Today’s ESG Updates
- Microsoft Signs 150 MW Wind Power Deal With Iberdrola: The agreement will supply clean energy for AI and cloud deployment.
- OECD and EPO See Quantum Sector Enter Maturation Phase: Patenting is strong, while firm entry and investment growth slow.
- SBTi Opens Pilot for Power Sector Net-Zero Standard: Energy companies invited to test science-based climate framework.
- EU Commission Proposes Expansion of Carbon Border Mechanism: CBAM to cover downstream steel and aluminium products from 2026.
Iberdrola and Microsoft sign renewable power and AI partnership in Europe
Microsoft has signed a long-term clean energy and technology partnership with Spanish utility Iberdrola, marking its first renewable power purchase agreements in Europe. The deal includes two power purchase agreements (PPAs) in Spain totalling 150 megawatts from the Iglesias wind farm in Burgos and the El Escudo wind farm in Cantabria. These agreements add to three PPAs previously signed with Avangrid, Iberdrola’s US subsidiary, bringing total contracted renewable capacity between the companies to around 500 megawatts across Europe and the United States.
Beyond energy supply, the partnership covers AI deployment across Iberdrola’s operations. This includes expanded use of Microsoft’s Azure cloud platform, Copilot tools, and security and compliance solutions. The collaboration also explores the use of waste heat, electrified land, carbon credits, hydrogen, and battery storage. The agreement supports Microsoft’s goal to match 100% of its electricity use with zero-carbon energy by 2030.
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Further reading: Microsoft Signs Long-term Clean Energy and AI Deployment Deal in Spain with Iberdrola
OECD and EPO say quantum sector is moving from rapid expansion to maturation
Quantum technology may be entering a new phase after a decade of rapid growth, according to a new study from the Organisation for Economic Co-operation and Development (OECD) and the European Patent Office (EPO). The study says early expansion is giving way to more focused development as technologies mature. Quantum technologies use particle behaviour at the atomic scale to sense, process, and transmit information. The OECD links potential applications to health care, finance, and industry, as well as to challenges such as productivity, climate change, and food security.
The study finds that international patent families in quantum rose sevenfold between 2005 and 2024. Since 2014, they have grown at about 20% per year, versus 2% across all technologies. Quantum computing patenting grew nearly twentyfold and overtook quantum communication in 2022.
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Further reading: Quantum sector enters new phase after a decade of rapid growth, according to new OECD and EPO study
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SBTi opens pilot to test draft net-zero standard for power companies
The Science Based Targets initiative (SBTi) has opened a pilot programme for its draft net-zero standard for the power sector. The framework is designed to help energy companies set climate targets aligned with climate science. The pilot is open to companies involved in power generation, transmission, distribution, storage, trading, and retail. Participants will test whether the draft standard is practical and usable across the industry.
The new standard will replace SBTi’s 2020 guidance for electric utilities. It expands the scope of covered activities and emission sources and adapts requirements to the sector’s operational realities. Energy currently accounts for more than 75% of global greenhouse gas emissions, according to the International Energy Agency. SBTi says the standard aims to support risk management, resilience, and investment planning during the transition to net zero. Companies can apply to join the pilot until 16 January.
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Further reading: SBTi opens pilot for power sector net-zero standard
European Commission proposes expansion and safeguards for Carbon Border Mechanism
The European Commission has proposed changes to strengthen the EU’s Carbon Border Adjustment Mechanism (CBAM) from January 2026. The Commission says the update closes loopholes and responds to industry concerns about circumvention and competitiveness. The scope will expand beyond basic materials to include 180 steel- and aluminium-intensive downstream products, such as machinery and appliances.
The proposal introduces tighter reporting rules, broader use of scrap in emissions calculations, and new powers to address misreported emissions. It also introduces flexibility for international partners, including recognition of equivalent carbon pricing systems. A temporary Decarbonisation Fund will reimburse part of the costs for EU producers still exposed to carbon leakage, conditional on decarbonisation efforts.
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Further reading: Commission strengthens the Carbon Border Adjustment Mechanism
Editor’s Note: The opinions expressed here by the authors are their own, not those of impakter.com — Cover Photo Credit: Praswin Prakashan
