Published

2 years ago

January 7, 2024

Alice Rush

The European Green Deal is a pact that looks to improve the well-being and health of citizens and future generations by providing a range of basic necessities, such as fresh air, clean water, healthy soil, healthy and affordable food, cleaner energy, future-proof jobs, and much more.

It bases much of this on the European Union (EU) becoming greener. Recently, the European Commission released a series of new rules focused on corporate responsibility that aims to strengthen the path toward its carbon-neutral goal.

How will these changes affect life in the EU? We review the upcoming EU rules on green claims and greenwashing and what they mean.

What Is the European Green Deal policy?

The European Union (EU) and European Parliament recognize that climate change and environmental degradation threaten all life in Europe and worldwide. To help get past these challenges and improve the chances of a clean, safe world for future generations, all 27 EU Member States agreed to the European Green Deal.

This environmental agreement will help convert the EU into a modern, resource-efficient, and competitive economy by ensuring:

A reduction in net greenhouse gas emissions by 55% of 1990 levels by 2030
Zero greenhouse gas emissions (GHG emissions) by 2050
Economic growth becomes decoupled from resource use
No person or place is left behind economically or ecologically
EU’s energy independence
Job creation and growth
An improvement in the overall health and well-being of EU citizens

Financing for the European Green Deal will come from dipping into one-third of the 1.8 trillion euro ($2.022 trillion) investments from the NextGenerationEU Recovery Plan and the EU’s seven-year budget.

What Is the New EU Environmental Legislation?

Newly proposed legislation for the European Green Deal focuses heavily on green claims. Green claims are any claim an organization makes that it’s taking action to combat GHG emissions and to help slow climate change.

Currently, EU laws don’t regulate environmental claims, which leads to inconsistencies with regard to the handling of these claims among Member States.

The changes would also better define green claims. They would be defined as: “any message or representation, which is not mandatory under Union law or national law, including text, pictorial, graphic or symbolic representation, in any form, including labels, brand names, company names or product names, in the context of a commercial communication, which states or implies that a product or trader has a positive or no impact on the environment or is less damaging to the environment than other products or traders, respectively, or has improved their impact over time.”

This is all in an attempt to prevent greenwashing — when an organization focuses more on marketing itself as environmentally friendly than minimizing its environmental impact.

Let’s review the main proposed changes.

Rules for Methodology

To help ensure all green claims are valid and harmonious across the EU, EU Member States must validate environmental claims through science-based methodologies.

Accepted methodologies are expected to have to follow these basic guidelines:

They must be based on widely recognized scientific evidence and state-of-the-art technical knowledge and account for relevant international standards. Claims are not allowed if no recognized scientific method exists or there’s insufficient evidence to assess environmental impacts and aspects.
They must assess environmental impact throughout the product’s life cycle.
They must account for the composition of products, the materials they use when producing products, the amount of emissions created during production, the use of the product, and the product’s durability, reparability, and end-of-life aspects.
They must assess if achieving positive environmental impacts, aspects, or performance significantly increases any other negative environmental impact.
They must be third-party accessible with a reasonable access fee, if applicable.
They require regular review from a third party that can account for technical and scientific progress and the development of relevant international standards.

Rules on Green Claims

Green Energy Claims Image of Smoking Factory Plant source

So, what will be considered valid green claims under these proposed rules? While nothing is official yet, the green claims directives will be as follows:

They can only make environmental claims substantiated through an approved methodology that meets specific criteria, which we’ll cover later.
They cannot make positive environmental claims if a product has a positive and negative environmental impact. They may publicize the positive claim, but they must also communicate the negative impact clearly and understandably.
They must make the information on the assessment on which the environmental claim is based available

With regard to the final bullet point, the information on the assessment that should be made available includes:

Information about the product or activities of the trader subject to the claim; Environmental aspects, environmental impacts, or environmental performance the claim covers
Methodology used
Underlying studies or calculations they used to analyze, measure, and monitor the claim’s environmental impact
A brief explanation of how they improved environmental performance via a weblink, QR code, or equivalent

There also needs to be a review of the accuracy of their environmental claims every five years at minimum.

Rules on Comparative Environmental Claims

Organizations can make comparative environmental claims as a part of marketing efforts, but experts anticipate the new rules to crack down on such claims. Some of the proposals include:

Organizations must utilize the identical methodology as the products or traders they compare themselves to.

Organizations must generate or source the data to substantiate comparative claims equivalently to ensure comparability.
Organizations must account for the most significant stages along the value chain for all products and traders compared.

