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On Washington walk-outs, Climeworks, and HSBC’s net-zero goals
Current conditions: Severe storms in South Africa spawned a tornado that damaged hundreds of homes • Snow is falling on parts of Kentucky and Tennessee still recovering from recent deadly floods • It is minus 39 degrees Fahrenheit today in Bismarck, North Dakota, which breaks a daily record set back in 1910.
Denise Cheung, Washington’s top federal prosecutor, resigned yesterday after refusing the Trump administratin’s instructions to open a grand jury investigation of climate grants issued by the Environmental Protection Agency during the Biden administration. Last week EPA Administrator Lee Zeldin announced that the agency would be seeking to revoke $20 billion worth of grants issued to nonprofits through the Greenhouse Gas Reduction Fund for climate mitigation and adaptation initiatives, suggesting that the distribution of this money was rushed and wasteful of taxpayer dollars. In her resignation letter, Cheung said she didn’t believe there was enough evidence to support grand jury subpoenas.
Failed battery maker Northvolt will sell its industrial battery unit to Scania, a Swedish truckmaker. The company launched in 2016 and became Europe’s biggest and best-funded battery startup. But mismanagement, production delays, overreliance on Chinese equipment, and other issues led to its collapse. It filed for Chapter 11 bankruptcy protection in November and its CEO resigned. As Reutersreported, Northvolt’s industrial battery business was “one of its few profitable units,” and Scania was a customer. A spokesperson said the acquisition “will provide access to a highly skilled and experienced team and a strong portfolio of battery systems … for industrial segments, such as construction and mining, complementing Scania's current customer offering.”
TikTok is partnering with Climeworks to remove 5,100 tons of carbon dioxide from the air through 2030, the companies announced today. The short-video platform’s head of sustainability, Ian Gill, said the company had considered several carbon removal providers, but that “Climeworks provided a solution that meets our highest standards and aligns perfectly with our sustainability strategy as we work toward carbon neutrality by 2030.” The swiss carbon capture startup will rely on direct air capture technology, biochar, and reforestation for the removal. In a statement, Climeworks also announced a smaller partnership with a UK-based distillery, and said the deals “highlight the growing demand for carbon removal solutions across different industries.”
HSBC, Europe’s biggest bank, is abandoning its 2030 net-zero goal and pushing it back by 20 years. The 2030 target was for the bank’s own operations, travel, and supply chain, which, as The Guardiannoted, is “arguably a much easier goal than cutting the emissions of its loan portfolio and client base.” But in its annual report, HSBC said it’s been harder than expected to decarbonize supply chains, forcing it to reconsider. Back in October the bank removed its chief sustainability officer role from the executive board, which sparked concerns that it would walk back on its climate commitments. It’s also reviewing emissions targets linked to loans, and considering weakening the environmental goals in its CEO’s pay package.
A group of 27 research teams has been given £81 million (about $102 million) to look for signs of two key climate change tipping points and create an “early warning system” for the world. The tipping points in focus are the collapse of the Greenland ice sheet, and the collapse of north Atlantic ocean currents. The program, funded by the UK’s Advanced Research and Invention Agency, will last for five years. Researchers will use a variety of monitoring and measuring methods, from seismic instruments to artificial intelligence. “The fantastic range of teams tackling this challenge from different angles, yet working together in a coordinated fashion, makes this program a unique opportunity,” said Dr. Reinhard Schiemann, a climate scientist at the University of Reading.
In 2024, China alone invested almost as much in clean energy technologies as the entire world did in fossil fuels.
Editor’s note: This story has been updated to correct the name of the person serving as EPA administrator.
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On congestion pricing, carbon capture progress, and Tim Kaine.
Current conditions:New Orleans is experiencing another arctic blast, with wind chills near 20 degrees Fahrenheit on Thursday • Continued warm, dry conditions in India threaten the country’s wheat crop • Heavy rain in Botswana has caused widespread flooding.
Environmental groups filed their first lawsuit against the Trump administration on Wednesday, challenging Trump’s moves to open up public lands and waters to oil and gas drilling. Sierra Club, Greenpeace, the Natural Resources Defense Council, the Center for Biological Diversity, and Oceana, among others, are contesting the president’s executive order revoking Joe Biden’s protections of parts of the Gulf of Mexico and the Arctic, Pacific, and Atlantic Oceans from oil and gas leasing. The groups claim that the president has the authority to create these protections but not to withdraw them — a right reserved for Congress — and notes that a federal court confirmed this after Trump attempted to undo similar Obama-era protections during his first term.
