On April 29, 2025, Mark Carney led Canada’s Liberal Party to a narrow electoral victory, securing a fourth consecutive term for the party. Carney, a former central banker and UN Special Envoy for Climate Action and Finance, now leads Canada’s climate policy. 

Carney is now tasked with an urgent balancing act: easing economic pressures while advancing ambitious climate goals — at a time when both inflation and demand for climate action are rising.

Reforming Carbon Pricing: From Consumer Tax to Industrial Focus

One of Carney’s first actions as Prime Minister was to scrap the consumer carbon tax. This tax, introduced in 2019, grew unpopular as living costs rose. The tax, which was set to reach $170 per tonne by 2030, was repealed in an effort to alleviate financial burdens on households.

After its removal, gasoline prices in Canada fell sharply. Average gasoline prices dropped by 8–12 cents per liter nationwide. Some provinces saw drops of more than 10 cents per liter. Many Canadians welcomed this immediate relief. This was especially true in areas where energy costs make up a large part of household expenses.

• READ MORE: Carney Scraps Carbon Tax—Can Canada Reduce Emissions Without It?

Carney suggests replacing the consumer tax. He wants to encourage greener choices for consumers and improve carbon pricing for industries. This plan maintains output-based pricing for big polluters. It also adds subsidies for electric vehicles and home upgrades.

The output-based pricing system (OBPS) aims to hold high-emission industries accountable. It also gives flexibility to sectors that face international competition or are trade-exposed.

It uses the same carbon price as the old consumer tax — $65 per tonne of CO₂ now, rising to $170 per tonne by 2030. Instead of charging companies for every tonne of emissions, the government sets performance targets based on how much pollution is normal for their industry.

If a company pollutes more than its target, it must buy carbon credits or pay the carbon price. If it pollutes less, it earns credits that it can sell. This system lets industries avoid paying the full carbon price on all their emissions, but still pushes them to be more efficient.

The government is targeting industrial emitters. This plan focuses on the biggest sources of greenhouse gases. It also reduces the financial burden on everyday Canadians.

Carney’s plan also includes robust support for green technology adoption. Subsidies for electric vehicles help speed up the shift to cleaner transport. Incentives for home retrofits promote energy efficiency and reduce emissions in homes. These efforts include public awareness campaigns. They aim to help Canadians make smart choices about energy use and their carbon footprint.

Carney’s shift to industrial carbon pricing is complemented by a new international trade tool — the Carbon Border Adjustment Mechanism (CBAM).

Introducing the Carbon Border Adjustment Mechanism 

Carney wants to tackle carbon leakage and stay competitive, and thus, he plans to implement the CBAM. This policy would set tariffs on imports from countries with weaker carbon rules. Thus, it encourages global emission cuts and helps protect local industries.

The CBAM helps Canadian manufacturers compete better. Without it, they may have higher costs from local climate policies than their international rivals.

The introduction of the CBAM marks a significant shift in Canada’s approach to climate policy. Carney’s government wants to align trade policy with climate goals. This way, it can encourage other countries to improve their carbon rules. This approach shows global trends. The European Union and other regions are moving toward similar systems.

However, implementing the CBAM needs careful coordination with trading partners. It must also follow World Trade Organization rules to prevent disputes.

Balancing Energy Development and Environmental Goals

Carney envisions Canada as a leader in both clean and conventional energy sectors. His administration wants to create a national energy corridor to help share energy resources across the country. It will also cut dependence on the United States and boost energy security.

The new corridor will help move electricity, oil, and natural gas more efficiently. This way, provinces can share resources and take advantage of their strengths in energy production.

While promoting clean energy investments, Carney also acknowledges the role of traditional energy sources in Canada’s economy. Oil and gas are key to GDP and jobs, especially in Alberta and Saskatchewan.

Carney stresses the need to work together with provinces, territories, and Indigenous communities. This teamwork is key for energy projects that support both environmental and economic goals. This involves helping to build renewable energy systems like wind and solar. It also ensures that current industries can shift to lower-carbon operations.

