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Anu Khan is pushing carbon credits to better serve the public good.

There’s a new player in carbon removal. It’s not another startup building machines to suck carbon from the air. And it’s not another trade association or consulting firm or marketplace peddling carbon removal credits. Instead, it wants to help establish a different system for advancing carbon removal — one where the challenging but important goal of scrubbing CO2 from the atmosphere is treated as a public good and not just a business opportunity.
It’s called the Carbon Removal Standards Initiative, and it’s run by Anu Khan, the former deputy director of science and innovation at Carbon180. CRSI (pronounced like the Lannister queen in Game of Thrones, “Cersei”) is a “financially unconflicted, independent nonprofit,” that will provide technical assistance to policymakers, regulators, and nongovernmental organizations in quantifying carbon removal outcomes.
A group providing technical assistance may not sound like a revolutionary development. But Khan hopes CRSI will be a fulcrum around which the entire industry can begin to pivot.
Today’s carbon removal industry is built on selling credits, each of which is supposed to represent one ton of CO2 pulled out of the atmosphere. But the market is almost entirely self-regulated. The standards for measuring and reporting how much carbon a given project is removing have either been developed by the carbon credit registries that take a cut of the sales or by the developers themselves — in both cases a conflict of interest, even if governed by the best of intentions. Plus, there’s a multitude of standards for every type of project, and they vary in quality.
Take carbon farming, for example. If a farmer alters their practices to increase the carbon stored in their soil, they can choose from more than a dozen standards to quantify the effects. In theory, the standards all produce an identical product — a fungible carbon credit equivalent to one ton of carbon removed from the atmosphere. In reality, they vary widely in quality, with some standards producing more accurate results than others.
In watching this environment develop over the past several years, I’ve often wondered if some independent, unbiased entity might eventually step forward to enact one set of standards to rule them all. Khan told me that about a year and a half ago, she had the same thought. “Oh, to be so young,” she said.
At the time, there was growing concern that the carbon removal industry would suffer from the same credibility issues that plagued the wider market for carbon credits. “You have a multiplicity of these verification entities driven by profit motives, some of which have very loose standards,” Wil Burns, the co-executive director of the Institute for Carbon Removal Law and Policy at American University, told me. “From the standpoint of those purchasing credits or those viewing whether companies are doing anything meaningful, nobody can really distinguish.”
In early 2023, dozens of carbon removal suppliers, buyers, verifiers, academics, and nonprofit staff — including Khan — signed an open letter that now reads like an early draft of CRSI’s missions statement. It called for the creation of “an independent, not-for-profit initiative that conscientiously avoids conflicts of interest and has funding that does not depend on issuing or selling carbon credits.” This new body would “provide a trusted, scientific stamp of approval for CDR protocols through an inclusive process to identify scientific consensus.”
The letter focused on the issues with measuring carbon removal in the context of the voluntary sale of carbon credits. But over the next year, it became clear to Khan that carbon removal won’t reach the scale necessary to make a dent in climate change without government policy. “Even the market enthusiasts recognize that we’re going to need policy as quickly as possible to shore this up,” she said, “and it’s going to be policy, long term, that gets us to gigaton scale.”
So instead of providing “a trusted, scientific stamp of approval” to private businesses, CRSI is laser focused on working with policymakers. It’s not entirely clear yet what that will look like, and it’s likely to evolve as CRSI finds its footing. But the group is launching with a few projects that are already underway. It has created a database of “quantification resources,” which is basically a list of all of the methodologies published by companies, academics, government agencies, and international standards organizations, for measuring different kinds of carbon removal. It also has a database of carbon removal policies, both those enacted and proposed. Eventually, Khan plans to have them link out to each other, so you can see which standards underpin which policies.
Khan wants CRSI to be a go-to resource for policymakers and agency staff to ensure that carbon removal programs actually result in climate benefits. “We are fundamentally a mission organization,” she told me. “We believe that carbon removal is a tool for climate justice. Justice requires accountability, and in carbon removal, that means knowing how to count the carbon. We want to make sure that if we're putting public dollars into these policies, that they are backed by the ability to actually measure the carbon.”
Khan isn’t the only one whose thinking on standards has shifted toward a government-led approach. Burns, who also signed the letter, told me he’s seeing more carbon removal companies pushing for a compliance market, where the government requires polluting businesses to buy carbon removal. “They would like to both have government standards that would provide more confidence, for example, to investors,” he said, “and they would like government mandates that generate more demand.”
