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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 only son, 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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The attacks on Iran have not redounded to renewables’ benefit. Here are three reasons why.
The fragility of the global fossil fuel complex has been put on full display. The Strait of Hormuz has been effectively closed, causing a shock to oil and natural gas prices, putting fuel supplies from Incheon to Karachi at risk. American drivers are already paying more at the pump, despite the United States’s much-vaunted energy independence. Never has the case for a transition to renewable energy been more urgent, clear, and necessary.
So despite the stock market overall being down, clean energy companies’ shares are soaring, right?
Wrong.
First Solar: down over 1% on the day. Enphase: down over 3%. Sunrun: down almost 8%; Tesla: down around 2.5%.
Why the slump? There are a few big reasons:
Several analysts described the market action today as “risk-off,” where traders sell almost anything to raise cash. Even safe haven assets like U.S. Treasuries sold off earlier today while the U.S. dollar strengthened.
“A lot of things that worked well recently, they’re taking a big beating,” Gautam Jain, a senior research scholar at the Columbia University Center on Global Energy Policy, told me. “It’s mostly risk aversion.”
Several trackers of clean energy stocks, including the S&P Global Clean Energy Transition Index (down 3% today) or the iShares Global Clean Energy ETF (down over 3%) have actually outperformed the broader market so far this year, making them potentially attractive to sell off for cash.
And some clean energy stocks are just volatile and tend to magnify broader market movements. The iShares Global Clean Energy ETF has a beta — a measure of how a stock’s movements compare with the overall market — higher than 1, which means it has tended to move more than the market up or down.
Then there’s the actual news. After President Trump announced Tuesday afternoon that the United States Development Finance Corporation would be insuring maritime trade “for a very reasonable price,” and that “if necessary” the U.S. would escort ships through the Strait of Hormuz, the overall market picked up slightly and oil prices dropped.
It’s often said that what makes renewables so special is that they don’t rely on fuel. The sun or the wind can’t be trapped in a Middle Eastern strait because insurers refuse to cover the boats it arrives on.
But what renewables do need is cash. The overwhelming share of the lifetime expense of a renewable project is upfront capital expenditure, not ongoing operational expenditures like fuel. This makes renewables very sensitive to interest rates because they rely on borrowed money to get built. If snarled supply chains translate to higher inflation, that could send interest rates higher, or at the very least delay expected interest rate cuts from central banks.
Sustained inflation due to high energy prices “likely pushes interest rate cuts out,” Jain told me, which means higher costs for renewables projects.
While in the long run it may make sense to respond to an oil or natural gas supply shock by diversifying your energy supply into renewables, political leaders often opt to try to maintain stability, even if it’s very expensive.
“The moment you start thinking about energy security, renewables jump up as a priority,” Jain said. “Most countries realize how important it is to be independent of the global supply chain. In the long term it works in favor of renewables. The problem is the short term.”
In the short term, governments often try to mitigate spiking fuel prices by subsidizing fossil fuels and locking in supply contracts to reinforce their countries’ energy supplies. Renewables may thereby lose out on investment that might more logically flow their way.
The other issue is that the same fractured supply chain that drives up oil and gas prices also affects renewables, which are still often dependent on imports for components. “Freight costs go up,” Jain said. “That impacts clean energy industry more.”
As for the Strait of Hormuz, Trump said the Navy would start escorting ships “as soon as possible.”
“It is difficult to imagine more arbitrary and capricious decisionmaking than that at issue here.”
A federal court shot down President Trump’s attempt to kill New York City’s congestion pricing program on Tuesday, allowing the city’s $9 toll on cars entering downtown Manhattan during peak hours to remain in effect.
Judge Lewis Liman of the U.S. District Court for the Southern District of New York ruled that the Trump administration’s termination of the program was illegal, writing, “It is difficult to imagine more arbitrary and capricious decisionmaking than that at issue here.”
So concludes a fight that began almost exactly one year ago, just after Trump returned to the White House. On February 19, 2025, the newly minted Transportation Secretary Sean Duffy sent a letter to Kathy Hochul, the governor of New York, rescinding the federal government’s approval of the congestion pricing fee. President Trump had expressed concerns about the program, Duffy said, leading his department to review its agreement with the state and determine that the program did not adhere to the federal statute under which it was approved.
Duffy argued that the city was not allowed to cordon off part of the city and not provide any toll-free options for drivers to enter it. He also asserted that the program had to be designed solely to relieve congestion — and that New York’s explicit secondary goal of raising money to improve public transit was a violation.
Trump, meanwhile, likened himself to a monarch who had risen to power just in time to rescue New Yorkers from tyranny. That same day, the White House posted an image to social media of Trump standing in front of the New York City skyline donning a gold crown, with the caption, "CONGESTION PRICING IS DEAD. Manhattan, and all of New York, is SAVED. LONG LIVE THE KING!"
New York had only just launched the tolling program a month earlier after nearly 20 years of deliberation — or, as reporter and Hell Gate cofounder Christopher Robbins put it in his account of those years for Heatmap, “procrastination.” The program was supposed to go into effect months earlier before, at the last minute, Hochul tried to delay the program indefinitely, claiming it was too much of a burden on New Yorkers’ wallets. She ultimately allowed congestion pricing to proceed with the fee reduced from $15 during peak hours to $9, and thereafter became one of its champions. The state immediately challenged Duffy’s termination order in court and defied the agency’s instruction to shut down the program, keeping the toll in place for the entirety of the court case.
In May, Judge Liman issued a preliminary injunction prohibiting the DOT from terminating the agreement, noting that New York was likely to succeed in demonstrating that Duffy had exceeded his authority in rescinding it.
