Heathrow Airport is raising its climate ambition once again. In 2026, the airport plans to use Sustainable Aviation Fuel (SAF) at levels 2% higher than the UK government’s mandate. This means total SAF use at Heathrow could reach 5.6% of all jet fuel next year.

The UK requires 3.6% SAF blending in 2026. Heathrow’s extra incentive pushes that figure higher, which could translate into around 350,000 tonnes of SAF being used at the airport. About 124,000 tonnes of that would come directly from Heathrow’s own incentive scheme.

To support this effort, Heathrow has set aside more than £80 million to help airlines cover the higher cost of SAF compared to traditional jet fuel. SAF remains more expensive to produce, so this financial support helps narrow the price gap and makes cleaner fuel more attractive for carriers.

This is the fifth year in a row that Heathrow has expanded its SAF support program, showing a consistent push toward lower-carbon flying.

How SAF Cuts Aviation Emissions

Sustainable Aviation Fuel works in today’s aircraft without major changes. Airlines can blend it with regular jet fuel and use existing engines and infrastructure. The key difference lies in how SAF is produced.

It can be made from waste oils, agricultural residues, household waste, or through synthetic processes that combine renewable electricity with captured carbon. Because of these production methods, SAF can reduce lifecycle greenhouse gas emissions by more than 70% compared to fossil jet fuel, according to the UK government.

If Heathrow achieves its 5.6% SAF target in 2026, the airport estimates emissions could fall by around 600,000 tonnes in one year.

To understand the scale:

• A round-trip economy flight from London Heathrow to New York JFK produces about 612 kilograms of CO₂ per passenger, based on ICAO calculations.
• Cutting 600,000 tonnes would equal roughly 950,000 return passenger journeys on that route.

That level of reduction highlights how even small percentage increases in SAF use can create large carbon savings.

Understanding the UK SAF Mandate

The UK introduced the SAF Mandate to ensure steady growth in cleaner aviation fuel. Instead of relying only on voluntary airline commitments, the policy legally requires fuel suppliers to blend increasing amounts of SAF into their total jet fuel supply.

The system includes two parts. The main obligation requires suppliers to meet a rising SAF percentage each year.

• It started at 2% in 2025 and will increase to 10% by 2030 and 22% by 2040. A second requirement, known as the Power-to-Liquid obligation, focuses on advanced synthetic fuels made using renewable electricity. This part begins at 0.2% in 2028 and grows to 3.5% by 2040.

Suppliers earn certificates based on how much carbon savings their SAF delivers. The greater the emissions reduction, the more certificates they receive. They can use these certificates to prove compliance, trade them with others, or pay a buy-out fee if they fail to meet targets. The buy-out price is designed to encourage real SAF supply rather than paying the penalty.

• By 2040, the UK government estimates the mandate could deliver up to 6.3 megatonnes of carbon savings each year.

Matt Gorman, Heathrow’s Director of Sustainability, said,

“Sustainable Aviation Fuel is not a hypothetical concept for the future, it’s already producing real impact in 2026. Heathrow is leading the way globally, with 17% of the world’s SAF supply in 2024 used at the airport. SAF is a key lever on aviation’s journey to net zero by 2050, and a key element of Heathrow’s Net Zero Plan. Our incentive delivers real progress today, as well as a future promise for tomorrow.”

• FURTHER READING: Greening the Aviation: Lufthansa and Airbus Team Up to Cut Business Travel Emissions Using SAF 

Heathrow’s SAF expansion fits into a larger strategy to reach net-zero emissions. As one of the world’s busiest international hubs, the airport is working to cut carbon both in flight operations and in ground activities.

By 2030, Heathrow aims to reduce flight-related emissions by up to 15% compared to 2019 levels. Achieving this depends heavily on scaling up SAF use and improving aircraft efficiency.

Looking further ahead, the airport targets at least an 80% reduction in emissions by 2050. The remaining emissions would need to be removed from the atmosphere to achieve full net zero.

Heathrow’s main roadmap assumes three key developments: continued improvements in aircraft efficiency, introduction of zero-carbon aircraft from the mid-2030s, and large-scale replacement of fossil jet fuel with SAF. In its lead scenario, SAF could replace up to 90% of remaining kerosene by 2050, delivering major lifecycle carbon savings.

