Gold prices have climbed to historic levels in global markets, with Bloomberg reporting that spot gold hit an intraday all‑time high of 4,689.15 dollars per ounce on January 19, 2026. This milestone underscores intense safe‑haven demand as investors navigate ongoing macroeconomic uncertainty and shifting expectations for future interest‑rate cuts.

Gold’s latest surge extends a powerful bull run. In 2025, the metal posted more than 50 new record highs and delivered a yearly return of over 60 percent, drawing in institutional investors, central banks, and retail traders seeking diversification and protection against market volatility.

Over the past two years, gold prices have roughly doubled, a rare feat for a major, highly liquid commodity, reinforcing its status as a store of value and hedge against inflation and geopolitical risk.

Why Investors Flock to Gold: Safe Haven and Policy Signals

A key driver of the gold rally is shifting expectations around monetary policy, especially in the United States. Many investors now expect the Federal Reserve to cut interest rates in 2026.

When interest rates fall, gold becomes more attractive because it does not pay interest or dividends. This lowers the opportunity cost of holding gold compared with bonds or savings.

The U.S. dollar has also shown signs of weakening against other major currencies at times, another factor that boosts gold demand. A weaker dollar makes gold cheaper for holders of non‑U.S. currencies, increasing global buying pressure.

During periods of market stress and geopolitical tension, investors often treat gold as a safe haven. These conditions have become more common in late 2025 and early 2026, driving flows into gold‑related investments.

Central Banks: The Steady Hands Behind Gold’s Rally

Central banks have played an unusually large role in supporting gold prices. According to World Gold Council data, global central banks added 1,044.6 metric tons of gold to reserves in 2024. This was the third year in a row that purchases exceeded 1,000 tons. This amount is much higher than the long-term average of about 473 tons from 2010 to 2021.

Gold as a percentage of total reserve holdings across select central banks

The trend continued into 2025, with central banks acquiring substantial amounts through the third quarter. Net quarterly demand from investors and central banks hit about 980 tons. This equals roughly $109 billion in gold inflows for Q3 2025.

Major buyers include emerging market central banks such as Poland, China, India, and Turkey, each adding significant quantities to their reserves. These purchases help reduce reliance on foreign currencies and support financial diversification strategies.

Strong central bank buying has limited the amount of gold available on the markets for other buyers. Because these purchases tend to be long‑term and price‑insensitive, they act as a stable base of demand, supporting higher price levels.

Supply Tightness Keeps Prices Elevated

Gold supply has struggled to keep pace with rising demand. Mining production reached a record 3,661 metric tons in 2024, a modest increase of 0.6% year‑over‑year.

Production gains happened in Mexico, Canada, and Ghana. However, rising costs have offset some of this growth. Overall cost to produce gold, measured as all‑in sustaining cost (AISC), rose to about $1,399 per ounce in 2024, up roughly 8% from the prior year.

Recycling and secondary supply help the market, but they have limits. These sources haven’t eased market tightness much. The combination of constrained supply and strong demand keeps pressure on prices.

Global Ripple Effects: From Central Banks to Exploration

Rising gold prices have real economic and financial impacts. In the Philippines, for instance, the Bangko Sentral ng Pilipinas noted that its gold holdings jumped about 70% in 2025. They reached a record $18.6 billion. This rise was mainly due to a big increase in gold prices. Gold now makes up about 17% of the central bank’s foreign exchange reserves.

Around the world, strong gold prices have influenced central bank profits and balance sheets. The Swiss National Bank reported one of its highest profit levels in history in 2025, driven in part by gains on its gold holdings as prices rallied.

High prices have also affected exploration activity. Australia’s gold exploration spending jumped about 34% year-over-year in Q2 2025. This rise shows growing interest in new projects as prices have gone up.

• SEE MORE: Gold Price Today Surges to All-Time High at $3,671 as Miners Push ESG and Carbon Reduction Goals

What This Means for Investors and Markets

The current rise in gold prices shows a mix of economic risks, expectations about monetary policy, and high demand from official sectors. These forces suggest that gold’s role as a defensive asset remains important in the current environment.

While gold does not produce income, it continues to attract buyers seeking stability and diversification. Central banks are accumulating gold. This, along with strong investor demand and limited supply, pushes prices up.

