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Yes, it’s another petrostate. But that’s just the beginning.
When the announcement came that COP29 will be held in Baku in 2024, the immediate reaction in the climate community was “again?!”
It wasn’t that Azerbaijan — a nation of about 10 million people, situated on the Caspian Sea at the southern tail of the Caucasus mountains — had hosted the global climate summit before. Actually, it almost didn’t get the 2024 hosting gig at all: COP29 was briefly homeless after Russia vowed to block Bulgaria’s bid (because Bulgaria is part of the European Union) and longtime enemies Azerbaijan and Armenia vowed to block each other’s bids (because of what many have characterized as an ethnic cleansing). Other nations in the region balked at the sheer size of what the COP event has become. At one point, even Australia and Bonn, Germany, were on the table as potential COP29 replacements if the Eastern European bloc couldn’t pull things together.
But, rather amazingly, it did. That means — as countless headlines have blared, and as you’re undoubtedly already aware — that the United Nations summit intended to assess and progress the goal of limiting climate change will be held in an oil and gas-producing state for the third consecutive year. Cue the groans.
That is reason enough for hand-wringing, especially after a record turn-out of fossil fuel lobbyists at the convention this year, not to mention the scandal over the head of ADNOC leading the whole shebang. But if you thought all that was absurd and disturbing, wait until you hear about Azerbaijan.
“It’s stunning to me that they would make Baku the next place for COP,” Ronald Suny, a distinguished professor emeritus of History at the University of Michigan and an expert on the South Caucasian nations who’s written extensively about Azerbaijan, told me.
Yes, Azerbaijan is a petrostate. But more alarmingly, it is also even more repressive and authoritarian than the United Arab Emirates based on the scale developed by Freedom House, a human rights watchdog group. “Azerbaijan is not even a one-party state,” Suny explained. “It’s a one-person or one-family state.”
To make a long and complicated history very short, former First Secretary of the Communist Party of Azerbaijan Heydar Aliyev came to power after the dissolution of the Soviet Union in 1993 and eventually passed his title of head of state onto his onlyson, Ilham Aliyev, in “irregular” elections in 2003. Ilham Aliyev is still president today, and will remain so indefinitely. “There’s no dissent allowed,” Suny said. “There’s absolute control of the media — much stricter than Russia. Anyone who criticizes [the government] is either in jail or in exile. And lots of people are in jail.”
On the one hand, having COP29 in Baku could be viewed as a small positive. “For years, climate change has been a factor…in wars and conflicts,” reads one effusive lead paragraph in The Associated Press. “Now for the first time, it’s part of a peace deal.” True, the attention from the UN helped to spur a prisoner exchange and peace talks between Azerbaijan and Armenia following renewed bloodshed over the contested Nagorno-Karabakh region earlier this fall. It’s also likely that Azerbaijan will be on its best behavior ahead of the UN convention, given that it’s now under a higher-than-usual level of international scrutiny. Giving Baku the convention “is not necessarily a bad thing,” argues Rashmee Roshan Lall, an international affairs columnist, on her blog, “because it shows that COPs reflect the diversity of the world in which we live and seek to preserve.”
But allowing COP29 to happen inAzerbaijan also helps to legitimize and sanitize Ilham Aliyev’s rule. This is why other authoritarian regimes from Russia to Saudi Arabia to Qatar and Dubai have vied to host global events such as the soccer World Cup and the Olympics. Since 2012, Baku has played host to the Eurovision Song Contest, the First European Games, and the Formula 1 Grand Prix, according to Gubad Ibadoghlu, a senior policy analyst at Azerbaijan’s Economic Research Center, writing for the website Crude Accountability. The government in Baku explicitly “tries to whitewash its damaged image in the international arena by ‘paying attention to modernization’ and by creating connections with global leaders in the sphere of sports and culture,” Ibadoghlu said.
Suny sees the same thing happening now with COP. “It could be that Azerbaijan, which has tried and worked very hard to refurbish and beautify its image, will benefit from such an event and will be happy to put on a good face,” he said. And as Ibadoghlu pointed out, Azerbaijan has spent a huge amount of money on this program over the years. “It’s a very rich state and it can divert its resources — because it certainly doesn’t go into the people — to building extraordinary buildings,” Suny added. By allowing COP to be held in a country that viciously cracks down on dissent and free speech, then, the UN is not only turning a blind eye to but actively assisting what is basically a twisted form of greenwashing.
Curiously, estimates indicate that Azerbaijan might not be an oil state for much longer. The nation is expected to deplete its supply and sole source of wealth within the next 25 years — an involuntary phase-out by 2050, if you will. According to a World Bank report published two weeks ago, “urgent action on climate” — including investing in renewable energy, prioritizing energy efficiency, and climate-proofing its agricultural sector — “can help Azerbaijan minimize the risks emerging from the global low-carbon transition and protect the living standards of its people.”
