Chinese electric vehicle (EV) giant BYD is accelerating its global expansion, especially in Europe and Canada. In contrast, Tesla is losing ground across key markets. New sales data, policy shifts, and geopolitical deals suggest a major shift in the EV landscape.

This trend matters not just for automakers. It also impacts battery metals, supply chains, carbon markets, and the future of clean mobility.

BYD’s Germany Boom Marks Europe’s EV Shake-Up

BYD recorded a dramatic surge in German sales in January 2026. Bloomberg highlighted data from Germany’s Federal Motor Transport Authority (KBA) showing that BYD’s registrations jumped more than 10-fold from January 2025. The company sold only 235 vehicles in Germany last year, but recent data suggests sales likely exceeded 2,500 units.

Meanwhile, Tesla struggled. BYD more than doubled Tesla’s registrations in Germany during the same month.

Overall, car sales in Germany declined 6.6% to 193,981 vehicles in January. However, electric cars still accounted for 22% of new registrations, highlighting strong demand for EVs despite a weak auto market. This surge shows that BYD’s low-cost models and expanding lineup are gaining traction in Europe’s largest automotive market.

Significantly, the German numbers reflect a broader European trend. Throughout 2025, BYD recorded more than 200% year-on-year growth in many months. In December 2025 alone, its European registrations reached 27,678 units—up nearly 230%.

Breakthrough in Spain

Spain emerged as another key battleground. BYD dominated the Spanish EV and plug-in hybrid market in January 2026.

• The company registered 1,962 vehicles, a 64.6% year-on-year increase. It captured a 13.6% market share, leading both fully electric and plug-in hybrid segments.
• Fully electric sales rose nearly 30% to 1,039 units, putting BYD ahead of Kia and Mercedes-Benz. Tesla ranked fourth, with only 458 fully electric vehicles sold.

Spain’s performance highlights BYD’s strategy of combining affordable EVs with hybrids to capture diverse buyers.

Notably, BYD also sold 1,326 battery-electric vehicles in the UK, marking a nearly 21% increase from the previous year.

• MUST READ: BYD Overtakes Tesla as World’s Biggest EV Seller in 2025 

Tesla’s European Sales Collapse Deepens

Tesla, on the other hand, saw sales decline every month in Europe during 2025. The trend continued into 2026. Its struggles were especially visible in Northern and Western Europe.

In five major European markets, Tesla’s registrations fell 44% year-over-year in January. This marked the third consecutive year of shrinking sales across the region.

• Norway: Registrations collapsed by 88%, with only 83 vehicles sold.
• Netherlands: Sales dropped 67%.
• France: Registrations fell 42% to 661 vehicles, the lowest in over three years.
• United Kingdom: Sales plunged more than 57% to just 647 vehicles.

Policy changes played a role. Norway reduced EV tax incentives starting January 1, which hurt Tesla demand. However, the scale of the decline surprised analysts.

Even in Sweden and Denmark, where Tesla saw sales rise by 26% and 3%, the total number of cars sold remains low. These minor gains do little to offset the sharp decline compared with two years ago.

Analysts believe that one key issue is Tesla’s aging lineup. The Model Y, once a top seller, is now over four years old, and buyers are looking for newer options. Although Tesla launched more affordable “Standard” versions of the Model Y and Model 3, these updates have not been enough to reverse the downward trend.

In the current scenario, Tesla is not only losing ground to Chinese brands. European automakers are also regaining market share. Volkswagen overtook Tesla in 2025 to become Europe’s top-selling EV brand. It sold around 274,000 units, compared to Tesla’s 235,000.

This shows Europe’s EV market is becoming more competitive, with local manufacturers and Chinese brands challenging Tesla’s early dominance.

Canada Opens the Door to Chinese EVs

Europe is not the only region where BYD is gaining ground. Prime Minister Mark Carney signed a landmark trade agreement with China on January 16, 2026. This deal allows Chinese-made EVs to enter the market at low tariffs.

• So Canada will allow up to 49,000 Chinese EVs annually at a tariff rate of 6.1%. This marks a sharp reversal from the 100% tariff imposed in October 2024.

Also, the quota could rise to about 70,000 vehicles within five years. By 2030, at least half of imported Chinese EVs must be priced below CAD 35,000. In exchange, China agreed to reduce tariffs on Canadian canola seed, improving agricultural trade relations.