Analyst forecasts suggest that gold may remain elevated in the coming year if these conditions persist. Some forecasts suggest gold might average around $4,753 per ounce until 2026, per J.P. Morgan’s forecast. It could rise more in 2027 if global economic stress grows.

In this context, gold’s rise is not just a short‑term spike. It highlights key changes in how investors, banks, and governments deal with uncertainty and risk. As these trends evolve, gold is likely to remain a key asset in global financial markets.

Beyond market forces and central bank demand, the gold industry is also under pressure to reduce its environmental impact and align with global climate goals.

Gold Goes Green: Mining’s Climate and Net-Zero Push

Gold mining produces greenhouse gas emissions, mostly from fuel and electricity used in mining and processing. In 2023, primary gold mines around the world released about 46.6 million metric tons of CO₂ equivalent (CO₂e) from direct (Scope 1) and electricity (Scope 2) emissions. This number reflects the energy‑intensive nature of mining operations.

Leading gold producers have set clear climate targets to reduce emissions and improve sustainability. For example, Barrick Gold aims to cut its own operational Scope 1 and Scope 2 emissions by at least 30% by 2030 from a 2018 baseline. It also plans to reach net‑zero emissions by 2050 as part of its long‑term climate strategy. The company is investing in big solar power plants to reduce the use of fossil fuels. One of these is a 200 MW solar farm for the Nevada Gold Mines complex.

Newmont Corporation, a leading gold producer, also plans to cut greenhouse gas emissions by 30% by 2030. They also aim for net-zero carbon emissions by 2050. The company is shifting its energy mix and investing in cleaner technologies to meet these goals.

Gold Fields has committed to cutting its Scope 1 and Scope 2 emissions by 30% by 2030 from a 2016 baseline and to reach net‑zero emissions by 2050. In 2023, the company reduced its emissions intensity to 660 kg CO₂e per ounce of gold, compared with 669 kg CO₂e per ounce in 2022. It plans further cuts through increased use of renewables, energy efficiency, and lower‑carbon mine equipment.

• MUST READ: Gold’s Enduring Value: How Sierra Madre Is Advancing Mexico’s Next Generation of Gold Projects

Renewables Powering Gold Production

Some producers are already deploying renewable energy at scale. For example, Barrick’s Nevada operations have reduced electricity‑related emissions by investing in solar power and renewable energy credits.

Other mines are testing battery-electric haul trucks. They’re also using renewable microgrids and off-grid solar and wind sites. This helps cut diesel use and lower carbon output.

These company commitments show that gold mining firms are integrating emissions reduction into their business plans. Many have set 2030 interim goals to lower emissions, and most aim for net‑zero emissions by 2050, in line with global climate targets.

Gold’s recent price rise shows global economic uncertainty. It also reflects strong demand from investors and central banks. At the same time, the industry is taking meaningful steps to reduce emissions and advance sustainability. This shows that gold can be both a safe investment and a cleaner, more responsible choice.

• READ MORE: Top Gold ETFs to Watch Now as Gold Prices Break $4,000 — IAU, GLD, and GDX Lead the Pack

The post Gold Prices Smash Another Record: Spot Gold Hits $4,689 All‑Time High as Central Banks Go on a Buying Spree appeared first on Carbon Credits.

Google has agreed to buy nearly 1.2 gigawatts (GW) of carbon-free energy to power its data centers across the United States. The tech company signed a set of long-term power purchase agreements (PPAs) with Clearway Energy Group (Clearway). These deals will deliver clean electricity from new wind and solar projects in Missouri, Texas, and West Virginia.

The energy will support the electric grid regions where Google’s data centers are located. The agreements are a big step for the tech giant. They help meet its rising electricity needs and cut carbon emissions from its operations.

Amanda Peterson Corio, Global Head of Data Center Energy, Google, stated:

“Strengthening the grid by deploying more reliable and clean energy is crucial for supporting the digital infrastructure that businesses and individuals depend on. Our collaboration with Clearway will help power our data centers and the broader economic growth of communities within SPP, ERCOT, and PJM footprints.”

How Google Secures Carbon-Free Power

A Power Purchase Agreement is a long-term contract between a power buyer and a clean energy producer. In Google’s case, these contracts ensure that the projects Clearway builds will sell electricity to the grid. In return, Google pays for the energy produced over many years.

