A new joint venture has launched to help countries enhance carbon mitigation efforts under Article 6 of the Paris Agreement. This partnership includes various technology and sustainability firms. They aim to build digital systems and tools for a carbon mitigation pipeline worth over US$100 billion. This funding focuses on forest and nature-based internationally transferred mitigation outcomes (ITMOs). Article 6 outlines rules for global cooperation on climate action through carbon markets.

The collaboration will help governments track emissions cuts. It will also verify climate actions and share mitigation results clearly. It will also develop digital infrastructure to promote high-integrity carbon credits and environmental assets across regions like Africa, South America, the Middle East, and Asia.

What the Joint Venture Will Do

The joint venture includes three partners with distinct expertise:

• Aleria: A specialist in artificial intelligence (AI) and data.
• Tawasal: A UAE-based super app platform.
• Xange.com: An environmental intelligence software provider.

They will work together to build digital systems for carbon accounting and ITMO transfers. This will help governments and project developers. Their tools include monitoring, reporting, and verification (dMRV) systems to capture verified mitigation data. They will also introduce a global infrastructure solution called GEMIS for policy-aligned project management.

A central registry and settlement platform will enable countries to track and transfer mitigation outcomes. This system will help governments manage carbon mitigation results from international trade. It follows the rules of Article 6 and will have a financial custodian bank in Chicago to host and oversee the settlement system.

The joint venture will connect its systems to millions of users through Tawasal’s platform. This includes payment systems from partners like Gnosis and Noxxo. They support transactions across different regions.

Eric Leandri, CEO of Aleria and Tawasal remarked during the Davos announcement:

“Article 6 requires governments to operate credible registries, data systems, and settlement processes under national authority. This joint venture focuses on delivering the technical infrastructure needed to support compliant accounting, monitoring, and transfer of mitigation outcomes. By combining Aleria’s sovereign data capabilities, Tawasal’s digital platform, and Xange.com’s market infrastructure, we are enabling countries to implement Article 6 mechanisms in line with Paris Agreement requirements.”

Why Article 6 Needs Strong Digital Infrastructure

Article 6 of the Paris Agreement provides a framework for countries to work together on emissions reductions. It has three main parts:

1. Article 6.2: Rules for accounting and trading of ITMOs.
2. Article 6.4: A new mechanism for high-quality carbon credits and emissions reductions.
3. Article 6.8: Non-market methods for climate action without trading emissions units.

Article 6 allows countries and companies to collaborate by transferring emissions reductions across borders. These transfers count toward climate targets known as Nationally Determined Contributions (NDCs). A strong digital tracking system is essential to prevent errors like double-counting.

International carbon market cooperation under Article 6 is growing. For instance, Singapore signed an agreement with Papua New Guinea in 2023. This deal enables the two countries to generate and trade carbon credits toward their climate targets.

African nations, like Rwanda, are also preparing to engage with Article 6 mechanisms and carbon markets. They are developing national frameworks and enhancing institutional capacity.

Countries like Indonesia and Norway are participating in Article 6 cooperation as well. At COP30, they talked about carbon trading deals. These could involve up to 90 million tonnes of CO₂ reductions. So far, 12.5 million tonnes are already committed.

These developments highlight the need for strong registry systems and verification infrastructure for effective international climate cooperation.

• SEE MORE: Billions at Stake: UN Panel’s Article 6.4 Recommendation Could Transform Global Carbon Trading

Digital MRV and Registries: The Market’s Missing Link

Successful carbon markets depend on accurate data and transparent tracking. The joint venture’s digital tools will help countries meet Article 6 requirements for emissions accounting. Key components include:

• dMRV tools: Capture verified emissions data and spot environmental risks.
• ITMO registry: A platform for recording, authorizing, and transferring mitigation outcomes.
• Settlement systems: Secure systems for transferring and ensuring transparency.

These tools are crucial because accurate tracking of mitigation outcomes is a requirement under Article 6. Countries must show that carbon credits or ITMOs represent real reductions. Without reliable systems, countries can’t trust transfers to meet climate goals.