PM Carney said,

“At its best, the Canada-China relationship has created massive opportunities for both our peoples. By leveraging our strengths and focusing on trade, energy, agri-food, and areas where we can make huge gains, we are forging a new strategic partnership that builds on the best of our past, reflects the world as it is today, and benefits the people of both our nations.” 

BYD Gains a Regulatory Edge in Canada

BYD holds a unique advantage in Canada. Its manufacturing facilities in Shenzhen and Xi’an are already approved for Canadian imports. This pre-clearance gives BYD a head start over rivals like NIO, XPeng, and Li Auto. However, other Chinese brands must wait for regulatory approvals or rely on slower case-by-case processes.

BYD also operates an electric bus assembly plant in Ontario, strengthening its local presence. Furthermore, affordable models like the Seagull and Dolphin, priced between $20,000 and $30,000, could qualify under Canada’s affordability requirements.

Political Backlash and U.S. Concerns

The Canada-China EV deal triggered political controversy. Ontario Premier Doug Ford initially urged Canadians to boycott Chinese EVs, warning the agreement could hurt domestic manufacturing.

Labor unions and automakers also expressed concern. They fear the deal could weaken North America’s automotive industry and strain U.S.-Canada trade relations.

As per reports, U.S. President Donald Trump threatened tariffs on Canadian goods if the deal moves forward, calling it a “disaster.” However, Canadian officials argue the agreement aligns with USMCA rules and will expand the EV market.

Analysts estimate Chinese EVs could capture around 23% of Canada’s EV sales in the first year, saving consumers about CAD 6,700 per vehicle.

Stock Market Snapshot: BYDDY vs TSLA

BYD’s (BYDDY) stock trades around $11.28 per share, with a market cap of roughly $102 billion. The stock is near the lower end of its 52-week range, reflecting margin pressures and geopolitical risks.

Tesla’s (TSLA) stock trades near $406 per share, with a market cap of about $1.35 trillion. Analysts expect a volatile 2026, with forecasts ranging widely depending on EV demand and margins.

Despite Tesla’s valuation premium, BYD’s rapid sales growth is reshaping investor sentiment.

The Bigger Picture: A Global EV Power Shift

BYD’s rapid rise shows how the EV industry is changing. Chinese automakers are using scale, government support, and efficient production to challenge Western rivals. At the same time, Tesla remains strong in technology, software, and brand recognition. Yet, price competition and shifting policies are reshaping the market.

In Europe, declining subsidies, along with Canada’s new trade rules and ongoing geopolitical tensions, are affecting EV adoption and corporate strategies. As BYD gains ground in Germany, Europe, and Canada, it signals a turning point in the global EV race. Tesla’s falling sales highlight the increasing pressure from both Chinese and European competitors.

For investors, policymakers, and climate advocates, these trends matter. They will influence battery supply chains, emissions targets, and the demand for carbon credits. The EV transition is no longer led by a single company—today, it has become a global contest for scale, affordability, and sustainable leadership.

• LATEST: Tesla Reports First-Ever Annual Revenue Drop in 2025, Carbon Credit Sales Also Dip 28%

The post How BYD’s European Surge and Canada Deal Are Challenging Tesla’s EV Dominance appeared first on Carbon Credits.

Walmart has crossed a historic financial mark. It became the first traditional retailer to reach a $1 trillion market value, a level previously limited to technology and energy giants.

The milestone followed a strong move in the company’s share price. During recent trading in New York, Walmart’s stock rose by about 1.6% and hit an intraday high of around $126 per share.

That gain pushed the Bentonville, Arkansas-based retailer past the trillion-dollar threshold. Since the start of the year, Walmart’s stock has been up about 12%, far ahead of the S&P 500, which has gained less than 2% over the same period.

Investors have responded to Walmart’s steady revenue growth, digital expansion, and cost control. At the same time, the company has continued to expand its environmental and climate commitments. Given Walmart’s size, those efforts carry weight across global supply chains.

Big Targets for an Even Bigger Footprint

Walmart has set long-term climate targets that cover its own operations and its value chain. The company aims to reach zero greenhouse gas emissions across global operations by 2040, without using carbon offsets. It also plans to source 100% renewable electricity by 2035.