• RELATED: National Bank of Canada Targets $20 Billion in Renewable Energy Lending by 2030

The government’s approach is practical. It knows that quickly moving away from fossil fuels might hurt the economy. Instead, Carney advocates for a gradual transition, supported by investment in innovation and skills development to prepare workers for the jobs of the future. 

The Global Stage Awaits — Can Canada Deliver?

Although Canada accounts for roughly 1.5% of global emissions, its advanced economy and resource wealth position it as a key player in shaping international climate policy.

Carney has extensive experience in global finance and climate advocacy. This enables him to play a significant role in international climate discussions. As a former Governor of the Bank of England and the Bank of Canada, he brings credibility and expertise to the global stage.

Canada will play a bigger role in groups like the UNFCCC and the G7. It will push for teamwork on carbon pricing, sustainable finance, and climate adaptation.

However, Carney faces challenges at home. He must work with a minority government and tackle regional gaps in support for climate policies. Provinces that depend on fossil fuels might oppose federal plans. This means they need to negotiate carefully and design policies that help everyone meet emission reduction goals.

Canada has promised to cut its greenhouse gas emissions by 40–45% below 2005 levels by 2030 as part of the Paris Agreement. The country also aims to reach net-zero emissions by 2050. 

The Canadian Climate Institute estimated that the carbon tax would have helped lower emissions by 8–9% by 2030. The carbon tax applies to emissions from transportation and buildings. On the other hand, the industrial carbon pricing systems could cut around 20-48% of emissions by 2030, as shown below.

Even though the tax on consumers is gone, government rebates for electric vehicles and home upgrades will still help reduce emissions in these areas. Without the tax, Canada will need new policies to stay on track, and Carney’s administration will be on it. 

Carney’s Climate Balancing Act

Public opinion remains divided. Some Canadians prioritize economic growth and energy affordability; others demand more ambitious climate action.

Prime Minister Mark Carney’s challenge will be to bridge these divides. He needs to show that environmental responsibility and economic prosperity can go hand in hand.

Carney’s climate strategy reflects a pragmatic approach: balancing the need for economic stability with environmental responsibility. Carney wants to shift Canada from consumer-based carbon pricing to industrial regulation and international methods like the CBAM. This change aims to make the country a strong and innovative leader in global climate efforts.

As Canada works to reach its climate goals, the world will be watching. If successful, Carney’s balanced approach could offer a model for nations seeking both economic resilience and climate leadership.

• FURTHER READING: Canada’s $16.5 Billion Bet on Carbon Capture: Could It Cut Oil Sands Emissions?

The post Mark Carney’s Climate Strategy: Balancing Carbon Policy, Trade, and Energy Security appeared first on Carbon Credits.

Coca-Cola reported strong profits, while PepsiCo faced higher costs and slower growth. But beyond earnings, their updates on carbon emissions, water use, and plastic waste show how both companies are trying to balance business goals with environmental action.

Let’s study and find out which beverage giant is making faster progress on revenue and, more importantly, sustainability.

Coca-Cola Q1 2025: Strong Profits, Even as Sales Dip

Coca-Cola sold 2% more drinks in the first quarter of 2025, thanks to strong demand in India, China, and Brazil. While overall revenue dropped 2% to $11.1 billion, mainly due to currency changes and the shifting of some bottling operations.

Coke’s core business stayed strong. Organic revenue (which removes the impact of currency changes and one-time events) grew 6%, helped by higher prices and a small rise in concentrate sales.

Big Jump in Profit and Margins

Profit rose 71% this quarter, thanks to solid sales, better cost control, and smart timing on marketing. Coca-Cola’s profit margin jumped to 32.9%, up from 18.9% last year. Adjusted margins (non-GAAP) were even better at 33.8%. Earnings per share rose 5% to $0.77, even after being hit by currency losses. Adjusted earnings came in at $0.73, up 1%.

Coke Zero and Sparkling Drinks Lead the Way

Coke Zero Sugar saw big success, with a 14% jump in sales. Sparkling drinks like Coca-Cola and Fanta grew by 2%. Water, tea, and juice drinks also saw slight increases. Overall, Coca-Cola gained more market share in ready-to-drink beverages around the world.

