The transition to a low-carbon economy is not just a trend—it’s a must. With climate change accelerating, companies are under increasing pressure to reduce their carbon footprints. Major tech companies, such as Meta, Apple, and Netflix, have committed to achieving net-zero emissions by 2030, while mining and energy giants like Barrick, Newmont, and ExxonMobil are following suit. For investors, this evolving trend presents a unique opportunity to invest in carbon stocks and support innovative companies focused on carbon reduction and capture.
Why Carbon Stocks Are Gaining Traction in 2025
Carbon stocks are becoming increasingly popular as people and organizations alike strive to meet climate goals. These stocks represent companies that focus on reducing or offsetting carbon emissions. They are drawing attention not only for their environmental benefits but also for their potential financial returns.
With governments and corporations prioritizing carbon reduction technologies and emissions offsets, the market for carbon-related solutions is poised for rapid growth.
In 2025, here are the top five carbon stocks worth keeping on your radar.
1. Brookfield Renewable Partners (BEP): A Leader in Clean Energy
Brookfield Renewable Partners (BEP) is one of the world’s largest publicly traded renewable energy companies. With a clear focus on clean, renewable energy, BEP distinguishes itself from many of its competitors by operating as a pure-play renewable energy company. This means that its portfolio consists exclusively of renewable sources of power generation, unlike other companies that often combine renewable energy with fossil fuel assets.
Global Portfolio and Capacity
As of 2024, BEP’s diversified portfolio encompasses over 35,000 megawatts of operating capacity across various renewable energy sources:
- Hydroelectric Plants: 229 facilities
- Wind Farms: 105 installations
- Solar Power Plants: 88 sites
- Energy Storage Facilities: 700 megawatts of capacity
This extensive array of assets spans multiple regions, including North America, South America, Europe, and Asia, underscoring BEP’s commitment to global renewable energy development.
Financial Performance, Growth, and Expansion Plans
In the third quarter of 2024, BEP reported Funds From Operations (FFO) of $278 million, equating to $0.42 per unit. This represents an 11% increase compared to the same period in the prior year, highlighting the company’s robust financial health and operational efficiency.
Over the past 5 years, BEP has maintained an average dividend yield of around 5%. Since its inception over two decades ago, it has reached over $109 billion in assets under management globally.
The company is actively pursuing an ambitious growth strategy, with a development pipeline poised to add 11,000 megawatts of capacity. This expansion represents a 46% increase over the current operating capacity, with plans to execute these developments over the next 3 years.
Successful realization of this pipeline could enable the renewable energy company to significantly scale its power generation capabilities. Here’s what BEP’s development and growth plans look like, highlighting its 10.5 GW partnership with Microsoft:
Positioning in the Transition to Clean Energy
As corporations worldwide strive to achieve net-zero carbon emissions, the demand for renewable energy sources is escalating. BEP’s exclusive focus on carbon-free energy positions it as a preferred partner for companies seeking to reduce their carbon footprints.
For investors seeking exposure to the renewable energy sector with a preference for established companies demonstrating stable growth and reliable returns, Brookfield Renewable Partners represents a compelling option.
2. Aker Carbon Capture ASA (AKCCF): Pioneering Carbon Capture Solutions
Aker Carbon Capture (AKCCF) is a Norwegian company specializing in carbon capture technology. Leveraging its expertise from the Aker Group, a global leader in offshore engineering, Aker Carbon Capture has developed modular carbon capture systems that are both cost-effective and scalable.
One of the company’s standout innovations is the “Just Catch” modular carbon capture plant. It is designed to meet the needs of mid-sized industries like cement, biomass, and waste-to-energy. This plant reduces the time and cost typically associated with custom-built carbon capture facilities.
Aker has also developed a proprietary amine solvent, a technology that efficiently captures CO₂ from industrial emissions. This solvent is highly stable, has low degradation rates, and minimizes energy consumption, making it a cost-effective solution for industries looking to reduce their carbon footprint.
The technology has been successfully deployed in real-world projects, such as the CO₂ capture pilot at the Norcem cement plant in Brevik, Norway.
Aker Carbon Capture is also undergoing a joint venture with SLB to form SLB Capturi, which will further accelerate the development of large-scale carbon capture technologies. The carbon capture company partnered with Microsoft last year to capture and store carbon at pulp and paper mills.
