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One possible explanation for the extremely hot temperatures of recent years: removing the sulfur dioxide from shipping fuels.

The world has been very hot lately. Like, really hot. Much hotter than you might expect from climate change alone.
In 2023, the global average temperature was nearly 1.5 degrees Celsius, or 2.7 degrees Fahrenheit, above its pre-industrial level. It is nearly certain to exceed that milestone in 2024.
These are extreme leaps. For context, 2019 was the second-hottest year on record when it happened, and it was merely 0.95 degrees Celsius above the pre-industrial average. So Earth’s temperature has seemingly surged half a degree Celsius in five years.
These searingly hot temperatures aren’t completely outside the range climate models predict, but they are arriving sooner than most scientists thought, and climate researchers haven’t yet reached a consensus explanation for why they are happening.
This week, though, we got somewhat closer. A new study adds to a growing literature suggesting that a change to global shipping fuels has accidentally contributed to a surge in warming.
In 2020, the International Maritime Organization began enforcing rules that removed a toxic air pollutant, sulfur dioxide, from shipping fuels. Sulfur dioxide can inflame and irritate the heart and lungs, trigger asthma attacks, and can cause acid rain. But it can also reflect heat back into space, cooling the Earth.
These cooling effects of sulfur dioxide are very short-lived, and sulfur dioxide only sticks around in the atmosphere for about a week and a half. (Carbon dioxide, on the other hand, can persist in the atmosphere for a millennium.)
It now seems that all those sulfur aerosols were likely reflecting enough heat back into space to make a noticeable difference in the Earth’s temperature rise. The new study, written by the researchers Ilaria Quaglia and Daniele Visioni, finds that removing sulfur dioxide from shipping fuel likely increased the planet’s temperature by 0.08 degrees Celsius.
This change alone can’t explain the Earth’s recent surge in temperature rise. But the new rules likely made the record-breaking temperatures in 2023 roughly 12 times likelier than they would have been had the rules not changed, Visioni, an atmospheric chemistry professor at Cornell, told me.
“The likelihood of something like 2023 happening — was it made larger, was it made bigger, by this contribution? We found, yes,” he said.
The timing of the surge — and the fact that the most anomalously warm part of the planet has been the surface of the North Atlantic Ocean, a popular shipping route — also support the conclusion that the IMO rules are playing an effect.
Other factors — including natural fluctuations in Earth’s multi-year climate cycles, like El Niño — may have helped the surge along too, Visioni said. “If you take a probabilistic approach, you can say, even without the shipping rules, 2023 wouldn’t have been completely impossible,” he added. “But you cannot evaluate the truthfulness of probability from one outcome because you only have one world.” In other words, both climate change and our response to it are part of the same poorly designed experiment — and we can only run that experiment once.
Over the past 12 months, several other papers have reached a similar conclusion, although they disagree about the magnitude of the IMO’s accidental cooling effect. Quaglia and Visioni’s study finds one of the largest effects.
The literature suggests that sulfur dioxide’s effects are “in the range of three hundredths to eight hundredths of a degree Celsius, but I don’t know that we can say that we're on the high or low end of that,” Zeke Hausfather, a climate scientist who studies carbon removal technologies at the tech company Stripe, told me. Hausfather has his own estimate of how much shipping rules have affected the recent warming episode — about five hundredths of a degree Celsius — which he reached with Piers Forster, a climate physics professor at the University of Leeds.
The exact magnitude of the effect, though, might matter less than the fact that it happened at all. For Visioni, the results demonstrate that policymakers need to think more intentionally about the tradeoffs between cutting toxic air pollution emissions and losing the cooling effect those same toxic emissions produce.
Over the past few decades, humanity has gotten better at cutting toxic air pollution from power plants and industrial activities than previous climate models estimated. That means that, somewhat paradoxically, it might be more difficult to stay below the Paris Agreement’s 2 degrees C warming goal because the same levels of greenhouse gas emissions will now have a greater warming effect than they would have in 2015.
It’s time to discuss this trade-off frankly and head-on, he told me. That also means taking seriously — and beginning research — on the proposition that humanity may want to experiment with intentionally releasing some forms of aerosols to suppress the planet’s warming — something the international shipping community has historically been loath to do.
