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HSBC Opens New Unit For Low-Carbon Finance With $1 Trillion Pledge

Global financial services group HSBC is launching a new business unit, HSBC Infrastructure Finance (HIF), to focus on infrastructure financing and project finance advisory opportunities tied to the transition to a low-carbon economy. The bank has appointed former UK Member of Parliament Danny Alexander as CEO of the new unit.

HIF aims to secure a significant share of deals in major markets. It will also integrate elements from the bank’s Global Banking Real Asset Finance team.

Taking the Helm and Driving Infrastructure Finance in Transition Markets

The new unit plans to expand HSBC’s debt origination and distribution businesses by building new relationships with both public and private sector entities.

Greg Guyett, CEO of Global Banking and Markets at HSBC, remarked on the announcement, noting that: 

“We have a leading presence in the regions where infrastructure needs to be developed and financed to enable a just transition to a low carbon economy. We also look to support the UK government’s program to build critical infrastructure in Britain to grow the economy whilst decarbonizing it.”

Danny Alexander, currently the vice president for policy and strategy at the Asian Infrastructure Investment Bank (AIIB) and a former UK government minister, will lead the division. 

Alexander’s appointment is intended to accelerate collaboration with governments, multilateral development banks, and companies, including supporting the UK government’s new initiatives.

In his post announcing the appointment, Alexander expressed his excitement about leading HIF and pursuing significant infrastructure financing and advisory opportunities related to the low carbon transition in strategic markets.

HSBC’s Net Zero Plan

The launch of HIF follows HSBC’s release of its first Net Zero Transition Plan earlier this year, detailing its strategy to finance and support the transition to net zero. The bank set a 2050 net zero target in 2020, committing to align its financing activities with the Paris Agreement’s goals. 

In 2021, HSBC made the transition to net zero one of the 4 key pillars of our corporate strategy. Since 2020, the global financier has taken several steps to begin executing its net zero ambition and managing climate risks. The banking company’s net zero journey is below.

HSBC NET ZERO JOURNEY

HSBC net zero journey to 2050

The bank’s transition plan covers the HSBC Group and it focuses primarily on the sectors and customers where they anticipate making the most significant impact on emissions reductions. 

For each sector, the bank describes the necessary technologies, investment needs, and external dependencies for a viable net zero by 2050 pathway, and identifies where a 1.5°C-aligned 2030 pathway is most at risk. The company also outlines its related portfolio, aims, targets, and actions to support sector decarbonization.

HSBC’s emissions from its own operations and supply chain are relatively small compared to its financed emissions, but reducing them is crucial for becoming a net zero bank. 

HSBC Greenhouse Gas Emissions from Own Operations

HSBC GHG carbon emissions or footprint
Source from HSBC Net Zero Transition Plan

The bank aims to achieve net zero in its own operations and supply chain by 2030, including 100% renewable electricity and minimizing its direct impact on nature. This involves cutting emissions across energy consumption, travel, and supply chains.

In 2022, HSBC exceeded targeted reductions by achieving a 58.5% decrease in energy and travel emissions compared to 2019 levels. This accomplishment was driven by the bank’s three key efforts:

  1. A 24% reduction in energy consumption achieved through optimizing building use and strategically reducing office space and data center operations.
  2. Purchasing 48% of energy from renewable sources by leveraging renewable tariffs and engaging with landlords.
  3. An 85% reduction in business travel, primarily attributed to Covid-19-related international travel restrictions.

Looking forward to 2030, HSBC aims for a further 50% reduction in energy consumption. High-quality carbon removal or offsets will be used only for residual emissions that cannot be otherwise reduced from 2030 onwards.

The financier engages with market participants to develop carbon credits and support initiatives for a credible carbon market. Climate Asset Management, HSBC’s joint venture, is sourcing high-quality carbon removals. The bank also participates in HKEX’s International Carbon Market Council and advocate for integrity in the voluntary carbon market through initiatives like the Integrity Council.

It’s important to note that HSBC does not plan to use carbon offsets to meet its net zero by 2050 portfolio financed emissions target or related interim 2030 sectoral financed emissions targets.