Financial Performance, Key Projects, and Outlook
As of the third quarter of 2024, ACC ASA reported a net loss of NOK 47 million. The company maintained a robust financial position with NOK 4.5 billion in cash and an equity standing at NOK 5.5 billion.
ACC ASA is involved in several significant carbon capture projects including:
- Heidelberg Materials Brevik CCS Project (Norway): Captures 400,000 tonnes of CO₂ annually.
- Ørsted’s BECCS Project (Denmark): Deploying five Just Catch units to capture up to 500,000 tonnes of CO₂.
- Twence Project (Netherlands): Captures 100,000 tonnes of CO₂ annually for use in local agriculture.
With a solid financial foundation and strategic partnerships, ACC ASA is well-positioned to expand its carbon capture solutions globally. The aim is to contribute significantly to the reduction of industrial CO₂ emissions and support the transition to a low-carbon economy.
3. LanzaTech Global, Inc. (LNZA): Turning Emissions into Valuable Products
LanzaTech Global, Inc. (LNZA) is a pioneering carbon recycling company that transforms waste carbon emissions into sustainable fuels and chemicals through innovative biotechnology using gas fermentation. Through this process, industrial emissions—rich in carbon monoxide and carbon dioxide—are converted into ethanol and other chemicals.
The company uses proprietary microbes engineered to thrive in industrial gas streams, such as those found in steel mills and refineries. These microbes consume waste gases, turning them into useful products.
The ethanol produced can serve as a building block for various products, including jet fuel, plastics, and synthetic fibers.
Financial Performance and Strategic Development
In the third quarter of 2024, LanzaTech reported revenue of $9.9 million, a decrease from $17.4 million in the second quarter and $19.6 million in the third quarter of 2023. This decline was primarily due to a timing delay in a LanzaJet sublicensing event, which was expected to generate about $8.0 million in licensing revenue.
LanzaTech has been actively expanding its technological capabilities and market reach:
- CirculAir Initiative: In June 2024, LanzaTech and its subsidiary LanzaJet introduced CirculAir, a commercially viable solution designed to convert waste carbon and renewable power into sustainable aviation fuel (SAF).
- Project Drake: LanzaTech advanced Project Drake, a 30-million-gallon sustainable aviation fuel project, furthering its commitment to large-scale SAF production.
Key Projects and Partnerships
The carbon recycling company has engaged in several significant projects and collaborations, including:
- Technip Energies Collaboration: Received U.S. Department of Energy funding to commercialize CO₂-to-ethylene technology.
- Eramet Partnership: Developing a Carbon Capture, Utilization, and Storage (CCUS) project in Norway.
- LanzaJet Initiative: Introducing CirculAir, a technology to produce sustainable aviation fuel (SAF).
Additionally, LanzaTech is developing a novel biocatalyst to directly convert CO₂ to ethanol at 100% carbon efficiency, leveraging affordable, renewable hydrogen. This transformative technology aims to produce biofuels and feedstocks for valuable products using carbon-free renewable energy, water, and CO₂.
With a solid financial foundation bolstered by recent capital raises and strategic partnerships, LanzaTech is well-positioned to expand its carbon recycling solutions globally, creating sustainable products from waste carbon.
4. Occidental Petroleum Corporation (OXY): Carbon Capture with Enhanced Oil Recovery
Occidental Petroleum (OXY) is a major player in the oil and gas industry. However, in recent years, the company has been transforming itself into a leader in carbon management solutions.
Occidental has embraced Direct Air Capture (DAC) technology, which removes CO₂ directly from the atmosphere. In partnership with Carbon Engineering, Occidental is constructing the world’s largest DAC facility in Texas, a groundbreaking project that will play a significant role in achieving global emission reduction targets.
Financial Performance
In the third quarter of 2024, Occidental reported net income attributable to common stockholders of $964 million, or $0.98 per diluted share. The company has scheduled the announcement of its fourth-quarter 2024 financial results for February 18, 2025.
Carbon Capture Initiatives
Occidental is actively investing in DAC technology through its subsidiary, 1PointFive. The company’s flagship DAC facility, named STRATOS, is under construction in the Permian Basin.
