A recently published report from CarbonBrief explained that China’s carbon dioxide (CO2) emissions have shown signs of stabilization for the past 18 months, from March 2024 through the third quarter of 2025. This marks a major shift for the world’s largest emitter, as strong renewable energy growth and electric vehicle (EV) adoption begin to offset emissions from heavy industry.

China’s Renewable Boom Drives a Historic Emissions Slowdown

The global renewable boom adds further momentum. International Energy Agency’s (IEA) Renewables 2025 report shows that the world added over 510 GW of renewable capacity in 2024 — the fastest pace in history. Another 520 GW is expected in 2025, with solar making up nearly 75% of new installations.

China alone contributes nearly 60% of the world’s renewable capacity — around 1,400 GW in total. Renewables now supply over 35% of China’s electricity, up from 27% in 2020.

Notably, China’s emissions have remained flat or slightly fallen for six consecutive quarters — a remarkable change after decades of growth. The key driver behind this trend is the country’s unprecedented expansion of renewable energy capacity.

• According to the IEA, in 2025 China added about 240 gigawatts (GW) of solar and 61 GW of wind capacity in the first nine months alone, setting a new global record.

Solar power generation rose 46% year-on-year, while wind increased by 11%. These clean energy gains allowed China to meet rising electricity demand — which grew by 6.1% in Q3 2025 — without increasing fossil fuel use.

Furthermore, power-sector CO2 emissions held steady in the third quarter, supported by renewable growth and small boosts from nuclear and hydropower. As renewables continue to expand, they are covering nearly all of the new electricity demand in China.

• ALSO READ: China’s Clean Energy Cuts Emissions 1%, But Coal and Industry Cast a Shadow 

Electric Vehicles Cut Transport Emissions

The rapid growth of electric vehicles has been another key factor in flattening China’s emissions curve. The CarbonBrief report highlighted that in the third quarter of 2025, transport fuel emissions dropped by 5% year-on-year, as more drivers switched from gasoline and diesel cars to EVs.

This trend also highlights China’s policy success in electrifying its vehicle fleet. The country leads the world in EV production and adoption, supported by strong government incentives and expanding charging networks.

However, emissions from other oil-consuming sectors rose by 10%, driven mainly by a surge in chemical and plastics production. This increase in industrial demand offset the transport sector’s emission gains and kept total oil-related emissions slightly higher.

Industrial Emissions Paint a Mixed Picture

While China’s renewable and EV progress is impressive, heavy industries continue to weigh on its emission profile. In the third quarter of 2025:

• Cement and building materials emissions fell 7%, reflecting a prolonged real estate slowdown.
• Steel sector emissions declined 1%, even as output dropped 3%.

Interestingly, lower demand in steelmaking was absorbed mostly by electric-arc furnace (EAF) producers, who are less carbon-intensive. Yet, China’s transition toward cleaner steelmaking remains slow due to entrenched coal-based production and limited policy enforcement.

Meanwhile, chemical industry emissions surged, with both coal and oil consumption rising sharply in 2025. This sector has become a major emissions hotspot, offsetting gains in construction and power generation.

Gas demand also grew modestly — 3% overall — with power sector consumption up 9%. While natural gas emits less CO2 than coal, its rising use still adds to total emissions.

• RELATED: China’s Renewable Energy Boom: A Record-Breaking Shift or Still Chained to Coal?

2025 Emissions: A Fine Balance

• As of late 2025, China’s total CO2 emissions stood around 15.1–15.2 gigatonnes, making up roughly 30–35% of global emissions.

That’s about the same level as last year, showing a fine balance between sectors reducing emissions and others increasing them.

September 2025 provided a positive signal: emissions fell about 3% year-on-year, raising the likelihood that the full-year total will show a slight decline. Since electricity demand — and thus emissions — usually peak during hot summer months due to air conditioning, the fourth quarter will determine whether 2025 records an actual drop.

CarbonBrief also analysed that even a 1% decrease or increase would hold major symbolic value. China’s policymakers have repeatedly said that emissions can still grow before 2030, leaving the exact “peak year” undefined. A small drop in 2025 could signal that the country’s emissions have already plateaued ahead of schedule.

Despite its renewable energy boom, China is set to miss its 2025 carbon intensity target, which aimed to reduce CO2 emissions per unit of GDP by 18% compared with 2020 levels. Current data suggests that only about a 12% reduction has been achieved.