This project helps build the Article 6 registry infrastructure by the United Nations Framework Convention on Climate Change (UNFCCC). In 2026, the UN started building systems to track mitigation outcomes. This includes international registries that help national systems work together to enhance transparency and confidence in carbon markets.

Global Momentum Behind Article 6 Cooperation

The JV has identified a pipeline of over US$100 billion in forest and nature-based outcomes aligned with the Paris Agreement. This figure reflects the projected value of various mitigation activities eligible for Article 6 cooperation.

Article 6 cooperation could unlock both private and public funding for climate mitigation.  For example, Singapore started a public tender for at least 0.5 million metric tons of high-quality, nature-based carbon credits under Article 6. This is part of Singapore’s plan to reduce emissions to about 60 million metric tons of CO₂ equivalent by 2030. It estimates needing around 2.51 million metric tons of ITMOs annually from 2021 to 2030 to meet its targets.

Countries are also establishing bilateral and multilateral cooperation on Article 6. For instance, Zambia signed a cooperation agreement with Switzerland at COP30 in 2025 to set up frameworks for trading carbon credits. This deal aims to support climate mitigation projects and financing in Zambia.

Market analysts note that over 120 countries are willing to use Article 6 instruments for their NDCs. These countries recognize that cooperation can lower costs by allowing more effective climate action. Capacity-building programs under the UN Environment Programme aim to help developing countries engage in international carbon markets.

Integrity, Regulation, Risks, and Market Outlook 

While interest in Article 6 markets is strong, challenges remain. Some project developers have raised concerns about retroactive changes to market rules. Standards bodies, like the Gold Standard, suggest new alignment requirements for Paris compliance. Developers warn that applying these rules retroactively could create uncertainty for existing projects. Stable rules are crucial for long-term investment in mitigation.

Another challenge is ensuring the integrity of mitigation outcomes. Countries and buyers need assurance that carbon credits or ITMOs reflect real emissions reductions. Article 6 systems aim to minimize risks like overestimation, but more work is needed as markets evolve.

Despite these challenges, the market outlook for Article 6 cooperation is substantial.  Projections from the University of Maryland and IETA estimate over $100 billion in annual trading by 2030. This matches wider industry forecasts. The CAREC Program sees Article 6 boosting the carbon market to $250 billion.

Also, Oxford Energy Studies expects annual demand to exceed 700 MtCO₂e. This demand is driven by NDC gaps and the growth of bilateral ITMO.

What This JV Signals for Future Carbon Markets

The new joint venture aims to support a US$100 billion carbon mitigation pipeline under Article 6 of the Paris Agreement. It will help countries create digital systems for tracking, reporting, and transferring ITMOs.

Creating registries, using digital monitoring, and ensuring secure settlement systems are key to building trust in carbon markets. Governments and markets are already building capacity. An increase in bilateral agreements and registry infrastructure indicates stronger adoption ahead.

The joint venture’s pipeline estimate signals significant investment potential in forestry and nature-based mitigation. While challenges exist, the emerging Article 6 ecosystem aims to unlock funding that helps countries meet climate goals with integrity and transparency.

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

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Fusion energy has spent decades on the sidelines of the global energy system. Scientists praised its potential, policymakers admired its promise, and investors waited patiently for proof that it could work outside the lab. Now, that long wait appears to be ending.

General Fusion’s planned listing on Nasdaq marks a clear shift in how fusion energy is viewed. The Vancouver-based company has agreed to merge with Spring Valley Acquisition Corp. III, a move that would make it the world’s first publicly traded pure-play fusion energy company. Once the deal closes, General Fusion is expected to trade under the ticker symbol GFUZ.

More importantly, the transaction signals that fusion is moving beyond theory. It is stepping into capital markets, where timelines, costs, and performance matter.

AI, Electrification, and Data Centers Are Driving a New Energy Boom

Electricity demand is rising faster than grids can comfortably handle. According to the International Energy Agency, global power demand could grow by 40-50% by 2035.

This surge is not coming from a single source. Instead, it reflects a mix of electrified transport, electric heating, advanced manufacturing, and rapid digital expansion.