In that sense, at the least, Baku needs COP. Now we have to wait to see what it does with its chance.
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On the California waiver, an SMR, and CATL
Current conditions: Burbank, California, may hit 95 degrees Fahrenheit today, matching or potentially breaking the 1988 daily record • An area of low pressure could bring snow to the mountains in South Africa• Heavy rain is expected in Washington, D.C., where House Speaker Mike Johnson — perhaps wishfully — aims to hold a floor vote on the reconciliation bill today.
California Air Resources Board
Senate Republicans plan to vote this week on California’s ability to set its own emissions standards, Majority Leader John Thune said on the Senate floor Tuesday. Since 1967, the Environmental Protection Agency has granted California a waiver to set stricter-than-federal restrictions on emissions in acknowledgment of the state’s unique air pollution challenges, including smog; due to the state’s size, however, those standards have largely been adhered to by automakers nationally. The House voted earlier this month to end California’s waiver — which has long been opposed by Republicans, who’ve called it, erroneously, an “electric vehicle mandate” — although there had been some uncertainty over whether the Senate would take up the vote, since Senate parliamentarian Elizabeth MacDonough and the Government Accountability Office had both ruled that the EPA waiver is not subject to the Congressional Review Act, which is what Republicans have called upon to attempt to overturn it.
Thune confirmed that the chamber would take up the three House resolutions unwinding the California waiver, claiming Democrats were “attempting to derail a repeal by throwing a tantrum over a supposed procedural problem.” In response, Senator Alex Padilla of California, a Democrat, said, “If this attempt is successful, the consequences will be far-reaching, not only for our clean energy economy, the air our children breathe, and for our climate, but for the future of the CRA and for the Senate as an institution.”
The Tennessee Valley Authority is seeking a permit to build a small modular reactor, the Journal-News reports, the first utility to do so. On Tuesday, the TVA — the nation’s largest public power provider — took another step toward adding an SMR to its nuclear fleet by applying for a construction permit from the Nuclear Regulatory Commission to build a site on Tennessee’s Clinch River.
While the project had previously been touted by the Biden administration as helping advance the nation toward “a clean energy future,” my colleague Matthew Zeitlin noted that language has vanished from the construction application, which now argues the SMR is the next step in “establishing America’s energy dominance to power artificial intelligence, quantum computing, and advanced manufacturing.” Regardless of spin, the fastest Clinch River could go into operation is about five years, Adam Stein, the director of the nuclear energy innovation program of the Breakthrough Institute, told Matthew.
The world’s biggest manufacturer of electric vehicle batteries, CATL, raised $4.6 billion in its debut on the Hong Kong Stock Exchange Tuesday, making it the largest share offering of 2025 to date. The stock surged 16% over the subscription price, although onshore U.S. investors were largely shut out by the company in order to “limit its exposure to U.S. legal liability,” with the Pentagon having put the Fujian province-based company on a blacklist earlier this year for its alleged links to China’s military, Bloomberg writes.
CATL’s manufacturing is done almost entirely within China, although the company has said it will use 90% of its proceeds from the Hong Kong offering on the construction of a new factory in Hungary, The Economist reports. Though the company faces an uphill battle making inroads in the U.S. due to slowing demand for electric vehicles and scrutiny of Chinese companies by American politicians, The Economist adds that CATL also has “plenty of room for further expansion,” including growing its “higher-margin energy-storage business.”
Japanese automaker Honda announced Tuesday that it will pivot away from its investment in electric vehicles in order to focus on growing demand for hybrids, Reuters reports. The company revised its electrification investment from about $69 billion to $48 billion, while at the same time planning 13 hybrid models between 2027 and 2031.
Honda cited a slowdown in EV sales as justification for its decision, though as Electrek points out, “It’s estimated that this year – not 2030 – 25% of cars sold globally will be EVs,” and that “any company that sells less than that is lagging behind the curve, losing ground to companies that are ready for the transition that is already happening.” Electrek adds that Honda’s profits have largely slipped due to competition in the Chinese auto market from domestic EVs.
If the world merely sustains the current level of warming, at 1.2 degrees Celsius above pre-industrial levels, ice melt off of Greenland and Antarctica could still “profoundly alter coastlines around the world, displacing hundreds of millions of people, and causing loss and damage well beyond the limits of adaptation,” a grim new study published in Nature has found. Even keeping global temperature rise beneath the 1.5 degrees Celsius threshold established in the Paris Climate Agreement could result in “catastrophic inland migration and forced migration,” the University of Bristol’s Jonathan Bamber, one of the authors of the report, told The Guardian. In fact, “you don’t slow sea level rise at 1.5,” lead author Chris Stokes of Durham University told CNN. Rather, “you see quite a rapid acceleration.”