There is also a more ambitious scenario in which fully synthetic fuels with near-zero lifecycle emissions replace all fossil-based jet fuel by mid-century.

Use of Hydrogen and Drop-in SAF 

Hydrogen-powered aircraft could also play a role in aviation’s future. These planes may use hydrogen in fuel cells or burn it directly in turbines. However, experts expect hydrogen aircraft to serve mainly short-haul routes by 2050.

Shorter flights represent about 30% of global aviation emissions. Long-haul flights, which account for roughly 70%, will likely continue to depend on liquid fuels for decades. For those routes, drop-in SAF remains the most practical and scalable solution.

Heathrow says it must prepare its infrastructure to support hydrogen aircraft while keeping a strong focus on expanding SAF use for conventional planes.

Global SAF Market Reaches a Turning Point

The year 2025 marks a major shift for the global SAF market. Blending mandates in both the European Union and the UK have begun to drive demand growth. SAF demand in the EU could reach about 0.9 million tonnes in 2025, while the UK could require around 0.25 million tonnes. Globally, total demand may approach 2 million tonnes this year.

Industry report says, by 2030, global SAF demand could climb to 15.5 million tonnes. Around 4.4 million tonnes of that would come from existing mandates, while the rest would depend on new policies, incentives, and voluntary airline commitments. Nearly 60 airlines have pledged to use 10% SAF by 2030, creating additional market momentum.

However, supply remains fragile. Announced global SAF production capacity for 2030 stands at about 18 million tonnes. While this appears enough on paper, delays and project cancellations in Europe, the UK, and the United States have raised concerns. Lower fossil fuel prices, policy uncertainty, and broader economic pressures have slowed some investments.

Beyond 2030, the challenge grows even larger. By 2035, global SAF demand could reach 40 million tonnes. Meeting that level will require rapid expansion of production capacity over a short period.

A Strong Signal to the Aviation Industry

Heathrow’s decision to exceed the national SAF mandate sends a clear message. Airports can influence the pace of decarbonization, not just governments and airlines.

By offering financial incentives and committing to higher SAF uptake, Heathrow strengthens confidence in the long-term growth of sustainable aviation fuel. Whether supply can scale fast enough remains the key question. For now, the airport’s 5.6% SAF target for 2026 marks a bold and practical step toward cleaner aviation.

• READ MORE: DHL Signs Major SAF Deal with Neste Ahead of New EU Rules

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Inertia Enterprises, a fusion energy startup, has raised $450 million in a Series A funding round. The capital will help the company build the world’s most powerful laser and advance its fusion power technology.

The funding round was led by Bessemer Venture Partners. Other investors include GV (formerly Google Ventures), Modern Capital, Threshold Ventures, Long Journey Ventures, and others.

Inertia was founded in 2024. The company’s mission is to make fusion energy a practical and clean power source for the grid. It plans to use its new funds to build key parts of its fusion system and to scale components that are essential for commercial power plants.

Fusion energy has long been viewed as a potential source of abundant, clean power. Inertia’s recent funding round is one of the largest for any fusion startup. It reflects growing investor interest in bringing fusion out of the lab and into real-world use.

What Fusion Energy Is and How Inertia’s Approach Works

Fusion is the process that powers the sun. It happens when light elements such as hydrogen combine to form a heavier element. This process releases a large amount of energy. Fusion does not produce carbon emissions, and it generates much less long-lived radiation than fission nuclear power.

Inertia’s technology is based on a fusion method called inertial confinement fusion (ICF). ICF uses powerful lasers to compress tiny fuel pellets. When the pellets reach high temperature and pressure, fusion reactions occur.

The company plans to build a laser system called Thunderwall. This system is designed to deliver powerful beams at a rapid rate. The laser will fire repeated pulses into fuel targets, generating the conditions needed for fusion.

Inertia’s founders include leaders with experience in fusion science and large-scale research facilities. This includes scientists from the Lawrence Livermore National Laboratory’s National Ignition Facility (NIF). Their experiments showed fusion ignition, which produced more energy than they used on the target.