Freya Chay is the program lead at the nonprofit Carbon Plan, which spearheaded the letter. She told me many in the industry are now thinking about carbon removal programs that don’t revolve around selling credits at all, and therefore may have very different measurement and verification needs.
One of CRSI’s first projects is an illustrative example. Imagine if the Department of Agriculture developed a program to help farmers restore the pH of soils that have gotten too acidic, by adding basalt — a mineral that also happens to capture CO2 from the atmosphere as it dissolves. Today, carbon removal companies that sell carbon credits based on this process are taking hundreds of soil samples to measure the outcomes. The USDA likely wouldn’t need that level of precision — the captured CO2 is a co-benefit, not the entire point of the program — but “at some point you probably do want to know if you removed carbon through this policy,” said Khan. CRSI is working on figuring out how you would do that.
Similarly, we might see the development of building codes that encourage the use of concrete cured with CO2 from the atmosphere, or waste management regulations that govern the injection of carbon-rich organic waste into underground storage wells. Bigger picture, the U.S. will eventually have to measure and report how much carbon removal it’s doing across all of these little programs as part of its obligation under the Paris Agreement.
In many of these cases, those setting the rules won’t be experts in carbon removal science. “They’re going to need technical expertise,” said Khan. “We want to make sure that when they are doing that work, they have access to all of the relevant information, and that it’s organized in a way that’s legible for the expertise that they already have.”
Shuchi Talati, the former chief of staff in the office of fossil energy and carbon management at the Department of Energy, told me that having this kind of centralized resource would definitely have been useful. “The private sector has a lot of power right now in setting standards because the public sector doesn’t have the capacity,” she said. And since the field is so diverse, efforts are spread across a bunch of different agencies that don’t always talk to each other. Talati sits on the board of CRSI, and for her, the focus on government is not just about helping carbon removal scale.
“If we’re allowing the private sector to set standards and norms — and maybe they’re fine right now — but if we continue to let that happen, I can see the actual climate benefit of CDR slipping away,” Talati said. “That’s really where I see Anu’s organization fit in, where we are trying to set standards and norms from this core, foundational principle of a public good.”
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The battery recycling company announced a $425 million Series E round after pivoting to power data centers.
Amidst a two year-long slump in lithium prices, the Nevada-based battery recycling company Redwood Materials announced last summer that it had begun a new venture focused on grid-scale energy storage. Today, it’s clear just how much that bet has paid off.
The company announced a $425 million round of Series E funding for the new venture, known as Redwood Energy. That came from some big names in artificial intelligence, including Google and Nvidia’s venture capital arm, NVentures. This marks the final close of the funding round, increasing the total from $350 million announced in October.
Redwood Energy adapts the company’s original mission — breaking down spent batteries to recover, refine, and resell critical minerals — to suit the data center revolution. Instead of merely extracting battery materials, the company can now also repurpose electric vehicle batteries that still have some life left in them as energy storage solutions for AI data centers, allowing Redwood to get value from the battery throughout its lifecycle.
“Regardless of where lithium prices are, if we can put [a lithium-ion battery] in a large-scale energy storage system, it can have a lot more value before we break it down into critical materials,” Claire McConnell, Redwood’s new VP of business development for energy storage, told me.
Over the past 12 to 18 months, she explained that the company had started to receive more and more used electric vehicle battery packs “in better condition than we initially anticipated.” Given the substantial electricity load growth underway, McConnell said the company saw it as “perfect moment” to “develop something that could be really unique for that market.”
At the time of Redwood Energy’s launch last June, the company announced that it had stockpiled over a gigawatt-hour of used EV batteries, with an additional 5 gigawatt-hours expected over the following year. Its first microgrid pilot is already live and generating revenue in Sparks, Nevada, operating in partnership with the data center owner and operator Crusoe Energy. That project is off-grid, supplying solar-generated electricity directly to Crusoe’s data center. Future projects could be grid-connected though, storing energy when prices are low and dispatching it when there are spikes in demand.
The company also isn’t limiting itself to used battery packs, McConnell told me. Plenty of manufacturers, she said, are sitting on a surplus of new batteries that they’re willing to offload to Redwood. The potential reasons for that glut are easy to see: already-slower-than-expected EV adoption compounded by Trump’s rollback of incentives has left many automakers with lower than projected EV sales. And even in the best of times, automakers routinely retool their product lines, which could leave them with excess inventory from an older model.
While McConnell wouldn’t reveal what percent of packs are new, she did tell me they make up a “pretty meaningful percentage of our inventory right now,” pointing to a recently announced partnership with General Motors meant to accelerate deployment of both new and used battery packs for energy storage.