Clearway agreed to provide Google with 1.17 GW of new carbon-free energy. This energy will support regional grids like SPP, ERCOT, and PJM. The total partnership includes a 71.5 megawatt (MW) clean power deal in West Virginia. This brings the total to around 1.24 gigawatts (GW) of clean energy for Google’s use.

These projects will generate wind and solar power and deliver it into U.S. grid systems that serve Google’s data centers. The total investment in the new energy infrastructure tied to these deals exceeds $2.4 billion.

Construction for the new wind and solar assets is expected to begin soon, with the first facilities planned to start operations in 2027 and 2028.

The states involved are Missouri, Texas, and West Virginia. These states cover parts of major grid regions like SPP (Southwest Power Pool), ERCOT (Electric Reliability Council of Texas), and PJM Interconnection, which deliver power to millions of customers and data centers.

Why Google Is Investing in Clean Power

Google has set clear climate goals tied to its fast-growing energy use. In 2020, the company became the first major corporation to match 100% of its annual electricity use with renewable energy purchases. This means Google buys enough clean power each year to equal all the electricity its operations consume. However, this approach does not guarantee clean energy at every hour.

To address this gap, Google launched a more ambitious target. The company aims to operate on carbon-free energy, 24 hours a day, 7 days a week, by 2030. This goal goes beyond traditional renewable matching. It requires clean electricity to be available every hour in the same regions where Google uses power. This makes energy sourcing more complex and increases the need for new clean generation near data centers.

Google has also committed to reaching net-zero emissions across its operations and value chain by 2030. This includes direct emissions, purchased electricity, and indirect emissions from suppliers and construction.

• The tech company does not plan to rely heavily on carbon offsets for this goal. Instead, it focuses on cutting emissions at the source, mainly by cleaning up the electricity supply.

Progress so far shows both gains and challenges. In 2024, Google reported net emissions of about 18 million metric tons of CO₂-equivalent, up from 14.3 million in 2023. The increase came largely from data center expansion and higher electricity demand from artificial intelligence workloads.

At the same time, Google reduced the carbon intensity of its electricity use by about 12% compared with the previous year. This shows efficiency gains, even as total energy use rose.

Clean energy purchases play a key role in this strategy. By signing long-term power purchase agreements, Google helps bring new wind and solar projects online. These projects add clean power to local grids and lower emissions over time.

The nearly 1.2 GW of carbon-free energy announced for U.S. data centers supports this approach. It increases clean supply in regions where Google’s power demand is growing fastest.

Broader Clean Energy Strategy

Google’s clean energy purchasing strategy goes beyond these 1.2 GW agreements. The company continues to enter renewable contracts around the world. For example:

• Google and TotalEnergies signed a 15-year PPA to supply 1.5 terawatt-hours (TWh) of certified renewable electricity from the Montpelier solar farm in Ohio. This power will help support Google’s data centers in that region.

• Google is also active in international renewable power agreements. It has signed a 21-year PPA with TotalEnergies. This deal provides 1 TWh of solar power for its data centers in Malaysia.

• In India, Google made a deal with ReNew Energy. They will build a 150 MW solar project in Rajasthan. This project will generate about 425,000 MWh of clean electricity each year, which is enough to power more than 360,000 homes.

These deals illustrate how Google is diversifying its clean energy supply by securing multiple sources and technologies across continents.\

• SEE MORE: Google and NextEra Team Up to Build Gigawatt-Scale AI Data Centers Powered by Clean Energy
• Google’s 3,500-Tonne Carbon Removal Deal with Ebb Signals Growing Confidence in Ocean-Based Climate Solutions

Impact on Data Centers and Regional Grids

Data centers use large amounts of electricity. U.S. data centers’ electricity consumption reached 183 TWh in 2024, accounting for more than 4% of the nation’s total power demand amid surging AI workloads. ​This marked a continued rise from 176 TWh (4.4%) in 2023. Projections suggest 5% or higher in 2025 as hyperscale facilities expand rapidly.

When powered by fossil fuels, they also produce high carbon emissions. Clean energy purchases help reduce the carbon footprint of these facilities over time.