The bank will regularly review emerging guidance from standard setters like the Greenhouse Gas Protocol and the Science Based Targets Initiative (SBTi) to assess and incorporate customers’ use of carbon credits into its customer transition plan assessment process.

Aligning Financing with Global Climate Goals

To achieve GHG emissions reduction targets and reach net zero, HSBC is implementing a plan, focusing on these three areas:

  1. Supporting Customers

HSBC is prioritizing the transition of its customers to net zero by providing finance, services, insights, and tools. The bank is engaging with corporate customers on their transition plans and offering products and services to facilitate this shift.

  1. Transforming Operations

In 2021, HSBC made the “transition to net zero” one of the four pillars of its corporate strategy. This integration into the corporate strategy has led to embedding net zero considerations into sustainability risk policies, risk evaluation, decision-making tools, and processes. The bank aims to be net zero in its own operations and supply chain by 2030.

  1. Partnering for Systemic Change

HSBC is engaging with stakeholders across geographies to support policies, regulations, and partnerships that facilitate the transition to net zero. The bank is a signatory of the Taskforce on Climate-related Financial Disclosures (TCFD) and advocates for climate risk disclosures.

The bank also pledged to prioritize financing and investment that contributes to the low carbon transition, aiming to support customers with $750 billion to $1 trillion in finance and investment by 2030.

HSBC’s launch of Infrastructure Finance underscores its commitment to supporting the transition to a low-carbon economy through strategic infrastructure investments. With a robust net zero strategy in place, HSBC aims to play a pivotal role in shaping sustainable finance globally.

The post HSBC Opens New Unit For Low-Carbon Finance, Alongside $1 Trillion Pledge appeared first on Carbon Credits.

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How Nestlé’s Nescafé Hits Coffee Sustainability Goals Early: A Climate Win in Every Cup

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How Nestlé's Nescafé Hits Coffee Sustainability Goals Early: A Climate Win in A Cup

Nescafé, a Nestlé coffee brand, has already beaten its coffee sustainability goal for 2025 by sourcing 32% of its coffee through regenerative agriculture in 2024. This move shows strong progress toward its 2030 target of 50% and Nestlé’s net-zero goals.

Backed by more than $1 billion in funding, Nestlé supports this transition with major investments in farmer training and eco-friendly farming practices. The change adds value by lowering the coffee’s environmental impact. It reduces greenhouse gas (GHG) emissions and boosts long-term supply chain stability.

How Did Nescafé Exceed Its 2025 Coffee Sourcing Goal Early?

Nescafé initially set a goal to source 30% of its coffee through regenerative agriculture by 2025. As of 2024, the company has already passed that goal, reaching 32%, as reported in its Plan 2030 Progress Report.

Nescafé 2025 sustainability goal
Source: Nescafé Plan 2030 Report

Regenerative agriculture uses farming methods that boost soil health, enhance biodiversity, and cut back on chemical inputs. These practices protect farmland while helping farmers produce better, more resilient crops.

Nestlé reports that over 200,000 coffee farmers have been trained in regenerative techniques through the Nescafé Plan. In total, over 400,000 hectares of coffee farmland now follow these methods.

This change boosts climate resilience and steadies coffee production. It also helps areas dealing with drought, soil erosion, and unpredictable weather caused by climate change.

From Beans to Biodiversity: Why Regenerative Farming Works

Regenerative agriculture helps combat environmental degradation by restoring soil health and boosting its ability to store carbon. Healthy soil can hold more organic carbon, preventing it from entering the atmosphere as CO₂. This makes coffee farming part of the climate solution rather than a contributor to global warming.

Coffee production has a significant carbon footprint. One kilogram of green coffee can produce up to 15 kg of CO₂-equivalent emissions. This includes emissions from cultivation, processing, transport, and packaging.

  • By switching to regenerative methods, farms in the Nescafé program achieved a 20% to 40% reduction in GHG emissions per kilogram of green coffee in 2024.