Rules on Forward-Looking Claims

Organizations may also claim anticipated environmental benefits under the newly proposed green claims directive. However, authorities would require these future-looking claims to follow specific guidelines, including:

They must include commitments and milestones that they need to achieve within clearly specified time frames.
They must indicate a baseline year for all targets, the desired result compared to the baseline year, and the target year to achieve the claim. For example, they might say something like, “We commit to making a 50% reduction in emissions by 2035 compared to our 1990 levels.”
They cannot include previously achieved targets.

Rules on Enforcement

source

The proposed rules will also include how they will expose non-compliant organizations. In the proposed rules, public authorities would require Member States to perform compliance monitoring:

As part of their regular checks
In cases where they have sufficient reason to believe an environmental claim may infringe upon the rules
If complaints arise

If an organization makes non-compliant environmental claims, the proposed rule changes would require it to fix the issues quickly. Once the organization receives a non-compliance notification, it would have 10 business days to respond with substantiation.

If the organization doesn’t provide a timely or satisfactory answer, regulatory officials will require it to modify the offending claim or cease all communication of it immediately as consumer protection. The trader will have 30 business days to implement corrective actions.

This enforcement aims to ensure all environmental labels and claims are credible and trustworthy, allowing consumers to make more educated purchasing decisions.

What Are the Current EU Environmental Policies?

The current European Green Deal may not be as extensive as the proposed regulation changes. However, it still looks to take on climate change and help prevent the potential global existential crisis it causes.

To help with this, the European Commission has adopted many climate-focused initiatives and policies, such as:

Reducing car emissions by 55% by 2030
Reducing van emissions by 50% by 2030
Reducing all new-car emissions to 0% by 2035
Performing energy-efficiency-improving renovations on 35 million buildings by 2030
Reaching 40% renewable energy by 2030
Reaching 36% to 39% energy efficiency by 2030
Restoring Europe’s forests, soils, wetlands, and peatlands to increase carbon absorption to 310 megatonnes (Mt)

What Is the New EU Sustainability Directive?

The EU requires large companies and all listed companies — listed micro-enterprises are excluded — to disclose what they view as risks and opportunities associated with social and environmental issues. They must also disclose their activities’ impact on people and the environment.

This disclosure helps investors, civil society organizations, consumers, and other stakeholders evaluate companies’ sustainability performance as part of the European Green Deal.

In January 2023, the new Corporate Sustainability Reporting Directive (CSRD) was enacted. This new directive modernizes and strengthens the social and environmental information companies must report. A broader set of large companies and listed SMEs — approximately 50,000 companies — must now report on sustainability.

To be affected by this new reporting directive, a company must meet at least two of the three following criteria: employ 250-plus people, have assets totaling at least 20 million euros, and have turnover totaling at least 40 million euros.

Companies will begin applying the new reporting rules in the 2024 financial year for reports published in 2025. Until then, the current Non-Financial Reporting Directive (NFRD) national law will remain in force, requiring affected organizations to report on environmental protection (Scope 3 emissions included), social responsibility, the treatment of employees, human rights, anti-bribery and anti-corruption, and company board diversity.

Once the Corporate Sustainability Reporting Directive (CSRD) begins in 2024, corporations will have to report on all information in the current NFRD plus:

Double materiality, including the company’s sustainability and climate risk, and the impact the company has on society and the environment
Material-topic-selection process for stakeholders
More forward-looking information, including organizational climate targets and its progress toward the targets
Information regarding intangible items, including social, human, and intellectual matters
Reports aligning with the Sustainable Finance Disclosure Regulation (SFDR) and European Union’s Taxonomy Regulation

Upcoming EU Rules on Green Claims Seek to Elevate Corporate Responsibility

Front of Building EU Climate Policies source

To accelerate the battle against climate change and global warming, the EU continues updating policies and proposals to the existing European Green Deal. The latest proposals focus on empowering European organizations to improve their climate-neutral reporting and to make this a common practice among more European companies.

These upcoming EU rules on green claims and greenwashing may help Europe get on track and remain on a path to help reverse climate change. You can also do your part to help this process by offsetting your carbon footprint by purchasing voluntary carbon credit from Terrapass. We offer a wide range of options for businesses and individuals.

Choose the right option for you, and start offsetting your carbon footprint today.

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Carbon Footprint

Microsoft (MSFT) Signs Solar Deal with Zelestra to Power Data Centers in Spain, Supporting Community Projects

Published

12 hours ago

November 26, 2025

Alice Rush

Microsoft (MSFT) has signed a long-term Power Purchase Agreement (PPA) with Zelestra for 95.7 MWAC of solar power. The energy will come from two new solar farms in Aragón, Spain — Escatrón II and Fuendetodos II, both under construction. This clean energy will help power Microsoft’s data centers and operations in the region. It also supports Microsoft’s wider climate goals.