President Trump made his move to kill New York City’s congestion pricing program on Wednesday. In a letter to Governor Kathy Hochul, Department of Transportation Secretary Sean Duffy said he was reversing the Department of Transportation’s approval of the scheme, citing the impacts on drivers and claiming the program violated federal statute. Trump declared it “DEAD” in a Truth Social post, where he also proclaimed that New York had been “SAVED” and closed with “LONG LIVE THE KING.” The Metropolitan Transit Authority, which runs the program and relies on funding from it, immediately challenged the decision in a federal court and said it would continue to operate the program “unless and until a court orders otherwise.”
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A sweeping annual report from BloombergNEF and the Business Council for Sustainable Energy has a number of hopeful and concerning stats about what happened in America’s energy transition last year.
The Good:
Chart courtesy of the Business Council on Sustainable Energy
The Bad:
The same BNEF report also paints a lackluster picture of clean hydrogen and carbon capture development, two technologies that should benefit from generous federal subsidies. The U.S. had just 79 megawatts of “green” hydrogen production capacity by the end of 2024, with plans to build 34.7 gigawatts in the coming years.
The hydrogen industry was in limbo last year as it awaited final rules for claiming the production tax credit. Green hydrogen is made from carbon-free electricity and water. But most hydrogen announcements in 2024 — some 77% — were for “blue” hydrogen, which is made from natural gas using carbon capture. And while there’s a growing pipeline of carbon capture projects, with plans to deploy the tech in new sectors like ammonia and chemical production, U.S. carbon capture capacity has remained unchanged since 2020.
In a press conference on Wednesday, Senators Tim Kaine of Virginia and Martin Heinrich of New Mexico detailed their plan to invalidate President Trump’s declaration of an energy emergency. In early February, the two introduced what’s called a “privileged joint resolution” to terminate the emergency declaration, a type of legislation that the Senate is required to vote on. “We’re going to force a vote, force everybody to declare where they are on this sham emergency declaration,” Kaine said. Kaine and Heinrich made the case that the U.S. produced more oil and gas last year than at any point in history, and discussed the many domestic manufacturing projects and jobs that President Trump’s war on clean energy has put under threat. The vote is expected next week.
Sweden’s Supreme Court threw out a class action lawsuit brought by Greta Thunberg and other activists against the nation for not doing enough to stop climate change.
And it’s doing so in the most chaotic way possible.
The Trump administration filed a rule change this past weekend to remove key implementation regulations for the National Environmental Policy Act, a critical environmental law that dates back to 1969. While this new rule, once finalized, wouldn’t eliminate NEPA itself (doing so would take an act of Congress), it would eliminate the authority of the office charged with overseeing how federal agencies interpret and implement the law. This throws the entire federal environmental review process into limbo as developers await what will likely be a long and torturous legal battle over the law’s future.
The office in question, the Council on Environmental Quality, is part of the Executive Office of the President and has directed NEPA administration for nearly the law’s entire existence. Individual agencies have their own specific NEPA regulations, which will remain in effect even as CEQ’s blanket procedural requirements go away. “The argument here is that CEQ is redundant and that each agency can implement NEPA by following the existing law,” Emily Domenech, a senior vice president at the climate-focused government affairs and advisory firm Boundary Stone, told me. Domenech formerly served as a senior policy advisor to current and former Republican Speakers of the House Mike Johnson and Kevin McCarthy.
NEPA has been the subject of growing bipartisan ire in recent years, as lengthy environmental review processes and a barrage of lawsuits from environmental and community groups have delayed infrastructure projects of all types. While the text of the pending rule is not yet public, the idea is to streamline permitting and make it easier for developers to build. In theory that would include expediting projects such as solar farms and clean energy manufacturing facilities; in reality, under the Trump administration, the benefits could redound to fossil fuel infrastructure first and foremost.
On his first day back in office, Trump issued an executive order entitled Unleashing American Energy, which instructed CEQ to provide new, nonbinding guidance on NEPA implementation and “propose rescinding” its existing regulations within 30 days. Time is up, and CEQ published its first round of guidance late Wednesday night. So far it’s pretty bare bones, though as Hochman pointed out, it notably does away with environmental justice considerations as well as the need to take the “cumulative” environmental effect of an action into account, as opposed to simply the “reasonably foreseeable effects.” It also looks to exempt certain projects that receive federal loans from the NEPA process.