China’s Long-Term Climate Strategy: The Path to 2030

To meet its 2030 goal — a 65% reduction in carbon intensity from 2005 levels — China will now need a much steeper 22–24% cut over the next five years. This will require stronger emission control measures, industrial efficiency improvements, and faster deployment of low-carbon technologies.

The shortfall also raises the stakes for China’s 15th Five-Year Plan (2026–2030), which will likely set a more ambitious emissions reduction framework.

President Xi Jinping’s announcement in September 2025 introduced a new 2035 greenhouse gas target — to cut total emissions by 7–10% below peak levels. However, since the peak year remains undefined, the level of that peak will directly determine how steep future reductions must be.

If China’s emissions peak closer to 2030, achieving the 2035 target would require more drastic cuts. But if the peak already occurred around 2024–2025, the path toward carbon neutrality becomes smoother.

In conclusion, China’s next few years will define its climate legacy. The nation’s renewable leadership has already reshaped global clean energy markets. The next challenge lies in translating that power into sustained, absolute emission reductions — a crucial step toward a genuine net-zero future.

• FURTHER READING: Renewables 2025: How China, the US, Europe, and India Are Leading the World’s Clean Energy Growth

The post China’s Renewables Soar: 18 Months of Stable Emissions Mark Turning Point appeared first on Carbon Credits.

As the planet faces mounting climate threats, carbon sinks have become crucial allies in reducing greenhouse gases. These natural and artificial systems absorb and store carbon dioxide (CO2) from the atmosphere, helping to balance human emissions.

Beyond their environmental role, carbon sinks also generate carbon credits, which drive climate finance and support global net-zero ambitions. This article explores the world’s largest carbon sinks, their significance, and how carbon credits are fueling a low-carbon economy.

Nature’s Carbon Vaults: Forests, Oceans, and Soils

Forests: Earth’s Green Lungs

Forests are among the most powerful carbon sinks on the planet. Globally, they absorb around 30% of CO2 emissions from human activities. Trees capture carbon through photosynthesis and store it in biomass and soils. Boreal forests in Russia hold the largest terrestrial carbon stock, followed by tropical forests in the Amazon and Congo Basin, and temperate forests in the U.S. and China.

Yet forests are under threat. In 2023 and 2024, extreme wildfires and deforestation sharply reduced forest carbon uptake. Bolivia, for example, suffered its largest fire season in 2024, releasing 400 million metric tons of CO2. These events turned forests from carbon sinks into net emitters, highlighting the urgent need for forest conservation, restoration, and sustainable management. Protecting forests is essential to avoid overloading natural systems that cannot absorb unlimited carbon.

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Oceans: The Planet’s Largest Carbon Sink

Oceans absorb roughly 25-30% of human-generated CO2 and about 90% of excess heat from global warming. They store carbon through biological processes and chemical absorption, sequestering it in water, sediments, and marine life.

However, rising ocean temperatures are weakening this sink. In 2023, oceans absorbed nearly a billion tons less CO2 than usual—equivalent to about half of the European Union’s annual emissions. Reduced solubility of CO2 in warmer water threatens climate stability. Protecting marine ecosystems and limiting ocean warming are critical to maintaining this natural buffer.

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• Frontier’s $31.3M Offtake with Planetary Signals a New Era for Ocean Carbon Removal 
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Soils and Peatlands: Hidden Giants of Carbon Storage

Soils store more carbon than the atmosphere and living vegetation combined. Through regenerative agriculture—practices like cover cropping, crop rotation, and reduced tillage—soil carbon can be enhanced. Peatlands, though covering just 3% of the land, hold vast carbon reserves. Yet drainage and degradation turn them into net emitters. Restoration efforts not only recapture carbon but also revive biodiversity, making them dual-purpose climate solutions.

Collectively, forests, oceans, and soils absorb around half of anthropogenic CO2 emissions, serving as crucial buffers against climate change. But these systems are finite and vulnerable. Recent data show that relying solely on natural sinks without reducing fossil fuel emissions is risky.

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Artificial Carbon Sinks: Technology Steps In

While natural sinks face limits, innovation offers new pathways. Artificial carbon sinks aim to capture and store CO2 at scale.

Direct Air Capture (DAC) extracts CO2 directly from the air and stores it underground or uses it in industrial applications. Bioenergy with Carbon Capture and Storage (BECCS) combines biomass energy production with carbon capture to achieve net removals. Though promising, these technologies require scaling, investment, and supportive policies to complement natural sinks.

By combining natural and artificial solutions, the world can accelerate progress toward net-zero emissions while reducing the pressure on fragile ecosystems.