Nescafé 2030 plan

Nestlé aims to reduce emissions from green coffee production by 50% by 2030. The company’s broader corporate target is to reach net-zero emissions by 2050.

In its latest climate report, Nestlé said its GHG emissions dropped by 13.5% from 2018 to 2023. This happened while its business volume increased.

Nestlé GHG emission reductions 2023
Source: Nestlé

How Is Nescafé Supporting Farmers and Communities?

Nescafé’s investment in regenerative coffee sourcing helps farmers make lasting changes. Nestlé’s $1 billion sustainability plan funds education, technical support, and tools for farmers to succeed.

The company works with farming communities in 16 countries, including Brazil, Colombia, Vietnam, and Ethiopia. These regions supply much of the world’s coffee and face increased climate stress.

Nescafé teaches farmers to use shade trees, natural compost, cover crops, and water-saving systems. This helps create stronger and more resilient farming systems.

Farmers adopting regenerative practices often see better yields, more stable incomes, and healthier land. Some are joining carbon markets via third-party verified emissions projects. This creates new income streams through carbon credits.

Each credit equals one ton of reduced or removed carbon from the atmosphere. Farmers can earn with carbon credits if their practices are shown to reduce emissions. In this way, regenerative agriculture supports both environmental and economic resilience.

How Does This Support Climate and Business Goals?

Reducing the carbon footprint of coffee is essential for global climate targets. Agriculture makes up around 24% of global greenhouse gas emissions. Coffee ranks as one of the most traded agricultural products.

Nescafé’s early steps in regenerative sourcing help Nestlé meet its science-based climate goals. The company’s coffee-specific emissions reductions—20% to 40% per kg in 2024—are among the best reported in the industry.

Nestlé is not just investing in sustainable energy. It is also working on water efficiency and changing packaging throughout its operations. Its 2030 plan aims to stop deforestation in supply chains. It also aims to expand carbon removal projects, like storing carbon in soil.

For Nescafé, this creates a cleaner production model from bean to cup. It enhances transparency and meets growing consumer and investor demands for sustainability performance.

The New Brew: Consumer Demand Fuels Sustainability

Global demand for sustainable coffee is rising quickly. Consumers care more about how their coffee is grown.

The coffee industry is worth over $100 billion each year. According to Statista, the sustainable coffee market is growing at an annual rate of 8.6% from 2021 to 2028. In another report, the market, valued at $393 billion in 2023, will reach $495 billion by 2032

global sustainable coffee market 2032
Source: Business Research Insights

A 2023 Nielsen report found that over 60% of global consumers are willing to pay more for sustainably sourced products. That figure rises to 73% among millennials. This shift in values is pushing brands to provide proof of environmental and social responsibility.

Nescafé sources 93% of its coffee responsibly. This means the coffee is traceable and verified by third-party standards. The move to regenerative agriculture takes that commitment further. It gives the brand an edge as regulations tighten and sustainability becomes a must-have rather than a bonus.

From an investment standpoint, companies that lead in sustainability are attracting more capital. Nestlé ranks high in ESG (environmental, social, and governance) indexes and has issued green bonds to fund its transition.

Analysts find long-term value in companies that:

  • Align with climate goals,
  • Reduce supply chain risk, and
  • Build consumer trust.

How Is Nescafé Setting New Industry Standards?

Nescafé’s actions raise the bar for the global coffee industry. Certifications like Rainforest Alliance and Fair Trade are still helpful. However, the industry is shifting focus. Now, it highlights measurable results and regenerative strategies.

Other major coffee brands, such as Starbucks and Lavazza, are also exploring regenerative models. However, Nescafé’s early achievement of its 2025 goal and public reporting give it a leadership edge.

The brand invests in farmers, shares information clearly, and emphasizes science-based climate action. This strategy shows how big brands can impact agricultural systems.

As pressure rises from regulators, consumers, and investors, companies must show real climate progress. Regenerative sourcing helps the planet. It’s also key for brand reputation, market share, and future growth.

