A new initiative involving Amazon, eBay and Etsy is helping bring Tesla electric trucks into real freight operations. The Center for Green Market Activation (GMA), a nonprofit group, is planning a pilot program. This project aims to put about 40 all-electric Tesla Semi trucks on the road between Dallas and Houston. The goal is to reduce emissions from freight transport by using cleaner heavy-duty vehicles.

Under the plan, companies pay for “environmental attribute certificates” (EACs). These certificates represent the emissions savings from electric trucks.

Buyers can use the certificates to reduce their reported Scope 3 emissions. This applies even if they don’t directly use the trucks. All charging for the electric trucks is planned to be covered by renewable energy certificates to support clean power use.

Let’s explore why major online companies are taking part in this system, how Tesla’s Semi vehicles fit in, and what this could mean for decarbonizing freight transport in the United States and even beyond.

Why Freight Is the Next Big Climate Battleground

Heavy-duty freight trucks, especially long-haul Class 8 trucks, are a major source of carbon emissions. Traditional diesel trucks burn fossil fuels and produce large amounts of greenhouse gases (GHGs) and air pollutants. They accounted for about 25% of all transport-related CO₂ emissions.

Road freight accounts for a sizeable share of transportation sector emissions worldwide. Recent studies show that decarbonizing road freight is tough. Electric options are few, charging stations are still growing, and initial costs are high.

Electric heavy trucks such as the Tesla Semi offer a zero-tailpipe emissions alternative. The Tesla Semi is a battery-electric Class 8 truck designed for freight hauling. It features a battery pack of around 850–900 kWh and an estimated range of about 500 miles (~800 km) per charge on a single route.

The truck uses three electric motors and can operate at around 1.7–2 kWh per mile, making it competitive with diesel trucks over long distances. Planned volume production is expected to begin in 2026.

Using electric trucks like the Semi can cut carbon emissions from freight transport. They may also lower operating costs in the long run. Electricity can cost less per mile than diesel fuel. Also, electric drivetrains have fewer moving mechanical parts, which can cut maintenance costs.

This is crucial as the transport sector needs to adopt zero-emission vehicles much faster to cut emissions by 15% by 2030, per the International Energy Agency Net Zero scenario. This includes electric and hydrogen fuel-cell heavy-duty trucks. To make this happen, more countries must set strong fuel-efficiency rules for heavy trucks and align these standards across regions.

However, electric freight truck adoption faces barriers. Electric heavy trucks are still new, and less than 1% of new heavy-duty trucks in the U.S. are electric. The charging infrastructure for heavy trucks is limited. Also, electric vehicles cost more than regular diesel ones.

What Is Book and Claim? Decarbonizing Freight Without Owning a Truck

The pilot program with Amazon, eBay, and Etsy uses a book-and-claim system. A book-and-claim system divides the environmental benefits of a low-emission product from its physical delivery. It lets companies support decarbonization, even if they can’t use low-emission vehicles directly.

In this case, the environmental attribute certificates represent the emissions savings from operating electric trucks instead of diesel trucks. Participating companies purchase these EACs. They then “retire” them, meaning no one can use the certificate again. This reduction counts toward their climate goals or Scope 3 emissions targets.

This approach is similar to how renewable energy certificates work for electricity. A company can buy certificates for renewable energy generation. This is true even if the actual electricity it uses comes from the grid. The certificates allow buyers to claim the environmental benefits.

• RELATED: Building Cleaner: Microsoft and Carbon Direct Launch EAC Guide for Concrete and Steel

Book-and-claim can help scale decarbonization efforts by aggregating demand from many buyers. This pooled demand helps both truck makers and service providers. They have a better reason to invest in electric fleets and charging stations, even if single buyers can’t use trucks on their own routes.

Experts say a clear book-and-claim system with strict rules can help decarbonize transportation. It ensures that emissions savings aren’t double-counted.

How the Pilot Program Works: Miles, Megawatts, and CO₂ Savings

The pilot program is run by the Center for Green Market Activation. This nonprofit aims to speed up climate solutions in supply chains. Under the program:

• Roughly 40 all-electric trucks are expected to operate on the Dallas-Houston freight route.
• The trucks will collectively travel up to 7 million miles per year.
• The trucks save about 60,000 metric tonnes of CO₂ equivalent compared to diesel fleets. This is over the multi-year contracts with buyers.

Amazon, eBay, and Etsy have joined the initiative by purchasing EACs. They will retire the certificates to support their own climate goals and reduce their reported Scope 3 logistics emissions.

All charging for the electric trucks is backed by renewable energy certificates. This means the electricity for powering the truck comes from clean energy, which reduces the carbon footprint of truck operation.