STRATOS is designed to extract 500,000 metric tons of atmospheric CO₂ annually, laying the foundation for commercial-scale DAC deployment. The facility will begin operations in the summer of 2025, with live power anticipated to come online in December 2024.
- RELATED: Are Direct Air Capture Plants Facing Massive Clean Energy Challenge in the U.S.? A S&P Global Report
Occidental plans to integrate the captured CO₂ into enhanced oil recovery (EOR) processes, injecting the CO₂ into aging oil fields to extract additional oil while effectively sequestering the CO₂ underground.
This approach creates a closed-loop system that both boosts oil production and reduces atmospheric carbon.
Additionally, Occidental is developing a project to transport and store CO₂ captured from Velocys’ planned Bayou Fuels biomass-to-fuels project in Natchez, Mississippi, in secure geologic formations.
The Bayou Fuels project converts waste woody biomass into transportation fuels, and applying CO₂ capture and storage can make the facility a net-negative carbon dioxide emitter.
Occidental’s approach is an example of how traditional energy companies are evolving to embrace sustainability. By combining its existing expertise in oil extraction with innovative carbon capture methods, Occidental is paving the way for a future where fossil fuel extraction can coexist with carbon reduction technologies.
5. Equinor ASA (EQNR): Leading the Way in Carbon Storage and Capture
Equinor, formerly known as Statoil, is a Norwegian energy giant that has diversified its portfolio to include renewable energy sources like wind power. It has also been at the forefront of carbon capture, utilization, and storage (CCUS) technologies for over 25 years.
Their extensive experience includes operating the world’s first dedicated CO₂ storage site at the Sleipner field since 1996 and the Snøhvit field since 2008. The image from the company’s presentation below shows its overall performance in the latest report.
Moreover, Equinor is a key player in the Northern Lights project, a pioneering initiative in Norway aimed at developing a large-scale CCS infrastructure.
The Northern Lights project focuses on capturing CO₂ from industrial sources, transporting it via ships, and securely storing it beneath the North Sea seabed. This project is a crucial step in addressing the complexities of CCS, and Equinor is positioning itself as a facilitator of this transformative technology.
What makes the Northern Lights project particularly noteworthy is its open-source infrastructure. It allows other companies to use the storage facilities. This collaborative model could accelerate the widespread adoption of CCS technology across Europe and beyond.
Financial Performance
Equinor reported Q3 2024 operating income of $6.89 billion, down 13% from $7.93 billion in Q3 2023, missing forecasts. Adjusted net income after tax was $2.04 billion, with net income at $2.29 billion. Earnings per share reached $0.79. Lower oil prices and production declines drove the decrease in profit.
Other Key Projects and Developments
- Bayou Bend CCS Project: Equinor has acquired a 25% interest in Bayou Bend CCS LLC, positioning it to be one of the largest carbon capture and storage projects in the United States.
- UK Carbon Storage Initiatives: Equinor, in collaboration with BP and TotalEnergies, has secured investment into Britain’s carbon capture projects, directly supporting 2,000 jobs in the northeast of England.
Strategic Partnerships, Technological Innovations, and Outlook
Equinor has signed an agreement with French gas grid operator GRTgaz to develop a CO₂ transport system that will carry captured CO₂ from French industrial emitters to offshore storage sites in Norway.
The Norwegian energy giant operates the Technology Centre Mongstad, the world’s largest and most flexible plant for testing and improving CO₂ capture technologies. This facility plays a crucial role in advancing CCUS solutions to decarbonize industries and the energy system.
In December 2024, Equinor secured over $3 billion in financing for its Empire Wind 1 offshore project in the U.S. Scheduled to become fully operational by 2027, the project will deliver clean energy to 500,000 New York homes, advancing the company’s renewable energy ambitions.
- READ MORE: Equinor’s $3B Financing Deal for Empire Wind 1 Project: A Turning Point for U.S. Offshore Wind?
Equinor has decades of experience in offshore oil and gas exploration, and its deep-rooted knowledge of energy infrastructure is key to its success in developing large-scale CCS solutions. With the potential to store the equivalent of 1,000 years of Norwegian CO₂ emissions beneath the seabed, Equinor’s initiatives are pivotal in supporting global climate goals.