The company’s CEO and co-founder, Jeff Lawson, previously led Twilio, a technology company that grew into a major communications platform. He now leads Inertia’s effort to translate fusion science into clean energy technology. He said,

“Our plan is clear: build on proven science to develop the technology and supply chain required to deliver the world’s highest average power laser, the first fusion target assembly plant, and the first gigawatt, utility-scale fusion power plant to the grid. Inertia is building the team, partnerships, and capabilities to make this real within the next decade.”

Inside the $450M Bet on Commercial Fusion

The $450 million funding round is considered one of the largest for a fusion startup in its early phase. The money will support several major activities, including:

• Building Thunderwall, the powerful average-power laser system.
• Developing manufacturing lines for fusion fuel targets.
• Creating the first pilot plant and laying the groundwork for future commercial plants.
• Scaling supply chains for components like laser diodes and fuel pellets.

Investors say Inertia’s technology has the potential to reach commercial-scale fusion energy faster than other approaches. They cite the company’s focus on proven physics from earlier lab experiments.

Co-founder, Dr. Annie Kritcher, remarked,

“In just three years, we’ve gone from the first experiment to ever produce more fusion energy than was delivered to the target, to repeating that result many times and pushing the target gain higher. We’re now focused on translating physics we know works into a pathway toward commercial-scale fusion energy, and the real benefits it can deliver for people and the planet.”

From Lab Ignition to Grid Ambition: Inertia’s Fusion Roadmap

Inertia’s approach relies on key breakthroughs made at the NIF in Lawrence Livermore National Laboratory. In December 2022, researchers reported a major breakthrough. They conducted the first controlled fusion experiment that generated more energy than it received.

The NIF success provided proof of concept. It showed that inertial confinement fusion could technically produce net energy in a single experiment. Inertia’s team includes some of the scientists from that effort.

• Inertia’s long-term goal is to build a fusion power plant with 1.5 gigawatts (GW) of capacity. A plant of this size could supply electricity for about 1 million homes.

The next challenge is to make the fusion process repeatable and efficient enough to produce continuous power. Inertia plans to use advanced diode lasers. These lasers are expected to be about 10x more efficient than older technologies. The company believes this will significantly lower the cost of fusion energy production.

• RELATED: Google and Chevron Back TAE Technologies as It Nears Fusion Power Breakthrough

Fusion Joins the Clean Energy Investment Surge

Fusion energy investment has grown quickly in recent years. Both governments and private companies are putting large sums into the sector. It is now part of a broader clean energy funding trend that includes startups pursuing both fusion and fission technologies.

Private fusion funding has exploded over the past five years. Total investment reached $13.2 billion by the end of 2025. That amount is up 8x from 2020, when just 15 companies raised $400 million.

The US leads with 53% (~$7B) while China holds 34%. Active companies surged 400% from 15 to 77, reflecting broader investor diversification across ICF, tokamaks, and stellarators. Inertia’s $450M sits atop this record-breaking year.

Some other fusion startups that have attracted significant capital include:

• Commonwealth Fusion Systems, with roughly $2.86 billion raised to date.
• Helion Energy, with more than $1 billion in funding and commitments.
• Pacific Fusion, reported to have raised about $900 million.
• General Fusion, with about $357 million raised.

Private capital flows into fusion are increasing as the global demand for clean energy rises. Many countries are moving to reduce carbon emissions and to invest in technologies that can provide large amounts of clean power with minimal environmental impact.

In the United States, the Department of Energy (DOE) awarded $134 million for fusion research programs. These include the Fusion Innovative Research Engine (FIRE) and the INFUSE program. The DOE said it could invest up to $220 million over four years in the FIRE initiative. The goal is to link national labs, universities, and private firms to speed up fusion development.

The DOE has also partnered with companies such as Kyoto Fusioneering to test fusion fuel cycle systems at Oak Ridge National Laboratory. These efforts aim to prepare key technologies for future fusion plants.

Private capital is also rising, as shown in the chart.

Italian energy major Eni signed a more than $1 billion power purchase agreement (PPA) with Commonwealth Fusion Systems (CFS). The deal covers electricity from CFS’s planned 400-megawatt ARC fusion plant in Virginia. The plant is expected to connect to the grid in the early 2030s.

