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A new study from the University of California, Berkeley, breaks down the issues, while also stirring up a controversy of its own.

A new study casts doubt on the integrity of yet another type of carbon offset.
Researchers from the University of California, Berkeley, investigated clean cookstove projects, in which companies distribute stoves that require less or cleaner types of fuel to people who cannot afford them and sell carbon credits based on the resulting emission reductions. These projects have generated, on average, nine times more carbon credits than they should have based on their climate benefits, the researchers found.
This kind of credit inflation obscures climate progress, as the individuals and businesses who buy these credits do so to justify their own emissions under the belief that they are funding climate action elsewhere.
It also threatens a key source of funding to remedy a major public health problem. Nearly a third of the global population — some 2.3 billion people — cook with wood and charcoal burned on open fires or in very basic stoves that expose people to dangerous levels of pollution, including particulate matter and carbon monoxide. The smoke contributes to respiratory and cardiovascular problems and leads to an estimated 4 million premature deaths every year. On top of that, this form of cooking releases roughly 2% of global greenhouse gas emissions.
Companies have jumped at the opportunity to finance solutions by selling carbon offsets, with great success. Between 2017 and 2022, the volume of finance secured for clean cookstoves through the carbon market increased 45-fold, according to a report by the Clean Cookstove Alliance published last fall. Now, cookstove projects make up some 10% of all credits on the carbon market. And they’re one of the fastest growing types of offset projects.
The new study, published in the peer-reviewed journal Nature Sustainability on Wednesday, finds that the methods developers are using to measure the amount of carbon these projects avoid are deeply flawed.
The first red flag the researchers identified was that academic studies of clean cookstoves report much lower adoption rates (whether the new stove was used) and usage rates (how often the new stove was used) than offset projects do. A representative sample of offset projects reported an 86% adoption rate and 98% usage rate, whereas the research literature reported a 58% adoption rate and 52% usage rate.
“The literature at large has found, honestly, devastatingly low rates of adoption and usage,” Annelise Gill-Wiehl, a PhD student at Berkeley and the lead author of the study told me. Some families totally abandon their new stoves, while others continue to use traditional cooking methods in addition to the clean stove. That’s because the new stoves might have smaller burners, not get as hot, change the taste of traditional foods, or else just create more work for cooks. “The first thing you have to ask yourself is, have these offset projects just solved it?” Gill-Wiehl said. “Or are there limitations in their methods?”
One big limitation, according to Gill-Wiehl and her coauthors, is the way offset data is collected. To measure adoption, many project managers use a simple one-time survey that asks households if they used the new stove in the last week or month. If they reply yes, the developer will generate credits as if the household used the stove 100% of the time. Not only is this not exactly robust methodologically, but it may also result in participants inflating their usage to please the survey collectors — a common effect known as “social desirability bias.”
Another major issue stems from the way these projects account for larger environmental impacts. One of the key ways clean cookstove initiatives cut emissions is by reducing the degradation of forests that results from the gathering of fuel to make fires. It would be impossible to measure these cuts directly, but the default estimates that project developers use vastly overstate the level of degradation that would otherwise occur compared to what the peer-reviewed literature has found.
But like anything offsets-related, this study, too, has attracted fierce scrutiny. After an earlier version of it was published a year ago, offset project developers responded with an open letter calling it “misguided.” For instance, the letter calls it inappropriate to compare carbon offset projects to non-commercial projects analyzed in the academic literature. It also accuses the Berkeley researchers of selectively choosing studies and carbon offset projects to include. Finally, the letter also points to the fact that the Better Cooking Company, a cookstove company that is trying to sell credits, provided funding for the study and asserts that the findings benefit that company.
Gill-Wiehl pushed back on all points. The Better Cookstove Company provided less than 5% of the funding, she said, and had no influence over the findings. She added that the results didn’t benefit the company — the study implied that it, too, was guilty of over-crediting, primarily due to inflated forest conservation estimates. (The Better Cookstove Company has since updated its forest conservation estimates to align with the findings in the study, decreasing its sellable credits.)
“We did not write this to burn cookstoves to the ground,” she told me. “This is an incredibly important project type, and it’s so incredibly important that it can't be based on a house of cards.”