A Solar Deal That Shines Beyond Power

Beyond simply buying solar power, Microsoft is tying this deal to benefits for the local community. The non-profit ECODES will run a “Community Fund” financed by this PPA. ECODES plans to use this fund to support sustainability projects in Aragón. They will invest in local infrastructure, social inclusion, and environmental education.

Zelestra calls its strategy “3 Es”: Education, Energy, and Environment. Microsoft sees this as part of its “Datacenter Community Pledge,” which aims to ensure its operations help local areas as well as reduce its carbon footprint.

Why Microsoft’s 95.7 MW Bet Matters

This solar agreement matters for several reasons:

Reliable clean energy: The 95.7 MW solar supply gives Microsoft a stable source of renewable power.
Social benefits: ECODES will channel money into projects that help local people and ecosystems.
Long-term local commitment: Zelestra intends to stay in Aragón and work with communities for years.

This structure shows how a big company can use a clean energy deal not just for itself, but for shared community value.

Spain’s Solar Boom and Zelestra’s Expanding Footprint

Solar power in Spain is booming. In the last few years, the country has added thousands of megawatts of solar capacity. According to Informa’s DBK report, solar energy grew by 6,000 MW in just one year, reaching 32,350 MW by 2024.

Red Eléctrica (the Spanish grid operator) data shows that by early 2025, solar PV installed capacity passed 32,000 MW, making solar the largest source of power capacity in Spain.

This growth reflects a major shift in Spain’s energy mix. In 2024, solar PV generated a record 44,520 GWh of electricity, about 17% of the country’s total electricity output.

At the same time, renewables now make up around 66% of Spain’s total power generation capacity. These numbers show how central solar power has become to Spain’s energy transition.

The outlook is even more ambitious. According to GlobalData, Spain’s solar capacity could reach 152.8 GW by 2035, driven by strong policy support and growing investor confidence. To fuel this, many new projects are already in the permitting stage.

Spain renewable power market 2035

RELATED: Spain’s €700 Million Plan to Boost Energy Storage and Renewable Power

In 2025 alone, more than 5 GW of solar projects were submitted for environmental approval. Castilla‑La Mancha is a major one of those major regions, and it stands out in Zelestra’s portfolio.

Zelestra is a major player in this growth. In 2025, it secured €146.6 million to build six solar plants in Castilla‑La Mancha, totaling 237 MWdc. These projects will create jobs, generate around 467 GWh of clean energy per year, and avoid over 84,000 tons of CO₂ emissions annually.

Zelestra is also expanding its corporate partnerships, providing renewable electricity for companies like Microsoft and Graphic Packaging International. Its portfolio in Spain exceeds 6 GW, showing its strong commitment to the country’s clean energy transition and its role as a key developer of large-scale solar projects.

Inside Microsoft’s Push Toward Carbon Negativity

Microsoft has set strong climate goals. In 2020, it announced its plans to be carbon negative by 2030. That means by then, it wants to remove more carbon from the atmosphere than it emits.

To reach this, the tech giant is doing several things:

It has contracted 34 GW of new renewable energy across 24 countries.
It aims to match 100% of its electricity use with zero‑carbon power by 2025.
It invests in carbon removal. In fiscal year 2024, Microsoft signed contracts for nearly 22 million metric tons of carbon removal.
It uses a $1 billion Climate Innovation Fund to support new technologies.

Progress and Challenges in Emissions

Microsoft has made real progress, but it also faces big challenges. Its Scope 1 and Scope 2 emissions (those from its own operations and electricity use) dropped 29.9% compared to 2020.

Microsoft carbon emissions — Source: Microsoft

But its total emissions (including its supply chain, or “Scope 3”) rose by 23–26% since 2020. This increase comes mainly from its rapid growth in data centers and cloud services.

Because it makes a lot of servers, chips, and hardware, Microsoft’s construction and supply chain also generate emissions. To cut those, it is working with its suppliers. By 2030, Microsoft plans to require high-volume suppliers to use 100% carbon‑free electricity.

Microsoft’s clean energy capacity has grown steadily since 2013, starting with wind projects in the U.S. By 2022, capacity reached 900 MW with wind and solar projects in Europe and the U.S.

Microsoft Clean Energy Contracts (Capacity, MW) — Notes: Clean energy deals include solar and wind projects

In 2024, Microsoft signed the largest corporate clean energy deal for 10.5 GW with Brookfield Renewable, delivering by 2030. This reflects Microsoft’s goal to power all operations with 100% renewable energy by 2030, underscoring its leadership in global sustainability efforts.

