nuclear power development as part of a broader energy strategy. These moves include efforts to shorten licensing timelines and enhance domestic infrastructure for nuclear fuel and reactors. This policy backdrop helped lift stocks such as Oklo and NuScale.
President Trump’s Davos statements reinforced this trend by linking nuclear energy to national energy strategy and data center demand. Many investors view nuclear energy as a solution for rising electricity demands. This includes powering artificial intelligence and cloud computing infrastructure.
Nuclear power generates low-carbon electricity. This attracts companies that need to meet emissions targets while also dealing with growing power demand.
Globally, nuclear power already contributes a significant share of clean energy. According to the World Nuclear Association, nuclear energy generated about 9% of the world’s electricity from existing reactors. Supporters say that expanding nuclear power can meet future demand and reduce carbon emissions.
AI’s Power Hunger Fuels the Nuclear Case
The growth of data centers, particularly for AI, is driving interest in reliable baseload power. Tech companies, including Meta, have pursued long-term nuclear power agreements.
Meta has deals with companies like Oklo and TerraPower. These agreements aim to secure nuclear-generated electricity for its AI infrastructure. They involve spending tens of billions of dollars on building AI data centers. This corporate demand creates new business models for nuclear power. It makes future reactor deployments more financially viable.
Electricity demand from industrial and tech sectors continues to rise worldwide, increasing focus on clean, consistent power sources. Nuclear energy’s high capacity factor, meaning it can provide steady power output, is a key strength in this context.
What the Next Nuclear Decade Could Look Like
Industry analysts expect nuclear capacity to grow over the next few decades. Some forecasts tied to long-term pledges suggest that global nuclear capacity could triple by 2050 as part of decarbonization goals. This aligns with commitments from large utilities, governments, and corporate coalitions.
Stock forecasts differ, but long-term demand for nuclear reactors and fuel is expected to grow. This growth is driven by electrification and carbon reduction goals.
Small modular reactors are key to industry growth. They offer shorter construction times and lower upfront costs than large traditional reactors. If SMRs get regulatory approval and have stable supply chains, companies like Oklo and NuScale could start commercial operations in the 2030s.
Analysts provide mixed views on nuclear stocks. Many forecasts highlight the potential upside if technologies succeed at scale, especially for SMRs. Analyst price targets for NuScale Power suggest there is a lot of potential for growth from current prices.
A Renewed Nuclear Narrative
After President Trump’s supportive comments on nuclear energy at Davos, nuclear stocks climbed as traders reacted to potential industry growth. Oklo saw strong investor interest following major deals and institutional purchases. NuScale benefited from regulatory milestones and rising demand for modular reactors. Nano Nuclear showed how early-stage players can also capture attention.
Government support, corporate demand for reliable low-carbon power, and rising electricity needs from AI and data centers are key drivers behind the nuclear sector’s resurgence. Analysts still see challenges, but they expect nuclear capacity, especially smaller modular systems, to grow in the global energy mix.
The post Trump’s Davos Nuclear Endorsement Powers a Rally in Oklo, SMRs, and Atomic Stocks appeared first on Carbon Credits.
The nickel price is trading at $18,614.49 USD today, reflecting a modest 0.36% gain over the last seven days. While the weekly movement appears stable, the metal has seen significant volatility recently, contributing to an impressive 11.30% year-to-date (YTD) surge. Investors are closely monitoring supply-side constraints in Southeast Asia, which have become the primary catalyst for the metal’s strong performance in early 2026.
Nickel Price
Nickel Price Market Drivers: Indonesia’s Quota Crackdown
The primary driver supporting the nickel price this week is the tightening regulatory landscape in Indonesia, the world’s largest producer. The Indonesian government has confirmed a sharp reduction in its 2026 mining production quotas (RKAB), setting a target of 250-260 million tonnes—a significant drop from the 379 million tonnes approved in 2025. This policy shift is designed to preserve high-grade ore reserves and align output with domestic smelting capacity.
Market concerns were further amplified by reports that major players, including Vale Indonesia, were forced to temporarily halt operations at key sites due to delays in receiving these new mining permits. The Indonesian Nickel Miners Association (APNI) has warned that the approved quotas may fall short of industrial demand, which is projected to reach 410 million tonnes this year, creating a potential deficit that is keeping a floor under prices.
Technical Outlook and Future Trends
From a technical perspective, nickel is consolidating gains after testing resistance near the $18,800 level. Traders are weighing the bullish supply news against signs of softening demand in China, where profit-taking has capped upward momentum. Immediate support is forming around $17,500. While the short-term outlook remains bullish due to supply anxiety, some analysts caution that the long-term structural surplus in Class 2 nickel could limit upside potential once the initial regulatory shock subsides.
The post Nickel Price Today: Indonesia’s Production Cuts Spark Supply Concerns appeared first on Carbon Credits.
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