While Redwood isn’t abandoning its battery recycling roots, this shift in priorities toward data center energy storage comes after a tough few years for the battery recycling sector overall. By last June, lithium prices had fallen precipitously from their record highs in 2022, making mineral recycling far less competitive. Then came Trump’s cuts to consumer electric vehicle incentives, further weakening demand. On top of that, the rise of lithium-iron phosphate batteries — which now dominate the battery storage sector and are increasingly common in EVs — have reduced the need for nickel and cobalt in particular, as they’re not a part of this cheaper battery chemistry.
All this helped create the conditions for the bankruptcy of one of Redwood’s main competitors, Li-Cycle, in May 2025. The company went public via a SPAC merger in 2021, aiming to commercialize its proprietary technique for shredding whole lithium-ion battery packs at once. But it ultimately couldn’t secure the funds to finish building out its recycling hub in Rochester, New York, and it was acquired by the commodities trading and mining company Glencore last summer.
“We started really early, and in a way we started Redwood almost too early,” JB Straubel, Redwood’s founder and Tesla’s co-founder, told TechCrunch last summer. He was alluding to the fact that in 2017, when Redwood was founded, there just weren’t that many aging EVs on the road — nor are there yet today. So while an influx of used EV batteries is eventually expected, slower than anticipated EV adoption means there just may not be enough supply yet to sustain a company like Redwood on that business model alone.
In the meantime, Redwood has also worked to recycle and refine critical minerals from battery manufacturing scrap and used lithium-ion from consumer electronics. Partnerships with automakers such as Toyota, Volkswagen, and General Motors, as well as global battery manufacturer Panasonic, have helped bolster both its EV battery recycling business and new storage endeavor. The goal of building a domestic supply chain for battery materials such as lithium, nickel, cobalt, and copper also remains as bipartisan as ever, meaning Redwood certainly isn’t dropping the recycling and refining arm of its business, even as it shifts focus toward energy storage.
For instance, it’s also still working on the buildout of a recycling and battery component production facility in Charleston, South Carolina. While three years ago the company announced that this plant would eventually produce over 100 gigawatt-hours of cathode and anode battery components annually, operations on this front appear to be delayed. When Redwood announced that recycling and refining operations had begun in Charleston late last year, it made no mention of when battery component production would start up.
It’s possible that this could be taking a backburner to the company’s big plans to expand its storage business. While the initial Crusoe facility offers 63 megawatt-hours of battery energy storage, McConnell told me that Redwood is now working on projects “in the hundreds of megawatt-hours, looking to gigawatt-hour scale” that it hopes to announce soon.
The market potential is larger than any of us might realize. Over the next five or so years, McConnell said, “We expect that repurposed electric vehicle battery packs could make up 50% of the energy storage market.”
Fossil fuel companies colluded to stifle competition from clean energy, the state argues.
A new kind of climate lawsuit just dropped.
Last week the state of Michigan joined the parade of governments at all levels suing fossil fuel companies for climate change-related damages. But it’s testing a decidedly different strategy: Rather than allege that Big Oil deceived the public about the dangers of its products, Michigan is bringing an antitrust case, arguing that the industry worked as a cartel to stifle competition from non-fossil fuel resources.
Starting in the 1980s, the complaint says, ExxonMobil, Chevron, Shell, BP, and their trade association, the American Petroleum Institute, conspired “to delay the transition from fossil fuels to renewable energy” and “unlawfully colluded to reduce innovation” in Michigan’s transportation and energy markets. This, it alleges, is a key driver of Michigan’s (and the country’s) present-day struggles with energy affordability. If the companies had not suppressed renewable energy and electric vehicles, the argument goes, these technologies would have become competitive sooner and resulted in lower transportation and energy costs.
The framing may enable Michigan to sidestep some of the challenges other climate lawsuits have faced. Ten states have attempted to hold Big Oil accountable for climate impacts, mostly by arguing that the industry concealed the harms their products would cause. One suit filed by the City of New York has been dismissed, and many others have been delayed due to arguments over whether the proceedings belong in state or federal court, and haven’t yet gotten to the substance of the claims. Michigan’s tactic “maybe speeds up getting to the merits of the case,” Margaret Barry, a climate litigation fellow at Columbia University’s Sabin Center for Climate Change Law, told me, “because those jurisdictional issues aren’t going to be part of the court’s review.”
