Tesla has established itself as a leader in the fight against climate change. It often emphasizes its role in cutting greenhouse gas (GHG) emissions by promoting electric vehicles (EVs).
In 2023, the company claimed its fleet helped avoid 20 million metric tons of carbon dioxide equivalent (CO2e) emissions. A recent study by Greenly, a firm specializing in carbon footprint measurement and management, however, questions this figure. They estimate the real avoided emissions at 10.2 to 14.4 million metric tons, which is 28-49% lower than Tesla’s claims.
What’s the basis for Greenly’s claim? Let’s find out, and how this may impact Tesla’s position and the entire industry.
Breaking Down Tesla’s Avoided Emissions Calculations
Tesla calculates avoided emissions by comparing its EV fleet to a similar fleet of ICE (internal combustion engine) vehicles. The process follows these steps:
- Fleet Size Calculation. Using sales data, Tesla estimates the number of active vehicles in its fleet. By the end of 2023, Greenly estimated this number to be around 5.35 million Teslas worldwide.
- ICE Emissions Comparison. Tesla assumes that ICE vehicles emit an average of 445 grams of CO2e per mile in the U.S. and 459 grams in Europe, based on data from Consumer Reports.
- EV Emissions Calculation. Tesla estimates U.S. emissions from electricity generation at 116 gCO2e/mile. But Greenly, using IEA data, finds a much higher figure of 206 gCO2e/mile.
- Manufacturing Emissions. Tesla estimates that making an ICE vehicle releases 10 metric tons of CO2e. In contrast, an EV generates 20 metric tons, mainly because of battery production.
Tesla found that in 2023, swapping ICE vehicles for its EVs cut emissions by 20 million metric tons. Now, let’s uncover Greenly’s calculations.
Greenly’s Findings and Discrepancies: A Reality Check for Tesla?
Greenly reanalyzed Tesla’s approach using independent emissions factors and found significant discrepancies. These include the following analysis findings:
Overestimation of ICE Vehicle Emissions. Tesla’s emissions factor for ICE vehicles is 445-459 gCO2e/mile. This is much higher than the UK standard for large diesel cars, which is 415 gCO2e/mile. This difference suggests that Tesla might have overstated the emissions avoided.
Underestimation of Grid Emissions. Tesla uses a lower emissions factor for electricity at 116 gCO2e/mile. In contrast, the IEA calculates it at 206 gCO2e/mile. This suggests Tesla might have underestimated the emissions from charging its EVs.
Mileage Assumptions: Tesla assumes its EVs travel 200,000 miles over 17 years. If this assumption were lowered to 150,000 miles, Greenly found that avoided emissions would drop significantly to 6.9 million metric tons.
- After adjustments, Greenly estimated Tesla’s real avoided emissions at 10.2-14.4 million metric tons. This is much lower than Tesla’s reported 20 million metric tons.
What This Means for the EV Industry’s Climate Goals
EVs are widely recognized as key to reducing transportation-related GHG emissions. In 2023, the sector was the world’s second-largest source of GHG emissions with 8.24 GtCO₂. Road vehicles are the top polluters.
By 2023, the growing use of EVs helped cut CO₂ emissions from new vehicles by 11%, bringing the average down to 319 grams per mile—the lowest ever recorded. The chart below shows the difference in GHG emissions for an EV and gas-powered car.

However, accurate carbon emissions accounting is crucial. It helps maintain credibility and shows the industry’s real environmental impact.
Tesla’s potentially inflated claims could have several consequences for the broader EV market.
Regulatory Scrutiny:
Exaggerating avoided emissions may result in more regulatory scrutiny of EV makers’ climate claims. If Tesla’s reports are misleading, policymakers might require stricter checks on EV carbon reduction claims.
Investor and Consumer Trust:
The EV industry has gained from high public and investor trust. This confidence comes from the promise of major emission cuts. Greenly’s findings might hurt this trust. This could make investors wary of supporting EV companies. It can also lead consumers to doubt the environmental benefits of leaving ICE vehicles behind.
Competitive Pressures:
Tesla’s competitors, including BYD, Rivian, and traditional automakers like Ford and BMW, are also marketing their EVs as low-emission alternatives. If a big player is caught exaggerating claims, it could push all EV makers to get third-party checks on their environmental impact.
The Billion-Dollar Carbon Credit Question
One of Tesla’s key revenue streams has been the sale of carbon credits to other automakers that do not meet emissions standards. Since Tesla produces only electric vehicles, it accumulates large amounts of regulatory credits.
The EV maker then sells these credits to companies still producing gasoline-powered cars. Tesla’s carbon credit sales have earned billions, with over $10.4 billion since 2017. Last year’s revenue was record high. This profit helps keep the company strong, especially in years with lower vehicle margins.