These targets apply to Scope 1 and Scope 2 emissions. Scope 1 includes direct emissions from company operations. Scope 2 covers emissions from purchased electricity. Walmart’s strategy includes improving energy efficiency, switching to low-impact refrigerants, and electrifying parts of its vehicle fleet.

Most of Walmart’s emissions sit outside its direct control. Like many large retailers, the bulk of its footprint comes from suppliers, logistics, and product use. To address this, Walmart launched Project Gigaton in 2017. The program set a goal to avoid, reduce, or remove one billion metric tons of greenhouse gas emissions from the global value chain by 2030.

Progress Made, Deadlines Slipping

Walmart’s reporting shows clear progress in several areas.

On clean power, the company said that nearly half of its global electricity use now comes from renewable sources. This includes on-site generation and long-term power purchase agreements tied to wind and solar projects. These steps move Walmart closer to its 2035 renewable energy target.

On emissions, Walmart has reduced Scope 1 and Scope 2 emissions by about 18% compared with its 2015 baseline. During this time, the company cut carbon intensity by 45%. This means it emits less for each unit of business activity.

Project Gigaton has also delivered results. Walmart announced it hit its one-billion-ton emissions reduction goal six years early, 1.19 billion metric tons of CO₂e. Over 5,900 suppliers joined in. They helped cut down on energy use, packaging, transportation, and waste.

Still, the path to net zero is not smooth. Walmart has admitted that it probably won’t meet its interim goals. These include reducing Scope 1 and 2 emissions by 35% by 2025 and 65% by 2030, based on 2015 levels. The company has pushed those timelines further out as it faces technical and operational limits.

Where Most Emissions, and Leverage, Live

Supply chains remain Walmart’s biggest climate challenge. In retail, Scope 3 emissions often account for the vast majority of total emissions. Industry research shows that for large retailers, supply chain emissions can make up as much as 90% to 98% of total carbon output.

Project Gigaton targets this gap. It asks suppliers to set goals in six areas, including energy, waste, packaging, agriculture, and logistics. Many suppliers focus on energy efficiency and renewable power, while others work on sustainable sourcing and transport optimization.

With that initiative, emissions intensity in Scope 3 has dropped by about 6.2% since 2022. This shows progress in lowering the carbon intensity of the wider supply chain.

Beyond emissions, Walmart has expanded work on waste reduction and responsible sourcing. The company promotes circular economy practices, aims to cut food waste, and supports sustainable agriculture across key commodities. These efforts link climate goals with land use, water, and biodiversity outcomes.

Transport innovation:

Walmart is investing in new technologies to reduce emissions in transport and logistics. They are focusing on heavy-duty electric vehicles and hydrogen fuel cell forklifts. This comes as transportation emissions have recently increased because Walmart decided to bring more fleet operations in-house.

• RELATED: Walmart (WMT) Expands EV Charging and Boosts Renewable Energy in Its Net-Zero Playbook

Refrigerant upgrades:

The retailer is replacing high-impact refrigerants with lower global warming potential systems. This effort contributed to a 2.4% decrease in refrigerant emissions in 2024, aided by preventive maintenance and specialized technician training.

Packaging challenges and circularity:

Walmart is working to increase recycled content in private-brand packaging. In 2024, recycled content in plastic packaging reached 8%, up from prior years, although it remains below the company’s 2025 goal of 20%. Efforts also include recycling and reuse programs for cardboard and other materials.

When Growth Multiplies the Climate Test

Walmart’s financial scale helps explain both its influence and its difficulty. In its latest fiscal year, the company generated more than $680 billion in revenue, making it the largest retailer in the world.

That scale means even small efficiency gains can lead to large absolute emissions cuts. But it also means that business growth can offset progress if demand rises faster than efficiency improves. Areas such as refrigeration, trucking, and cold-chain logistics remain hard to decarbonize quickly.

Technology limits also play a role. Some low-carbon solutions are still costly or not available at scale. These constraints have slowed progress toward interim targets, even as long-term goals remain in place.

Still, the retail giant continues to work on its sustainability actions spanning energy, supply chains, packaging, climate intensity, and innovation.

A Trillion-Dollar Reminder of Climate Responsibility

Walmart’s rise to a $1 trillion market value highlights how financial performance and sustainability planning now move side by side. The company has invested heavily in clean energy, supplier engagement, and efficiency. It has also been open about where progress has fallen short.