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• Microsoft’s Major Biochar Deal Aims to Offset 1.24M Tonnes CO2
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Carbon Credits: Turning Carbon into Climate Finance

Carbon credits are tradable instruments representing verified reductions or removals of CO2. They provide financial incentives for businesses, landowners, and countries to invest in climate-positive projects.

Key Ways Carbon Credits Are Generated

1. Renewable Energy Projects
   Projects replacing coal and fossil fuels with solar, wind, or other renewables generate credits from avoided emissions. Initiatives like the Coal to Clean Credit Initiative (CCCI) also prioritize social sustainability by supporting communities affected by the transition.
2. Forestry and Land Use Projects
   Credits arise from afforestation, reforestation, avoided deforestation, and forest conservation. Regenerative agriculture and agroforestry also sequester carbon in soils while improving biodiversity and water quality.
3. Agricultural Methane and Waste Management
   Capturing methane from livestock manure, landfills, and biogas plants generates credits. These projects prevent potent greenhouse gases from entering the atmosphere.
4. Industrial Energy Efficiency and Green Hydrogen
   Improving industrial processes to cut emissions or producing green hydrogen through renewable-powered electrolysis offer emerging credit opportunities.
5. Soil Carbon and Peatland Restoration
   Enhancing soil carbon and restoring degraded peatlands generate removal credits, reversing emissions while improving ecosystem health.

Verification and Standards: Every carbon credit project must measure and report its emissions reductions against a baseline. Third-party verification under standards like Verra, Gold Standard, or CCCI ensures transparency and environmental integrity.

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The World’s Largest Carbon Sinks

Conclusion: Balancing Emissions with Action

Carbon sinks—forests, oceans, and soils—remain indispensable in the fight against climate change. They stabilize the climate while providing biodiversity, water, and social benefits. Artificial carbon sinks and verified carbon credits further amplify their impact, linking environmental action with economic incentives.

Recent data from 2023-2025 show that natural sinks are under increasing stress: wildfires, deforestation, rising ocean temperatures, and soil degradation all reduce carbon absorption. Experts warn that relying on sinks alone to balance emissions is dangerous.

However, these systems are not unlimited. Without major emission reductions, natural sinks risk being overwhelmed. A holistic climate strategy combines:

• Immediate cuts in fossil fuel emissions.
• Protection and restoration of natural sinks.
• Deployment of artificial carbon removal technologies.
• Robust carbon credit frameworks to fund climate action.

Through this integrated approach, the world can safeguard natural carbon reservoirs, promote innovation, and accelerate the transition to a low-carbon economy. The message is clear: protecting and enhancing carbon sinks is not optional—it is essential for achieving net-zero goals and securing a resilient, sustainable future.

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The post Carbon Sinks and Carbon Credits: How Nature and Innovation Are Fighting Climate Change appeared first on Carbon Credits.

The European Union (EU) has announced a new $108 billion (about €100 billion) investment plan to speed up the production and use of cleaner fuels for aviation and shipping. The plan, called the Sustainable Transport Investment Plan or STIP, will run until 2035.

It is one of the largest efforts in Europe to cut emissions from two of the hardest sectors to decarbonize—aviation and maritime transport. The EU hopes the program will help meet its climate targets and strengthen Europe’s leadership in clean energy technology.

The plan aims to boost the economy. It will create jobs, attract private investors, and build new industries centered on sustainable fuels.

Why Planes and Ships Should Go Green

Airplanes and ships play a vital role in global trade and travel. However, they release a lot of carbon dioxide and other greenhouse gases. The aviation sector alone is responsible for about 3% of global emissions, and that number is rising as air travel grows.

Unlike cars or trains, airplanes and large ships cannot easily switch to battery power. That is why sustainable aviation fuels (SAFs) and synthetic e-fuels are key to cutting emissions in these sectors. These fuels can be made from renewable sources such as used cooking oil, waste, or captured carbon, and can often be used in existing engines.

However, cleaner fuels are still much more expensive to produce than traditional jet fuel. The new EU plan aims to close this price gap by providing investment support, policy certainty, and funding for research and infrastructure.

Key Goals of the $108B Investment Plan

The Sustainable Transport Investment Plan brings together funding, regulation, and private partnerships to scale up clean fuel production across Europe. Its main targets include:

• 20 million tonnes of sustainable fuels will be produced each year by 2035.
• Around 13 million tonnes of biofuels and 7 million tonnes of e-fuels.
• Deployment of clean fuel technology in both aviation and maritime transport.
• Greater energy independence and industrial competitiveness for Europe.