As data center demand continues to grow, companies like Google are adding new clean power to the grid. Long-term power purchase agreements support the construction of new wind and solar projects. These projects supply clean electricity to regional grids and benefit all users, not only data centers. This helps lower the overall carbon intensity of power systems.

What This Means for Corporate Renewable Leadership

Google’s nearly 1.2 GW clean energy purchase reflects a wider industry shift. Large technology firms are becoming some of the world’s biggest buyers of renewable power. As artificial intelligence and cloud services expand, long-term clean energy contracts help companies secure a stable power supply and manage energy costs.

These corporate agreements also play a key role in the U.S. energy market. Long-term PPAs give developers the financial certainty needed to build new renewable projects. Supported by policy incentives and rising corporate demand, U.S. wind and solar capacity continues to grow. This makes large clean energy portfolios increasingly viable for companies like Google.

The Clearway deal adds to Google’s global portfolio of renewable energy contracts. This portfolio spans multiple regions and energy technologies. By securing large volumes of clean power, Google is strengthening the sustainability of its data centers as digital demand continues to rise.

• READ MORE: Alphabet, Google’s Parent, Bets $4.75B on Clean Power for AI Data Center Demand

The post Google Powers U.S. Data Centers with 1.2 GW of Carbon-Free Energy from Clearway appeared first on Carbon Credits.

Carbon permits in the European Union have recently climbed to their highest levels since August 2023. The rise reflects tighter supply, policy decisions, and shifting market demand under the EU Emissions Trading System (ETS).

The ETS is the world’s largest cap-and-trade system for greenhouse gas emissions. It mandates large emitters to buy allowances for the carbon dioxide they emit. These allowances are known as EU Allowances (EUAs).

EUAs are now trading at a price over €92 per tonne — the strongest level in about 18 months. This rise shows that companies and markets expect fewer allowances to be available in the future as the EU tightens its emissions cap.

What Is the EU Emissions Trading System?

The EU ETS began in 2005 as a tool to reduce greenhouse gas emissions through market forces. It sets a cap on total emissions from major sectors such as power generation, manufacturing, and aviation. Companies must hold enough allowances to cover their emissions each year.

The cap reduces over time, meaning fewer EUAs are issued. This creates scarcity. As allowances become scarcer, their price tends to rise, which increases costs for polluters. In theory, this pushes companies to reduce emissions or invest in cleaner technology.

In 2026, the system also overlaps with the Carbon Border Adjustment Mechanism (CBAM), a tax on imported carbon-intensive goods. CBAM began to apply in January 2026 and makes carbon costs visible on imports like steel and cement. The measure aims to cut down on “carbon leakage.” This happens when industries move production to areas with cheaper carbon prices.

Recent Price Moves: Highest Since August 2023

In early January 2026, EU carbon permits climbed as high as about €91.82 per tonne on EU markets, up from lower levels earlier in 2025. Now, it’s trading at over €92 per tonne, showing 27% increase from January 2025 prices. The rise represents a fourth consecutive weekly gain in allowances for the December 2026 contract.

The price rise reflects tightening supply — fewer allowances are available through auctions and free allocations. Reduced supply increases competition among companies that must surrender EUAs to match their emissions. This dynamic pushes the price higher.

Market analysts also note that colder weather and more heating needs in winter often boost industrial energy demand. This can lead to higher carbon prices during the season.

Why Prices Have Risen?

The recent uptick in EU carbon prices is driven by several key factors:

• Reduced Supply of Allowances:

The EU continues to tighten its emissions cap and reduce the number of new allowances issued. Estimates from the European Exchange auction calendar and Market Stability Reserve show that auction volumes will drop. They are expected to fall from about 588.7 million EU Allowances in 2025 to around 482.4 million in 2026. A stronger cap reduces the total pool of tradable EUAs, creating scarcity and upward pressure on prices.

• Policy Signals and Reform Expectations:

Investors and companies anticipate future regulatory tightening. The EU’s long-term climate goals include cutting net emissions by 90% by 2040 compared with 1990 levels. Such policy signals can strengthen confidence that carbon costs will rise further.

• Market Confidence and Funds:

Investment funds have increased their holdings of EU carbon futures. Trading positions and speculation can also influence price momentum, especially as market sentiment shifts toward tighter futures.