At the same time, artificial intelligence has become a major driver of energy. Data centers now consume enormous amounts of electricity, and demand continues to climb. In the United States, the Department of Energy estimates that data center power use could double or even triple by 2028.

Solar and wind have expanded quickly and remain essential to decarbonisation. However, they depend on the weather and daylight. Batteries help smooth supply, but they cannot yet support large-scale, long-duration demand on their own. As a result, the need for clean, reliable baseload power is becoming urgent.

This is where fusion enters the conversation.

Why Fusion Energy Stands Apart

Fusion works by combining light atoms, usually hydrogen isotopes, to release energy. It is the same process that powers the sun. Unlike nuclear fission, which splits heavy atoms and produces long-lived radioactive waste, fusion generates far less waste and carries no risk of meltdown.

The International Atomic Energy Agency estimates that fusion can produce four times more energy per unit of fuel than fission and nearly four million times more energy than coal or oil. Just as important, fusion fuel is abundant and widely available.

These features make fusion attractive not just as a clean energy source, but as a foundation for long-term energy security.

General Fusion’s Different Path to Fusion Power

While many fusion developers rely on massive superconducting magnets or powerful laser systems, General Fusion has taken a different route. The company focuses on Magnetized Target Fusion, or MTF, a design intended to simplify fusion hardware and reduce costs.

MTF creates a hot plasma and stabilises it with magnetic fields. Then, instead of squeezing the plasma with magnets or lasers, the system mechanically compresses it using a liquid lithium liner. This rapid compression raises temperature and pressure to fusion conditions.

General Fusion argues that this approach avoids some of the complexity that has slowed other fusion concepts. It also allows the use of existing industrial materials, rather than highly specialised components. Over time, this could make fusion power plants more durable and more affordable.

LM26 Marks a Critical Step Forward

In early 2025, General Fusion announced a major milestone. The company had designed, built, and begun operating Lawson Machine 26, known as LM26. This system represents the world’s first large-scale MTF fusion demonstration built at a commercially relevant size.

LM26 operates at half the diameter of a future commercial reactor. It mechanically compresses plasma using a lithium liner, closely mirroring how a full-scale plant would function. The machine aims to reach several critical technical targets, including heating plasma to 10 million degrees Celsius, then to 100 million degrees Celsius, and ultimately achieving the Lawson criterion.

Reaching the Lawson criterion matters because it defines the conditions required for net fusion energy within the plasma. General Fusion plans to use proceeds from the SPAC transaction to advance LM26 testing and move closer to that goal.

Two Decades of Work Behind the Headlines

The company has spent 20 years developing fusion technology, steadily building both scientific credibility and engineering expertise.

During that time, General Fusion assembled a strong intellectual property portfolio, with more than 210 patents issued or pending. It also became one of only a few private fusion companies worldwide to publish peer-reviewed fusion results. Since its founding, it has raised more than US$400 million from institutional investors, strategic partners, venture firms, and government programs.

This long track record helps explain why investors are willing to back the company as it moves into public markets.

• ALSO READ: General Atomics Fuels UNITY-2 Fusion Project in Canada as Global Fusion Investment Hits $2.64 Billion 

General Fusion’s Big Leap into Public Markets

The proposed business combination with Spring Valley Acquisition Corp. III implies a pro-forma equity value of roughly US$1 billion. The transaction includes about US$105 million from a committed and oversubscribed PIPE financing, along with US$230 million from SVAC’s trust account, assuming no redemptions.

The companies expect to complete the transaction in mid-2026, pending regulatory and shareholder approvals. After closing, the combined business plans to operate under the General Fusion name and list its shares and warrants on Nasdaq.

Spring Valley brings deep experience in energy and nuclear markets. Its leadership team has completed dozens of energy and decarbonization transactions and previously helped take NuScale Power public, marking the first listing of a small modular reactor company.

Strong Market Tailwinds Support Fusion

Beyond company-specific progress, broader market forces are pushing fusion forward. Electricity demand continues to rise as economies electrify. Governments are searching for clean energy sources that do not compromise grid stability.

Meanwhile, large technology firms are actively seeking reliable, carbon-free power to support AI growth.