A Model for Scalable Climate Action

Nescafé has shown that big changes are possible with clear goals, investment, and farmer partnerships. By surpassing its 2025 target a year early, the brand has proven that regenerative agriculture can be adopted at scale and deliver strong environmental results.

Its focus on lowering GHG emissions, enhancing soil health, and aiding farmers keeps it ahead in a competitive, climate-aware market. With this, Nescafé’s achievements will play a major role in Nestlé’s journey to meet its 2030 and 2050 climate goals. This progress reinforces a growing trend: sustainability is no longer a niche—it’s the future of farming and food production.

The post How Nestlé’s Nescafé Hits Coffee Sustainability Goals Early: A Climate Win in Every Cup appeared first on Carbon Credits.

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EPA Pushes Rollback on Carbon Rules for Fossil Fuel Plants — Is U.S. Net Zero Target at Stake?

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EPA

The U.S. Environmental Protection Agency (EPA) has proposed a sweeping rollback of key emissions rules for fossil fuel power plants. On March 12, 2025, EPA Administrator Lee Zeldin announced plans to repeal Biden-era regulations aimed at cutting greenhouse gas emissions, including the updated Clean Power Plan and stricter Mercury and Air Toxics Standards (MATS).

This move aligns with President Trump’s energy agenda and is framed as part of the “Power the Great American Comeback” campaign. According to the EPA, the rollback could save the power sector $19 billion over two decades, or roughly $1.2 billion per year, starting in 2026.

Trump-Era EPA Move Targets Biden’s Climate Rules: Will the Climate Impact Be Severe?

EPA Administrator Zeldin highlighted,

“Affordable, reliable electricity is key to the American dream and a natural byproduct of national energy dominance. According to many, the primary purpose of these Biden-Harris administration regulations was to destroy industries that didn’t align with their narrow-minded climate change zealotry. Together, these rules have been criticized as being designed to regulate coal, oil and gas out of existence.”

The 2024 Clean Power Plan 2.0, finalized under the Biden administration, was expected to cut 1.38 billion metric tons of carbon dioxide by 2047. That’s equivalent to taking over 320 million gasoline-powered cars off the road for a year.

  • The U.S. is the world’s second-largest emitter and has the highest per-capita emissions. That puts a big responsibility on the country to lead climate action.

But hitting the 2030 climate goal won’t be easy. The Rhodium Group says emissions must fall by 7.6% every year from 2025 to 2030. And undoubtedly, that’s a steep drop.

us emissions

By revoking this plan, the U.S. risks losing one of its most ambitious tools for slashing power sector emissions. The plan also targeted other air pollutants known to harm human health, including fine particulates and heavy metals like mercury and arsenic.

EPA Seeks End to CO₂ Limits for Power Plants

The EPA’s proposal includes eliminating all greenhouse gas standards under Section 111 of the Clean Air Act for both new and existing fossil fuel plants. The agency argues that CO₂ emissions from power plants do not significantly contribute to “dangerous air pollution” as defined under the Act. Therefore, they say these emissions shouldn’t be regulated in this way.

The proposal would also reverse a 2024 rule requiring carbon capture and storage (CCS) technology on new natural gas and modified coal plants. Instead, the EPA is considering less strict efficiency-based rules for new gas plants.

U.S. EMISSIONS
Source: EIA

Repeal of Mercury and Air Toxics Standards (MATS) Amendments 

Alongside the carbon rules, the EPA wants to eliminate amendments made in 2024 to the Mercury and Air Toxics Standards. These changes had tightened mercury and particulate matter limits for coal- and oil-fired plants. The rollback would revert the standards to their 2012 levels.

The agency estimates this repeal could save the power industry another $1.2 billion over ten years beginning in 2028. However, environmental groups argue that the 2024 MATS updates were necessary to protect communities, especially in states like West Virginia, Texas, and North Carolina, where coal power remains a key energy source.

Cites Supreme Court Ruling in Justification

The EPA is leaning on the 2022 Supreme Court decision in West Virginia v. EPA, which limited the agency’s authority to reshape the U.S. energy mix under the “major questions doctrine.” Critics of the Biden administration’s rule say it tried to revive the original Clean Power Plan, which had been blocked by the courts years earlier.