After the first full year the program was operating, the state reported 27 million fewer vehicles entering lower Manhattan and a 7% boost to transit ridership. Bus speeds were also up, traffic noise complaints were down, and the program raised $550 million in net revenue.
The final court order issued Tuesday rejected Duffy’s initial arguments for terminating the program, as well as additional justifications he supplied later in the case.
“We disagree with the court’s ruling,” a spokesperson for the Transportation Department told me, adding that congestion pricing imposes a “massive tax on every New Yorker” and has “made federally funded roads inaccessible to commuters without providing a toll-free alternative.” The Department is “reviewing all legal options — including an appeal — with the Justice Department,” they said.
Current conditions: A cluster of thunderstorms is moving northeast across the middle of the United States, from San Antonio to Cincinnati • Thailand’s disaster agency has put 62 provinces, including Bangkok, on alert for severe summer storms through the end of the week • The American Samoan capital of Pago Pago is in the midst of days of intense thunderstorms.
We are only four days into the bombing campaign the United States and Israel began Saturday in a bid to topple the Islamic Republic’s regime. Oil prices closed Monday nearly 9% higher than where trading started last Friday. Natural gas prices, meanwhile, spiked by 5% in the U.S. and 45% in Europe after Qatar announced a halt to shipments of liquified natural gas through the Strait of Hormuz, which tapers at its narrowest point to just 20 miles between the shores of Iran and the United Arab Emirates. It’s a sign that the war “isn’t just an oil story,” Heatmap’s Matthew Zeitlin wrote yesterday. Like any good tale, it has some irony: “The one U.S. natural gas export project scheduled to start up soon is, of all things, a QatarEnergy-ExxonMobil joint venture.” Heatmap’s Robinson Meyer further explored the LNG angle with Eurasia Group analyst Gregory Brew on the latest episode of Shift Key.
At least for now, the bombing of Iranian nuclear enrichment sites hasn’t led to any detectable increase in radiation levels in countries bordering Iran, the International Atomic Energy Agency said Monday. That includes the Bushehr nuclear power plant, the Tehran research reactor, and other facilities. “So far, no elevation of radiation levels above the usual background levels has been detected in countries bordering Iran,” Director General Rafael Grossi said in a statement.
Financial giants are once again buying a utility in a bet on electricity growth. A consortium led by BlackRock subsidiary Global Infrastructure Partners and Swedish private equity heavyweight EQT announced a deal Monday to buy utility giant AES Corp. The acquisition was valued at more than $33 billion and is expected to close by early next year at the latest. “AES is a leader in competitive generation,” Bayo Ogunlesi, the chief executive officer of BlackRock’s Global Infrastructure Partners, said in a statement. “At a time in which there is a need for significant investments in new capacity in electricity generation, transmission, and distribution, especially in the United States of America, we look forward to utilizing GIP’s experience in energy infrastructure investing, as well as our operational capabilities to help accelerate AES’ commitment to serve the market needs for affordable, safe and reliable power.” The move comes almost exactly a year after the infrastructure divisions at Blackstone, the world’s largest alternative asset manager, bought the Albuquerque-based utility TXNM Energy in an $11.5 billion gamble on surging power demand.
China’s output of solar power surpassed that of wind for the first time last year as cheap panels flooded the market at home and abroad. The country produced nearly 1.2 million gigawatt-hours of electricity from solar power in 2025, up 40% from a year earlier, according to a Bloomberg analysis of National Bureau of Statistics data published Saturday. Wind generation increased just 13% to more than 1.1 gigawatt-hours. The solar boom comes as Beijing bolsters spending on green industry across the board. China went from spending virtually nothing on fusion energy development to investing more in one year than the entire rest of the world combined, as I have previously reported. To some, China is — despite its continued heavy use of coal — a climate hero, as Heatmap’s Katie Brigham has written.
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Canada and India have a longstanding special friendship on nuclear power. Both countries — two of the juggernauts of the 56-country Commonwealth of Nations — operate fleets that rely heavily on pressurized heavy water reactors, a very different design than the light water reactors that make up the vast majority of the fleets in Europe and the United States. Ottawa helped New Delhi build its first nuclear plants. Now the two countries have renewed their atomic ties in what the BBC called a “landmark” deal Monday. As part of the pact, India signed a nine-year agreement with Canada’s largest uranium miner, Cameco, to supply fuel to New Delhi’s growing fleet of seven nuclear plants. The $1.9 billion deal opens a new market for Canada’s expanding production of uranium ore and gives India, which has long worried about its lack of domestic deposits, a stable supply of fuel.
India, meanwhile, is charging ahead with two new reactors at the Kaiga atomic power station in the southwestern state of Karnataka. The units are set to be IPHWR-700, natively designed pressurized heavy water reactors. Last week, the Nuclear Power Corporation of India poured the first concrete on the new pair of reactors, NucNet reported Monday.
The Spanish refiner Moeve has decided to move forward with an investment into building what Hydrogen Insight called “a scaled-back version” of the first phase of its giant 2-gigawatt Andalusian Green Hydrogen Valley project. Even in a less ambitious form, Reuters pegged the total value of the project at $1.2 billion. Meanwhile in the U.S., as I wrote yesterday, is losing major projects right as big production facilities planned before Trump returned to office come online.
Speaking of building, the LEGO Group is investing another $2.8 million into carbon dioxide removal. The Danish toymaker had already pumped money into carbon-removal projects overseen by Climate Impact Partners and ClimeFi. At this point, LEGO has committed $8.5 million to sucking planet-heating carbon out of the atmosphere, where it circulates for centuries. “As the program expands, it is helping to strengthen our understanding of different approaches and inform future decision-making on how carbon removal may complement our wider climate goals,” Annette Stube, LEGO’s chief sustainability officer, told Carbon Herald.