The fossil fuel industry’s primary defense in these suits has been that cities and states cannot fault oil companies for greenhouse gas emissions because regulating those emissions is the job of the federal government, per the Clean Air Act. Making the case about competition may “avoid arguments about whether this lawsuit is really about regulation,” Rachel Rothschild, an assistant professor of law at the University of Michigan, told me.
The biggest hurdle Michigan will face is proving the existence of a coordinated plot. Geoffrey Kozen, a partner at the law firm Robins Kaplan who works on antitrust cases, told me that companies in these kinds of suits tend to argue that they were simply reacting independently to the same market pressures and responding as any rational market actor would.
There are two main ways for a plaintiff to overcome that kind of argument, Kozen explained. In rare cases, there is a smoking gun — a memo that all of the parties signed saying they were going to act together, for example. More often, attorneys attempt to demonstrate a combination of “parallel conduct,” i.e., showing that all of the parties did the same thing, and “plus factors,” or layers of evidence that make it more likely that there was some kind of underlying agreement.
According to Michigan’s lawsuit, the collusion story in this case goes like this. In 1979, the American Petroleum Institute started a group called the CO2 and Climate Task Force. By that time, Exxon had come to understand that fossil fuel consumption was warming the planet and would cause devastation costing trillions of dollars. The company’s scientists had concluded that cleaner alternatives to fossil fuels would have to make up an increasing amount of the world’s energy if such effects were to be avoided.
“A self-interested and law-abiding rational firm would have used this insight to innovate and compete in the energy market by offering superior and cheaper energy products to consumers,” the complaint says. Michigan alleges that instead, Exxon shared its findings with the other companies in the task force and conspired with them to suppress clean alternatives to fossil fuels. They worked together to “synchronize assessments of climate risks, monitor each other’s scientific and industry outlooks, align their responses to competitive threats, and coordinate their efforts to suppress technologies likely to displace gasoline or other fossil fuels through collusion rather than competition,” according to the complaint.
Michigan’s lawyers point to evidence showing that the named companies shut down internal research programs, withheld products from the market, and used their control of patents to stifle progress away from fossil fuels. The companies were all early leaders in developing clean technologies — with innovations in rechargeable batteries, hybrid cars, and solar panels — but began to sabotage or abandon those efforts after the formation of the task force, the lawsuit alleges.
The case will likely turn on whether the judge finds it credible that these actions would have been against the companies’ self-interest had they not known their peers would be doing the same thing, Kozen told me.
“The actions differ between defendants. They are over a wide range of time periods. And so the question is, is that pursuant to an actual agreement? Or is it pursuant to a bunch of oil executives who are all thinking in similar ways?” he said. “I think that’s going to be the number one point where success or failure is probably going to tip.”
Another challenge for Michigan will be to prove what the world would have looked like had this collusion not taken place. In the parlance of antitrust, this is known as the “but-for world.” Without the Big Oil conspiracy, the lawsuit says, electric vehicles would be “a common sight in every neighborhood,” there would be ubiquitous “reliable and fast chargers,” and renewable energy would be “supplied at scale.” It argues that economic models show that Michigan’s energy prices would also have been significantly lower. While such arguments are common in antitrust cases, it’s a lot more difficult to quantify the effects of stifled innovation than something more straightforward like price fixing.
The companies, of course, reject Michigan’s narrative. A spokeswoman for Exxon told the New York Times it was “yet another legally incoherent effort to regulate by lawsuit.”
If the state can gather enough plausible evidence of harm, however, it may be able to get past the companies’ inevitable motion to dismiss the case and on to discovery. While the case is built on heaps of internal emails and leaked memos that have been made public over the years through congressional investigations, who knows how much of the story has yet to be revealed.
“It’s, in my experience, almost impossible, if someone is actually a member of a cartel, to hide all the evidence,” said Kozen. “Whatever it is, it always comes out.”
Current conditions: Temperatures as low as 30 degrees Fahrenheit below average are expected to persist for at least another week throughout the Northeast, including in New York City • Midsummer heat is driving temperatures up near 100 degrees in Paraguay • Antarctica is facing intense katabatic winds that pull cold air from high altitudes to lower ones.