It now argues that regulating power plant CO₂ emissions exceeds its authority and shifts energy decisions away from states and consumers.

Energy Security vs. Climate Commitments

The rollback is being pitched as an effort to lower energy costs, boost national security, and strengthen U.S. manufacturing. Supporters say it removes red tape for coal and gas plants that supply reliable baseload power, especially important for sectors like AI, data centers, and heavy industry.

But critics argue that the proposed changes put the U.S. at odds with its international climate commitments. The Biden administration had pledged to reach net-zero emissions by 2050, and cutting power plant emissions is a key part of that roadmap.

What’s Next for U.S. Climate Policy?

The proposed repeals are subject to public comment before being finalized. However, the EPA’s new direction signals a dramatic shift away from federal climate regulation—one that could reshape everything from clean energy incentives to carbon trading strategies.

For now, the message from the EPA is clear: the focus is shifting from emissions cuts to energy affordability and independence. But at what cost? The answer may lie in future carbon market trends, climate data, and the response from U.S. states and industries.

The post EPA Pushes Rollback on Carbon Rules for Fossil Fuel Plants — Is U.S. Net Zero Target at Stake? appeared first on Carbon Credits.

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Hanwha Qcells Launches EcoRecycle for Solar Panel Recycling

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solar panel

Hanwha Qcells has launched a solar panel recycling program called EcoRecycle. The company aims to recycle up to 250 megawatts (MW) of solar panels each year. This effort will reduce waste and promote sustainable energy in the U.S. It meets the growing need for solar panel recycling as the industry expands.

Why Qcells Chose Georgia?

Qcells chose Georgia for its new recycling facility. The company already runs major solar projects in the state, which is a hub for solar energy. Expanding there allows Qcells to use existing infrastructure and a skilled local workforce.

This year, EcoRecycle will begin operations at a state-of-the-art facility in Cartersville, Georgia. At full capacity, it can recycle about 250 MW of solar panels each year—around 500,000 panels—recovering materials like aluminum, glass, silver, and copper. EcoRecycle plans to expand its centers across the U.S. to boost efficiency.

This move helps the local economy by creating jobs and promoting green technology. Georgia is key to U.S. solar growth. It’s an ideal place for a large-scale recycling program that can transform how the industry manages solar waste.

Jung-Kwon Hong, Head of Hanwha Qcells Manufacturing Group

“As the U.S. moves towards a more sustainable and self-reliant solar industry, EcoRecycle by Qcells is committed to pioneering innovative recycling technologies that not only reduce environmental impact but also create economic opportunities. Through strategic investments and cutting-edge solutions, we are positioning ourselves as a leader in the circular economy, ensuring that solar energy remains a truly renewable and responsible power source.”

What Makes EcoRecycle Important for Solar Waste?

Solar panels typically last 25 to 30 years. As older panels reach the end of their life, they create a waste problem. Currently, less than 10% of solar panels are recycled. Most end up in landfills, wasting valuable materials like glass, aluminum, silicon, and silver.

Qcells wants to change this with EcoRecycle. The goal is to recover key materials and reuse them in new products. By keeping these materials in circulation, Qcells helps reduce emissions tied to mining and production, which are crucial steps in fighting climate change.

Kelly Weger, Senior Director of Sustainability at Hanwha Qcells said,

“With this new business, Hanwha Qcells will emerge as the first-ever crystalline silicon (C-Si) solar panel producer to possess a full value chain, conducting both solar panel manufacturing and recycling on U.S. soil. Effectively managing solar waste is essential to ensure the long-term sustainability and resilience of the clean energy sector. We’re proud to be leading the charge with the launch of EcoRecycle by Qcells.”

To boost its recycling efforts, Qcells partnered with Solarcycle, a company that specializes in solar panel recycling. Solarcycle uses innovative technology to separate valuable components from old panels. These parts, like silicon and precious metals, can be reused to make new panels.

This partnership allows Qcells to recycle more efficiently. It also shows how collaboration can help the solar sector adopt greener practices.