• Compliance Demand:

Industries covered by the ETS are required to surrender allowances to match their emissions by compliance deadlines. As deadlines near, buying activity can increase, adding short-term upward pressure on prices.

• Carbon Border Adjustment Mechanism:

With CBAM now active, imported products from outside the EU face carbon costs similar to domestic industries. This mechanism can reduce free allowance allocations and tighten supply further.

Looking Back and Ahead: Carbon Price Trends and Forecasts

Carbon prices in the EU ETS have fluctuated over recent years. Prices surged above €100 per tonne in early 2023. Then, they eased back in 2024 and 2025. This decline was due to shifting market conditions and wider economic factors.

In 2024, the average price of EU ETS carbon permits was around €65 per tonne, down from €84 per tonne the year before. High prices in 2023 reflected strong policy signals from the Fit for 55 climate package and global energy disruptions.

Looking ahead, analysts and forecast models expect prices to continue rising over the coming decade:

• A survey of market participants predicts that the average EU ETS carbon price will rise to almost €100 per tonne from 2026 to 2030. This increase will happen as demand exceeds supply.
• Energy market analysts predict that the average price could hit about €126 per tonne by 2030. This rise is due to stricter caps and wider emission coverage.
• Under the EU ETS II framework, starting in 2027, more sectors will be included, like buildings and transport. In some scenarios, prices might average €99 per tonne from 2027 to 2030.
• BNEF’s EU ETS II Market Outlook projects carbon prices reaching €149 per metric ton ($156/t) by 2030, driving substantial emissions reductions.

Overall, these forward estimates imply that allowance prices may continue to rise as the EU strengthens its emissions targets to meet climate goals.

Emissions Reductions Under the ETS

The EU ETS has contributed to measurable emissions reductions. In 2024, emissions under the system were roughly 50% lower than in 2005. This progress is set to help the EU meet its 2030 goal of a 62% reduction from 2005 levels. The decline was driven mainly by cuts in the power sector, with increased renewable energy and a shift away from coal and gas.

Renewable energy growth, including wind and solar, played a role. Increases in renewables helped lower emissions by reducing reliance on fossil fuels.

The drop in emissions may lead to higher demand for allowances in the long run. With fewer emissions, companies will need more allowances to meet the cap.

• SEE MORE: EU Edges Closer to Climate Goals: 54% Reduction by 2030, But Can It Cross It?

What Higher Carbon Prices Mean for Industry

Higher carbon prices affect the European economy in many ways. For polluting industries, rising carbon costs increase operating expenses. Companies may invest more in cleaner technologies to reduce their allowance needs. This can accelerate decarbonization technology adoption.

Policy makers face the challenge of balancing climate goals with economic competitiveness. Some EU governments, like France, want price limits in the ETS. This could stop big swings in carbon costs. It would also help industries plan better.

The Market Stability Reserve (MSR), a mechanism to absorb excess allowances, also plays a role. It intends to reduce surplus permits and stabilize prices. Combined with the tightening cap, the MSR tends to push prices higher over time.

The ETS’s expansion to include more sectors — such as maritime transport and potentially buildings and road transport under EU ETS II — expands the share of emissions subject to carbon pricing. This broadening can further tighten supply and push prices up.

Why EU Carbon Prices Matter Beyond Europe

The EU ETS remains the largest carbon market in the world. According to global carbon pricing data, carbon pricing instruments currently cover about 28% of global greenhouse gas emissions, up from about 24% previously. The EU’s system is a key driver of this trend.

Many national and regional carbon markets have prices much lower than the EU’s. This shows differences in climate policies and economic situations. The ETS’s tightening emissions cap, reduced auction volumes, and shifting market sentiment all play roles in supporting higher carbon prices.

Forecasts suggest that prices may continue upward in the years to come, potentially averaging over €100 per tonne by the end of the decade. Meanwhile, the ETS continues to help reduce emissions in key sectors and supports the EU’s broader climate targets.

These price trends and policy developments make the EU carbon market a central piece of Europe’s climate strategy and an important bellwether for global carbon pricing efforts.

• MUST READ: EU Expands CBAM: A Review Shows It Urges Other Countries to Use Carbon Pricing

The post EU Carbon Prices Hit Highest Since August 2023: What Causes The Surge? appeared first on Carbon Credits.