Around 230 million people live less than a meter, or 3.2 feet, above sea level, including many residents of Miami. The researchers estimated that due to ice melt, seas could rise 40 inches by the end of the century, requiring “massive land migration on scales that we’ve never witnessed since modern civilization,” Bamber told CNN. As Stokes added, “There’s very little that we’re observing that gives us hope here.”
Svea Solar
Ikea has begun selling air-to-water heat pumps in Germany, in partnership with Svea Solar. “Sustainable living should be accessible to the masses,” Jacqueline Polak of Ikea Germany said in a statement.
Rob and Jesse dig into the implications of the House budget bill.
Republicans are preparing to tear up America’s clean energy tax credits as part of their budget reconciliation megabill. Hollowing out those policies will have sweeping implications for the country’s energy system — it could set back solar, nuclear, and geothermal development; bring less electricity supply onto the grid; and devastate the country’s fledgling electric vehicle supply chain.
A new report — written by our own Jesse Jenkins — is all about the real-life consequences of killing the tax credits. On this week’s episode of Shift Key, Jesse shares the forthcoming analysis of the bill from Princeton University’s REPEAT Project. Rob and Jesse discuss what best-in-class modeling tells us the bill will mean for carbon emissions, the energy economy, the power grid, and consumer energy costs. Shift Key is hosted by Jesse Jenkins, a professor of energy systems engineering at Princeton University, and Robinson Meyer, Heatmap’s executive editor.
Subscribe to “Shift Key” and find this episode on Apple Podcasts, Spotify, Amazon, or wherever you get your podcasts.
You can also add the show’s RSS feed to your podcast app to follow us directly.
Here is an excerpt from our conversation:
Robinson Meyer: We may not know exactly what Republicans in Congress are going to do, but when you look at the set of possibilities encapsulated by the Republican bill, what does this mean for the energy system and for the climate? Is it good?
Jesse Jenkins: Uh, no, it is not good. And I wish I had some silver linings to pull out here, but they are non-existent — or few and far between, if there are any we can find. Dismantling the current policy trajectory would result in a substantial increase in greenhouse gas emissions, on the order of half a gigaton, 500 million tons, by 2030, rising to over a billion metric tons, or a gigaton by 2035.
And at the same time it would, of course, slow the energy transition. So less deployment of clean electricity technologies, a slower uptake of electric vehicles, and other impacts across the economy. And all that also translates to higher energy costs for Americans, for households, for businesses as we do two things. One is we remove tax credits and subsidies that are currently lowering the cost of investing in all of this new infrastructure, whether it’s new power generation or storage or new vehicles for fleets or households.
So those subsidies shift some costs out of household and business budgets right onto the federal tax code. And by slowing down measures like energy efficiency, electrification, EVs, measures that reduce fossil energy consumption, we’re also likely to see fossil fuel prices go up as demand rises. So relative to a world where we’re reducing demand for these fuels, if we slow down that process and we consume more fossil fuels overall, that’s also going to translate through the law of supply and demand into higher costs for Americans.
So that’s, I think, the top line: Higher emissions, slow down — although not halt — the energy transition, and higher energy costs for most Americans and for our businesses around the country. It’s not quite our frozen policy scenario from the beginning of January, 2021. But not surprisingly, a scenario where we dismantle the entirety of the Biden-era policy apparatus does revert us pretty close to where we would be if those laws had not passed. Not entirely. There’s some momentum that will continue. But a full repeal scenario, which is maybe where the House is trending, would mean that we’re going to see half-a-gigaton-scale increase in emissions from our current trajectory in 2030, and about a gigaton or more in 2035.
Meyer: I realize that there’s a tendency for numbers, especially gigatons, these numbers attached to giant units, to slide by and kind of be like, Oh, that’s a number. But that is staggering. U.S. energy emissions are about five gigatons. I think global energy emissions are 38 gigatons …
Jenkins: Yeah, close to 40. Exactly.
Meyer: This is a sizable increase compared to baseline in carbon emissions.
Music for Shift Key is by Adam Kromelow.
The nation’s largest public power provider just applied to build a small modular reactor.
Can the nuclear renaissance be publicly owned? And will the Trump administration let it?
That’s the question facing the Tennessee Valley Authority as it continues its long-gestating project to build a small modular nuclear reactor, or SMR, to complement its already sizable nuclear fleet. On Tuesday, the project reached another milestone when the public power company applied for a construction permit from the Nuclear Regulatory Commission to build a facility for GE Vernova Hitachi’s BWRX-300 reactor at a site on Tennessee’s Clinch River.