But gutting CEQ’s regulatory capacity via this so-called “interim final rule” is a controversial move of questionable legality. Interim final rules generally go into effect immediately, thus skirting the requirement to gather public comment beforehand. Expediting rules like this is only allowed in cases where posting advance notice and taking comments is deemed “impracticable, unnecessary, or contrary to the public interest.”
It’s almost certain that this interim rule will be challenged in court. Sierra Club senior attorney Nathaniel Shoaff certainly thinks it should be. “This action is rash, unlawful, and unwise. Rather than making it easier to responsibly build new infrastructure, throwing out implementing regulations for NEPA will only serve to create chaos and uncertainty,” Shoaff said in a statement. “The Trump administration seems to think that the rules don’t apply to them, but we’re confident the courts will say otherwise.”
Thomas Hochman, director of infrastructure at the center-right think tank Foundation for American Innovation, disagrees. “I think environmental groups will sue, and I think they’ll lose,” he told me. Hochman cited a surprising decision issued by the D.C. Circuit Court of Appeals last November, which stated that CEQ did not have the authority to issue binding NEPA regulations, and that it was never intended to "act as a regulatory agency rather than as an advisory agency.” This ruling ultimately made it possible for Trump to so radically reimagine CEQ’s authority in his executive order.
“I would expect environmentalists on the left to challenge any Trump administration actions on NEPA,” Domenech told me. “But I actually think that the Trump team welcomes that, because they'd love to get quicker, decisive rulings on whether or not CEQ even had this authority to begin with.”
NEPA, which went into effect before the Environmental Protection Agency was even created, is a short law with the simple goal of requiring federal agencies to take the environmental impact of their work into account. But responsibility for the law’s implementation has always fallen to CEQ, which created a meticulous environmental review and public input process — perhaps too meticulous for an era that demands significant, rapid infrastructure investment to enable the energy transition.
Recognizing this, the Biden administration tried to rein in NEPA and expedite environmental review via provisions in the 2023 Fiscal Responsibility Act, which included imposing time limits on Environmental Assessments and Environmental Impact Statements and setting page limits for these documents. But as Hochman sees it, these well intentioned reforms didn’t make much of a dent. “It was up to CEQ to take the language from the Fiscal Responsibility Act and then write their interpretation of it,” he told me. “And what CEQ basically did was they grafted it back into the status quo.” Now that those regulations are kaput, however, Hochman thinks the Fiscal Responsibility Act’s amendments will have much more power to narrow NEPA’s mandate.
Trump’s executive order requires the yet-to-be-announced chair of CEQ to coordinate a revision of each individual agency’s NEPA regulations, a process that the recent CEQ guidelines allow 12 months for. But developers can’t afford to sit around. So in the meantime, CEQ recommends (but can’t enforce) that agencies “continue to follow their existing practices and procedures for implementing NEPA” and emphasizes that “agencies should not delay pending or ongoing NEPA analyses while undertaking these revisions.” That said, chaos and confusion are always an option. As Hochman explained, many current agency regulations reference the soon-to-be defunct CEQ regulations, which could create legal complications.
Hochman told me he still thinks CEQ has an important role to play in a scaled-down NEPA landscape. “CEQ ideally will define pretty clearly the framework that agencies should abide by as they write their new regulations,” he explained. For example, he told me that CEQ should be responsible for interpreting critical terms such as what constitutes a “major federal action” that would trigger NEPA, or what counts as an action that “normally does not significantly affect the quality of the human environment,” which would exempt a project from substantial environmental review.
No doubt many of these interpretations will wind up in court. “You will probably see up front litigation of these original definitions, but once they’ve been decided on by higher courts, they won’t really be an open question anymore,” Hochman told me. Basically, some initial pain for lots of future gain is what he’s betting on. Once the text of the interim rule is posted and the lawsuits start rolling in, we’ll check in on the status of that wager.
Editor’s note: This story has been updated to reflect the publication of CEQ’s new guidance on NEPA implementation.
Trump called himself “king” and tried to kill the program, but it might not be so simple.
The Trump administration will try to kill congestion pricing, the first-in-the-nation program that charged cars and trucks up to $9 to enter Manhattan’s traffic-clogged downtown core.
In an exclusive story given to the New York Post, Secretary of Transportation Sean Duffy said that he would rescind the U.S. Transportation Department’s approval of the pricing regime.