• Industry estimates suggest the fusion energy sector could reach between US$40 billion and US$80 billion by the mid-2030s. If commercial deployment accelerates, the market could exceed US$350 billion by 2050.

Early fusion plants will likely focus on grid-scale baseload electricity, with hydrogen production and industrial heat applications following later.

However, General Fusion’s Nasdaq move does not mean fusion power is ready for mass use yet. The technology still faces major challenges, including scaling reactors, improving materials, and proving long-term reliability.

Still, the listing marks a turning point. Fusion is shifting from a scientific experiment to a real commercial contender. Public markets will bring more funding, clearer timelines, and stronger scrutiny.

The next decade will determine whether fusion can move from demonstrations to operational power plants. With electricity demand rising and clean baseload options limited, fusion is finally stepping into the spotlight. The fusion era is no longer just an idea — it is starting to take shape.

• ALSO READ: Eni’s $1 Billion Bet on Fusion: Partnering with Commonwealth Fusion Systems (CFS) for a Net-Zero Future 

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At the 2026 World Economic Forum in Davos, former U.S. President Donald Trump spoke in support of nuclear energy. His remarks highlighted nuclear power as a key part of energy security and clean energy supply, saying:

“We’re very much into the world of nuclear energy, and we can have it now at good prices and very, very safe…the progress they’ve made with nuclear is unbelievable, and the safety progress they’ve made is incredible…”

After these comments, nuclear and uranium stocks moved higher in early trading. Investors showed renewed interest in nuclear companies, especially those developing advanced technologies like small modular reactors (SMRs).

Stocks such as Oklo Inc. (NYSE: OKLO), NuScale Power (NYSE: SMR), and Nano Nuclear Energy (NASDAQ: NNE) saw price increases as traders responded to the pro-nuclear sentiment. This trend shows how energy markets are changing.

Many investors now view nuclear energy as a stable, low-carbon power source. This is important as demand grows from data centers and industries.

Oklo Takes Center Stage in the Nuclear Trade

Oklo has become one of the most-watched nuclear stocks in 2025. Oklo’s shares jumped after it signed a big deal with Meta Platforms. They plan to build a 1.2 GW advanced nuclear energy campus in Pike County, Ohio.

The deal positions Oklo to supply clean, reliable power for Meta’s data centers. Analysts described this binding agreement as reducing some business risks for Oklo.

In January 2026, Oklo stock kept rising after President Trump’s pro-nuclear comments at Davos. It hit intraday highs around January 22, with gains across the sector. Bank of America upgraded Oklo to a Buy rating, setting a price target of $111. This shows strong confidence in Oklo’s data center partnerships and regulatory progress.

Cathie Wood’s ARK Investment increased its stake in Oklo. They bought over 34,000 shares. This shows a rising interest from institutions in advanced nuclear technology. This purchase followed earlier acquisitions valued at more than $8.9 million, showing sustained investment interest.

Strong Rallies, Sharp Pullbacks

Despite strong gains, Oklo’s stock price has also seen pullbacks. At times, shares fell nearly 10% in a single week due to profit-taking after earlier rallies. Investors sometimes respond to news about sectors. For example, competitive technologies like geothermal power can provide clean energy alternatives for data centers.

Oklo remains pre-revenue, meaning it has not yet begun large-scale power production. The company aims to build its first commercial microreactor system between late 2027 and 2028. Until that point, investor focus remains on contracts, partnerships, and regulatory progress.

• MUST READ: U.S. DOE Backs 11 Advanced Nuclear Reactors Under Trump’s Fast-Track Pilot Program

SMRs and Speculation: Two Very Different Nuclear Bets

NuScale Power (NYSE: SMR) is another company that benefited from the nuclear rally after Davos. The company’s shares jumped around 15% on early trading days in 2026, along with sector momentum.

The stock is drawing investor interest because of the rising focus on small modular reactor (SMR) technology. SMRs may be easier to deploy and scale than traditional large plants.

NuScale’s SMRs got design approvals from the U.S. Nuclear Regulatory Commission (NRC). This boosts confidence in their technology. Analysts expect the company’s revenue to continue rising as project work expands.