Recycling Solar Waste and Its Impact on the Environment

As global demand for solar energy grows, solar panel installations are rapidly increasing. At the same time, concerns are rising about carbon emissions from panel production and how to manage solar waste.

Measuring Solar’s Life-Cycle Emissions 

Life-cycle emissions refer to the total greenhouse gases released throughout the entire process of producing energy, from mining raw materials and manufacturing to installation, maintenance, and final disposal.

According to the Intergovernmental Panel on Climate Change (IPCC), producing 1 kilowatt-hour (kWh) of electricity from rooftop solar panels results in about 41 grams of CO2 equivalents—the same weight as a medium-sized chicken egg.

While solar energy isn’t completely carbon-free, its emissions are significantly lower than those from fossil fuel-based electricity, making it a much cleaner alternative.

Recycling solar panels cuts the need for raw materials like mined aluminum, copper, and glass. By reusing these materials, Qcells reduces energy use and carbon emissions tied to production.

solar emissions
Source: Image taken from Solar.com

In 2023, the Qcells division took responsibility by launching an extended producer responsibility (EPR) program and setting up an eco-friendly system to recycle waste panels.

Additionally, Solarcycle’s advanced resource separation can recover up to 95% of materials in a panel. This means less waste in landfills and fewer carbon emissions from mining and transporting raw materials. With solar panel waste expected to reach 76 million tons globally by 2030, EcoRecycle helps ease that future burden.

Boosting the U.S. Solar Sector

The U.S. solar sector is rapidly growing, currently valued at $20 billion. It will continue to expand as more homes and businesses adopt solar. However, this growth also creates more waste unless recycling becomes standard.

By launching EcoRecycle, Qcells prepares for future regulations and market demands. Currently, there are no national laws for solar panel recycling, though some states are starting to discuss it. If these laws pass, Qcells will be well-positioned to start early.

Recycling also reduces the solar industry’s reliance on imports for key materials, protecting companies from price changes. This stability gives manufacturers reliable domestic supplies of materials.

Trends Driving Solar Panel Recycling

In the renewable energy sector, companies are focusing more on the entire product lifecycle. This means designing solar technology for both performance and end-of-life management. More firms invest in recycling to maximize the value of their materials.

Businesses and governments promote a circular economy in solar, where products are reused or remade instead of being discarded. This approach reduces waste and supports long-term sustainability goals. Initiatives like Qcells’ EcoRecycle show this strategy in action.

Industry experts agree that effective recycling will shape the next phase of solar growth. According to EIA’s latest forecast, the US expects 63GW of new utility-scale power projects in 2025, with solar PV leading the way. Utility-scale solar PV will contribute 32.5GW, making up 52% of the total.

US SOLAR

However, this growth brings increased waste. If recycling doesn’t keep pace, the solar boom could lead to major environmental challenges.

EcoRecycle addresses the urgent need for infrastructure to manage outdated and damaged panels. With Solarcycle’s advanced recovery technology, Qcells takes an early lead in a market with few large-scale recyclers. This offers both environmental and competitive advantages.

Public pressure is also growing. Consumers want to know what happens to products after they use them. They prefer brands that act responsibly. Qcells’ program meets this demand. It builds trust with an audience that cares about sustainable energy choices.

EcoRecycle Sets a New Standard in Solar Tech Management

EcoRecycle sets a new standard for responsible solar tech management. Growth is important, but the solar industry must handle its waste. If it doesn’t, it risks undermining its green mission. Hanwha Qcells is an example of this by its investment in recycling. They offer a roadmap for others to follow.

As technology advances and regulations change, recycling will likely become central to solar economics. Qcells’ proactive approach lets it shape the market while helping reduce emissions and landfill waste. It’s not just about solar power; it’s about building a sustainable future.

With EcoRecycle, Qcells has taken a significant step forward. It paves the way for a future where energy is clean, smart, and sustainable.

The post Hanwha Qcells Launches EcoRecycle for Solar Panel Recycling appeared first on Carbon Credits.

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