In 2013, a paper from Finnish researchers suggested that ships could retain the climate benefits of sulfur aerosol pollution — while mitigating most of their public health downsides — by burning clean fuels near the coasts, but dirtier fuel on the open ocean. Under that scenario, shipping emissions would actually have reflected even more heat than they did at the time. But the group downplayed that scenario in part because it was a potential form of geoengineering.
Is it? It’s not clear where the line of “intentionality” in geoengineering lies, Visioni said. If you stop doing something bad for the environment, but it has a warming effect on the climate, are you geoengineering? Or are you passing prudent environmental policy? The question of where geoengineering begins or ends gets harder and harder to adjudicate — especially while humanity conducts what is in essence the largest and most important geo-engineering experiment possible by burning fossil fuels and releasing billions of tons of greenhouse gas pollution into the atmosphere.
Visioni made a point to emphasize that he’s in favor of the IMO’s efforts to clean up shipping emissions. “Do we keep polluting? No. I think we should be forceful and say no,” he said.
“But on the other hand, my wish would be if we started discussions a bit more like, ‘Okay, so do we think that these [warming] thresholds are so important? And if so, are we willing to have a discussion about what we could do to prevent this warming from happening?”
Visioni’s paper is not the only new study that seeks to explain the warming blip. On Friday, a team of German researchers wrote in Science that a recent and mysterious decline in low-altitude clouds in the atmosphere has decreased the planet’s brightness. Clouds, like sulfur aerosol emissions, reflect heat back into space, and so their decline would also contribute to a warming surge.
They provide another piece of evidence that the surge in warming is caused by some fundamental change to the climate system and not by a multiu-seasonal hiccup like El Niño. “The big question that we have is: Is this a blip or not?” Hausfather said. “If we're in the world where El Nino is behaving weirdly, that’s kind of the comforting one, because it means we’ll go back to normal — normal here being a rapidly warming world. If the spike in warming over the past two years is due to natural variability, it means it will likely be shortlived.”
The more worrying possibility, he continued, is that something more fundamental has changed in the climate system. Climate scientists describe these shifts as a change in “radiative forcings,” meaning a change in the basic dynamics that force adjustments in the energy balance between the Earth, the Sun, and outer space.
“If this is a change in forcings — which clouds or aerosols would imply — then that change in forcing would likely persist. It would be a factor that continues affecting the climate in the future, rather than just a blip,” Hausfather said.
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Welcoming the world’s first clean energy trillionaire.
SpaceX is now a public company. The rocket and satellite maker’s shares began trading this morning, surging 19% from their initial price of $135 to more than $160 at the market close. With the sale, Elon Musk became the world’s first trillionaire; his wealth has roughly tripled since President Donald Trump won re-election in 2024.
I’ll let other observers judge the IPO’s success, the firm’s long-term prospects, and the meaning of a world where we now have trillionaires. So I will make a few other points:
I remain agog at Musk’s ability to raise enormous amounts of cash from public equity markets to do hardware and manufacturing development. To some degree, the idea of a venture-backed firm doing hardware engineering — or what some now call “deep tech” — is Musk’s most impressive creation. The SpaceX IPO raised $75 billion today. That money will now go in part to scaling and commercializing rockets, factory equipment, and allegedly, at some point in the future, orbiting data centers.
Let’s not forget how crucial the U.S. government is to Musk’s story. In the world of climate, energy and manufacturing, we wail about financing’s “missing middle,” the elusive type of investment that can help scale and deploy early-stage technologies by bridging the gap between expensive venture capital and cheap bank lending. But this is at least partially a solved problem. SpaceX and Tesla survived the valley of death with government help: The Energy Department’s Loan Programs Office (which the Trump administration has dubbed the Office of Energy Dominance Financing) extended a $465 million loan to Tesla to build its Fremont, California, factory in 2010; NASA’s 2008 commercial resupply contract gave SpaceX guaranteed offtake for its Falcon rocket. Neither firm would likely have survived without those key injections of financial certainty.
