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Climate

AM Briefing: 2035 or Bust

On decarbonizing the EU grid, oil prices, and contrails

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AM Briefing: 2035 or Bust
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Current conditions: A volcano on Iceland's Reykjanes peninsula has finally started to erupt • At least 120 people were killed in an earthquake in China • Meteorologists say Americans on the East Coast hoping for snow in January should keep “expectations in check.”

THE TOP FIVE

1. Some EU countries pledge to decarbonize power systems by 2035

A handful of countries within the European Union have pledged to decarbonize their power systems by 2035. The group includes France and Germany, the two biggest power producers in Europe. They’re joined in the commitment by the Netherlands, Austria, Belgium, Luxembourg, and Switzerland, which is not in the EU but is aligned with the bloc’s climate policies. Current EU emissions goals aim for decarbonization by 2040, but this group believes they can move more quickly, and by working together they hope to streamline infrastructure installation and grid connectivity. “Cutting carbon from the electricity grid is seen as a crucial first step to removing emissions from the wider energy system,” Bloomberg Green explains.

2. Houthi attacks on ships send oil prices higher

The price of oil shot up yesterday on growing concerns about tankers being attacked by Houthi rebels in the Red Sea. BP paused shipments through the channel, joining shipping giants including AP Moller-Maersk, MSC, and Hapag-Lloyd. The Red Sea offers a quick route from Asia to Europe, making it one of the world’s busiest shipping channels. It handles about 15% of global shipping, or 20,000 vessels each year, reports The Times of London. Since the beginning of the war between Israel and Hamas, Iran-backed Houthi rebels based in Yemen have been attacking ships with links to Israel. Lately the attacks have expanded to include ships with no Israeli ties. On Monday a Norwegian-owned vessel was attacked. The price of brent crude jumped by as much as 3% on the BP news, but “ample oil supply limited price gains,” says Reuters.

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3. House Democrats sound alarm about major owner of oil and gas wells

Democrats in the House of Representatives have launched an inquiry into the company that owns the most oil and gas wells in the U.S., saying its business model poses a massive climate risk. Diversified Energy Co. owns about 65,000 oil and gas wells, Bloomberg reports. It buys old and unproductive wells and tries to keep them on life support. Members of the House Energy and Commerce Committee worry Diversified could suddenly decide to abandon the wells, leaving state governments with a hefty bill for cleanup and raising the risk of massive methane leaks. Methane is an extremely potent greenhouse gas, and already Diversified was the fourth-largest methane emitter among oil and gas producers last year, according to the EPA. “Diversified Energy’s strategy of leaving thousands of marginal wells unplugged for decades and potentially underestimating future cleanup costs could undermine important efforts to fight climate change,” committee members wrote in a letter.

4. Airlines team up with researchers to reduce planet-warming contrails

Major airlines are looking for ways to reduce the warming effect of the contrails produced by planes. Contrails are the clouds that build up in the sky behind jets as their engines spew hot air and soot into the atmosphere. The U.N. Intergovernmental Panel on Climate Change (IPCC) posits that contrails could have a bigger warming effect than burning jet fuel, because contrails reflect heat back toward the ground. “It’s a big contributor and we need to worry about it,” MIT researcher Florian Allroggen tells The Washington Post. Airlines including Delta, KLM, and American are working with researchers to identify and test ways to eliminate contrails, which might mean flying at higher or lower altitudes to avoid routes with the coldest, wettest air. One recent study found that rerouting 1.7% of flights could cut contrail warming by 59%.

5. Kentucky is getting a massive solar farm next year

Construction has begun on what will eventually be Kentucky’s largest solar farm. The project, called Unbridled, is scheduled to come online in 2024. It will be able to power 120,000 homes with clean energy every year, and will provide around $42 million in direct economic impact over the first 20 years of operation, Electrek’s Michelle Lewis reports. “This 160 MW solar farm is a milestone for Kentucky, the fifth-largest coal-producing state in the U.S.” Lewis says. “Coal is at a point of no return, and renewables will provide clean electricity and substantial economic benefits. It’s encouraging that Kentucky is starting to embrace renewables.”

THE KICKER

Meta CEO Mark Zuckerberg is reportedly building a $270 million compound in Hawaii that will have its own food and energy supplies, and a 5,000-square-foot underground bunker.

Yellow

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Daily Briefing

Think Congress Is Slow? Meet the Power Sector.

BAAJA would likely help speed up the U.S. transmission buildout, but there’s a chance we’re undercounting the benefits.

Power lines.
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This is Heatmap Daily, a weekday digest written by our executive editor. Subscribe here.

As you may have seen, my colleague Emily Pontecorvo and I got the first look at the Rhodium Group’s analysis of what the bipartisan permitting bill will do to emissions.

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AM Briefing

Neutral, at Worst

On Chinese hydrogen, Fermi upheaval, and British offshore wind

Smokestacks.
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Current conditions: The Pineapple Express, an atmospheric river originating in the Pacific near Hawaii, is arriving in the Southwest laden with heavy rain that’s set to flood the region • Indonesia has the worst air quality in the world as forest fires rage along Sumatra’s southern coast • A cross-country storm will soak much of the United States on Tuesday’s Election Day.


THE TOP FIVE

1. Permitting bill’s worst-case climate scenario is still carbon neutral

The Senate’s grand compromise to simplify federal permitting on energy projects would likely drop emissions slightly as the benefits to accelerating deployments of clean energy infrastructure outweigh the boost the legislation could give to fossil fuels. Even under the worst-case scenario, emissions remain on the same trajectory as today. That’s according to a hotly anticipated new analysis by the Rhodium Group, the consultancy whose U.S. emissions estimates are among the most widely cited in American politics. The report, shared first with my colleague Emily Pontecorvo, found that provisions in the Bipartisan American Affordability and Jobs Act largely counteract each other on climate. The bill makes building transmission lines much easier, a key step to patching more renewables onto the grid. But it also makes new gas pipelines simpler to permit, clearing the way for a buildout of the infrastructure for the fossil fuel already dominating U.S. electricity and heating systems. Still, under the best-case scenario, the legislation could cut U.S. economy-wide emissions by 5% below where they would otherwise go in 2040. The bill could also slash energy bills by $78 per year and support construction of more than 200 gigawatts of clean energy capacity, as compared to a world where it didn’t pass. The Rhodium report is at least the second analysis yet to find that the bill could modestly lower emissions. The first, as I reported last week, came from the think tank Resources for the Future, which saw a slight drop in power-sector emissions relative to a world without BAAJA.

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Energy

Exclusive: New Modeling Finds Permitting Bill Would Likely Cut Emissions

Even in the worst-case scenario, BAAJA wouldn’t increase emissions, an analysis by the Rhodium Group concludes.

Pollution and the Capitol.
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The bipartisan permitting reform bill is likely to slightly cut greenhouse gas emissions and lower electricity bills by 2040 — or at worst leave emissions on the same trajectory that they are on today — as compared to the status quo, according to a new analysis of many of its provisions by the Rhodium Group, an independent research firm.

The analysis examines the policies in the Bipartisan American Affordability and Jobs Act, or BAAJA, that would have the most-clear cut effects on climate pollution and the energy system. It is the most comprehensive account of the bill’s effects on emissions so far, although it does not examine all of its provisions.

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