Carbon Removal and Long-Term Risks

Microsoft is not just cutting emissions, it is also removing carbon. It invests in two big types of removal:

Nature-based removal: Microsoft has a deal with Chestnut Carbon to buy over 7 million tons of forest-based carbon credits.
Advanced removal: Microsoft supports projects like bioenergy with carbon capture and storage (BECCS). It recently backed a project in Louisiana that could capture 6.75 million tons of CO₂ over 15 years.

Still, some experts warn that Microsoft’s climate strategy lacks targets beyond 2030. That could challenge its long-term impact.

SEE MORE on Microsoft:

How the Solar Deal Fits into Microsoft’s Strategy?

The 95.7 MW deal in Spain ties directly into Microsoft’s overall carbon-negative goal. Here’s how it fits:

It adds zero-carbon electricity to Microsoft’s grid mix.
It supports Microsoft’s plan to match all its power use with clean energy.
The deal’s community fund reinforces Microsoft’s aim to pair climate action with social value.
It strengthens Microsoft’s global clean energy portfolio.

This helps Microsoft reduce its operational emissions (Scope 1 & 2) and supports its broader mission to remove carbon.

What’s Next for Microsoft, Zelestra, and Local Communities?

If all goes well, the two solar farms in Aragón will come online and deliver power to Microsoft for many years. The ECODES fund should start giving out grants to local groups, helping build greener projects in the community.

The tech giant must also keep pushing its carbon removal work and supplier engagement. It needs to make sure its long-term investments bring real, measurable climate impact.

Zelestra, for its part, will prove whether it can deliver reliable solar and meaningful social impact. If the model works, more companies may use similar “clean energy + community” contracts.

The agreement is more than just about cutting emissions — it’s also about helping local communities. At the same time, Microsoft’s push to be carbon negative by 2030 is ambitious and complex. It involves clean power, carbon removal, and changes in its entire supply chain.

This Spanish solar deal adds a new piece to Microsoft’s climate puzzle. It strengthens its clean energy supply and shows how corporate climate goals can benefit more than just the bottom line.

READ MORE: Microsoft’s $6.2 Billion AI Bet in Norway for 100% Renewable Energy Powered Computing

The post Microsoft (MSFT) Signs Solar Deal with Zelestra to Power Data Centers in Spain, Supporting Community Projects appeared first on Carbon Credits.

Carbon Footprint

Legal challenges in carbon offsetting: What recent lawsuits teach us

Published

16 hours ago

November 26, 2025

Alice Rush

Over the past two years, the world of carbon offsetting has entered a new era—one defined by legal scrutiny, public demand for accuracy, and a deeper understanding of how complex carbon accounting truly is. This shift reflects a growing expectation that environmental claims must be both scientifically credible and communicated with absolute precision.

Carbon Footprint

Constellation Secures $1B DOE Loan to Restart Crane Clean Energy Center and Boost America’s Nuclear Energy Future

Published

1 day ago

November 25, 2025

Alice Rush

U.S. Secretary of Energy Chris Wright announced on November 18 that the Department of Energy’s Loan Programs Office has finalized a $1 billion loan to help lower energy costs and restart a Pennsylvania nuclear power plant. The funding will support Constellation Energy Generation, LLC in financing the Crane Clean Energy Center, an 835 MW facility located on the Susquehanna River in Londonderry Township, Pennsylvania. This loan marks a major step toward restoring reliable, carbon-free power to the region.

Energy Secretary Wright highlighted further,

“Thanks to President Trump’s bold leadership and the Working Families Tax Cut, the United States is taking unprecedented steps to lower energy costs and bring about the next American nuclear renaissance. Constellation’s restart of a nuclear power plant in Pennsylvania will provide affordable, reliable, and secure energy to Americans across the Mid-Atlantic region. It will also help ensure America has the energy it needs to grow its domestic manufacturing base and win the AI race.”

Constellation (Nasdaq: CEG) is the first company to receive a simultaneous conditional loan commitment and financial close from the DOE Loan Programs Office. Its strong finances and credit rating allowed the process to move quickly. The loan, provided through the Energy Dominance Financing Program, will lower financing costs and attract private investment to restart the plant. In addition, DOE noted the project will help the U.S. stay competitive in the global AI and digital economy, which is driving higher electricity demand.

Crane Clean Energy Center: Returning 835 MW of Carbon-Free Power

The Crane Clean Energy Center is an 835-megawatt nuclear plant on the Susquehanna River. Previously known as Three Mile Island Unit 1, it has a long and historic legacy. In March 1979, Three Mile Island Unit 2 suffered a partial meltdown and has remained in monitored storage ever since. Unit 1, however, continued operating safely for four decades before being shut down in September 2019 due to market conditions rather than safety concerns.