Mixed Results Across Regions

• Europe, Middle East & Africa: Sales rose 3%, and profits held strong despite currency pressure.
• Latin America: Sales were flat, but smart pricing helped boost profits.
• North America: Sales dropped 3%, but profits grew thanks to higher prices.
• Asia Pacific: Sales rose 6%, with strong growth across all drink types.
• Bottling Operations: Volume fell 17% as Coca-Cola shifted bottling to partners. This lowered profits.

However, Coca-Cola’s free cash flow was down $5.5 billion. But this was mostly due to a large $6.1 billion payment related to its Fairlife deal. Without that, cash flow was still positive at $558 million.

Coca-Cola’s GHG Emissions in 2023: A Quick Look

• In 2023, Coca-Cola’s total manufacturing emissions were 5.62 million metric tons using the location-based method and 4.95 million metric tons using the market-based method.

Emissions directly from factories stayed the same at 1.61 million metric tons. Indirect emissions from electricity use increased slightly to 4.01 million metric tons (location-based) and 3.34 million metric tons (market-based).

However, carbon emissions per liter of product rose to 28.31 grams. Under CDP reporting, total emissions reached 5.62 million metric tons, with most coming from franchise operations.

Improved Water Efficiency

Water management is a key part of Coca-Cola’s sustainability efforts. Since 2015, the company has consistently replaced more water than it uses in its drinks. In 2023, it stayed committed to this goal by aiming to replenish over 100% of the water used in its finished products globally.

• Compared to 2022, Coca-Cola improved its water use efficiency in 2023. It used 1.78 liters of water per liter of product, slightly better than the 1.79 liters used the year before.

Meanwhile, total water withdrawal went up a bit, reaching 311,998 megaliters. Water consumption also increased to 194,853 megaliters.

Focus on Water-Stress Regions 

Importantly, 28% of the water was used in high water-stress areas signifies the need for efficient water management. On the positive side, wastewater discharge dropped to 117,124 megaliters, showing better control and treatment of wastewater.

Additionally, Coca-Cola expanded its focus on water in high-risk locations. Previously, the goal was to replenish 100% of the water used in 175 high-risk sites by 2030.

Now, the target encompasses all high-risk locations, i.e., more than 200 sites by 2035. This broader commitment reflects the company’s growing emphasis on supporting local ecosystems and communities where water resources are under stress.

• SEE MORE: The Bottled Truth: Coca-Cola’s New 2035 Environmental Goals Face Sustainability Backlash

PepsiCo Q1 2025: Mixed Performance in a Tough Market

PepsiCo released its Q1 2025 results on April 24, showing mixed performance due to slow demand and higher global costs. Still, international sales provided a boost.

Net revenue fell by 1.8% to $17.92 billion, but still came in above analyst estimates. Organic revenue grew by 1.2%, with strong international performance helping balance weaker North American sales.

Profit Drops Amid Cost Pressures

Core earnings per share (EPS) dropped to $1.48, slightly below forecasts. Net income was $1.83 billion, down from $2.05 billion in Q1 2024. Rising supply chain costs and new tariffs impacted profitability.

North America Slows, International Gains

Pepsi Zero Sugar and Gatorade helped beverage sales in North America grow by 1%. However, food sales dropped, especially in Frito-Lay. International business saw strong demand in countries like India, Brazil, and Egypt.

PepsiCo now expects flat earnings growth for the rest of 2025 due to inflation and global uncertainty. Earlier, it had forecasted mid-single-digit growth.

This year, the company plans to focus on affordable products, expand globally, invest in new snacks and drinks, and cut costs to manage inflation.

• SEE MORE: Nestlé Unveils New Initiatives to Cut Cocoa Supply Emissions

PepsiCo’s 2023 ESG Progress: Big Wins in Farming, Emissions, Water, and Packaging

In 2023, PepsiCo made strong progress on its environmental goals. The company focused on farming, clean energy, water savings, and cutting plastic waste. While it faced some challenges, it stayed on track toward its long-term targets.