Conclusion: The Future of Carbon Stocks
As more companies declare their commitment to net-zero goals and seek innovative solutions to reduce carbon emissions, carbon stocks are becoming attractive to investors. The top carbon stocks or companies mentioned in this article—Brookfield Renewable Partners, Aker Carbon Capture, LanzaTech, Occidental Petroleum, and Equinor—are leading the charge in decarbonizing industries and creating sustainable solutions for a carbon-constrained world.
By investing in these carbon stocks, investors not only support the transition to a cleaner, more sustainable future but also position themselves to benefit from the growth of the green economy.
As we move closer to 2030 and beyond, carbon stocks will become an increasingly important part of investment portfolios aiming to align financial returns with environmental impact.
The post Top 5 Carbon Stocks to Watch in 2025 appeared first on Carbon Credits.
The U.S. nuclear sector just received another strong signal of federal backing.
On February 21, the U.S. Department of Energy (DOE) finalized a $303 million Technology Investment Agreement with Kairos Power to advance its Hermes demonstration reactor in Oak Ridge, Tennessee. The deal supports the company’s selection under the Advanced Reactor Demonstration Program (ARDP), first announced in December 2020.
But this is not a traditional federal grant. Instead, DOE structured the agreement as a performance-based, fixed-price milestone contract. Kairos will only receive payments once it achieves clearly defined technical milestones.
This funding model was previously used by the Department of Defense and NASA’s Commercial Orbital Transportation Services (COTS) program. It aims to accelerate innovation while protecting public funds. Now, DOE is applying that same discipline to advanced nuclear technology.
Hermes: The First Gen IV Reactor Approved in Decades
At the center of the agreement is Hermes — a low-power demonstration reactor based on Kairos Power’s fluoride salt-cooled high-temperature reactor (KP-FHR) design.
In December 2023, the U.S. Nuclear Regulatory Commission (NRC) granted Hermes a construction permit. That approval marked a historic milestone. Hermes became the first non-light-water reactor approved for construction in the United States in more than 50 years. It is also the first Generation IV reactor cleared for building.
The reactor is expected to be operational in 2027. While it will not generate commercial electricity, it serves a critical role. Hermes will demonstrate Kairos Power’s ability to safely deliver low-cost nuclear heat and operate a fully integrated advanced nuclear system.
Its design combines two established technologies that originated in Oak Ridge: TRISO-coated particle fuel and Flibe molten fluoride salt coolant. Together, these systems enhance safety and simplify operations.
The molten salt coolant improves heat transfer and stability, while TRISO fuel provides strong containment of radioactive materials. The result is a reactor design that emphasizes inherent safety without relying on overly complex backup systems.
Significantly, Hermes represents Kairos Power’s first nuclear build, and it acts as a stepping stone toward commercial deployment.
Mike Laufer, Kairos Power co-founder and CEO, said:
“With the use of fixed-price milestone payments, this innovative contract provides real benefits to both Kairos Power and DOE to ensure the successful completion of the Hermes reactor. It allows us to remain focused on achieving the most important goals of the project while retaining agility and flexibility to move quickly as we learn key lessons through our iterative development approach.”
Risk Reduction and Private Capital Alignment
The DOE’s investment complements significant private funding already committed by Kairos Power. Since its ARDP selection, the company has built extensive testing facilities and manufacturing infrastructure to support its Engineering Test Unit series. It has also advanced its fuel development and molten salt coolant systems.
Unlike traditional large-scale nuclear projects that often suffer cost overruns, Kairos is pursuing an iterative development pathway. This approach allows the company to test, refine, and improve reactor components before full commercial rollout.
Fuel manufacturing plays a key role in that strategy. Kairos Power is working in partnership with Los Alamos National Laboratory to produce fuel for Hermes. Through its Low Enriched Fuel Fabrication Facility (LEFFF), the company aims to control quality, reduce delays, and manage costs more effectively.
Vertical integration is central to its business model. By managing more of the supply chain internally, Kairos hopes to deliver greater cost certainty for future commercial reactors — an area where traditional nuclear projects have struggled.