CFS has also signed a deal with Google for 200 megawatts of future fusion power. These agreements show that large energy buyers are planning for fusion in long-term clean energy strategies.

• READ MORE: Google Backs Fusion Energy: Signs 200MW Offtake Agreement with Commonwealth Fusion Systems

Governments and corporations now see fusion as a long-term clean energy option backed by serious funding and market commitments. That is because fusion energy does not emit carbon during power generation and uses fuel that is abundant in nature, such as isotopes of hydrogen. This makes it attractive as a long-term clean energy option alongside renewables such as wind and solar.

Could Fusion Become the Ultimate Baseload Power?

Inertia’s $450 million funding round is a landmark moment for the fusion industry. It shows that investors are willing to back ambitious clean energy technologies with long-term horizons.

Fusion has the potential to provide baseload clean power — power that is stable and available around the clock. This could complement intermittent renewables like solar and wind.

If commercial fusion is achieved, it could transform the global energy landscape. Countries could reduce dependence on fossil fuels. Power systems could become cleaner and more resilient.

However, fusion still needs major technological breakthroughs before it becomes a practical energy source. Inertia and other fusion companies are working to solve the remaining scientific, engineering, and supply chain challenges.

The next few years will be critical for measuring progress. Successful fusion commercialization could mark a turning point in the global effort to achieve deep decarbonization and sustainable energy systems.

• MUST READ: General Fusion’s Nasdaq Listing Pushes Fusion Energy Into the Market Spotlight

The post Fusion Breakthrough: Google Venture-Backed Inertia Raises $450M to Build World’s Most Powerful Clean Energy Laser appeared first on Carbon Credits.

In February 2026, the United States and India reached a landmark trade deal that reshaped clean energy trade between the two nations. The agreement lowered reciprocal tariffs on Indian goods from 25% to 18% and removed a 25% penalty tariff imposed due to India’s Russian oil imports. For Indian solar exports, this effectively cut total tariffs from roughly 50% to 18%, immediately lifting optimism across the renewable energy sector and providing relief to developers.

This deal marked a reset in US-India trade relations. In return, India committed to purchasing $500 billion in American energy, technology, and agricultural products over five years. Moreover, the agreement encourages India to shift energy imports from Russia to the US and Venezuela, further aligning trade with energy security goals.

Solar Exports and Market Reaction

The impact on solar exports was immediate and significant. In the first nine months of 2025, India exported 10.4 GW of solar modules to the US, nearly 97% of total solar exports, according to JMK Research and Mercom Capital.

This surge was further boosted by strong demand from Europe, where India shipped an additional 1.6 GW, bringing the first nine months’ total to 15 GW. Consequently, Indian manufacturers are consolidating their position as reliable global suppliers.

Waaree Energies, Adani Solar, and RenewSys led the expansion. Their success is underpinned by growing domestic production capacity, which reached 52 GW for solar cells and 55 GW for modules by Q3 2025. At the same time, India’s dependence on imported components is declining.

Module imports fell 39% from the previous quarter, although China still supplies nearly 75% of imports. This shift signals India’s strengthening self-reliance and growing manufacturing sophistication.

Solar Stocks Rally After US-India Trade Deal

Several media resources reported that the stock market responded promptly after the trade deal. Solar-focused firms, including Insolation Energy Ltd. and Oriana Power Ltd., surged over 24% in February 2026, recovering from losses in January. Investors expect that lower tariffs will not only improve profit margins but also accelerate orders and speed up US project pipelines. If the deal is formally ratified in March, analysts predict this momentum will continue.

Additionally, the tariff cut supports supply chain diversification. As the US reduces reliance on Chinese suppliers, Indian manufacturers are emerging as reliable alternatives. In particular, Vikram Solar and Waaree Energies are well-positioned to capture growing shares in utility-scale and commercial solar projects.