Groups in similar schemes often use book-and-claim. This helps decarbonize sectors with few low-emission options. For instance, sustainable aviation fuel certificates gather demand from airlines and corporate buyers. This helps scale the use of clean fuel.

Why Big Brands Are Buying Clean Freight

Big firms more often set climate goals for their whole value chain, which includes transport emissions. Many emissions are Scope 3. This includes indirect emissions from things like freight transport, business travel, and product use.

Reducing Scope 3 emissions is hard. Companies usually don’t control the sources that create these emissions directly.

Book-and-claim allows companies to access low-emission transport options even if they can’t run them. When companies pool demand, they send a stronger message to manufacturers and carriers. It shows there’s a real market need for clean freight solutions.

Electric trucks, like the Tesla Semi, draw attention because they provide a cleaner option than diesel trucks. They also keep the same freight capacity and range.

Moreover, companies aiming for net-zero and science-based targets are growing. So, the demand for low-emission freight services is likely to increase.

In addition, broader sales of electric heavy vehicles, not just Tesla’s Semi, are rising globally. In China alone, for example, registrations for hybrid and electric trucks reached over 231,000 units in 2025. This was a large increase from the previous year. This trend reflects growing production and adoption of electric freight vehicles worldwide.

A Blueprint for Scaling Zero-Emission Freight

The new pilot connects Amazon, eBay, Etsy, and Tesla Semi trucks, offering an innovative way to reduce carbon in freight transport. Electric heavy-duty trucks, like the Tesla Semi, are nearing mass production, while global sales of electric freight trucks are also rising. Thus, solutions that mix corporate demand, smart accounting, and clean tech could help cut transportation emissions.

This pilot could provide a model for how large buyers and logistics providers work together to accelerate the shift to low-carbon freight systems.

• READ MORE: Marks & Spencer and Schneider Electric Partner to Cut Supply Chain or Scope 3 Emissions

The post Amazon, eBay & Etsy Back Tesla Semis: A New Playbook for Zero-Emission Freight appeared first on Carbon Credits.

China closed 2025 with its largest annual expansion of the energy system on record. Investment surged past a symbolic threshold. Power capacity grew at a pace rarely seen in any major economy. Together, the numbers point to a system still in rapid build-out, with renewables at the center and grids struggling to keep up.

By the end of January 2026, the National Energy Administration (NEA) announced that China’s investment in major energy projects topped 3.5 trillion yuan in 2025, or nearly US$500 billion. This marks an almost 11% rise from the previous year and is the first time China’s annual energy investment has hit that level.

This spending surge coincided with another milestone. By the end of 2025, China’s total installed power generation capacity reached 3.89 terawatts (TW), up 16.1% year on year. No other country added capacity at a comparable scale during the year.

$500B Flows Across the Energy System: Power, Grids, and Security

The NEA described 2025 as a year of broad-based energy investment. Spending increased not only in clean energy but also in grids, coal, and energy security projects.

Renewables absorbed a large share of new capital. China added more than 430 gigawatts (GW) of new wind and solar capacity during the year. This pushed combined installed wind and solar capacity beyond 1.8 TW for the first time. Solar and wind now account for nearly half of China’s total installed power capacity.

Investment in onshore wind rose especially fast. The NEA said spending on key onshore wind projects jumped by almost 50% compared with 2024. Developers focused on large inland bases and projects tied to long-distance transmission lines.

Solar continued to expand at an even faster pace. By the end of 2025, China’s installed solar capacity reached 1.20 TW, up 35.4% from a year earlier. This followed another strong year in 2024 and confirmed China’s position as the world’s largest solar market by a wide margin.

Wind capacity also grew quickly. Total installed wind power reached 640 GW, a 22.9% increase from 2024. Growth came from both onshore projects and steady additions offshore.

At the same time, investment did not shift entirely away from conventional energy. The NEA said spending also increased in coal power, hydropower, and coal mining, reflecting ongoing concerns about power reliability and supply security.

Grid construction remained a priority, particularly projects designed to move electricity from resource-rich western regions to demand centers in the east. Private companies played a larger role in this expansion.

The NEA reported that private-sector investment in major energy projects rose to almost 13% year-on-year. Much of that capital flowed into solar manufacturing, wind development, and coal-related infrastructure.

• MUST READ: How China’s $180B Clean-Tech Investments Transform the Global South

China’s Capacity Additions in Gigawatt Chunks

China’s investment surge translated into record growth in installed capacity. At the end of 2024, total power capacity stood at about 3.35 TW. One year later, it had risen to 3.89 TW. This implies net additions of roughly 540 GW in a single year.

That figure reflects capacity from all sources, including renewables, coal, gas, nuclear, and hydropower. While the NEA does not publish a single “net additions” number, the difference between year-end totals shows the scale of expansion.