Key Features
Nuclear’s Return to the Energy Spotlight
The Hermes agreement comes at a time when nuclear energy is regaining political and investor attention.
Federal policy has shifted in favor of accelerating the development of next-generation reactors. In 2025, the U.S. administration introduced measures to shorten licensing timelines and rebuild domestic nuclear fuel supply chains. The Department of Energy has articulated an ambitious goal: expand U.S. nuclear capacity from roughly 100 gigawatts in 2024 to 400 gigawatts by 2050.
Programs such as the Energy Dominance Financing initiative aim to provide additional support for nuclear infrastructure. Once built, reactors can operate for up to 80 years, making them long-term strategic assets.
At the same time, electricity demand is rising. According to the International Energy Agency (IEA), U.S. electricity demand grew 2.8% in 2024 and another 2.1% in 2025. The country is projected to add more than 420 terawatt-hours of new demand over the next five years.
Data centers are driving much of that growth. The rapid expansion of artificial intelligence and cloud computing infrastructure could account for nearly half of total demand growth through 2030.
This dynamic is reshaping energy investment decisions. Technology companies require reliable, always-on power. However, they must also meet emissions reduction targets. Nuclear energy provides steady, low-carbon electricity, making it increasingly attractive for both policymakers and corporate buyers.
Small Reactors, Big Strategic Impact
Small modular and advanced reactors are the keys to this renewed momentum. Compared to traditional gigawatt-scale plants, smaller reactors offer shorter construction timelines and lower upfront capital requirements. Developers can deploy them incrementally, reducing financial risk and improving flexibility.
Hermes, although it is a demonstration project, it represents a critical validation step. If successful, it could pave the way for commercial-scale KP-FHR reactors that supply industrial heat and electricity at competitive costs.
Dr. Kathryn Huff, Assistant Secretary, Office of Nuclear Energy, made an important statement, noting:
“The Hermes reactor is an important step toward realizing advanced nuclear energy’s role in ushering forward the nation’s clean energy transition. Partnerships like this one play a significant role in making advanced nuclear technology commercially competitive.”
For investors, this shift signals opportunity. Supportive government policy, rising electricity demand, AI-driven load growth, and decarbonization commitments are converging. Nuclear power, once viewed as a legacy industry, is re-emerging as a strategic solution.
A Measured Step Toward a Nuclear Renaissance
The DOE-Kairos agreement does not guarantee success. Advanced reactor development remains technically complex and capital-intensive. However, the deal’s structure reflects lessons learned from past nuclear projects.
By tying federal funding to performance milestones, DOE is promoting accountability. By combining public and private capital, the government is reducing financial risk while accelerating innovation.
Hermes now stands as one of the most closely watched advanced reactor projects in the United States. If Kairos delivers on schedule, the project could mark a turning point. Not just for one company but for the broader U.S. nuclear renaissance that policymakers increasingly envision.
In a world of rising electricity demand and tightening climate targets, advanced nuclear energy is inevitably essential. And with Hermes moving forward, it is becoming tangible infrastructure.
The post DOE’s $303M Bet on Kairos Power Signals America’s Advanced Nuclear Push appeared first on Carbon Credits.
Amazon, once again, is one of the top corporate buyers of clean and renewable energy in the world. For the fifth year in a row, the company leads global corporate renewable energy procurement. BloombergNEF again recognized Amazon as a top corporate purchaser of carbon-free power, with a portfolio that adds significant new clean energy to grids.
Amazon’s clean energy projects now span more than 700 global initiatives. These include utility-scale solar and wind farms, battery storage, onsite solar, and other carbon-free energy sources across 28 countries.
So far, Amazon has invested in over 40 gigawatts (GW) of carbon-free energy capacity. This amount of power could supply the annual electricity needs of more than 12.1 million U.S. homes if it were used for residential demand.
These investments make Amazon not just a buyer of clean power for itself, but a major driver of new renewable energy build-out around the world.
From First PPA to 40GW Global Portfolio
Amazon’s renewable energy footprint has expanded rapidly over the past decade. The big tech company was the biggest corporate buyer of renewable energy in 2025, based on BloombergNEF data. It signed multiple power purchase agreements (PPAs) and grew its clean energy portfolio.