In September 2024, Constellation signed a 20-year power purchase agreement with Microsoft, which allows the tech giant to buy the carbon-free electricity generated by the restarted plant. Following the agreement, Constellation rebranded the facility as the Crane Clean Energy Center. As said before, once operational, the plant will provide 835 MW of nuclear energy.

DOE Loan Accelerates the Restart

DOE stated that the Crane loan aligns with President Trump’s Executive Order on Reinvigorating the Nuclear Industrial Base. The project is the first under this administration to receive a simultaneous conditional commitment and financial close.

Because the reactor was never fully decommissioned, restarting it is faster and more cost-effective than building a new plant. The loan will fund equipment inspections, system upgrades, workforce training, and regulatory compliance. Once approved by the Nuclear Regulatory Commission, the plant will supply enough electricity to power about 800,000 homes across the PJM Interconnection region. It will help lower electricity costs, strengthen grid reliability, and create hundreds of jobs.

clean energy investment U.S. nuclear

READ MORE:

Pennsylvania Leads in Clean Energy and AI Power

Senator Dave McCormick praised the DOE loan, saying Pennsylvania is leading the nation in energy independence and AI innovation. He highlighted that the restart will deliver more than 800 MW of carbon-free electricity and create 3,400 direct and indirect jobs.

McCormick also noted Constellation’s ongoing investments across the state, including commitments announced at the Pennsylvania Energy and Innovation Summit. The restart comes amid unprecedented electricity demand from AI, cloud computing, and expanding data centers.

A Goldman Sachs report predicts that AI could increase data-center power demand by 160 percent. AI queries, like those used by tools such as ChatGPT, require nearly ten times more electricity than a standard Google search. Nuclear power is vital to meet this growing demand reliably.

AI energy demand

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

Extending Nuclear Plant Life: Constellation’s Strategy for Reliable Power

Constellation has invested in local communities by committing over $1 million in charitable contributions over five years. In 2025 alone, the company donated $200,000 to support nonprofits, workforce programs, and local initiatives.

Significantly, restarting Crane is part of Constellation’s larger multi-billion-dollar plan to extend the life of America’s nuclear fleet, increase output, and ensure reliable power for decades.

The Crane Clean Energy Center is expected to deliver significant economic benefits to Pennsylvania. An analysis by the Pennsylvania Building and Construction Trades Council projected that the restart would create thousands of direct and indirect jobs. It could add more than $16 billion to the state’s GDP and generate over $3 billion in state and federal tax revenue.

The plant is already more than 80 percent staffed, with over 500 employees, including engineers, mechanics, technicians, and licensed operators. Regulatory reviews and technical inspections remain on schedule.

Joe Dominguez, president and CEO of Constellation, said:

“DOE’s quick action and leadership is another huge step towards bringing hundreds of megawatts of reliable nuclear power onto the grid at this critical moment. Under the Trump administration, the FERC and DOE have made it possible for us to vastly expedite this restart without compromising quality or safety. It’s a great example of how America first energy policies create jobs, growth and opportunities and make the grid more reliable. Utilities and grid operators are moving too slowly and need to make regulatory changes that will allow our nation to unlock its abundant energy potential. Constellation and nuclear energy are helping to lead the way and we are thankful to President Trump and Secretary Wright for putting the ‘energy’ back into DOE.”

Nuclear Power for America’s Clean Energy Future

The surge in AI, electrification, and cloud computing has made nuclear energy more critical than ever. Small modular reactors and advanced technologies are gaining interest from utilities and data-center developers.

The U.S. produces about 30 percent of the world’s nuclear electricity. Ninety-four reactors supply steady, clean power to millions of homes and industries nationwide. According to the World Nuclear Association, U.S. reactors generated 779 terawatt-hours in 2023, accounting for 19 percent of the nation’s total electricity output.

The administration aims to quadruple U.S. nuclear capacity to 400 gigawatts by 2050. The International Energy Agency projects 35 GW of new capacity by 2035 and 200 GW by 2050, nearly triple current levels. Restarting Crane contributes to this goal while providing reliable baseload power, supporting AI and digital growth, and boosting the economy.

Electricity generation for data centres by fuel in the United States, Base Case, 2020-2035

US data center nuclear energy

The Crane Clean Energy Center restart is a key step toward clean, reliable energy. It shows how nuclear power can meet rising electricity needs, support innovation, and strengthen local economies.