Solar alone accounted for a large share of this growth. Industry data based on official statistics indicate that China added roughly 315 GW of new solar capacity in 2025. Wind additions added another large block, pushing combined wind and solar growth above 430 GW.

This pace of construction is historically unusual. Even during earlier phases of China’s renewable boom, annual additions were far smaller. The 2025 figures show that China is now building new power capacity at a speed measured in hundreds of gigawatts per year, not tens.

By contrast, capacity growth in many other major economies has slowed due to permitting delays, grid constraints, and financing challenges. China’s ability to add large volumes of capacity in a short time reflects its centralized planning, domestic manufacturing base, and strong state-backed financing.

• READ MORE: China’s One Month Lithium Battery Energy Storage Installations Beat America’s One Whole Year

China vs. the United States: A Scale Gap That Keeps Widening

The scale of China’s 2025 build-out becomes clearer when placed in an international context.

In the United States, the Energy Information Administration (EIA) projected about 63 GW of new utility-scale generating capacity additions for 2025 across all technologies. This includes solar, wind, gas, battery storage, and other sources.

China’s wind and solar additions alone, at more than 430 GW, were roughly six to seven times larger than total expected US utility-scale additions for the year. If total net capacity growth is used instead, China’s increase of about 540 GW would be more than eight times the US figure.

These comparisons depend on definitions and data sources. China’s numbers are based on year-end installed capacity totals, while the US figure is a forward-looking projection of new builds. Even so, the gap in scale remains large under most reasonable comparisons.

What stands out is not only the size of China’s additions, but their composition. Renewables drove most of the growth. Solar capacity in China alone now exceeds the total installed power capacity of many advanced economies.

When Building Faster Than the Grid Can Absorb

Rapid capacity growth has consequences. One clear signal appeared in power plant utilization data.

In 2025, power plants with a capacity of 6,000 kilowatts and above recorded an average utilization of 3,119 hours. This was 312 hours lower than in 2024. Lower utilization suggests that capacity is growing faster than electricity demand or grid flexibility.

Several factors explain this trend. Wind and solar output vary by weather and time of day. Coal and hydropower plants remain in the system to provide stability, even when renewables generate strongly. In addition, grid bottlenecks can prevent power from reaching where it is needed.

The NEA has repeatedly pointed to grid expansion as a priority. In 2025, major investments went into ultra-high-voltage transmission lines, regional interconnections, and grid digitalization. These projects aim to reduce curtailment and improve the system’s ability to absorb renewable power.

Still, the utilization figures show the challenge ahead. As capacity continues to rise, grid management and market reform will play a larger role in determining how efficiently new assets are used.

Growth First, Optimization Next

China’s 2025 energy data tell a consistent story. Investment reached a new high. Capacity expanded at a historic pace. Renewables dominated new additions, but conventional power and grids remained part of the strategy.

The numbers also show a system in transition rather than completion. Record build-out has brought new pressures, especially on utilization and grid integration. These issues are likely to shape energy policy decisions in the years ahead.

For now, what stands out most is scale. With energy investment approaching $500 billion and annual capacity additions measured in hundreds of gigawatts, China continues to expand its power system faster than any other country. The 2025 data confirm that this expansion is no longer an exception, but an established pattern.

• FURTHER READING: How China’s Carbon Market Is Fueling Asia’s Biggest Climate Finance Opportunity

The post China Adds Power 8x More Than the US in 2025, with $500B Energy Build-Out in a Single Year appeared first on Carbon Credits.

ExxonMobil closed 2025 with strong profits, robust cash generation, and massive shareholder payouts. However, weaker crude prices and soft chemical margins weighed on earnings. The company still reinforced its narrative of being a leaner, more technology-driven oil major with growing exposure to lower-carbon opportunities.

For the full year, ExxonMobil reported $28.8 billion in earnings, down from $33.7 billion in 2024. Despite the decline, the company distributed $37.2 billion to shareholders, highlighting its commitment to capital returns. The results underline Exxon’s strategy: maximize cash from advantaged assets while gradually scaling low-carbon investments.

CEO Darren Woods said the company is structurally stronger than a few years ago, with disciplined capital allocation and resilient earnings power. He also emphasized a long runway of profitable growth through 2030 and beyond.

Exxon’s Financial Performance: Lower Earnings, Strong Cash Flow

ExxonMobil delivered fourth-quarter 2025 earnings of $6.5 billion, or $1.53 per share. Excluding special items, earnings rose to $7.3 billion, or $1.71 per share. The company generated $12.7 billion in operating cash flow and $5.6 billion in free cash flow during the quarter.

For the full year, cash flow from operations reached $52.0 billion, while free cash flow totaled $26.1 billion. ExxonMobil said its operating cash flow has grown at roughly 10% annually since 2019, outperforming many peers.