NuScale is a great example of how modular nuclear designs can provide reliable power for industrial and data center needs. Regulatory milestones for SMRs may accelerate deployment timelines through the rest of the decade.

Nano Nuclear Energy: Early Stage, Strong Moves

Nano Nuclear Energy (NASDAQ: NNE) is a smaller player that also saw stock gains as part of the sector rally. Its shares rose roughly 40% in one trading week amid news of technology deals between U.S. and U.K. partners, and Trump’s recent announcement. This price movement reflected broader investor interest in nuclear technologies and potential future revenues.

Nano Nuclear is still in the early stages without significant revenue, similar to Oklo’s position. Its valuation illustrates how speculative nuclear stocks can be, driven by future expectations about technology deployment and regulatory support.

Why Nuclear Is Back on Investor Radar

Supportive government policy is a key driver for nuclear stocks. In 2025, the U.S. administration moved to speed up nuclear power development as part of a broader energy strategy. These moves include efforts to shorten licensing timelines and enhance domestic infrastructure for nuclear fuel and reactors. This policy backdrop helped lift stocks such as Oklo and NuScale.

• SEE MORE: Trump’s New EOs Revive Nuclear: Fast Reactors, Big Promises, and a Race Against Time

President Trump’s Davos statements reinforced this trend by linking nuclear energy to national energy strategy and data center demand. Many investors view nuclear energy as a solution for rising electricity demands. This includes powering artificial intelligence and cloud computing infrastructure.

Nuclear power generates low-carbon electricity. This attracts companies that need to meet emissions targets while also dealing with growing power demand.

Globally, nuclear power already contributes a significant share of clean energy. According to the World Nuclear Association, nuclear energy generated about 9% of the world’s electricity from existing reactors. Supporters say that expanding nuclear power can meet future demand and reduce carbon emissions.

AI’s Power Hunger Fuels the Nuclear Case

The growth of data centers, particularly for AI, is driving interest in reliable baseload power. Tech companies, including Meta, have pursued long-term nuclear power agreements.

Meta has deals with companies like Oklo and TerraPower. These agreements aim to secure nuclear-generated electricity for its AI infrastructure. They involve spending tens of billions of dollars on building AI data centers. This corporate demand creates new business models for nuclear power. It makes future reactor deployments more financially viable.

Electricity demand from industrial and tech sectors continues to rise worldwide, increasing focus on clean, consistent power sources. Nuclear energy’s high capacity factor, meaning it can provide steady power output, is a key strength in this context.

What the Next Nuclear Decade Could Look Like

Industry analysts expect nuclear capacity to grow over the next few decades. Some forecasts tied to long-term pledges suggest that global nuclear capacity could triple by 2050 as part of decarbonization goals. This aligns with commitments from large utilities, governments, and corporate coalitions.

Stock forecasts differ, but long-term demand for nuclear reactors and fuel is expected to grow. This growth is driven by electrification and carbon reduction goals.

Small modular reactors are key to industry growth. They offer shorter construction times and lower upfront costs than large traditional reactors. If SMRs get regulatory approval and have stable supply chains, companies like Oklo and NuScale could start commercial operations in the 2030s.

Analysts provide mixed views on nuclear stocks. Many forecasts highlight the potential upside if technologies succeed at scale, especially for SMRs. Analyst price targets for NuScale Power suggest there is a lot of potential for growth from current prices.

A Renewed Nuclear Narrative

After President Trump’s supportive comments on nuclear energy at Davos, nuclear stocks climbed as traders reacted to potential industry growth. Oklo saw strong investor interest following major deals and institutional purchases. NuScale benefited from regulatory milestones and rising demand for modular reactors. Nano Nuclear showed how early-stage players can also capture attention.

Government support, corporate demand for reliable low-carbon power, and rising electricity needs from AI and data centers are key drivers behind the nuclear sector’s resurgence. Analysts still see challenges, but they expect nuclear capacity, especially smaller modular systems, to grow in the global energy mix.

• READ MORE: NASA’s “Moonshot 2.0” Will Explode Nuclear – and Uranium

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