India is preparing a major public funding push for carbon capture, utilization, and storage, also known as CCUS. In the Union Budget for 2026–27, the government set out a plan to support CCUS with a proposed outlay of ₹20,000 crore over the next five years. That is ₹200 billion, which is about US$2.2 billion.
The budget document places the measure under efforts to improve long-term energy security and stability. It also describes CCUS as a scheme with that ₹20,000 crore outlay.
The amount matters because CCUS is expensive and hard to scale. A clear budget line signals that India wants to move beyond small pilots and research projects. It also shows the government is looking for options to reduce emissions in industries that are difficult to clean up quickly.
The plan comes as India faces a practical challenge. The country is building large amounts of renewable energy, but parts of the economy still rely on high-emitting industrial processes.
Cement, steel, refineries, chemicals, and thermal power remain central to growth. These sectors often cannot cut emissions to near zero with renewables alone, at least not in the short term. This is where the government sees a role for carbon capture.
From Policy Papers to Pipes and Storage
The budget measure points to CCUS as a way to raise “technology readiness” and expand end-use applications. In plain terms, that means the government wants more projects that move from study to real equipment in real plants. It also suggests the plan will target large emitting sectors where capture and storage could, in theory, reduce emissions without shutting down existing production too quickly.
India’s Ministry of Petroleum and Natural Gas has already described CCUS as an area where it is working to build a practical strategy and encourage collaboration across the oil and gas sector. That includes planning for how to implement capture, transport, use, and storage options in India’s energy system.
This new budget funding could connect to that effort in two ways.
- First, it can reduce early financial risk for companies. Carbon capture equipment adds cost. It also adds operating needs, such as energy use, maintenance, and monitoring. Without support, many firms delay investment because they do not see a near-term return.
- Second, it can help build shared infrastructure. CCUS is not just one machine, and it often needs pipelines, compressors, monitoring systems, and long-term storage sites. Shared infrastructure can lower costs when several plants connect to the same transport and storage network.
The budget document does not yet list every rule, incentive rate, or eligibility condition in the public summary. But the stated five-year outlay sets a clear ceiling for public support and signals that the government expects a pipeline of projects, not a single pilot.
Why India is Looking at Carbon Capture Now
India has set a long-term goal of net-zero emissions by 2070. That pledge has shaped policy planning across power, industry, fuels, and carbon markets.
In a 2022 press release on a national CCUS policy study, the government highlighted India’s climate direction, including steps toward net zero by 2070 and the need to cut emissions in hard-to-abate sectors.
In late 2025, India also released a national R&D roadmap for CCUS through the Department of Science and Technology. The roadmap aims to guide coordinated action and speed up technology deployment, with a focus on hard-to-abate sectors such as cement, steel, and power.
These moves show a pattern. India is building the “soft” parts of a CCUS system first—research priorities, policy frameworks, and coordination. The budget outlay is a step toward the “hard” parts—real projects and infrastructure.
There is also an external trade pressure. Many Indian exporters expect stricter carbon rules in major markets. Policies such as the European Union’s carbon border measures have pushed firms to look for ways to reduce the emissions tied to their products.
CCUS is one option that can reduce emissions at the facility level, especially in cement, steel, and refining, where process emissions are hard to remove.
At the same time, India still needs to expand its energy supply for growth. That includes reliable power for industry and cities. A CCUS program can fit into this reality because it aims to cut emissions without requiring an immediate shutdown of existing assets.
A Tool for Tough Emissions, Not a Silver Bullet
CCUS works in three main steps. First, a plant captures carbon dioxide from flue gases or industrial streams. Second, it compresses and transports the CO₂. Third, it stores the CO₂ underground or uses it in products such as fuels, chemicals, building materials, or enhanced oil recovery.
In practice, storage is the main constraint. Projects need suitable geology, injection tests, monitoring systems, and long-term rules on liability. Without proven storage, capture alone does not deliver lasting emissions cuts. Below is India’s carbon storage capacity shown in a geological map:
Globally, CCUS remains far below the scale required in net-zero scenarios. The International Energy Agency (IEA) estimates that global carbon capture capacity reached just over 50 million tonnes of CO₂ per year as of early 2025. This is up modestly from earlier years but still far below the levels needed in most net-zero climate pathways.
