Electricity demand in the United States is rising faster than it has in decades. For years, power use remained steady due to efficiency improvements and shifts in industrial activity. However, recent changes have increased demand significantly.
More people are using electric vehicles (EVs), new factories are opening, and artificial intelligence (AI) is expanding. These factors require more electricity, putting pressure on the U.S. power grid.
One of the biggest drivers of power demand is the rapid growth of data centers. These facilities store and process massive amounts of digital information. Cloud computing, AI, and streaming services all rely on data centers, which require a steady and reliable power supply.
Many power companies have raised their peak electricity demand forecasts by over 50% in just three years, according to a paper by Carbon Direct.

Natural Gas and the Challenge of Lowering Emissions
Currently, natural gas supplies about 40% of the electricity in the U.S. It is the largest energy source for power generation. While renewable energy like wind and solar is expanding, natural gas remains important because it provides steady power, unlike solar panels or wind turbines, which depend on weather conditions.
The downside of natural gas is that burning it releases carbon dioxide (CO₂), a greenhouse gas that contributes to climate change. To meet energy needs while reducing emissions, power companies are looking at carbon capture and storage (CCS). This technology captures CO₂ before it enters the atmosphere and stores it underground.
- CCS can reduce carbon emissions from natural gas plants by 90-95%.
How Carbon Capture Works
Carbon capture technology uses chemical reactions to separate CO₂ from power plant emissions. The captured CO₂ is then compressed and transported to a storage site. It is injected deep underground into rock formations, where it stays permanently. If a storage site is not nearby, the CO₂ must be transported by pipeline, truck, or rail.
Not all power plants are suitable for carbon capture. The technology works best on large power plants that operate continuously. Smaller or backup plants that only run occasionally are not good candidates for CCS because the capture process is expensive and requires steady operation.
The Cost of Carbon Capture
Adding CCS to a power plant increases costs. The price of electricity from a natural gas plant without CCS is estimated at $40–$70 per megawatt-hour (MWh). With CCS, the cost rises to $65–$100 per MWh. These costs come from the capture equipment, extra fuel needed for the process, and the expense of transporting and storing CO₂.
However, tax credits can help reduce the cost. In the U.S., a program called 45Q offers financial incentives for capturing and storing carbon. These incentives make CCS more affordable and encourage companies to invest in clean energy solutions.
Capturing the advantages of natural gas plant with CCS, the Carbon Direct paper noted:
“Natural gas-fired power generation can be built in locations that do not have enough land area available for renewable forms of power generation like wind and solar. They can often be sited conveniently close to electricity transmission infrastructure and end users. Natural gas-fired power generation with CCS is competitive with both geothermal and nuclear electricity in terms of providing enough baseload power. Further, it offers cost advantages and is speedier to bring to market.”
Tech Giants in Trouble: How Carbon Capture and Carbon Credits Can help
Tech companies like Google and Microsoft are under pressure to reduce emissions from their data centers. AI computing requires huge amounts of power, and companies need clean energy solutions. Many large tech firms have set goals to cut their carbon footprints, but their emissions are rising due to energy demand.
For example, Google’s emissions increased by 13% in 2023 because of higher energy use in data centers. Microsoft has also highlighted the need to clean up its supply chains.
Since data centers need constant power, natural gas plants with CCS could be a solution for providing clean, reliable electricity.
The Role of Carbon Credits
Carbon credits are an important part of reducing emissions. A carbon credit represents one metric ton of CO₂ that is either reduced or removed from the atmosphere. Companies that emit CO₂ can buy carbon credits to offset their emissions.
With CCS, power plants can earn carbon credits by capturing and storing emissions. These credits can be sold to companies needing to meet their climate goals. This system helps create a financial incentive for reducing carbon pollution.
By combining CCS with carbon credits, power producers can reduce costs while helping businesses achieve net-zero targets.
Future Outlook: The Need for More Investment
Experts agree that carbon capture must expand if the U.S. wants to lower emissions while maintaining a reliable power supply. The International Energy Agency (IEA) warns that current investments in CCS are not enough.

Without new projects, carbon emissions from power generation will remain high. The supply gap could reach 1.2 billion metric tons of CO₂ per year by 2050, making it much harder for industries like power generation to reduce their emissions.
Companies planning new power plants should consider making them “capture-ready.” This means designing them so CCS can be added later. However, delaying CCS for too long could increase emissions and make it harder to meet climate goals.
This shortfall highlights the urgent need for increased investment in CCS technology and infrastructure to ensure a significant reduction in carbon emissions from natural gas power plants and other high-emission sectors.
According to the IEA, achieving net-zero greenhouse gas emissions by 2050 requires scaling up CO₂ capture capacity to 1.7 gigatons annually by 2030. This ambitious target requires a substantial financial commitment.
Estimates indicate that capital investments ranging from $665 billion to $1.28 trillion are required by 2050 to scale CCUS. Per McKinsey & Company, annual investment in this technology will hit up to $150 billion after 2035.