For the wider retail sector, Walmart’s experience offers a clear lesson. Large climate commitments can drive change, but execution takes time, capital, and coordination across thousands of partners. Success depends not only on targets, but on steady delivery and transparent reporting.

As Walmart continues to grow, its climate strategy will remain under scrutiny. The company’s size ensures that progress, delays, and course corrections all carry global impact. In that sense, Walmart’s trillion-dollar milestone is not just a financial marker; it is also a reminder of how closely corporate scale and environmental responsibility are now linked.

• READ MORE: Walmart and Kellanova Partner for Regenerative Rice Farming in Arkansas

The post Walmart Hits $1 Trillion Milestone And Its Climate Footprint Just Got Bigger appeared first on Carbon Credits.

The United States is moving fast to rebuild its nuclear fuel supply chain, revive dormant facilities, and accelerate next-generation nuclear technologies. These efforts come as electricity demand surges from artificial intelligence (AI), data centers, and industrial electrification.

Recent announcements from the U.S. Department of Energy (DOE) show a coordinated push to strengthen uranium enrichment, revive legacy nuclear infrastructure, and deepen international collaboration on fusion power. Together, these developments highlight how nuclear energy is becoming central to U.S. energy security, economic competitiveness, and climate goals.

Hanford’s FMEF Gets a Second Life in the Nuclear Fuel Cycle

The DOE Office of Environmental Management announced a new partnership with American nuclear fuel company General Matter to explore the reuse of the Fuels and Materials Examination Facility (FMEF) at the Hanford Site in Washington State.

FMEF is a 190,000-square-foot facility originally built to support the Liquid Fast Breeder Reactor Program. However, it never operated in a nuclear role and has been idle since 1993 under surveillance and maintenance status.

Under the new lease, General Matter will evaluate the facility for potential upgrades, conduct site characterization, and engage local communities and stakeholders. The goal is to determine whether the facility can be returned to service for advanced nuclear fuel cycle technologies and materials research.

Reviving FMEF could help the U.S. rebuild critical infrastructure that was lost after decades of underinvestment in nuclear fuel production. It also fits into the Trump administration’s broader agenda to expand domestic energy production and reduce reliance on foreign nuclear fuel services.

General Matter CEO Scott Nolan said:

“Rebuilding America’s nuclear fuel capabilities is critical to strengthening our nuclear industrial base, reducing our reliance on foreign providers and lowering energy costs for utilities and consumers. We thank our partners in Hanford and the Department of Energy for supporting us in the development of a stronger, more secure nuclear fuel supply chain built here in the United States.”

General Matter’s Role in Rebuilding U.S. Uranium Enrichment

The Hanford project complements General Matter’s plans to develop a uranium enrichment facility at the former Paducah Gaseous Diffusion Plant in Kentucky. Construction is expected to begin in 2026, with enrichment operations targeted before the end of the decade.

This privately funded facility aims to supply fuel for commercial nuclear reactors, national security reactors, and research institutions. It is part of a broader effort to restore U.S. uranium enrichment capacity, which has declined sharply over the past few decades.

As part of the lease agreement, General Matter will receive at least 7,600 cylinders of uranium hexafluoride (UF6). Reprocessing this material could save U.S. taxpayers about $800 million in avoided disposal costs while providing a reliable domestic feedstock for reenrichment.

General Matter was also selected in October 2024 as one of four companies to provide enrichment services for establishing a U.S. supply of high-assay low-enriched uranium (HALEU). HALEU is a key fuel for advanced reactors and small modular reactors (SMRs), which are expected to play a major role in future power systems.

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

U.S.–Japan Fusion Partnership Marks a New Era of Cooperation

In another major development, the DOE and Kyoto Fusioneering (KF) announced a landmark partnership to advance fusion power technology and reduce commercialization risks.

The collaboration centers on breeding blanket systems, which produce tritium fuel needed for fusion reactors. A key project is UNITY-3, a next-generation fusion testing facility planned at Oak Ridge National Laboratory (ORNL). This facility will validate breeding blanket performance using realistic neutron environments and component designs.

The partnership also includes Idaho National Laboratory and Savannah River National Laboratory. Together, they will leverage KF’s UNITY-1 and UNITY-2 facilities in Japan and Canada to test thermal systems, tritium fuel cycles, and non-nuclear components.

This coordinated approach aims to systematically increase technology readiness levels and accelerate the path toward commercial fusion power. The initiative has already gained strong industry support, with multiple U.S. fusion companies endorsing the program.