Gill-Wiehl said she and her co-authors want the carbon market registries — the groups that design the methodologies project developers must follow to generate and sell credits — to adopt stronger rules that improve the integrity of the market. For example, to measure usage, they could require developers to collect metered data from the stoves or to use fuel sales data. They also want the registries to require that developers use more accurate estimates from the literature for forest degradation. Without significant change, buyers could lose confidence and funding could dry up.
Some of the issues with clean cookstove projects were already known, if not quantified to the extent in this new paper, and there are some ongoing efforts in the industry to improve them. An influential United Nations body recently supported research to establish more accurate estimates of forest degradation, and a consortium of government groups and NGOs is working to develop stronger rules for crediting cookstove projects.
The authors of the study hope this increased attention on cookstoves doesn’t just lead to more legitimate offset projects, but also to ones that better prioritize public health. The vast majority of the cookstoves handed out for offset projects are designed to run more efficiently, but still expose users to dangerous levels of pollution. As of November 2022, only 4% of projects provided the types of stoves that the World Health Organization deems “clean for health at point of use.”
“I feel like at this moment when there’s a shake up of the offset market in general — but also, right now around cookstoves — we have an opportunity to direct all of this finance to projects that have a transformative benefit to people’s lives and health,” Barbara Haya, director of the Berkeley Carbon Trading Project and one of the study’s authors, told me. “And we have an obligation to do that if we’re going to use those credits to make claims of reducing emissions.”
Editor’s note: This story has been updated to correct the proportion of funding the Better Cookstove Company provided for the study and to reflect changes the company has made to its offset methodology since the study’s completion. We regret the error.
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The sale of Ravenswood Generating Station closed at the end of January.
New York City’s largest fossil fuel-fired power plant has changed hands. The Ravenswood Generating Station, which provides more than 20% of the city’s generation capacity, was sold by its former parent company LS Power to NRG, an energy company headquartered in Texas that owns power plants throughout the country.
It’s not yet clear what this means for “Renewable Ravenswood,” the former owner’s widely-publicized plans to convert the site into a clean energy hub. Prior to the sale, those plans were hanging by a thread. NRG did not respond to detailed questions about whether it will abandon or advance that vision.
“Ravenswood has been an important part of powering New York City for decades, and we recognize how much the facility matters to the surrounding community and the region,” a spokesperson for the company told me in an email. “We’ve begun engaging with community stakeholders and look forward to continuing those conversations in the months ahead. Our leadership team is carefully reviewing all relevant information and is taking a thoughtful, measured approach to any future decisions.”
Ravenswood is made up of four generating units: a natural gas combined cycle plant built in 2004, and three steam generators built in the 1960s that run mostly on natural gas, though sometimes also on oil. The plant is responsible for a sizable chunk of the city’s climate footprint. In 2023, the most recent year for which data is available, the plant emitted nearly 1.3 million metric tons of CO2, or about 8% of the city’s emissions from electricity production.
The Renewable Ravenswood concept was largely celebrated by the surrounding community, which includes two of the largest public housing projects in the country and suffers from disproportionately high rates of chronic respiratory diseases like asthma. The plan, which a local subsidiary of LS Power called Rise Light and Power proposed in 2022, entailed replacing the plant’s three 1960s steam generators with a combination of offshore wind, batteries, and renewable energy delivered from upstate New York via new power lines.
By last year, however, the plan was increasingly looking like a distant dream. Its centerpiece was a proposed offshore wind farm called Attentive Energy, but the project has been on ice since 2024, with little chance of moving forward under the Trump administration. This past November, New York regulators rejected a proposed transmission line that would have connected Ravenswood to a hypothetical future offshore wind development, primarily because there was no longer any such development in progress. Earlier this week, state energy regulators delivered yet another blow to potential offshore wind development when they decided not to solicit offers from for new projects to enter the state’s energy market.
Battery development has also had a rocky few years in New York State, which has affected Ravenswood’s transition. Rise Light and Power initially proposed building a 316-megawatt battery project on the site in 2019, but it has yet to break ground. The former CEO, Clint Plummer, previously told me that the company was waiting on New York State regulators to open up their anticipated battery solicitation, which would enable the project to bid into the New York energy market, before building the project. That solicitation opened last July, but it’s unclear whether the company submitted a bid. NRG did not respond to a question about this.