To some degree, Musk has already made his mark on the American economy by creating a new culture of manufacturing engineering. I cannot recommend enough my colleagues Matthew Zeitlin and Emily Pontecorvo’s report on the new cadre of climate tech founders who came up at SpaceX and Tesla. As it happens, I spent Wednesday touring a clean energy factory founded by a Tesla alumnus, and I was struck by how many signs of Musk’s bottlenecks-focused management approach were visible, even at a company seemingly run more humanely than Musk’s famously “hardcore” firms.
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To that point, Emily and Matt asked a number of clean tech executives who worked for SpaceX or Tesla what they learned from the experience. Their responses are fascinating; you can read them in full here. These comments from Justin Lopas, the COO of Base Power, stuck out — he was asked the “one thing” he learned from working for Musk:
You can get way more done in a day and can move way faster than you think. This does not mean necessarily more hours (although solving any hard problem requires that too), but instead being thoughtful about sequencing work, not accepting delays from suppliers or external counterparties without solid rationale, parallel pathing, accelerating critical learnings to early in the project, etc
To step back, one irony of Elon Musk’s situation — at least to me — is that relatively few American politicians are eager to talk about what has actually driven his wealth. I’m not just talking about his firms’ reliance on public financing, although that counts too. I mean Tesla itself. Although Musk now describes that business as a “robotics company,” it is and remains an electric vehicle and battery manufacturer. (It recently began high-volume production of the Tesla Semi, a potentially game-changing long-haul electric truck.) After today, Musk’s Tesla stake makes up less than half of his wealth, but, still, he would not be a trillionaire without EVs, solar panels, and batteries.
But that is not a particularly convenient fact. That Musk is a clean energy trillionaire remains unpalatable to Republicans, who would prefer to cast EVs as an inferior substitute made to satisfy government mandates. And Musk’s antisemitism, far-right politics, and gleeful destruction of the U.S. Agency for International Development — not to mention Tesla’s violation of labor law — have obviously destroyed his reputation among Democrats.
Yet his elevation to a 13-digit net worth nonetheless marks a new era in American capitalism. The richest Americans in history have almost always been oilmen: John D. Rockefeller became the country’s first billionaire by creating the Standard Oil trust; when he died in 1937, his net worth of $1.4 billion represented 1% to 2% of the country’s gross domestic product. In the 1960s, J. Paul Getty became the country’s richest person by negotiating Saudi and Kuwaiti oil concessions. Yet Musk became a billionaire not by harnessing commodities, but through his mastery of software, hardware, and clean energy.
Musk’s fortune now exceeds 3% of U.S. GDP. He is the richest American in history, judged as a share of national production. And it was electricity, lithium, and modern factory production — and, if you wish, the kerosene and methane that fuel SpaceX’s rockets — that got him there. As the science fiction writer William Gibson almost said, the future is already here; it’s just not evenly distributed in your retirement portfolio yet.
Many thanks for reading, and have a wonderful weekend.
Plus SAF, another SPAC, and more of the week’s biggest money moves.
With SpaceX’s historic IPO dominating headlines this week, Heatmap turned its attention to the impact Elon Musk’s protégés have had on the climate tech landscape. Right after we published the story, an underwater geothermal startup founded and staffed by SpaceX alumni announced a sizable Series A, with its founder telling TechCrunch that his “experience at a very hardcore company like SpaceX” helped shape his approach to this new endeavor.
In other news, one of the biggest players in the sustainable aviation space, Twelve, opened its first commercial fuels plant and is preparing to begin supplying low-carbon jet fuel to Alaska Airlines later this month. Meanwhile, the battery sector saw two SPAC announcements: In a bid for survival, Factorial Energy officially went public this week through a SPAC merger, while ZincFive announced plans to do the same later this year. And finally there was some positive news for Germany’s heat pump market, as the startup Galvany raised fresh funding to simplify the end-to-end process of buying, installing, and operating a heat pump.
Drawing from an increasingly familiar playbook for Musk alumni, Endurance Energy founder and former SpaceX engineer Andrew Redd applied the lessons he learned from the rocket company’s notoriously “hardcore” culture and rapid pace of development to something completely different. Now that he’s pivoted away from rocket tech, Redd wants to harness geothermal energy from underwater volcanic activity, and his startup just raised a $54 million Series A to make it happen While a growing crop of geothermal startups including Fervo and Zanskar are focused on tapping into the heat beneath our feet, no other company in the sector has sought to develop the resource beneath the ocean floor.