In its Net Zero pathway, capture rises to 1,024 Mt by 2030 and 6,040 Mt by 2050. As of early 2025, only just over 50 Mt per year of capture capacity is operating worldwide.
The IEA reports that even if all planned projects move forward, global capture capacity will only hit about 430 Mt per year by 2030. The planned storage capacity is around 670 Mt. This gap explains why the IEA stresses faster storage development and shorter project lead times.
India has been laying the groundwork for this challenge. A draft 2030 CCUS roadmap linked to the oil and gas sector compiles early estimates of national storage potential.
It identifies deep saline aquifers as the largest category, with about 291 gigatonnes (Gt) of estimated capacity. It mentions potential storage of 97–316 Gt in basalt formations, 3.5–6.3 Gt in coal reservoirs, and around 1.2 Gt in oil fields for CO₂-enhanced oil recovery. These figures reflect theoretical or early-stage estimates and still require site-level validation.
CCUS is most relevant in hard-to-abate sectors where emissions come from chemistry, not just fuel use. Cement is a clear example. Even with clean power, roughly half of cement emissions come from the calcination process itself. Steel also poses challenges, as the sector emits high carbon.
Costs remain a key barrier. The IEA estimates capture costs of $15–25 per tonne of CO₂ for high-purity industrial streams. In contrast, more diluted streams, like cement or power generation, cost $40–120 per tonne. Transport, injection, and long-term monitoring add further costs and complexity.
These limits explain why CCUS is not a replacement for renewables, efficiency, or electrification. India’s policy shows that the government views CCUS as a helpful tool. It can cut emissions in tough sectors, but only if storage, regulation, and project delivery happen quickly.
Where the Money Goes Will Matter Most
The headline figure—₹20,000 crore over five years—sets the scale. What matters next is how the money is used.
Project selection will shape outcomes. A focus on a few large hubs could support shared CO₂ transport and storage. A scattered approach may fund pilots but limit infrastructure build-out.
Sector priorities also matter. Budget signals point to power, steel, cement, refineries, and chemicals—all high-emitting industries with large and, in some cases, concentrated CO₂ streams.
Rules will be just as important as funding. India is developing an Indian Carbon Market under the Carbon Credit Trading Scheme. Companies will need clarity on whether captured and stored CO₂ can earn credits and under what standards.
Storage readiness remains a final test. Proven sites, test drilling, and long-term monitoring will be essential to move from plans to scale. If these pieces align, public funding could accelerate real deployment. If not, it may support pilots without delivering deep emissions cuts.
For now, the budget line makes one point clear. India is putting real public funding behind carbon capture, and it is doing so with an amount large enough to change corporate planning in several heavy industries.
The post India Puts $2.2 Billion for Carbon Capture in 2026-2027 Budget appeared first on Carbon Credits.
Bitcoin’s recent drop below $70,000 reflects more than short-term market pressure. It signals a deeper shift. The world’s largest cryptocurrency is becoming increasingly tied to global energy markets.
For years, Bitcoin has moved mainly on investor sentiment, adoption trends, and regulation. Today, another force is shaping its direction: the cost of energy.
As oil prices rise and electricity markets tighten, Bitcoin is starting to behave less like a tech asset and more like an energy-dependent system. This shift is changing how investors, analysts, and policymakers understand crypto.
A Global Power Consumer: Inside Bitcoin’s Energy Use
Bitcoin depends on mining, a process that uses powerful computers to verify transactions. These machines run continuously and consume large amounts of electricity.
Data from the U.S. Energy Information Administration shows Bitcoin mining used between 67 and 240 terawatt-hours (TWh) of electricity in 2023, with a midpoint estimate of about 120 TWh.
Other estimates place consumption closer to 170 TWh per year in 2025. This accounts for roughly 0.5% of global electricity demand. Recently, as of February 2026, estimates see Bitcoin’s energy use reaching over 200 TWh per year.