The EU expects to mobilize at least €2.9 billion by 2027 as a first step. Part of the money will come from existing EU programs such as InvestEU, the European Hydrogen Bank, the Innovation Fund, and Horizon Europe. These programs will help finance new fuel plants, research projects, and pilot facilities.

For example, more than €300 million will support hydrogen-based fuels for planes and ships. €150 million will support synthetic fuel projects. Additionally, €130 million will fund research on new clean fuel technologies.

The plan promotes partnerships among governments, energy companies, and airlines. This helps ensure that supply and demand increase together.

Building a Market for Sustainable Aviation Fuels

Today, sustainable aviation fuels make up less than 1% of Europe’s total jet fuel supply. The new investment plan aims to change that by building a large and stable market for cleaner fuels.

Under new EU rules, ReFuelEU Aviation and FuelEU Maritime, airlines and shipping companies must slowly boost their use of renewable fuels. The rules require at least 2% SAF by 2025, 6% by 2030, and 70% by 2050 for aviation.

To meet these targets, Europe needs dozens of new refineries and production plants. The investment plan offers developers more financial certainty. This should help attract private capital. Many companies have been hesitant to invest in SAF plants because of high costs and uncertain returns.

By combining regulation with financial incentives, the EU hopes to lower these risks and attract long-term investors.

The plan also promotes the creation of fuel offtake agreements, where airlines commit to buying a set amount of SAF each year. This helps producers secure financing, knowing there will be demand for their product once it is ready.

Experts expect global production of SAF to rise substantially by 2030. The International Civil Aviation Organization (ICAO) says that in a “high +” policy scenario, production might hit about 16.97 million tonnes by 2030. This would meet around 5% of the expected aviation fuel demand.

Other reports suggest figures such as 6.1 to 8.2 billion gallons (~23–31 million tonnes) by 2030 based on announced projects and capacity. Most analyses say that, despite this growth, the industry needs more support. This includes policy help, feedstock expansion, and better technology. These steps are crucial to meet even modest blend targets.

• SEE MORE: Gevo’s Q3 2025 Earnings Fuel Optimism for Its SAF and Carbon Credit Growth Strategy

Economic and Environmental Impact

The EU estimates that scaling up SAF and e-fuels could create tens of thousands of new jobs across Europe. These jobs would come from building new plants, upgrading infrastructure, and managing supply chains for renewable fuels.

Economic benefits also include:

• More investment in rural areas where biofuel feedstocks are grown.
• Strengthened local industries producing renewable hydrogen and carbon-capture systems.
• Reduced dependence on imported oil and gas.

Sustainable aviation fuels can cut lifecycle carbon emissions by 70–90%. This reduction depends on how they are made, compared to fossil-based jet fuel. E-fuels made from green hydrogen and captured carbon can potentially be near-zero emission.

If Europe achieves its production targets, the total fuel savings could cut up to 200 million tonnes of CO₂ by 2035. That would be a major step toward meeting the EU’s 2050 climate neutrality goal.

What are the Challenges to Overcome?

While the EU plan is ambitious, experts warn that several obstacles remain, including:

1. Feedstock supply: Europe needs to secure enough sustainable raw materials, like waste oils and residues. This must happen without harming food production or ecosystems.
2. Cost gap: SAFs currently cost 2x to 5x times more than traditional jet fuel. Subsidies and long-term contracts will be needed to make them affordable for airlines.
3. Infrastructure: Airports and ports will need to upgrade storage and refueling systems to handle new fuel types safely.
4. Permitting and construction: Building new fuel plants can take years, and delays in approvals could slow progress.
5. Global competition: The U.S. and Asia are also investing heavily in clean-fuel production. Europe must remain competitive while keeping its sustainability standards high.

Despite these challenges, many in the aviation industry see the plan as a turning point. Airlines, manufacturers, and energy companies are working together to pilot new fuel technologies and increase production capacity.

Next Steps for Cleaner Skies

Over the next two years, the EU will focus on building early projects and securing private investment. The first wave of large-scale SAF facilities could begin operations by 2027.

The European Commission will also monitor fuel availability, costs, and emissions reductions. Annual progress reports will help track whether Europe is on pace to meet its 2030 and 2035 milestones.

If successful, the plan could become a model for other regions looking to decarbonize aviation. Similar programs are under discussion in the United States, the United Kingdom, and Japan. As the world races toward net zero, the success of this plan could help define how fast aviation and shipping can truly go green.

• READ MORE: American Airlines (AAL Stock) Posts Strong Passenger Growth Ahead of Holiday Travel, Bets Big on SAF Future

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