There are good reasons for that, of course. Offshore infrastructure is notoriously difficult and expensive to build, maintain, and repair, and saltwater is corrosive. But if Endurance can crack the code, Redd told TechCrunch he thinks the company could unlock about 6 terawatts of geothermal energy in the coming decade.
Investors seem to be convinced: Peter Thiel’s Founders Fund led the startup’s latest funding roundSeries A, its second capital raise since launching less than two years ago. Other backers include First Round Capital, Felicis Ventures, and Voyager Ventures. EnduranceThe startup is initially targeting remote islands, where electricity costs are often far higher than on the mainland. It’s already launched an initial pilot off the coast of Tonga, which still gets about 80% of its electricity from imported diesel.
Twelve, one of the best capitalized sustainable aviation fuel startups, opened its first e-fuel facility in Washington State this week. The demo plant has officially started production, and the company’s strategic partner and investor, Alaska Airlines, expects to begin using it on commercial flights as soon as this month. The plant’s launch comes roughly two years later than originally planned, a delay that’s hardly unusual for first-of-a-kind industrial projects like this. Last September, Twelve raised $645 million to complete buildout of the facility, as well as to jumpstart development of future plants, which it says will be orders of magnitude larger.
The company’s process begins with renewable-powered electrolysis. Using a proprietary catalyst, Twelve’s electrolyzer splits apart CO2 captured from a nearby ethanol plant at a lower temperature than conventional approaches, making it better suited to running on renewable energy. The company combines the resulting carbon monoxide with hydrogen to create a syngas, which gets refined into sustainable jet fuel. Airlines can blend the resulting product with conventional jet fuel (the Federal Aviation Administration allows a maximum 50% blend) to create a drop-in replacement that requires no engine modifications.
To cover the cost premium of SAF, Twelve and Alaska partnered with Microsoft. The tech giant is buying SAF certificates — essentially carbon credits — from the project to help offset Scope 3 emissions associated with employee travel. “We are seeing strong demand from the corporate offtake side, not only for employee travel, but also for freight and logistics,” Twelve’s CEO, Nicholas Flanders, told me. “Everything from pharmaceuticals to data centers use a lot of air travel.” There are also some policy tailwinds — the European Union now has a sustainable fuels mandate that requires the use of synthetic e-fuels like Twelve’s beginning in 2030.
The plant also comes online at a moment of heightened volatility in the jet fuel market. As my colleague Alexander C. Kaufman noted in Wednesday’s morning newsletter, the closure of the Strait of Hormuz has led to soaring fuel prices, prompting domestic refiners to ramp production to record highs. By contrast, Flanders argues that SAF offers customers greater price certainty via long-term offtake agreements. “You can fix the cost of our key inputs like electricity and CO2 and so that actually makes it a more attractive project from a project financing perspective,” he explained.
SPACs are back. But this week, it’s not just another pre-revenue nuclear company that’s looking to get to market as quickly as possible. Solid-state battery startup Factorial Energy, which has yet to develop a commercial product, has merged with the blank check company Cartesian Growth Corporation III, netting it $100 billion at a $1.3 billion valuation.
The company was upfront about needing the SPAC to stay afloat after racking up losses since its founding in 2013. Factorial’s SEC filing states that prior to this new capital, “its liquidity wasn’t sufficient to fund twelve months of operations.” Yet it does have real traction in the industry — Mercedes-Benz, Stellantis, Hyundai, and Kia have all made strategic investments, looking to use Factorial’s tech in their electric vehicles to achieve higher energy density, longer range, and faster charging.
Solid state batteries typically use a solid electrolyte in place of the flammable liquid electrolytes found in conventional lithium-ion cells, but Factorial is starting with more of a hybrid approach. Its initial design relies on a “quasi-solid” gel-like electrolyte, which allows it to use an energy dense lithium metal anode while preventing the needle-like dendrite growth that predisposes solid-state batteries to short circuit. Factorial is manufacturing these cells at a pilot plant in Massachusetts, while working on a prototype with a fully solid electrolyte that could offer even greater performance gains.