- Amazon has backed over 700 wind and solar projects around the world. This clean energy can power more than 12.1 million U.S. homes each year.
This expansion includes utility-scale wind and solar farms. It also covers renewable energy bought through PPAs. Additionally, it features on-site rooftop and ground-mount solar projects at Amazon facilities.
Over time, these efforts have helped the tech giant use more clean energy for its electricity, which is a key part of its climate strategy.
Solar, Wind, Storage — and Next-Gen Power
Amazon’s clean energy portfolio includes a broad mix of technologies:
- Solar power: 300+ utility-scale solar and wind farms and 300+ onsite solar projects.
- Wind energy: Large wind farms in multiple countries, with 6 offshore wind farms in Europe.
- Energy storage: Battery storage projects that help balance intermittent renewable output. It has 11 utility-scale battery storage projects.
- Emerging technologies: Amazon has invested in advanced options like nuclear small modular reactors (SMRs), with 4 nuclear power agreements. These help provide firm, low-carbon baseload power.
These investments help replace fossil fuel generation on local grids. They also support grid reliability and reduce electricity costs over the long term.
In Mississippi, for example, Amazon worked with a utility to enable 650 megawatts (MW) of new renewable energy on the grid. Once operational, this capacity will serve the equivalent of over 150,000 homes and improve grid reliability.
Moreover, the company’s 253 MW Amazon Wind Farm Texas contributes around 1,000 GWh of clean power annually. Meanwhile, its European solar and wind assets alone total about 4,600 MW of capacity.
All these efforts form part of the e-commerce’ push for its 2040 net zero targets.
Powering the Path to Net Zero 2040
Amazon has set multiple climate and sustainability targets. The company aims to reach net-zero carbon emissions by 2040 — a goal it committed to early as part of The Climate Pledge.
To work toward that long-term target, Amazon set a goal to match its electricity use with renewable energy. It reached 100% renewable electricity for its operations ahead of schedule, well before its original 2030 goal.
This means Amazon is purchasing an amount of renewable electricity equal to its total annual consumption. Clean power comes from renewable projects connected to the grid. These projects are supported by long-term PPAs and other contracts.
The renewable energy purchases lower Amazon’s Scope 2 emissions, which come from the electricity it buys. They also help decarbonize the grids where the company operates.
Corporate Buyers Now Rival National Grids
Amazon’s clean energy efforts are part of a larger shift across the corporate world.
Since 2008, companies have bought almost 200 GW of renewable energy worldwide through corporate PPAs and other agreements. This capacity exceeds the total electricity generation of some countries, like France or the United Kingdom.
In 2023, companies revealed a record 46 GW of clean energy deals. These renewable power commitments support new solar and wind farms.
Large tech companies, including Amazon, Google, Microsoft, and Meta, are some of the most active buyers. Those tech firms accounted for a significant share of corporate clean energy procurement over the last decade.
This trend shows that corporate demand can speed up the clean energy shift by providing renewable power developers with long-term revenue certainty.
Jobs, Grid Stability, and Market Transformation
Corporate clean energy procurement, though slowed down in 2025, has broader economic and energy-system impacts. Investments in renewable projects contribute to job creation, local economic growth, and grid resilience.
Amazon’s solar and wind farms create many construction and operation jobs. They also boost the economy in rural areas. For example, the Great Prairie Wind Farm in Texas has 350 wind turbines. These turbines provide over 1,000 MW of capacity and are one of the largest assets in Amazon’s portfolio.
Also, Amazon’s clean energy deals boost renewable capacity. These projects are in Brazil, India, China, Australia, and Europe, which support markets with different grid mixes. These projects can cut down on fossil fuel-based electricity. They also help local grids stay cleaner and stronger.
Permitting, Policy, and the Next Growth Wave
Despite strong progress, corporate clean energy procurement still faces challenges.
Renewable projects often depend on grid capacity, permitting, and supportive policy frameworks. In some regions, complex regulations or limited grid access can slow project development and clean energy adoption.
Nevertheless, the trend of corporate power purchasing is expected to grow. Data from the Clean Energy Buyers Association (CEBA) shows that U.S. businesses have signed contracts for 100 GW of clean energy. This milestone highlights how important companies are in today’s energy landscape.