However, earnings declined due to weaker oil prices, softer chemical margins, higher depreciation, and rising growth-related expenses. Lower interest income also affected results. These headwinds were partly offset by higher production, structural cost savings, and strong refining margins.

Capital Efficiency Drive Competitive Edge

Cash capital expenditures reached $29.0 billion in 2025, including acquisitions. Exxon expects to spend $27–$29 billion in 2026, signaling continued investment in upstream growth and energy infrastructure.

As per analysts, Exxon Mobil (XOM) is a strong dividend stock with steady cash flow and high oil production. The company returned billions to shareholders through dividends and buybacks, making it attractive to income investors.

However, XOM stock depends heavily on oil prices and faces long-term risks from climate policies and weaker chemical margins. Overall, Exxon is a stable value stock, but not a high-growth play.

Upstream: Record Production and Advantaged Assets

ExxonMobil’s upstream segment generated $21.4 billion in earnings in 2025, down from $25.4 billion in 2024. Lower oil prices and reduced volumes from divestments weighed on performance. Higher depreciation also impacted earnings.

However, the company achieved its highest production in more than 40 years, reaching 4.7 million oil-equivalent barrels per day. Production surged to 5.0 million oil-equivalent barrels per day, with the Permian reaching 1.8 million and Guyana nearing 875,000 barrels per day.

Additionally, it also advanced several major projects.

• The Yellowtail project in Guyana started early and under budget.
• The Bacalhau offshore Brazil project launched in the fourth quarter.
• Golden Pass LNG completed mechanical work, with first cargoes expected in early 2026.

Energy Products: Refining Margins Boost Profits

The Energy Products segment earned $7.4 billion in 2025, up $3.4 billion from 2024. Higher refining margins, cost savings, and asset sales drove the growth. However, the refining business remained resilient.

Chemicals: Weak Margins and Impairments

The Chemical Products segment struggled, with earnings falling to $800 million, down $1.8 billion from 2024. Weak margins, impairment charges, and higher spending weighed on results.

The China Chemical Complex ramp-up added costs, though high-value product sales hit records. Q4 saw a $281 million loss. Despite challenges, Exxon expanded chemical capacity and launched two advanced recycling facilities, processing over 250 million pounds of plastic waste annually.

• PREVIOUSLY: ExxonMobil (XOM) Q3 Earnings Beat: Will AI and Innovation Secure Dividends in a Climate-Conscious Era?

$30 Billion Low-Carbon Strategy: CCS, Hydrogen, and New Materials

ExxonMobil continues to position itself as a major player in carbon capture, hydrogen, and lower-emission fuels. The company plans to invest up to $30 billion in lower-emission technologies between 2025 and 2030.

Management said rising carbon prices would make these investments more attractive and could significantly boost cash flow in the Low Carbon Solutions business. Exxon aims to scale projects in hydrogen, CO₂ storage, and industrial clusters to become a partner of choice for large emitters.

The company also emphasized its core strengths in subsurface engineering, large-scale project execution, and existing infrastructure as competitive advantages in the energy transition.

Methane and Air Emissions: Progress with Economic Logic

ExxonMobil reported significant progress on methane and air emissions. The company has reduced methane intensity by more than 60% since 2016 and targets 70–80% reductions by 2030.

Management framed methane reduction as both an environmental and economic opportunity. Keeping methane in the system increases gas sales and reduces losses. Exxon also noted methane’s high warming potential compared to CO₂, reinforcing the need for tighter controls.

Total reportable air emissions (VOCs, SOx, NOx) dropped about 25% from 2016 to 2024, even as throughput increased to record levels.

Long-Term Outlook: Oil Cash Funds the Transition

ExxonMobil believes demand for decarbonization solutions will rise significantly through 2050. The company expects carbon pricing and net-zero policies to drive capital toward carbon capture and hydrogen over time.

However, Exxon’s strategy remains pragmatic. The company will continue to maximize returns from oil, gas, and refining while gradually scaling low-carbon businesses. Management argues that each update to global net-zero scenarios increases the importance of lower-carbon solutions but does not change its core assessment of energy demand.

All in all, ExxonMobil’s 2025 results show a company balancing two worlds. On one hand, it remains a cash-generating oil and gas powerhouse with record production and industry-leading shareholder returns. On the other hand, it is cautiously expanding into low-carbon technologies without sacrificing profitability.

• READ MORE: ExxonMobil’s $20B Low-Carbon Bet in 2030 Plan: Big Emissions Cuts, Bigger Oil Production

The post ExxonMobil (XOM) Earnings Dip in 2025, Yet Cash Flow, Dividends, and Low Carbon Strategy Remain Robust appeared first on Carbon Credits.