Challenges of Carbon Capture
While CCS has benefits, it also faces challenges:
- High Costs: The technology is still expensive, although tax incentives help.
- Infrastructure Needs: Transporting CO₂ requires pipelines, which can take years to build.
- Public Concerns: Some communities worry about storing CO₂ underground.
- Energy Use: CCS requires extra energy, which slightly reduces power plant efficiency.
Despite these challenges, many experts believe that CCS is necessary for reducing emissions in industries that cannot fully switch to renewables, such as steel, cement, and natural gas power.
The demand for electricity is growing, especially due to AI and data centers. While renewable energy is expanding, natural gas remains essential for providing steady power. To reduce emissions, carbon capture technology can be used to trap and store CO₂ from power plants.
CCS can cut emissions by up to 95% and provide low-carbon electricity. Although it is expensive, tax credits and carbon credits can help make it more affordable. As businesses and governments work toward cleaner energy, investing in CCS will be crucial for balancing energy demand with climate goals.
The post Power Surge: Can Carbon Capture Keep Up with AI’s Energy Demand? appeared first on Carbon Credits.
Carbon Footprint
Climate Impact Partners Unveils High-Quality Carbon Credits from Sabah Rainforest in Malaysia
The voluntary carbon market is changing. Buyers are no longer focused only on large volumes of cheap credits. Instead, they want projects with strong science, long-term monitoring, and clear proof that carbon has truly been removed from the atmosphere. That shift is drawing more attention to high-integrity, nature-based projects.
One project now gaining that spotlight is the Sabah INFAPRO rainforest rehabilitation project in Malaysia. Climate Impact Partners announced that the project is now issuing verified carbon removal credits, opening access to one of the highest-quality nature-based removals currently available in the global market.
Restoring One of the World’s Richest Rainforest Ecosystems
The project is located in Sabah, Malaysia, on the island of Borneo. This region is home to tropical dipterocarp rainforest, one of the richest forest ecosystems on Earth. These forests store huge amounts of carbon and support extraordinary biodiversity. Some dipterocarp trees can grow up to 70 meters tall, creating habitat for orangutans, pygmy elephants, gibbons, sun bears, and the critically endangered Sumatran rhino.
However, the forest within the INFAPRO project area was not intact. In the 1980s, selective logging removed many of the most valuable tree species, especially large dipterocarps. That caused serious ecological damage. Once the key mother trees were gone, natural regeneration became much harder. Young seedlings also had to compete with dense vines and shrubs, which slowed the forest’s recovery.
To repair that damage, the INFAPRO project was launched in the Ulu-Segama forestry management unit in eastern Sabah.
- The project has restored more than 25,000 hectares of logged-over rainforest.
- It was developed by Face the Future in cooperation with Yayasan Sabah, while Climate Impact Partners has supported the project and helped bring its credits to market.
Why Sabah’s Carbon Removals are Attracting Attention
What makes Sabah INFAPRO different is not only the size of the restoration effort. It is also the way the project measured carbon gains.

Many forest carbon projects issue credits in annual vintages based on year-by-year growth estimates. Sabah INFAPRO followed a different path. It used a landscape-scale monitoring system and waited until the forest moved through its strongest natural growth period before issuing removal credits.
- This approach gives the credits more weight. Rather than relying mainly on short-term annual estimates, the project measured carbon sequestration over a longer period. That helps show that the forest delivered real, sustained, and measurable carbon removal.
The scientific backing is also unusually strong. Since 2007, the project has maintained nearly 400 permanent monitoring plots. These plots have allowed researchers, independent auditors, and technical specialists to observe the full growth cycle of dipterocarp forest recovery. The result is a large body of field data that supports carbon calculations and strengthens confidence in the credits.
In simple terms, buyers are not just being asked to trust a model. They are being shown years of direct forest monitoring across the project landscape.
Strong Ratings Support Market Confidence
Independent assessment has also lifted the project’s profile. BeZero awarded Sabah INFAPRO an A.pre overall rating and an AA score for permanence. That places the project among the highest-rated Improved Forest Management, or IFM, projects in the world.
The rating reflects several important strengths. First, the project has very low exposure to reversal risk. Second, it has a long and stable operating history. Third, its measured carbon gains align well with peer-reviewed ecological research and independent analysis.
These points matter in today’s market. Buyers have become more cautious after years of debate over the quality of some forest carbon credits. As a result, they now look more closely at durability, transparency, and third-party validation. Sabah INFAPRO’s rating helps answer those concerns and makes the project more attractive to companies looking for credible carbon removal.
The project is also registered with Verra’s Verified Carbon Standard under the name INFAPRO Rehabilitation of Logged-over Dipterocarp Forest in Sabah, Malaysia. That adds another level of market recognition and verification.
A Wider Model for Rainforest Recovery
Sabah INFAPRO also shows why high-quality nature-based projects are about more than carbon alone. The restoration effort supports broader ecological recovery in one of the world’s most important rainforest regions.
Climate Impact Partners said it has worked with project partners to restore degraded areas, run local training programs, carry out monthly forest patrols, and distribute seedlings to support rainforest recovery beyond the project boundary. These efforts help strengthen the wider landscape and expand the project’s environmental impact.
That broader value is becoming more important for buyers. Companies increasingly want projects that support biodiversity, ecosystem health, and local engagement, along with carbon removal. Sabah INFAPRO offers that mix, making it a stronger fit for the market’s shift toward higher-integrity credits.

The post Climate Impact Partners Unveils High-Quality Carbon Credits from Sabah Rainforest in Malaysia appeared first on Carbon Credits.
Carbon Footprint
Bitcoin Falls as Energy Prices Rise: Why Crypto Is Now an Energy Market Story
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.
Carbon Footprint
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