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UN Climate Chief Urges AI Industry to Cut Emissions as Energy Demand Surges

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The United Nations' top climate official on Monday criticized artificial intelligence companies over their growing energy use and emissions, calling on the industry to prove it is worth the environmental cost, set credible climate targets and deliver measurable cuts.

"Energy guzzling artificial intelligence is driving up planet-heating pollution from coal, oil and gas, while ratcheting up energy costs for households and businesses," Simon Stiell, executive secretary of the UN Framework Convention on Climate Change, said in a speech as the UN General Assembly and Climate Week began.

Data centers accounted for 1.9% of global electricity demand last year, according to BNEF, but that share is expected to more than double by 2030, Bloomberg said. The sector's environmental impact remains difficult to measure because major AI companies, including Anthropic and OpenAI, have not disclosed their greenhouse-gas emissions or published net-zero plans.

In the US, energy-related emissions from AI data centers could reach about 4.4 billion metric tons by 2035 if developers rely on the cheapest available electricity, BNEF estimates. Developers have planned more than 120 gigawatts of on-site gas generation, as nuclear and geothermal projects remain costly and slow to scale, it said.

Stiell said AI could also help address climate change, but companies must show that the technology's benefits outweigh its environmental costs. The UN has warned that global warming is on track to exceed the Paris Agreement's 1.5-degree Celsius threshold, increasing pressure for faster emissions cuts and expanded carbon removal.

What else is happening in Commodities?

Commodities

US Power Update: Prices Show Wide Regional Swings, With PJM Above $500/MWh

US electricity markets saw wide price swings, with locational marginal prices varying sharply across regions as power demand shifted.The Independent Electricity System Operator led the markets at 5 p.m. ET with a locational marginal price of $36.47 per megawatt-hour, compared with $30/MWh for the Independent System Operator of New England, which posted the lowest price at that hour.For intraday peaks, PJM Interconnection reached $518.41/MWh at 1:35 p.m. ET, while the IESO recorded the lowest locational marginal price at $0/MWh at 2:45 a.m. ET.The National Weather Service's Climate Prediction Center forecasts above-normal temperatures across most of the US from Sept. 29-Oct. 5, with near-normal readings in some areas of the West.

Commodities

Natural Gas Update: US Futures Fall on European Decline

US natural gas prices fell to a one-week low on Monday, pressured by a sharp decline in European gas prices, while forecasts for hotter US weather helped limit the losses.In US trading, both the front-month Henry Hub contract and the continuous contract fell by 2.85% to $2.829 per million British thermal units.In Europe, the front-month Dutch TTF gas futures contract dropped 7.417% to 73.620 euros ($84.40) per megawatt-hour, while British NBP futures declined 7.469% to 183.36 pence ($2.45) per therm.Losses in US gas prices were tempered by forecasts for hotter weather that could boost demand from power generators for air conditioning, Barchart said. The Commodity Weather Group said on Monday that forecasts had shifted hotter, with above-average temperatures expected across the US Gulf Coast through Sept. 30.US gas production remained robust, while inventories were above historical averages, limiting the potential for a sharper price rally. In Europe, gas prices fell after details of Germany's latest gas storage tenders indicated that the volumes sought would be lower than initially expected.

Commodities

Market Chatter: Meta's Alberta Data Center Boosts Province's Appeal to US Hyperscalers, Capital Power Says

Capital Power CEO Avik Dey said Meta's (META) planned CA$13 billion ($9 billion) Alberta data center has boosted the province's appeal to hyperscalers, who view the project as a vote of confidence in the government's artificial intelligence strategy, Reuters reported on Monday.Dey reportedly said the company is in talks with several firms seeking electricity for potential projects and expects other US hyperscalers to follow Meta.More than 100 data centers have been proposed in Alberta, which offers abundant natural gas, available land and a cold climate. Capital Power will initially supply 250 megawatts of electricity to Meta's site.Capital Power did not immediately respond to a request for comment from.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

$META