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Chinese electric vehicle (EV) giant BYD is accelerating its global expansion, especially in Europe and Canada. In contrast, Tesla is losing ground across key markets. New sales data, policy shifts, and geopolitical deals suggest a major shift in the EV landscape.

This trend matters not just for automakers. It also impacts battery metals, supply chains, carbon markets, and the future of clean mobility.

BYD’s Germany Boom Marks Europe’s EV Shake-Up

BYD recorded a dramatic surge in German sales in January 2026. Bloomberg highlighted data from Germany’s Federal Motor Transport Authority (KBA) showing that BYD’s registrations jumped more than 10-fold from January 2025. The company sold only 235 vehicles in Germany last year, but recent data suggests sales likely exceeded 2,500 units.

Meanwhile, Tesla struggled. BYD more than doubled Tesla’s registrations in Germany during the same month.

Overall, car sales in Germany declined 6.6% to 193,981 vehicles in January. However, electric cars still accounted for 22% of new registrations, highlighting strong demand for EVs despite a weak auto market. This surge shows that BYD’s low-cost models and expanding lineup are gaining traction in Europe’s largest automotive market.

Significantly, the German numbers reflect a broader European trend. Throughout 2025, BYD recorded more than 200% year-on-year growth in many months. In December 2025 alone, its European registrations reached 27,678 units—up nearly 230%.

byd europe
Source: ElectricVehicles.com

Breakthrough in Spain

Spain emerged as another key battleground. BYD dominated the Spanish EV and plug-in hybrid market in January 2026.

  • The company registered 1,962 vehicles, a 64.6% year-on-year increase. It captured a 13.6% market share, leading both fully electric and plug-in hybrid segments.
  • Fully electric sales rose nearly 30% to 1,039 units, putting BYD ahead of Kia and Mercedes-Benz. Tesla ranked fourth, with only 458 fully electric vehicles sold.

Spain’s performance highlights BYD’s strategy of combining affordable EVs with hybrids to capture diverse buyers.

Notably, BYD also sold 1,326 battery-electric vehicles in the UK, marking a nearly 21% increase from the previous year.

Tesla’s European Sales Collapse Deepens

Tesla, on the other hand, saw sales decline every month in Europe during 2025. The trend continued into 2026. Its struggles were especially visible in Northern and Western Europe.

In five major European markets, Tesla’s registrations fell 44% year-over-year in January. This marked the third consecutive year of shrinking sales across the region.

  • Norway: Registrations collapsed by 88%, with only 83 vehicles sold.
  • Netherlands: Sales dropped 67%.
  • France: Registrations fell 42% to 661 vehicles, the lowest in over three years.
  • United Kingdom: Sales plunged more than 57% to just 647 vehicles.

Policy changes played a role. Norway reduced EV tax incentives starting January 1, which hurt Tesla demand. However, the scale of the decline surprised analysts.

Even in Sweden and Denmark, where Tesla saw sales rise by 26% and 3%, the total number of cars sold remains low. These minor gains do little to offset the sharp decline compared with two years ago.

TESLA europe

Analysts believe that one key issue is Tesla’s aging lineup. The Model Y, once a top seller, is now over four years old, and buyers are looking for newer options. Although Tesla launched more affordable “Standard” versions of the Model Y and Model 3, these updates have not been enough to reverse the downward trend.

In the current scenario, Tesla is not only losing ground to Chinese brands. European automakers are also regaining market share. Volkswagen overtook Tesla in 2025 to become Europe’s top-selling EV brand. It sold around 274,000 units, compared to Tesla’s 235,000.

This shows Europe’s EV market is becoming more competitive, with local manufacturers and Chinese brands challenging Tesla’s early dominance.

tesla byd europe
Source: CNeV

Canada Opens the Door to Chinese EVs

Europe is not the only region where BYD is gaining ground. Prime Minister Mark Carney signed a landmark trade agreement with China on January 16, 2026. This deal allows Chinese-made EVs to enter the market at low tariffs.

  • So Canada will allow up to 49,000 Chinese EVs annually at a tariff rate of 6.1%. This marks a sharp reversal from the 100% tariff imposed in October 2024.

Also, the quota could rise to about 70,000 vehicles within five years. By 2030, at least half of imported Chinese EVs must be priced below CAD 35,000. In exchange, China agreed to reduce tariffs on Canadian canola seed, improving agricultural trade relations.

PM Carney said,

“At its best, the Canada-China relationship has created massive opportunities for both our peoples. By leveraging our strengths and focusing on trade, energy, agri-food, and areas where we can make huge gains, we are forging a new strategic partnership that builds on the best of our past, reflects the world as it is today, and benefits the people of both our nations.” 

BYD Gains a Regulatory Edge in Canada

BYD holds a unique advantage in Canada. Its manufacturing facilities in Shenzhen and Xi’an are already approved for Canadian imports. This pre-clearance gives BYD a head start over rivals like NIO, XPeng, and Li Auto. However, other Chinese brands must wait for regulatory approvals or rely on slower case-by-case processes.

BYD also operates an electric bus assembly plant in Ontario, strengthening its local presence. Furthermore, affordable models like the Seagull and Dolphin, priced between $20,000 and $30,000, could qualify under Canada’s affordability requirements.

Political Backlash and U.S. Concerns

The Canada-China EV deal triggered political controversy. Ontario Premier Doug Ford initially urged Canadians to boycott Chinese EVs, warning the agreement could hurt domestic manufacturing.

Labor unions and automakers also expressed concern. They fear the deal could weaken North America’s automotive industry and strain U.S.-Canada trade relations.

As per reports, U.S. President Donald Trump threatened tariffs on Canadian goods if the deal moves forward, calling it a “disaster.” However, Canadian officials argue the agreement aligns with USMCA rules and will expand the EV market.

Analysts estimate Chinese EVs could capture around 23% of Canada’s EV sales in the first year, saving consumers about CAD 6,700 per vehicle.

Canada EV
Source: S&P Global

Stock Market Snapshot: BYDDY vs TSLA

BYD’s (BYDDY) stock trades around $11.28 per share, with a market cap of roughly $102 billion. The stock is near the lower end of its 52-week range, reflecting margin pressures and geopolitical risks.

byddy stock
Source: Yahoo Finance

Tesla’s (TSLA) stock trades near $406 per share, with a market cap of about $1.35 trillion. Analysts expect a volatile 2026, with forecasts ranging widely depending on EV demand and margins.

tesla TSLA
Source: Yahoo Finance

Despite Tesla’s valuation premium, BYD’s rapid sales growth is reshaping investor sentiment.

The Bigger Picture: A Global EV Power Shift

BYD’s rapid rise shows how the EV industry is changing. Chinese automakers are using scale, government support, and efficient production to challenge Western rivals. At the same time, Tesla remains strong in technology, software, and brand recognition. Yet, price competition and shifting policies are reshaping the market.

In Europe, declining subsidies, along with Canada’s new trade rules and ongoing geopolitical tensions, are affecting EV adoption and corporate strategies. As BYD gains ground in Germany, Europe, and Canada, it signals a turning point in the global EV race. Tesla’s falling sales highlight the increasing pressure from both Chinese and European competitors.

For investors, policymakers, and climate advocates, these trends matter. They will influence battery supply chains, emissions targets, and the demand for carbon credits. The EV transition is no longer led by a single company—today, it has become a global contest for scale, affordability, and sustainable leadership.

The post How BYD’s European Surge and Canada Deal Are Challenging Tesla’s EV Dominance 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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Carbon Footprint

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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