NRG first announced its plans to buy a fleet of natural gas plants — 18 in total — from LS Power in May 2025. Ravenswood was not mentioned in the press release or investor materials, however. “We're acquiring these assets at a significant discount to new build cost, at an attractive valuation, and at the strategically opportune time to be adding high-quality, difficult-to-replicate resources into our portfolio as the sector enters into a period of sustained demand growth,” NRG’s CEO Lawrence Coben told investors at the time.
The purchase was subject to regulatory approval and officially closed a few weeks ago, on January 30. Documents filed with the Securities and Exchange Commission confirm that Ravenswood was part of the deal. Documents filed with the New York Public Service Commission describe the terms in more detail, but they do not mention the proposed transition of the site to a clean energy hub.
Local officials, community groups, and tenant associations were deeply involved in fleshing out the Renewable Ravenswood vision. The Queens Borough President worked with the former owner on a multiyear report called “Reimagine Ravenswood,” released last summer, based on extensive engagement with the community, including public workshops, focus groups, interviews with local leaders, and a community survey. The report is evidence of high hopes the community has for the site’s transition, describing the potential to create jobs, expand public space, and generally increase investment in the neighborhood.
I reached out to many of the local elected officials and community groups that have publicly supported Renewable Ravenswood to ask if they were aware of the sale and whether NRG had made any commitments in regard to the transition plan. Just one responded. State Senator Kristen Gonzalez’s office told me they were aware of the sale, but declined to comment further.
Heron Power and DG Matrix each score big funding rounds, plus news for heat pumps and sustainable fashion.
While industries with major administrative tailwinds such as nuclear and geothermal have been hogging the funding headlines lately, this week brings some variety with news featuring the unassuming but ever-powerful transformer. Two solid-state transformer startups just announced back-to-back funding rounds, promising to bring greater efficiency and smarter services to the grid and data centers alike. Throw in capital supporting heat pump adoption and a new fund for sustainable fashion, and it looks like a week for celebrating some of the quieter climate tech solutions.
Transformers are the silent workhorses of the energy transition. These often-underappreciated devices step up voltage for long-distance electricity transmission and step it back down so that it can be safely delivered to homes and businesses. As electrification accelerates and data centers race to come online, demand for transformers has surged — more than doubling since 2019 — creating a supply crunch in the U.S. that’s slowing the deployment of clean energy projects.
Against this backdrop, startup Heron Power just raised a $140 million Series B round co-led by Andreessen Horowitz and Breakthrough Energy Ventures to build next-generation solid state transformers. The company said its tech will be able to replace or consolidate much of today’s bulky transformer infrastructure, enabling electricity to move more efficiently between low-voltage technologies like solar, batteries, and data centers and medium-voltage grids. Heron’s transformers also promise greater control than conventional equipment, using power electronics and software to actively manage electricity flows, whereas traditional transformers are largely passive devices designed to change voltage.
This new funding will allow Heron to build a U.S.manufacturing facility designed to produce around 40 gigawatts of transformer equipment annually; it expects to begin production there next year. This latest raise follows quickly on the heels of its $38 million Series A round last May, reflecting hunger among customers for more efficient and quicker to deploy grid infrastructure solutions. Early announced customers include the clean energy developer Intersect Power and the data center developer Crusoe.
It’s a good time to be a transformer startup. DG Matrix, which also develops solid-state transformers, closed a $60 million Series A this week, led by Engine Ventures. The company plans to use the funding to scale its manufacturing and supply chain as it looks to supply data centers with its power-conversion systems.
Solid-state transformers — which use semiconductors to convert and control electricity — have been in the research and development phase for decades. Now they’re finally reaching the stage of technical maturity needed for commercial deployment, driving a surge in activity across the industry. DG Matrix’s emphasis is on creating flexible power conversion solutions, marketing its product as the world’s first “multi-port” solid-state transformer capable of managing and balancing electricity from multiple different sources at once.
“This Series A marks our transition from breakthrough technology to scaled infrastructure deployment,” Haroon Inam, DG Matrix’s CEO, said in a statement. “We are working with hyperscalers, energy companies, and industrial customers across North America and globally, with multiple gigawatt-class datacenters in the pipeline.” According to TechCrunch, data centers make up roughly 90% of DG Matrix’s current customer base, as its transformers can significantly reduce the space data centers require for power conversion.