Global renewable capacity is also expanding rapidly. According to IRENA, global renewable power capacity reached 4,448 GW at end-2024 after adding a record 585 GW. That’s 15.1% growth with solar leading 75%+ of additions. The 2025 additions are expected to maintain record growth toward the 2030 tripling goal.
Renewables are now growing faster than fossil fuels in new capacity. Looking ahead, strong demand from companies for clean energy will boost growth. Better policies and tech advancements will also help renewable power buying and grid decarbonization.
Private Capital Driving Public Energy Changeaction
Amazon’s clean energy leadership shows how corporate buyers can influence the global energy transition. By securing large portfolios of renewable power, the tech giant and other major corporations are investing in the future of clean electricity. These investments not only help reduce their own emissions but also fund new clean energy capacity that benefits broader society.
As corporate renewable procurement grows, so does the clean energy market. This can lower costs, stimulate innovation, and increase the pace of emission reductions across power systems worldwide.
With more companies setting clean energy goals and signing long-term agreements, the private sector continues to be a powerful force in the shift toward a low-carbon economy.
- READ MORE: Amazon Expands Its Carbon Credit Strategy with Lower-Carbon Fuel and Superpollutant Solutions
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NVIDIA’s latest earnings report shows the scale of the AI boom. The chipmaker reported record revenue and became the fourth U.S. tech company to exceed $100 billion in annual profit. Alongside financial growth, Nvidia continues to push renewable energy use and efficiency gains. The results highlight the growing link between AI expansion and sustainability challenges.
NVIDIA reported record revenue of $68.1 billion for the fourth quarter of fiscal 2026, ending January 25, 2026. This figure was up 73% from a year earlier and up 20% from the prior quarter. Data center sales, which fuel artificial intelligence (AI) growth, were $62.3 billion, or about 91% of total revenue in the quarter.
For the full fiscal year, NVIDIA posted $215.9 billion in revenue, a jump of 65% from the prior year. Net income reached tens of billions, $120,067 million for the full year and $42,960 for the 4th quarter. Earnings per share also grew significantly.
These results exceeded most analysts’ expectations and underscored NVIDIA’s continued leadership in AI compute hardware. The company also forecast strong revenue for the first quarter of fiscal 2027.
NVIDIA’s Sustainability Commitments at a Glance
NVIDIA has increasingly highlighted its environmental and sustainability goals in recent years. For the fiscal year 2025, the company achieved 100% renewable energy use for all offices and data centers it directly controls.
The renewable supply came from a mix of:
- On-site generation
- Purchased renewable electricity
- Energy attribute certificates (EACs)
- Power purchase agreements (PPAs)
This milestone eliminates the company’s market-based Scope 2 emissions tied to electricity use in those facilities.
While operational emissions from electricity have been addressed, total emissions figures remain complex. NVIDIA reported that its total greenhouse gas emissions increased. This includes Scope 3 emissions linked to its supply chain and purchased goods. Scope 3 emissions accounted for the bulk of its emissions inventory, and they rose significantly year-over-year.
NVIDIA has also incorporated science-based targets and reduction plans into its public disclosures. The company aims to cut direct (Scope 1) and electricity-related (Scope 2) emissions by about 50% by 2030. This is based on its baseline figures. These science-based targets are consistent with internationally recognized climate frameworks.
Beyond energy use, NVIDIA has implemented other environmental actions. Closed-loop liquid cooling systems in data centers help cut water use. Also, there are significant increases in recycling electronic waste each year.
AI Performance Per Watt: NVIDIA’s Efficiency Edge
NVIDIA’s technology can influence emissions well beyond its own operations. The company’s GPUs and systems power AI infrastructure around the world. Many of these systems are designed to be energy efficient.
For example, NVIDIA-based systems dominate rankings of the most energy-efficient supercomputers globally. The Green500 list ranks systems based on energy efficiency.
Many top entries use NVIDIA GPUs, especially the advanced Grace Hopper architecture. These systems deliver high computing performance per watt of power, helping labs and data centers run complex workloads with less energy.
Record Profits, Cautious Market Reaction
Despite the strong financial performance, NVIDIA’s share price movement highlights market nuances. Some reports noted that after an initial uptick in after-hours trading, the stock’s gains flattened or reversed. This response came even as NVIDIA beat revenue and profit expectations.