That level of energy use is significant. Global electricity demand reached about 27,400 TWh in 2023. Bitcoin’s share may seem small, but it is comparable to the power use of mid-sized countries.
The network also requires steady power. Estimates suggest it draws around 10 gigawatts continuously, similar to several large power plants operating at full capacity. This constant demand makes energy costs central to Bitcoin’s economics.
When Oil Rises, Bitcoin Falls
Bitcoin mining is highly sensitive to electricity prices. Energy is the highest operating cost for miners. When power becomes more expensive, profit margins shrink.
Recent market movements show this link clearly. As oil prices rise and inflation concerns persist, energy costs have increased. At the same time, Bitcoin prices have weakened, falling below the $70,000 level.
This is not a coincidence. Studies show a direct relationship between Bitcoin prices, mining activity, and electricity use. When Bitcoin prices rise, more miners join the network, increasing energy demand. When energy costs rise, less efficient miners may shut down, reducing activity and adding selling pressure.
This creates a feedback loop between crypto and energy markets. Bitcoin is no longer driven only by demand and speculation. It is now influenced by the same forces that affect oil, gas, and power prices.
Cleaner Energy Use Is Growing, but Fossil Fuels Still Matter
Bitcoin’s environmental impact depends on its energy mix. This mix is improving, but it remains uneven.
A 2025 study from the Cambridge Centre for Alternative Finance found that 52.4% of Bitcoin mining now uses sustainable energy. This includes both renewable sources (42.6%) and nuclear power (9.8%). The share has risen significantly from about 37.6% in 2022.
Despite this progress, fossil fuels still account for a large portion of mining energy. Natural gas alone makes up about 38.2%, while coal continues to contribute a smaller share.
This reliance on fossil fuels keeps emissions high. Current estimates suggest Bitcoin produces more than 114 million tons of carbon dioxide each year. That puts it in line with emissions from some industrial sectors.
The shift toward cleaner energy is real, but it is not complete. The pace of change will play a key role in how Bitcoin fits into global climate goals.
Bitcoin’s Climate Debate Intensifies
Bitcoin’s growing energy demand has placed it at the center of ESG discussions. Its impact is often measured through three key areas:
- Total electricity use, which rivals that of entire countries.
- Carbon emissions are estimated at over 100 million tons of CO₂ annually.
- Energy intensity, with a single transaction using large amounts of power.
At the same time, the industry is evolving. Mining companies are adopting more efficient hardware and exploring new energy sources. Some operations use excess renewable power or capture waste energy, such as flare gas from oil fields.
These efforts show progress, but they do not fully address the concerns. The gap between Bitcoin’s energy use and its environmental impact remains a key issue for investors and regulators.
- MUST READ: Bitcoin Price Hits All-Time High Above $126K: ETFs, Market Drivers, and the Future of Digital Gold
Bitcoin Is Becoming Part of the Energy System
Bitcoin mining is now closely integrated with the broader energy system. Operators often choose locations based on access to cheap or excess electricity. This includes areas with strong renewable generation or underused energy resources.
This integration creates both opportunities and challenges. On one hand, mining can support energy systems by using power that might otherwise go to waste. It can also provide flexible demand that helps stabilize grids.
On the other hand, it can increase pressure on local electricity supplies and extend the use of fossil fuels if cleaner options are not available.
In the United States, Bitcoin mining could account for up to 2.3% of total electricity demand in certain scenarios. This highlights how quickly the sector is scaling and how closely it is tied to national energy systems.
Energy Markets Are Now Key to Bitcoin’s Future
Looking ahead, the connection between Bitcoin and energy is expected to grow stronger. The network’s computing power, or hash rate, continues to reach new highs, which typically leads to higher energy use.
Electricity will remain the main cost for miners. This means Bitcoin will continue to respond to changes in energy prices and supply conditions. At the same time, governments are starting to pay closer attention to crypto’s environmental impact, which could shape future regulations.
Some forecasts suggest Bitcoin’s energy use could rise sharply if adoption increases, potentially reaching up to 400 TWh in extreme scenarios. However, cleaner energy systems could reduce the carbon impact over time.
Bitcoin is no longer just a financial asset. It is also a large-scale energy consumer and a growing part of the global power system.