Boosting Regenerative Farming

PepsiCo doubled its regenerative farming land. It grew from 900,000 acres in 2022 to 1.8 million acres in 2023. The company also beat its water-use goal. It improved water efficiency by 22% — far above its 15% target.

In 2023, 58% of key ingredients came from sustainable sources. Since 2021, PepsiCo has supported over 57,000 farmers and workers. It offered training and programs to help women and build local economies.

PepsiCo also met its water protection goals in high-risk areas two years early. Now, it will focus on broader water efforts instead of tracking this specific goal.

Cutting Emissions and Using Clean Energy

PepsiCo plans to hit net-zero emissions by 2040. It also aims to cut Scope 1 and 2 emissions by 75% and Scope 3 emissions by 40% by 2030 (from 2015 levels).

• In 2023, total GHG emissions (Scopes 1, 2, and 3) were ~58 million metric tons. It dropped 4% from 2015 and 5% from 2022.

Direct emissions (from PepsiCo’s operations) fell by 33%. Scope 3 emissions (from suppliers and others) dropped only 1%.

To help lower emissions, PepsiCo added more electric vehicles. These EVs covered over 3 million zero-emission miles in 2023. The company also used more renewable biogas from food waste, like potato peels.

Saving and Replenishing Water

Water remains a top focus for PepsiCo. In 2023, it improved water-use efficiency by 25% at high-risk sites. This means it achieved its target 2 years early.

The company gave back about 69% of the water it used in water-stressed areas. This added up to over 12 billion liters. Also, the number of PepsiCo plants meeting top water standards rose from 8 to 27 in just one year.

• In Spain, PepsiCo restored 70 million liters of water near its Alvalle plant by replacing invasive plants with native trees.

Reducing Plastic and Promoting Reuse

PepsiCo continued to cut plastic waste. In 2023, 10% of its drinks were sold in reusable packages. It also became the first brand in North America to replace plastic rings on multipacks with paper-based ones.

The company used 10% recycled plastic in its packaging. Its 2030 goal is 50%. Over 30 countries now sell PepsiCo drinks in 100% recycled PET bottles (except caps and labels).

PepsiCo cut virgin plastic use per serving by 1% in 2020. Overall, virgin plastic use was 6% higher than in 2020 — a smaller increase than the 11% in 2022.

• By the end of 2023, 89% of PepsiCo’s packaging was designed to be recyclable, compostable, biodegradable, or reusable (RCBR).
• It now expects 98% to be RCBR by 2025, and 92% of it will likely be recycled in real life.

That falls short of the 100% goal, but the company is pushing forward with new ideas and partnerships.

Coca-Cola Vs PepsiCo: Who’s Winning The Sustainability Game? 

In summary, PepsiCo’s reported emissions are much higher than Coca-Cola’s manufacturing-only figures due to broader reporting boundaries. Both companies have made progress versus their 2015 baselines, but PepsiCo achieved a year-over-year reduction in 2023, while Coca-Cola’s manufacturing emissions rose slightly.

• FURTHER READING: Starbucks Rakes in $1.9B International Revenue Amid Sales Dip: But how is its Sustainability Brewing Up? 

The post Coca-Cola vs PepsiCo 2025: Who’s Leading on Profits—and Planet Goals? appeared first on Carbon Credits.

The global nickel market started 2025 with an oversupply dilemma. According to the International Nickel Study Group (INSG), the market is expected to face a supply surplus of 198,000 metric tons (mt) this year. That’s higher than the surplus of 179,000 mt recorded in 2024 and 170,000 mt in 2023.

INSG also predicted that production of primary nickel is projected to reach 3.735 million mt in 2025, while global usage is forecast at just 3.537 million mt. This imbalance continues to weigh down prices and investor sentiment, especially across Asia.

In China, the share of NMC batteries dropped to 19% of total production in January and February 2025, according to the China Automotive Battery Innovation Alliance. This shift has put downward pressure on nickel sulfate prices, despite expectations of higher consumption in 2025.

• S&P Global highlighted that global nickel demand from batteries was around 384,000 mt Ni in 2024 and is forecast to grow to 543,000 mt Ni in 2025.