Zero Homes, a digital platform and marketplace that helps homeowners manage the heat pump installation process, just announced a $16.8 million Series A round led by climate tech investor Prelude Ventures. The company’s free smartphone app lets customers create a “digital twin” of their home — a virtual model that mirrors the real-world version, built from photos, videos, and utility data. This allows homeowners to get quotes, purchase, and plan for their HVAC upgrade without the need for a traditional in-person inspection. The company says this will cut overall project costs by 20% on average.
Zero works with a network of vetted independent installers across the U.S., with active projects in California, Colorado, Massachusetts, Minnesota, and Illinois. As the startup plans for national expansion, it’s already gained traction with some local governments, partnering with Chicago on its Green Homes initiative and netting $745,000 from Colorado’s Office of Economic Development to grow its operations in Denver.
Climactic, an early-stage climate tech VC, launched a new hybrid fund called Material Scale, aimed at helping sustainable materials and apparel startups navigate the so-called “valley of death” — the gap between early-stage funding and the later-stage capital needed to commercialize. As Climactic’s cofounder Josh Fesler explained on LinkedIn, the fund is designed to cover the extra costs involved with sustainable production, bridging the gap between the market price of conventional materials and the higher price of sustainable materials.
Structured as a “hybrid debt-equity platform,” the fund allows Climactic’s investors to either take a traditional equity stake in materials startups or provide them with capital in the form of loans. TechCrunch reports that the fund’s initial investments will come from an $11 million special purpose vehicle, a separate entity created to fund a small set of initial investments that sits outside Material Scale’s main investing pool.
The fashion industry accounts for roughly 10% of global emissions. “These days there are many alt materials startups that have moved through science and structural risk, have venture funding, credible supply chains and most importantly can achieve market price and positive gross margins just with scale,” Fesler wrote in his LinkedIn post. “They just need the capital to grow into their rightful commercial place.”
Clean energy stocks were up after the court ruled that the president lacked legal authority to impose the trade barriers.
The Supreme Court struck down several of Donald Trump’s tariffs — the “fentanyl” tariffs on Canada, Mexico, and China and the worldwide “reciprocal” tariffs ostensibly designed to cure the trade deficit — on Friday morning, ruling that they are illegal under the International Emergency Economic Powers Act.
The actual details of refunding tariffs will have to be addressed by lower courts. Meanwhile, the White House has previewed plans to quickly reimpose tariffs under other, better-established authorities.
The tariffs have weighed heavily on clean energy manufacturers, with several companies’ share prices falling dramatically in the wake of the initial announcements in April and tariff discussion dominating subsequent earnings calls. Now there’s been a sigh of relief, although many analysts expected the Court to be extremely skeptical of the Trump administration’s legal arguments for the tariffs.
The iShares Global Clean Energy ETF was up almost 1%, and shares in the solar manufacturer First Solar and the inverter company Enphase were up over 5% and 3%, respectively.
First Solar initially seemed like a winner of the trade barriers, however the company said during its first quarter earnings call last year that the high tariff rate and uncertainty about future policy negatively affected investments it had made in Asia for the U.S. market. Enphase, the inverter and battery company, reported that its gross margins included five percentage points of negative impact from reciprocal tariffs.
Trump unveiled the reciprocal tariffs on April 2, a.k.a. “liberation day,” and they have dominated decisionmaking and investor sentiment for clean energy companies. Despite extensive efforts to build an American supply chain, many U.S. clean energy companies — especially if they deal with batteries or solar — are still often dependent on imports, especially from Asia and specifically China.
In an April earnings call, Tesla’s chief financial officer said that the impact of tariffs on the company’s energy business would be “outsized.” The turbine manufacturer GE Vernova predicted hundreds of millions of dollars of new costs.
Companies scrambled and accelerated their efforts to source products and supplies from the United States, or at least anywhere other than China.
Even though the tariffs were quickly dialed back following a brutal market reaction, costs that were still being felt through the end of last year. Tesla said during its January earnings call that it expected margins to shrink in its energy business due to “policy uncertainty” and the “cost of tariffs.”