Inside India’s Solar Growth Story

Domestic solar development has mirrored export growth. JMK Research further highlighted that in 2025, India added:

• A record 37.9 GW of solar capacity, representing a 54.7% increase from 2024. Of this, utility-scale projects contributed 28.6 GW. Furthermore, the open access segment accounted for more than 38% of utility-scale additions, showing the increasing role of private buyers.
• Rooftop solar also expanded rapidly, with 7.9 GW added in 2025—a 72% rise from the previous year. Programs such as PM Surya Ghar: Muft Bijli Yojana supported this growth by incentivizing households to adopt solar systems.
•  Off-grid and distributed solar contributed 1.35 GW, slightly below 2024 levels, but remained an important segment for decentralized power solutions.

Quite evidently, India’s strong domestic manufacturing is the reason for installation growth. By December 2025, cumulative module and cell capacity crossed 200 GW. The market remains concentrated, with the top five cell manufacturers—Waaree, Adani, Vikram, REC, and Rayzon—holding 71% of capacity. In the module segment, Waaree, Adani, Vikram, REC, and RenewSys account for 58%. By mastering efficient production and securing a stable supply of raw materials, these firms continue to strengthen India’s global competitiveness.

Electricity Demand and Renewable Energy Milestones

While exports attract attention, domestic electricity demand is equally critical. IEA’s latest electricity report shows that in 2025, demand rose only 1.4%, the slowest pace since 1972 outside the pandemic. Mild weather reduced cooling needs, early monsoon rains eased peak loads, and industrial activity slowed slightly.

However, this slowdown is temporary. Demand is expected to rebound 6.9% in 2026 and grow at an average of 6.4% annually through 2030. Rising incomes will drive greater air conditioner and appliance use, industrial output is expanding steadily, and electricity use in agriculture and transport continues to rise. As a result, combined with strong exports, India is set to strengthen its position as a key player in global renewable energy.

Government Programs Boost Solar Adoption Nationwide

The IEA report further says that renewable electricity generation reached record levels in 2025, increasing 20% over 2024. Solar PV led the expansion with 24% growth, benefiting from falling module costs and sustained policy support. Consequently, total operational renewable energy capacity surpassed the 200 GW mark, with solar accounting for 53% of total renewable capacity.

Looking ahead, India now draws around 50% of its installed capacity from non-fossil sources, ahead of its 2030 Paris Agreement target.

Government programs continue to encourage adoption. PM-KUSUM promotes solar-powered agricultural pumps, while PM Surya Ghar incentivizes rooftop installations. Furthermore, the launch of India’s first National Policy on Geothermal Energy in 2025 expands the country’s clean energy options, complementing solar development.

Between 2026 and 2030, the country plans to add nearly 300 GW of renewable capacity, with solar leading the way. Domestic manufacturing will support this growth, with 100 GW of ALMM-certified capacity ensuring a self-reliant supply chain.

• ALSO SEE: India Achieves 50% Non-Fossil Fuel Power Milestone: Solar Shines Bright 

Grid Modernization and Reliability

As the sector grows, India is shifting focus from capacity addition to reliable operation. In 2025, the Central Electricity Authority mandated Automatic Weather Stations at large solar projects to improve forecasting and ensure stable integration into the grid.

Additionally, the Ministry of Power launched the India Energy Stack to build a digital infrastructure for the power sector. A Utility Intelligence Platform integrates data from distribution companies, improving operations and enabling better planning.

Meanwhile, the Revamped Distribution Sector Scheme continues to roll out, including 203 million smart meters. States that implement reforms efficiently receive additional financial incentives. Together, these measures ensure that India’s growing renewable fleet can operate smoothly alongside coal, gas, and nuclear power.

State-wise Solar and wind capacity addition in India from January-December 2025

Implications of the US-India Deal

Ultimately, the US-India solar tariff cut is more than a trade story. It strengthens India’s renewable energy exports, improves project economics in the US, and enhances the competitiveness of Indian manufacturers.

Moreover, combined with rising domestic demand, record solar expansion, nuclear development, and grid modernization, India’s energy sector is entering a transformative decade. By 2030, the country could lead global clean energy exports while maintaining a diverse and reliable power system.

In short, the tariff cut boosts short-term exports and creates long-term advantages. It strengthens US-India trade ties and aligns closely with India’s renewable energy ambitions through 2030, positioning India as a global solar powerhouse.

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

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