If Tesla’s avoided emissions claims are found to be inflated, it could undermine the credibility of its carbon credit sales. Regulatory bodies may set stricter rules for issuing and verifying carbon credits. This change could make it tougher for Tesla to profit from this market.
Also, automakers buying these credits might want more transparency. This helps them confirm they meet rules without depending on possibly inflated numbers. Any disruptions in this market could significantly impact Tesla’s bottom line.
Tesla’s Reputation at Stake: Environmental Claims Under Fire
Greenly’s findings come at a bad time for Tesla. The company already faces reputational issues because of CEO Elon Musk’s political activities. Plus, its stock price has dropped sharply. Musk’s controversial comments and changing political views have turned off some customers and investors. This has hurt Tesla’s brand image.
Moreover, Tesla’s stock has struggled in recent months, with share prices down over 25% year-to-date. The combination of financial struggles, leadership controversies, and now questions about its environmental impact could further erode confidence in Tesla’s long-term growth potential.
Moreover, governments worldwide are increasing scrutiny of corporate sustainability claims. If Tesla overstated its emissions reductions, it might face legal issues. This could include fines or losing access to incentive programs.
The Need for Transparency in Carbon Accounting
Tesla’s differences in avoided emissions estimates show a bigger problem: the EV industry needs independent and standardized carbon accounting. Without clear, verifiable methods for calculating avoided emissions, companies could mislead stakeholders about their true climate impact.
Greenly’s report says manufacturers should use 3rd-party audits for emissions claims. This is like how financial audits work to help keep their credibility. More rigorous carbon accounting would help:
- Ensure that avoided emissions are not exaggerated to attract investment or government incentives.
- Provide policymakers with reliable data to shape EV-related regulations.
- Prevent backlash similar to the Dieselgate scandal, where automakers manipulated emissions data.
Tesla plays a big role in boosting EV adoption and cutting emissions. However, it’s important to check how accurate its environmental claims are. The Greenly report raises concerns about transparency in EV industry reporting.
As governments and consumers push for more rigorous climate accountability, automakers must ensure their emissions calculations are accurate and independently verified.
The post Tesla’s Avoided Emissions Are Up to 49% Overstated, A Study Claims appeared first on Carbon Credits.
Carbon Footprint
Climate Impact Partners Unveils High-Quality Carbon Credits from Sabah Rainforest in Malaysia
The voluntary carbon market is changing. Buyers are no longer focused only on large volumes of cheap credits. Instead, they want projects with strong science, long-term monitoring, and clear proof that carbon has truly been removed from the atmosphere. That shift is drawing more attention to high-integrity, nature-based projects.
One project now gaining that spotlight is the Sabah INFAPRO rainforest rehabilitation project in Malaysia. Climate Impact Partners announced that the project is now issuing verified carbon removal credits, opening access to one of the highest-quality nature-based removals currently available in the global market.
Restoring One of the World’s Richest Rainforest Ecosystems
The project is located in Sabah, Malaysia, on the island of Borneo. This region is home to tropical dipterocarp rainforest, one of the richest forest ecosystems on Earth. These forests store huge amounts of carbon and support extraordinary biodiversity. Some dipterocarp trees can grow up to 70 meters tall, creating habitat for orangutans, pygmy elephants, gibbons, sun bears, and the critically endangered Sumatran rhino.
However, the forest within the INFAPRO project area was not intact. In the 1980s, selective logging removed many of the most valuable tree species, especially large dipterocarps. That caused serious ecological damage. Once the key mother trees were gone, natural regeneration became much harder. Young seedlings also had to compete with dense vines and shrubs, which slowed the forest’s recovery.
To repair that damage, the INFAPRO project was launched in the Ulu-Segama forestry management unit in eastern Sabah.
- The project has restored more than 25,000 hectares of logged-over rainforest.
- It was developed by Face the Future in cooperation with Yayasan Sabah, while Climate Impact Partners has supported the project and helped bring its credits to market.
Why Sabah’s Carbon Removals are Attracting Attention
What makes Sabah INFAPRO different is not only the size of the restoration effort. It is also the way the project measured carbon gains.

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

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Carbon Footprint
Bitcoin Falls as Energy Prices Rise: Why Crypto Is Now an Energy Market Story
Bitcoin’s recent drop below $70,000 reflects more than short-term market pressure. It signals a deeper shift. The world’s largest cryptocurrency is becoming increasingly tied to global energy markets.
For years, Bitcoin has moved mainly on investor sentiment, adoption trends, and regulation. Today, another force is shaping its direction: the cost of energy.
As oil prices rise and electricity markets tighten, Bitcoin is starting to behave less like a tech asset and more like an energy-dependent system. This shift is changing how investors, analysts, and policymakers understand crypto.
A Global Power Consumer: Inside Bitcoin’s Energy Use
Bitcoin depends on mining, a process that uses powerful computers to verify transactions. These machines run continuously and consume large amounts of electricity.
Data from the U.S. Energy Information Administration shows Bitcoin mining used between 67 and 240 terawatt-hours (TWh) of electricity in 2023, with a midpoint estimate of about 120 TWh.