Analysts point to broader concerns about the valuation of high-growth AI stocks. Investors are cautious despite strong earnings. They worry about how fast AI demand will grow and whether valuations show future risks.
In early 2026, NVIDIA’s stock had also seen uneven performance year-to-date. Some analysts believe the trading pattern after earnings shows sector sentiment more than the company’s actual results.
NVIDIA’s profit scale also stands out compared with other major U.S. tech firms. For fiscal year 2026, the tech giant reported $120 billion in net income. This made it the fourth U.S. tech company ever to exceed $100 billion in annual profit, joining Alphabet, Apple, and Microsoft.
- NVIDIA’s result trails only Alphabet’s $132 billion profit in 2025, which remains the largest annual profit ever recorded by a U.S. company.
The speed of NVIDIA’s rise is also notable. Just three years ago, the company’s annual net income was $4.4 billion. In its most recent quarter, the chipmaker generated that amount in less than 10 days.
By comparison, Apple took 18 years to grow from $5 billion in annual profit to $112 billion, beginning around the launch of the iPhone in 2007. Microsoft took 27 years to move from $5 billion to more than $100 billion in annual profit. Alphabet first crossed the $100 billion mark in 2024. NVIDIA hit this milestone in under three years. CEO Jensen Huang pointed out the company’s AI gains in May 2023.
Efficiency Gains vs. Expanding Energy Footprint
NVIDIA’s external ESG ratings are similar to those of other tech companies for environmental and governance metrics. However, the scores vary in social and supply chain areas. These ratings consider things like how well companies disclose information, their plans for cutting emissions, and their governance. They also look at challenges related to wider supply chain emissions.
One sustainability ranking highlighted a “paradox” in NVIDIA’s performance. It noted that NVIDIA’s chips are among the most energy-efficient in the world, which boosts its sustainability profile. The quick rise in total energy use for AI infrastructure is increasing overall environmental impacts. This happens even as per-unit efficiency improves.
NVIDIA’s renewable energy goals and efficiency gains have positioned it as a leader. It combines strong finances with sustainable growth. For instance, in a 2026 list of top firms for sustainable growth, NVIDIA stood out. It achieved 100% renewable energy for its offices and data centers. Plus, its GPU platforms are energy efficient.
Can AI Hypergrowth Align With Climate Targets?
NVIDIA’s sustainability strategy focuses on three key areas:
- Reducing direct and indirect emissions.
- Improving energy use.
- Enhancing reporting transparency.
The company has achieved important goals. It now uses renewable energy for its facilities. It has also improved chip efficiency. These steps show progress toward environmental goals.
Still, rising Scope 3 emissions and the booming demand for AI compute make tackling environmental impacts more complex. NVIDIA’s sustainability reports highlight that energy use in data centers is a major barrier. This limits both digital infrastructure growth and climate progress.
Energy-intensive “AI factories” — large data centers running training and inference workloads — require large power supplies, often on par with traditional industrial factories. This growth in demand puts pressure on energy systems to shift toward low-carbon sources.
NVIDIA’s efforts to work with suppliers on emissions targets and its investments in energy efficiency aim to address parts of this challenge. But the company has not yet announced a full net-zero emissions target with a fixed date.
So, What Comes Next for NVIDIA?
In the near term, NVIDIA will likely continue to be a focal point for both earnings performance and ESG debate. Future earnings releases and sustainability reports will show whether the company’s actions keep pace with its growth.
Investors and stakeholders will watch how NVIDIA manages AI demand, emissions challenges, and energy efficiency together.
On the sustainability side, developing and reporting progress on Scope 3 emissions, supplier engagement, and potential net-zero pathways will shape ESG evaluations. As AI energy use rises worldwide, companies like NVIDIA will face more scrutiny over how they balance growth with their emissions and climate impact.
Overall, NVIDIA’s record earnings and sustainability efforts highlight its role in tech innovation and environmental change. The company balances rapid AI growth with a commitment to lowering its environmental impact.
The post NVIDIA Hits Almost $216 Billion Revenue as AI Boom Tests Its Climate Strategy appeared first on Carbon Credits.
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