“The toll program leaves drivers without any free highway alternative, and instead, takes more money from working people to pay for a transit system and not highways,” Duffy told the Post.
He did not specify an end date for the program, but said that he would work with New York to achieve an “orderly termination” of the tolls. But it’s not clear that he can unilaterally end congestion pricing — and in any case, New York is not eager to work with him to do so.
The attempted cancellation adds another chapter to the decades-long saga over whether to implement road pricing in downtown New York. And it represents another front in the Trump administration’s war on virtually any policy that reduces fossil fuel use and cuts pollution from the transportation sector, the most carbon-intensive sector in the U.S. economy.
“CONGESTION PRICING IS DEAD. Manhattan, and all of New York, is SAVED,” Trump posted on Truth Social, the social network that he owns. “LONG LIVE THE KING!”
The Metropolitan Transit Authority, the state agency that oversees New York’s tolling and transit system, has filed to block the cancellation in court. In a statement, New York Governor Kathy Hochul said that Trump didn’t have the authority to kill the tolling program.
“We are a nation of laws, not ruled by a king,” Hochul said. “We’ll see you in court.”
Since it started on January 5, congestion pricing has charged drivers up to $9 to drive into Manhattan south of 60th Street. With its launch, New York joined a small set of world capitals — including London, Singapore, and Stockholm — to use road pricing in its central business district.
Even in its first weeks in Gotham, congestion pricing had seemingly proven successful at its main goal: cutting down on traffic. Travel times to enter Manhattan have fallen and in some cases — such as driving into the Holland Tunnel from New Jersey — have been cut in half during rush hour, according to an online tracker built by economics researchers that uses Google Maps data.
Anecdotally, drivers have reported faster drive times within the city and much less honking overall. (I can affirm that downtown is much quieter now.) City buses zoomed through their routes, at times having to pause at certain stops in order to keep from running ahead of their schedules.
The program has been so successful that it had even begun to turn around in public polling. Although congestion pricing was incredibly unpopular during its long gestation, a majority of New Yorkers now support the program. In early February, six of 10 New Yorkers said that they thought Trump should keep the program and not kill it, according to a Morning Consult poll.
That matches a pattern seen in other cities that adopt congestion pricing, where most voters hate the program until they see that it successfully improves travel times and reduces traffic.
While Trump might now be claiming regal powers to block the program, the toll’s origin story has been democratic to a fault. Although congestion pricing has been proposed in New York for decades, the state’s legislature approved the program in 2019 as part of its long-running search for a permanent source of funding for the city’s trains and buses.
The federal government then studied the program for half a decade, first under Trump, then under Biden, generating thousands upon thousands of pages of environmental and legal review. At long last, the Biden administration granted final approval for the program last year.
But then congestion pricing had to clear another hurdle. In June, Hochul paused the program at the last moment, hoping to find another source of permanent funding for the city’s public transit system.
She didn’t. In November, she announced that the program would go into effect in the new year.
It’s not clear whether the Trump administration can actually kill congestion pricing. When the Biden administration approved the program, it did so essentially as a one-time finding. Duffy may not be able to revoke that finding — just like you can’t un-sign a contract that you’ve already agreed to.
In his letter to Hochul, Duffy argues that congestion pricing breaks a longstanding norm that federally funded highways should not be tolled. “The construction of federal-aid highways as a toll-free highway system has long been one of the most basic and fundamental tenets of the federal-aid Highway Program,” he says.
That argument is surprising because federal highways in Manhattan — such as the West Side Highway — are excluded from the toll by design. Drivers only incur the $9 charge when they leave highways and enter Manhattan’s street grid. And drivers can use the interstate highway system but avoid the congestion charge by entering uptown Manhattan through Interstate 95 and then parking north of 60th Street.
Duffy also argues that the tolling program is chiefly meant to raise revenue for the MTA, not reduce congestion. The federal government’s approval of pilot congestion pricing programs is aimed at cutting traffic, he says, not raising revenue for state agencies.
In its lawsuit, the MTA asserts that Duffy does not have the right to revoke the agreement. It also says that he must conduct the same degree of environmental review to kill the program that the first Trump administration required when the program was originally proposed.
“The status quo is that Congestion Pricing continues, and unless and until a court orders otherwise, plaintiffs will continue to operate the program as required by New York law,” the MTA’s brief says.