Factorial isn’t the only battery company with SPAC news this week. ZincFive, a nickel-zinc battery producer, also announced plans to go public via SPAC in a deal expected to close in the second half of this year. Unlike Factorial, however, ZincFive is already making money, selling its batteries to hyperscalers and other data center operators as a backup power solution to bridge the gap in between when the power goes out and when the backup generator turns on. As the company’s CEO Tod Higinbotham told Bloomberg, “We have the backlog. We have the capacity. We have the demand. We really need capital.”
Navigating the maze of consumer clean energy incentives and coordinating home energy upgrades is hardly a U.S.-specific challenge. Just a few years ago, heat pump sales in Germany were falling precipitously despite generous subsidies and proven tech. One startup, Galvany, theorized the problem wasn’t the heat pumps themselves, but rather the unnecessary complexity of the surrounding ecosystem. Now it’s raised roughly $11.5 million to help streamline the process of getting heat pumps into consumers’ homes and apartments.
“In Germany, heat pumps do not fail because of the technology, but because of the gap between subsidy bureaucracy, installation capacity, and economic viability for the end customer,” the company’s CEO, Raik Belka, said in a press release. This is exactly the gap we are closing.” The approach is already paying off — Galvany has installed more than 2,500 heat pumps to date and became profitable last year after increasing its revenue sevenfold.
The startup produces its heat pump in partnership with Panasonic, but its real innovation lies in the way it streamlines sales, procurement, installation, and ongoing heat pump operations into a single platform. Potential customers enter their building data online and, after a feasibility check, get a quick quote that factors in subsidies. They can then purchase a standardized kit that’s simple for installers to assemble. Once operational, the heat pump’s energy management system, which launches this summer, will automatically adjust heating loads based on the cost of electricity, saving customers money without them having to actively manage the system.
The administration filed to dismiss an appeal of a December ruling that overturned its wind permitting freeze.
Trump’s Department of Justice is giving up on defending the president’s wind permitting moratorium.
The DOJ filed a motion on Wednesday to dismiss its appeal of a federal court’s December decision vacating the order to halt wind energy approvals. The plaintiffs in the case — New York and 16 other states, as well as the Alliance for Clean Energy New York, a trade group — did not oppose the motion. The case will not be officially dismissed, however, until the First Circuit Court of Appeals approves the request, which typically happens quickly when both parties support the dismissal.
The case stems from an executive order President Trump issued on the first day of his current term temporarily withdrawing all areas of the outer continental shelf from offshore wind leasing and pausing all federal authorizations for onshore and offshore wind projects while the administration conducted a review of leasing and permitting practices.
States took the administration to court last May, arguing that the order was arbitrary and capricious and violated the Administrative Procedures Act. They claimed it harmed their ability to source reliable and affordable energy and threatened billions of dollars in investment in supply chains, workforce development, and wind industry-related infrastructure.
On December 8, Judge Patti B. Saris of the U.S. District Court for the District of Massachusetts ruled in the states’ favor and vacated the wind order. More specifically, the judge vacated the portion of the order directing agencies to pause permits and other authorizations. The withdrawal of areas eligible for new leases remains in effect.
What it means is that federal agencies will now have to proceed with permitting wind projects using the existing statutory and regulatory framework, Kit Kennedy, the managing director for power, climate, and energy at the Natural Resources Defense Council, told me in an email. “The door to federal permitting is now unlocked again and each developer will be able to make the case for permitting their individual project based on the facts and the law,” she said.
The Trump administration appealed the ruling to the First Circuit in February, but never submitted an opening brief. The initial deadline was May 11, but on May 4, the DOJ requested additional time to file the brief. The judge gave the defendants until June 10. On that date, the defendants filed the motion to dismiss.
This is a developing story and we’ll update it as we learn more about the administration’s actions and their effects.
Editor’s note: This story has been updated to reflect that the freeze and ruling apply to onshore as well as offshore wind. It also adds a quote from Kit Kennedy.