Carney urges carbon-neutral AI data centres, praises EU carbon pricing at G20 summit

Carney used his platform at the G20 summit in South Africa to urge world leaders to require artificial intelligence data centres to operate as carbon-neutral, in part through the use of carbon credits

Source: X

Prime Minister Mark Carney used his platform at the G20 summit in South Africa to urge world leaders to require artificial intelligence data centres to operate as carbon-neutral, in part through the use of carbon credits.

Speaking at a working session in Johannesburg, Carney called for the development of standardized, high-integrity carbon markets that would redirect capital flows to regions most impacted by climate change. He said AI infrastructure, given its rapidly expanding energy demands, should be required to account for its environmental footprint.

“We can catalyze enormous private sector demand for these credits by committing AI data center development to be carbon neutral,” Carney told global leaders.

The prime minister also renewed his support for carbon pricing mechanisms, citing the European Union’s approach as an example to follow.

“We need a price on carbon,” Carney said, adding, “I salute my neighbour, the European Union, in pricing carbon and putting in place a CBAM” — referring to the EU’s Carbon Border Adjustment Mechanism, which applies tariffs to carbon-intensive imports.

Carney’s comments come as Canada faces growing scrutiny over its domestic carbon tax, which remains in the industrial portion even after Carney removed the consumer carbon tax.

The prime minister’s remarks also follow the debate around the outcome of the COP30 summit held earlier this month in Belém, Brazil.

The final COP30 agreement did not include any reference to fossil fuels, despite calls from several countries for a roadmap to transition away from fossil fuels.

However, in his closing statement, the COP President announced plans to establish a working group to produce what he described as the world’s first fossil-fuel transition roadmap.

He also voiced support for Colombia’s proposal to host a global Fossil Fuel Phase-Out Conference for participating countries next April.