As a result, understanding Bitcoin now requires a broader view. Energy prices, electricity markets, and carbon trends are becoming just as important as market demand and investor sentiment.
The message is clear. As energy markets move, Bitcoin is likely to move with them.
The post Bitcoin Falls as Energy Prices Rise: Why Crypto Is Now an Energy Market Story appeared first on Carbon Credits.
The LEGO Group is giving its new Virginia factory a major clean energy upgrade. The company plans to build a large on-site solar park at LEGO Manufacturing Virginia in Chesterfield County. At the same time, it will add thousands of rooftop solar panels across the site.
Together, these projects mark a big step toward LEGO’s goal of covering 100% of the facility’s yearly electricity needs with renewable energy. The move also shows how the toy giant is tying factory expansion to its wider climate strategy.
A Big Solar Build for a Big Factory
The company announced that its Virginia site is one of its biggest investments in the U.S, having more than 28 MWp of on-site solar capacity in total. Now it is also becoming one of its most important clean energy projects.
- Construction on the solar park should begin in summer 2026. The ground-mounted system will include more than 30,700 solar panels and deliver 22 megawatt-peak (MWp) of capacity.
- The solar park will spread across nearly 80 acres at the Chesterfield factory site. On top of that, LEGO plans to install 10,080 rooftop solar panels, adding another 6.11 MWp.
Thus, it is a core part of how the company wants this factory to operate from the start.
Lego also said the solar build is a major milestone in its effort to source renewable energy for the plant’s annual needs. That matters because the factory is being designed as a long-term manufacturing hub, not just a packaging or distribution site.
Jesus Ibañez, General Manager of LEGO Manufacturing Virginia, said:
“We’re proud of the progress we continue to make. These initiatives are key to increasing our use of renewable energy and support our ongoing commitment towards more sustainable operations.”
Using Mass Timber for Low- Carbon Factory
The solar park is only one part of the Virginia story. LEGO is also trying to reduce the site’s footprint through the building design itself.
Construction is moving ahead on schedule after the main factory reached its steel topping-out milestone in October 2025. The site’s office space, built with mass timber, is expected to top out later in spring 2026. Mass timber matters because it is a renewable material and can store carbon, unlike many traditional building materials that come with heavier emissions.
Focuses on Energy, Waste, and Better Materials
LEGO also wants the facility to earn LEED Platinum certification once completed. That target covers energy, water, and waste performance. The company further said the Virginia site shares the same goal as all LEGO operations: zero waste to landfill.
In simple terms, it wants almost all factory waste to be reused, recycled, composted, or sent to non-landfill treatment.
These details matter because clean power alone does not make a factory sustainable. Companies also need smarter materials, better energy use, and stronger waste systems. LEGO seems to be taking that broader route here.
Long-Term Impact: Jobs and Local Growth
The Virginia factory is not just about energy. It is also a major job project.
More than 500 people already work across the factory under construction and LEGO’s temporary packing facility. That number is expected to rise to about 900 by the end of 2026 as the company gets ready to run highly automated molding and packing equipment.
The overall investment in the site and regional distribution center is more than $1.5 billion. The full campus covers 340 acres and includes 13 buildings with roughly 1.7 million square feet of space. LEGO has said the site is expected to create more than 1,700 jobs over 10 years.
The company is also trying to build stronger local ties while construction continues. In February 2026, LEGO announced more than $1.3 million in grants for eight nonprofit groups in the Greater Richmond area. Since 2022, it has provided more than $3.5 million in local grants through the LEGO Foundation.
So, the Virginia site is becoming more than a factory. It is shaping up as a long-term regional base for manufacturing, jobs, and community funding.
Is LEGO’s Net-Zero Plan Still A Work in Progress?
The company has committed to reaching net-zero greenhouse gas emissions by 2050 across its full value chain. The Virginia solar project also fits into LEGO’s bigger climate plan.
It also has near-term targets validated by the Science Based Targets initiative, aiming to cut absolute Scope 1 and 2 emissions by 37% by 2032 from a 2019 baseline, and reduce Scope 3 emissions by the same amount. Those targets align with the 1.5°C pathway.