Yet, the market remains underutilized due to excess production capacity and preference for alternative battery chemistries. Thus, on the demand side, the market remains sluggish.

        2025 Chinese NMC Production Further Declines to 19%

Oversupply Weighs on Nickel Prices Despite Early-Year Momentum

Nickel prices showed a brief uptick at the start of 2025, but the momentum quickly faded due to ongoing supply pressure and sluggish demand. Prices opened the year at $15,040 per metric ton on January 2, rising to $16,080 mid-month before dipping again.

As per S&P Global,

• The LME 3M closing nickel price dropped to a near-five-year low of $14,084/t on April 9 from $16,107/t on April 1.
• By the end of Q1, prices had settled around $15,545/t.

                        What happened to the nickel price in Q1?

However, on April 15, the U.S. government began a probe into imports of processed critical minerals like nickel under Section 232 of the Trade Expansion Act. The Commerce Secretary must submit a report to the President within 180 days.

Trump earlier used Section 232 to impose 25% tariffs on steel and aluminum. Refined Class 1 nickel was not hit by the April 2 tariffs, but that might change after the new review.

A recent copper probe caused copper stocks to shift to the U.S., pushing up prices on the London Metal Exchange (LME). If the same happens, nickel stocks might drop, and nickel prices could also rise soon.

• MUST READ: Nickel Prices Plunge in 2025: Can Demand Revive the Market by 2030? 

Asia’s Nickel Market Strain in Q1

Indonesia and China are making more value-added nickel products like nickel sulfate and nickel cathodes. These are used in electric vehicles (EVs) and batteries.

Thus, Asia continues to lead global nickel supply growth.

• Indonesia is set to boost its production from 1.6 million metric tons in 2024 to 1.7 million metric tons in 2025, keeping its spot as the world’s top producer.
• China comes next, with output rising from 1.035 million metric tons in 2024 to 1.085 million metric tons in 2025.
• The Philippines shipped 54 million metric tons of nickel ore in 2024, with 43.5 million metric tons going to China.

However, the Indonesian government is delaying permits (RKABs), making the supply of nickel ore significantly tight. Yet, the country still produces a large amount of refined nickel.

Furthermore, Manila is now considering a ban on raw nickel exports. If that happens, China’s nickel supply chain could take a major hit.

• RELATED: Philippines’ Nickel Export Ban and U.S. Tariffs: What’s Happening in the Nickel Market Now? 

Jason Sappor, metals and mining research senior analyst at S&P Global Commodity Insights, has revealed his insights by noting,

“Amid an unstable global macroeconomic backdrop, we expect the global primary nickel market to remain oversupplied in 2025, with production from Indonesia forecast to expand further this year, despite challenges like tight nickel ore availability and a potential royalty rate hike on nickel products by the government.” 

             Feb 2025 China Nickel Ore Imports Down 6.3% y-o-y

Tax Hike and Shrinking Profits

Indonesia recently raised mining royalties from 10% to as high as 19%, based on nickel prices. These new rates aim to fund government programs under President Prabowo Subianto. Still, low-grade nickel used for EV batteries will see a lower 2% royalty.

These tax hikes have pushed production costs higher and caused nickel prices to rise in March. But the future remains uncertain. Miners warn of shrinking profits due to rising expenses and limited ore supply.

Meanwhile, Chinese companies are pulling back. Nickel giant CNGR has paused its South Korea project, showing investors are growing cautious in a volatile nickel market.

Conclusion: Surplus to Persist, Prices Likely to Stay Low

Looking ahead, the nickel market is expected to remain oversupplied throughout 2025. INSG forecasts a 3.8% increase in global nickel production this year, after a 4.6% rise in 2024.

Lastly, as we can see, policy-driven price volatility due to new royalties, trade tariffs, and battery chemistry shifts will continue to keep nickel prices low.

• FURTHER READING: Nickel’s Wild Ride: What’s Driving Prices and Future Demand?

The post Will the Nickel Oversupply Continue to Crush Prices in 2025? appeared first on Carbon Credits.