Other estimates place consumption closer to 170 TWh per year in 2025. This accounts for roughly 0.5% of global electricity demand. Recently, as of February 2026, estimates see Bitcoin’s energy use reaching over 200 TWh per year.
That level of energy use is significant. Global electricity demand reached about 27,400 TWh in 2023. Bitcoin’s share may seem small, but it is comparable to the power use of mid-sized countries.
The network also requires steady power. Estimates suggest it draws around 10 gigawatts continuously, similar to several large power plants operating at full capacity. This constant demand makes energy costs central to Bitcoin’s economics.
When Oil Rises, Bitcoin Falls
Bitcoin mining is highly sensitive to electricity prices. Energy is the highest operating cost for miners. When power becomes more expensive, profit margins shrink.
Recent market movements show this link clearly. As oil prices rise and inflation concerns persist, energy costs have increased. At the same time, Bitcoin prices have weakened, falling below the $70,000 level.

This is not a coincidence. Studies show a direct relationship between Bitcoin prices, mining activity, and electricity use. When Bitcoin prices rise, more miners join the network, increasing energy demand. When energy costs rise, less efficient miners may shut down, reducing activity and adding selling pressure.
This creates a feedback loop between crypto and energy markets. Bitcoin is no longer driven only by demand and speculation. It is now influenced by the same forces that affect oil, gas, and power prices.
Cleaner Energy Use Is Growing, but Fossil Fuels Still Matter
Bitcoin’s environmental impact depends on its energy mix. This mix is improving, but it remains uneven.
A 2025 study from the Cambridge Centre for Alternative Finance found that 52.4% of Bitcoin mining now uses sustainable energy. This includes both renewable sources (42.6%) and nuclear power (9.8%). The share has risen significantly from about 37.6% in 2022.
Despite this progress, fossil fuels still account for a large portion of mining energy. Natural gas alone makes up about 38.2%, while coal continues to contribute a smaller share.

This reliance on fossil fuels keeps emissions high. Current estimates suggest Bitcoin produces more than 114 million tons of carbon dioxide each year. That puts it in line with emissions from some industrial sectors.
The shift toward cleaner energy is real, but it is not complete. The pace of change will play a key role in how Bitcoin fits into global climate goals.
Bitcoin’s Climate Debate Intensifies
Bitcoin’s growing energy demand has placed it at the center of ESG discussions. Its impact is often measured through three key areas:
- Total electricity use, which rivals that of entire countries.
- Carbon emissions are estimated at over 100 million tons of CO₂ annually.
- Energy intensity, with a single transaction using large amounts of power.

At the same time, the industry is evolving. Mining companies are adopting more efficient hardware and exploring new energy sources. Some operations use excess renewable power or capture waste energy, such as flare gas from oil fields.
These efforts show progress, but they do not fully address the concerns. The gap between Bitcoin’s energy use and its environmental impact remains a key issue for investors and regulators.
- MUST READ: Bitcoin Price Hits All-Time High Above $126K: ETFs, Market Drivers, and the Future of Digital Gold
Bitcoin Is Becoming Part of the Energy System
Bitcoin mining is now closely integrated with the broader energy system. Operators often choose locations based on access to cheap or excess electricity. This includes areas with strong renewable generation or underused energy resources.
This integration creates both opportunities and challenges. On one hand, mining can support energy systems by using power that might otherwise go to waste. It can also provide flexible demand that helps stabilize grids.
On the other hand, it can increase pressure on local electricity supplies and extend the use of fossil fuels if cleaner options are not available.
In the United States, Bitcoin mining could account for up to 2.3% of total electricity demand in certain scenarios. This highlights how quickly the sector is scaling and how closely it is tied to national energy systems.
Energy Markets Are Now Key to Bitcoin’s Future
Looking ahead, the connection between Bitcoin and energy is expected to grow stronger. The network’s computing power, or hash rate, continues to reach new highs, which typically leads to higher energy use.
Electricity will remain the main cost for miners. This means Bitcoin will continue to respond to changes in energy prices and supply conditions. At the same time, governments are starting to pay closer attention to crypto’s environmental impact, which could shape future regulations.

Some forecasts suggest Bitcoin’s energy use could rise sharply if adoption increases, potentially reaching up to 400 TWh in extreme scenarios. However, cleaner energy systems could reduce the carbon impact over time.
Bitcoin is no longer just a financial asset. It is also a large-scale energy consumer and a growing part of the global power system.
As a result, understanding Bitcoin now requires a broader view. Energy prices, electricity markets, and carbon trends are becoming just as important as market demand and investor sentiment.
The message is clear. As energy markets move, Bitcoin is likely to move with them.
The post Bitcoin Falls as Energy Prices Rise: Why Crypto Is Now an Energy Market Story appeared first on Carbon Credits.
Carbon Footprint
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