However, the toy maker’s emissions rose in 2024 as consumer sales grew faster than expected. Its greenhouse gas emissions are approximately 144,400 metric tons of CO₂‑equivalent (around 144.4 million kg CO₂e) globally.
The company noted that higher product demand pushed carbon emissions 3.9% above target, even as it increased spending on more sustainable manufacturing. This means that when a business grows fast, cutting emissions gets harder, not easier.
Even so, LEGO says it remains committed to its climate goals and is investing in local solutions at each factory rather than using a one-size-fits-all model. That approach makes sense because every site has different energy systems, weather, and infrastructure options.
Renewable Growth Spreads Across Global Sites
The company also expanded renewable energy projects at other locations in 2024. It added 6.64 MWp of solar capacity across operations globally, a 43% increase from the previous year.
- In Kladno, Czech Republic, it expanded rooftop solar by 1.5 MWp, bringing total capacity there to 2.5 MWp.
- In Billund, Denmark, it added 4.4 MWp, bringing the site’s total solar capacity to 5.5 MWp.
It also cut Scope 1 emissions in Billund by moving 11 buildings from natural gas to district heating, saving about 1,064 tonnes of CO2e each year. Meanwhile, LEGO launched a geothermal project in Hungary and upgraded heat-recovery systems in Jiaxing, China, to reduce gas use.
Progress in Waste Reduction
- In 2024, its manufacturing sites generated a total of 25,859 tonnes of waste, which was 7.6% below the target of 28,000 tonnes.
As a remedy for this situation, factories in Denmark, China, and Mexico improved moulding processes to recover more raw materials and cut waste. These efforts reduced scrap by more than 160 tons, helped by digital tools that identified materials for reuse and improved efficiency.
Additionally, in the Czech Republic, it also introduced more circular packing methods. The factory reused 39% of cardboard tube cores from suppliers and tested returnable inbound packaging, cutting waste by more than 39 tons a year.
Of course, none of this solves LEGO’s full emissions challenge overnight. Scope 3 emissions across the supply chain will still be the harder part.
However, taken together, these efforts show a company trying to clean up its manufacturing footprint piece by piece. The Virginia project stands out because of its scale, but it is part of a wider pattern. Even though it is still under construction, it already shows what modern industrial planning can look like: on-site renewables, lower-carbon materials, waste reduction, and job creation in one package.
But this project gives LEGO something important: a real, visible step forward. And in climate action, visible progress matters.
The post LEGO’s Virginia Factory Goes Big on Solar as Net-Zero Push Speeds Up appeared first on Carbon Credits.
Carbon Footprint
Chanel Reveals First Climate Transition Plan: How the Luxury Giant Aims to Hit Net-Zero
Chanel has unveiled its first comprehensive climate transition plan, charting a clear path to net-zero emissions by 2040. Building on its earlier “Mission 1.5°” strategy, the plan aligns with global climate standards and follows the Science-Based Targets initiative (SBTi). This means Chanel must reduce at least 90% of its emissions and remove the remainder.
The move shows a bigger change in luxury brands. They face more pressure from investors, regulators, and customers to take real climate action. Many companies now publish detailed transition plans to show how they intend to meet their net-zero commitments.
For Chanel, climate considerations are no longer immaterial—they now inform core business decisions, from risk management to opportunity assessment.
Breaking Down Chanel’s 1M Tonnes Carbon Footprint
In its Climate Transition Plan, Chanel reported total emissions of about 1.12 million tonnes of CO₂e in 2024. Most of these emissions do not come from its own stores or offices. Instead, they come from its supply chain.
- Scope 1 and 2 emissions: 2% of total (about 24,071 tonnes)
- Scope 3 emissions: 98% of total (about 1.1 million tonnes)
This shows a key challenge. Like many fashion brands, Chanel’s biggest impact is upstream. That includes raw materials, manufacturing, and logistics. The largest source is purchased goods and services, which account for over 626,000 tonnes of CO₂e.