The United States has, once again, exited the Paris Agreement, the first global carbon-cutting pact to include the world’s two top emitters. President Donald Trump initiated the withdrawal on his first day back in office last year — unlike the last time Trump quit the Paris accords, after a prolonged will-he-won’t-he game in 2017. That process took three years to complete, allowing newly installed President Joe Biden to rejoin in 2021 after just a brief lapse. This time, the process took only a year to wrap up, meaning the U.S. will remain outside the pact for years at least. “Trump is making unilateral decisions to remove the United States from any meaningful global climate action,” Katie Harris, the vice president of federal affairs at the union-affiliated BlueGreen Alliance, said in a statement. “His personal vendetta against clean energy and climate action will hurt workers and our environment.” Now, as Heatmap’s Katie Brigham wrote last year, at “all Paris-related meetings (which comprise much of the conference), the U.S. would have to attend as an ‘observer’ with no decision-making power, the same category as lobbyists.”
America has not yet completed its withdrawal from the United Nations Framework Convention on Climate Change, the overarching group through which the Paris Agreement was negotiated, which Trump initiated this month. That won’t be final until next year. That Trump is even planning to quit the body shows how much more aggressive the administration’s approach to climate policy is this time around. Trump remained within the UNFCCC during his first term, preferring to stay engaged in negotiations even after quitting the Paris Agreement.
Just weeks after a federal judge struck down the Trump administration’s stop work order on the Revolution Wind project off Rhode Island’s shores, another federal judge has overturned the order halting construction on the Vineyard Wind project off Massachusetts. That, as Heatmap’s Emily Pontecorvo wrote last night, “makes four offshore wind farms that have now won preliminary injunctions against Trump’s freeze on the industry.” Besides Revolution Wind, Dominion Energy’s Coastal Virginia offshore wind project and Equinor’s Empire Wind plant off Long Island have each prevailed in their challenges to the administration’s blanket order to abandon construction on dubious national security grounds.
Meanwhile, the White House is potentially starving another major infrastructure project of funding. The Gateway rail project to build a new tunnel under the Hudson River between New Jersey and New York City could run out of money and halt construction by the end of next week, the project manager warned Tuesday. Washington had promised billions to get the project done, but the money stopped flowing in October during the government shutdown. Officials at the Department of Transportation said the funding would remain suspended until, as The New York Times reported, the project’s contracts could be reviewed for compliance with new rules about businesses owned by women and minorities.
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A new transmission line connecting New England’s power-starved and gas-addicted grid to Quebec’s carbon-free hydroelectric system just came online this month. But electricity abruptly stopped flowing onto the New England Clean Energy Connect as the Canadian province’s state-owned utility, Hydro-Quebec, withheld power to meet skyrocketing demand at home amid the Arctic chill. Power plant owners in New England and New York, where Hydro-Quebec is building another line down the Hudson River to connect to New York City, complained that deals with the utility focused on maintaining supplies during the summer, when air conditioning traditionally surges power to peak demand. Hydro-Quebec restored power to the line on Monday.
The storm represented a force majeure event. If it hadn’t, the utility would have needed to pay penalties. But the incident is sure to fuel more criticism from power plant owners, most of which are fossil fueled, who oppose increased competition from the Quebecois. “I hate to say it, but a lot of the issues and concerns that we have been talking about for years have played out this weekend,” Dan Dolan — who leads the New England Power Generators Association, a trade group representing power plant owners — told E&E News. “This is a very expensive contract for a product that predominantly comes in non-stressed periods in the winter,” he said.
Europe has signed what the European Commission president Urusula von der Leyen called “the mother of all deals” with India, “a free trade zone of 2 billion people.” As part of the deal, the world’s second-largest market and the most populous nation plan to ramp up exports of steel, plastics, chemicals, and pharmaceuticals. But don’t expect Brussels to give New Delhi a break on its growing share of the global emissions. The EU’s carbon border adjustment mechanism — the first major tariff in the world based on the carbon intensity of imports — just took effect this month, and will remain intact for Indian goods, Reuters reported.
The Department of the Interior has ordered staff at the National Park Service to remove or edit signs and other informational materials in at least 17 parks out West to scrub mentions of climate change or hardship inflicted by settlers on Native Americans. The effort comes as part of what The Washington Post called a renewed push to implement Trump’s executive order on “restoring truth and sanity to American history.” Park staff have interpreted those orders, the newspaper reported, to mean eliminating any reference to historic racism, sexism, LGBTQ rights, and climate change. Just last week, officials removed an exhibit at Independence National Historical Park on George Washington’s ownership of slaves.
Tesla is going trucking. The electric automaker inked a deal Tuesday with Pilot Travel Centers, the nation’s largest operator of highway pit stops, to install Tesla’s Semi Chargers for heavy-duty electric vehicle charging. The stations are set to be built at select Pilot locations along Interstate 5, Interstate 10, and several other major corridors where heavy-duty charging is highest. The first sites are scheduled to open this summer.