Because of the long lead times for nuclear projects and the promise (for now, at least) of government support, how developers talk about them tends to change along with the partisan revolutions of power.
TVA has been considering the Clinch River site for new nuclear since 2010, applied for an early site permit from the NRC in 2016, and received it in 2019. When TVA announced in 2022 that it wouldspend another $150 million on the project, in addition to the $200 million that had already been authorized, the public utility’s then-CEO Jeff Lyash justified the investment as part of an overall effort to convert America to clean energy. “We believe advanced nuclear technologies will play a critical role in our region and nation’s drive toward a clean energy future,” he said. The following year, when then-Secretary of Energy Jennifer Granholmvisited the Clinch River site, the TVA touted how new nuclear generation would reduce the system’s overall carbon emissions.
As the project marches on under Donald Trump, however, the emissions talk is gone.
In Tuesday’s announcement, “carbon,” “emissions,” and even “clean” go unmentioned. Instead the construction application is “TVA’s next step in … establishing America’s energy dominance to power artificial intelligence, quantum computing and advanced manufacturing.”
American energy — and nuclear — policy is in flux, but rhetoric aside, TVA’s nuclear ambitions appear to be an area of continuity between the Trump and Biden administrations. The TrumpWhite House is reportedly working on a series of executive actions to speed up regulatory approvals for nuclear projects and remove some of the NRC’s power and independence.
At the same time,energy policy experts have lambasted Republicans in Congress for theirproposed cuts to the Loans Program Office andphase-out of tax credits for nuclear power. Contra the legislative winds, Secretary of Energy Chris Wright said Tuesday that he supports “every incentive” for nuclear power, and that he favorsextending tax credits for nuclear and geothermal for another 15 years while more quickly phasing out wind and solar credits.
While this is not the first construction permit application for a SMR, it is the first for a utility that seeks to connect the planned reactor to the grid. Both the Bill Gates-backedTerraPower and the partnership of X-Energy and Dow have applied for construction permits for reactors.
The TVA application is another step in a long journey towards new nuclear for the power authority, which is one of two organizations to actually turn on a nuclear plant in the United States this century. It’s also a big step for Ontario Power Generation, TVA’s Canadian counterpart, which recently received a construction permit from Canadian regulators to build a BWRX-300. By building the same design multiple times in sequence — first in Ontario, then in Oak Ridge, and then hopefully in Ontario again — the projects’ developers hope to be able to apply lessons learned from one reactor to the next, as well as shuttle specialized workers back and forth between construction sites.
“If you flip flop sites, they can transition from one site that’s ready to another site that’s ready for the stage that needs that speciality. That’s better utilization of workforce and supply chain,” Adam Stein, director of the nuclear energy innovation program of the Breakthrough Institute, told me.
GE-Hitachi, meanwhile, applied to the NRC for a license for its SMR design in 2019. Despite all the excitement and investment around SMRs, there is onlyone licensed design, NuScale’s US600 — and no current plans for anyone to build it.
The fastest the Clinch River project could actually go into operation is about five years, Stein told me. “A construction permit is part of a two-step licensing process. You get a construction permit, and then you’re allowed to start building the plant. Then you need to get an operating license,” he explained.
The environmental review should go quickly, Stein said, because TVAalready has its site permit. “They should be able to do less intensive environmental review to make sure that nothing changed in the application versus what it’s already approved,” Stein added.
While TVA is a government entity, it funds itself and operates independently, albeit with a presidentially appointed and Senate-confirmed board. The board currently does not have a quorum thanks to the Trump administration firing two Biden-appointed members, and would not be able to make a final investment decision on the project until it adds new members. The firings came after Tennessee’s two Republican senators, Bill Hagerty and Marsha Blackburn,wrote an op-ed criticizing the TVA for moving too slowly on its SMR work. TVA also has a new chief executive, Dan Moul, who took over in March, after Lyash announced in January that he intended to resign and looked forward to “spending more time with family.”
Nuclear already comprises over 40% of TVA’s generation capacity. The utility has asked for assistance from the Department of Energy to increase that,including an $800 million grant to help speed up construction at Clinch River and an $8 million grant to specifically defray licensing costs for the SMR.
The Trump administration has shown some friendliness to Biden-era nuclear initiatives, including honoring aloan guarantee to restart the Palisades nuclear plant in Michigan.
Considering the long and uncertain time frame for building any nuclear reactor, it’s almost certain that, if TVA’s application is approved, the project will be completed under a different president than Trump. By then, it might be a carbon-free and emissions-reducing one again.