Other major sources include:
- Capital goods: about 222,000 tonnes
- Transport and distribution: over 114,000 tonnes
- Business travel: over 53,000 tonnes
These figures highlight how complex the fashion supply chain is. It also shows why cutting emissions is harder than in other sectors.
Clear Targets: 2030 and 2040 Milestones
Chanel has set both near-term and long-term net-zero targets to tackle its carbon footprint. By 2030, the company aims to:
- Cut Scope 1 and 2 emissions by 50%, and cut Scope 3 emissions by 42%.
By 2040, the goal is deeper:
- Cut all emissions (Scope 1, 2, and 3) by 90%, and remove the remaining emissions through carbon removals.
Specific targets also cover land-based emissions associated with raw materials like leather and cashmere, with reductions of 30.3% by 2030 and 72% by 2040.
Importantly, Chanel does not rely on carbon offset credits to meet its targets. Instead, it focuses on real emissions cuts. This aligns with stricter global standards. Many frameworks now limit the use of offsets in net-zero plans.
Progress So Far: Renewable Energy and Supply Chain Improvements
The French luxury brand has already achieved measurable progress. Direct emissions have fallen 22% since 2021, driven primarily by the use of renewable energy. By 2024, 99% of the company’s electricity came from renewable sources, and the goal is to reach 100% by 2025.
Long-term power purchase agreements, including solar projects across Asia and Europe, have supported this transition.
Scope 3 emissions have also improved, declining 10% relative to 2021. Raw material emissions dropped 20% in 2024, thanks to changes in sourcing and the adoption of lower-impact inputs such as sustainable leather and cashmere.
How Chanel Plans to Cut Emissions and Reach Net Zero
The company’s strategy to tackle its emissions focuses on six main areas:
- optimizing operations,
- adopting lower-impact materials and packaging,
- implementing sustainable design in construction and events,
- shifting to low-emission logistics,
- promoting electric mobility, and
- engaging closely with suppliers.
Since Scope 3 emissions dominate the total footprint, supplier engagement is crucial.
Innovation also plays a key role. Chanel supports initiatives that reduce energy consumption in manufacturing, such as a project that lowered energy use by 27% at a supplier site. Circular design is another focus, with investments in repair services and durable products to extend product life.
Beyond Emissions: Climate Investment and Social Impact
Chanel’s climate plan extends beyond emissions reductions. The company invests in nature and climate projects, including the LEAF Coalition for forest protection, sustainable agriculture programs, and community-based climate initiatives.
In 2024, Chanel committed $125 million to Fondation Chanel, part of which funds women-led climate programs, tying environmental action to social impact. This approach embodies a “just transition,” ensuring that climate action also benefits workers and communities.
The Luxury Sector Shifts: Chanel Sets the Bar for Fashion
Chanel’s plan reflects a wider shift in the fashion and luxury sector. The industry faces growing pressure to act on climate. Fashion accounts for an estimated 2% to 8% of global emissions, based on various global studies.
Supply chains are complex and global, making change harder. At the same time, regulations are tightening. New rules in Europe and other regions require companies to disclose emissions and transition plans.
Many brands are now setting net-zero targets. But not all have detailed plans. Chanel’s transition plan stands out because it includes:
- Full emissions data
- Clear reduction targets
- A roadmap for action
Still, challenges remain. Cutting Scope 3 emissions is difficult. It depends on suppliers, technology, and costs. There is also a risk of slow progress. New materials, clean energy, and circular systems take time to scale.
Looking Ahead: A Long Road to Net-Zero
Chanel’s transition plan represents a significant step in addressing over 1 million tonnes of emissions. Progress in operations and energy use is evident, but the supply chain remains the most difficult hurdle.
Achieving net-zero by 2040 will require transforming material sourcing, deep collaboration with suppliers, and investment in new technologies.
As consumer demand for low-carbon products grows and investors increasingly scrutinize climate risks, transition plans have become a business imperative. Chanel’s strategy highlights a key trend: climate action is no longer a peripheral responsibility—it is integral to growth, risk management, and long-term value creation.
The post Chanel Reveals First Climate Transition Plan: How the Luxury Giant Aims to Hit Net-Zero appeared first on Carbon Credits.
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