DOE officials described fusion as a transformational opportunity for the energy sector and a critical pillar for long-term competitiveness. The partnership also strengthens U.S.–Japan strategic ties in clean energy and advanced technology.

AI, Data Centers, and Electrification Drive Nuclear Demand

Rising electricity demand is a key driver behind the renewed interest in nuclear power. AI workloads, cloud computing, electric vehicles, and industrial electrification are pushing power consumption to record levels.

According to the U.S. Energy Information Administration (EIA), total U.S. electricity consumption is expected to increase from 4,198 billion kilowatt-hours (kWh) in 2025 to about 4,256 billion kWh in 2026. This steady growth reflects expanding data centers, manufacturing, and population-driven demand.

Nuclear power remains a critical source of reliable baseload electricity. EIA forecasts that nuclear generation will remain stable through 2026, accounting for roughly 18% to 19% of total U.S. electricity generation. While renewables such as solar and wind are growing rapidly, nuclear continues to provide round-the-clock power that complements intermittent clean energy sources.

This reliability is especially important for AI data centers, which require constant power and cannot rely solely on variable renewable generation.

Uranium Production and Fuel Cycle Challenges

Despite strong policy support, the U.S. nuclear fuel sector faces significant challenges. Domestic uranium production has been volatile, highlighting the difficulty of rebuilding a mining industry after decades of decline.

EIA highlighted that, in the third quarter of 2025, U.S. uranium concentrate production totaled 329,623 pounds of U3O8, a 44% decline from the previous quarter. This drop underscores the need for sustained investment and policy support to stabilize domestic supply.

Beyond mining, the U.S. must also expand conversion, enrichment, and fuel fabrication capacity. Much of the global enrichment market is dominated by foreign suppliers, including Russia, Europe, and China. Rebuilding domestic capabilities will require large capital investments and regulatory approvals.

Trump Targets Massive Nuclear Expansion

U.S. policy is increasingly aligned with nuclear expansion. The United States currently operates 96 nuclear reactors with a total gross capacity of about 102 gigawatts, according to the World Nuclear Association.

In May 2025, President Donald Trump signed executive orders targeting 400 gigawatts of nuclear capacity by 2050. The policy includes uprates at existing reactors, construction of new large reactors by 2030, and major investments in fuel cycle infrastructure.

The strategy also emphasizes domestic supply chains for uranium mining, enrichment, fuel fabrication, and waste management. Building these supply chains is seen as critical for energy security, especially as geopolitical tensions affect global uranium and enrichment markets.

Analysts expect SMRs and advanced reactors to play a growing role, particularly for industrial facilities, hydrogen production, and large data centers seeking long-term power contracts.

Fusion and Advanced Reactors: Long-Term Game Changers

While traditional nuclear reactors are expanding, fusion and advanced fission technologies represent the long-term future of the sector.

Fusion promises abundant, low-waste energy, but it remains technologically complex and expensive. The DOE-Kyoto Fusioneering partnership aims to close key technology gaps and accelerate commercialization timelines.

Advanced fission reactors, including fast reactors and SMRs, are closer to deployment. These designs offer improved safety, lower costs, and flexibility for industrial applications. They also require new fuel types such as HALEU, reinforcing the importance of domestic enrichment capacity.

Why This Matters for US Nuclear Infrastructure

The U.S. push to revive nuclear infrastructure, expand enrichment, and accelerate fusion reflects a strategic shift in energy policy. Nuclear power is becoming a cornerstone of the digital economy and clean energy transition.

For investors, these developments could reshape uranium markets, nuclear technology companies, and infrastructure spending. Rising electricity demand from AI and electrification could support long-term growth in nuclear capacity, even as renewables continue to scale.

With AI, data centers, and electrification driving record electricity demand, nuclear power is emerging as a strategic asset for reliable, low-carbon energy. Policy support is strong, but rebuilding the full nuclear fuel cycle will require sustained investment, regulatory reform, and public acceptance.

In conclusion, the DOE’s recent partnerships with General Matter and Kyoto Fusioneering highlight a coordinated effort to rebuild the U.S. nuclear ecosystem—from mining and enrichment to advanced reactors and fusion research.

• FURTHER READING: DOE’s $2.7 Billion Push for Uranium Enrichment Rebuilds U.S. Energy Security 

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