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Climate

Exxon Triumphs Over Activists

On shareholder proposals, ex-Tesla employees, and extra-hot days.

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Sunrise over a field.

Thursday

Heatmap Illustration/Getty Images

Current conditions: More than 400,000 households are currently without power in storm-battered Texas and the southern Plains • Southeast Louisiana tied a century-old temperature record on Memorial Day, recording a high of 98 degrees Fahrenheit in Baton Rouge • India may have broken its own heat record with a preliminary reading of about 126 degrees Fahrenheit near New Delhi.

THE TOP FIVE

1. Exxon board members clinch reelection

ExxonMobil Chairman Darren Woods and Lead Director Joseph Hooley easily won reelection at the company’s annual general meeting on Wednesday, neutralizing a threatened shareholder uprising over its climate policies. Several major pension funds said ahead of the meeting that they would vote to remove most of Exxon’s board after the company sued activist shareholders pushing for stronger emissions reduction targets. Though most of its petrochemical peers have similar targets, the company argued that the activists’ true goal was to “interfere with ExxonMobil’s business and to promote their own interests over those of ExxonMobil’s shareholders.”

The resistance effort “amounted to a test of whether top fund firms would rally to defend the small shareholders whose resolutions have put topics like the environment and workforce diversity at the center of many corporate annual meetings,” Reuters said. “Wednesday’s results suggested the answer was no.” All 12 of Exxon’s director nominees received between 87% and 98% support at the meeting, the company reported. The activists, meanwhile, withdrew their proposal in February, but Exxon is still pursuing the matter in court.

2. EV charging companies hire former Tesla employees

The U.S. electric vehicle sector is snapping up Tesla employees who were laid off when the company gutted its charging team last month. Atlanta-based charging provider EnviroSpark Energy Solutions has hired a dozen of them, E&E News reported, while other charging companies have landed high-profile hires let go by Tesla or are in talks to do so. “It does present an awesome opportunity for other charging operators like us to fill in the gap,” David Jankowsky, CEO of Francis Energy, told E&E News. There is still some trepidation, however, over how Tesla’s tribulations could affect the broader industry’s future. Despite its poor recent performance, Tesla still dominates the U.S. EV market, so a dip in consumer confidence could have negative ripple effects on EV uptake.

3. Rich countries meet $100 billion aid target two years late

The Organisation for Economic Cooperation and Development announced Wednesday that the world’s rich countries had met their goal of delivering $100 billion in annual climate finance to poorer countries in 2022 — two years after their self-imposed deadline, the group said. The 2020 target was first set at the 2009 United Nations climate change conference in Copenhagen, and the delay in meeting it had strained recent climate talks. Developed countries came up with $115.9 billion in climate finance in 2022, OECD data shows, an increase of 30% from 2021. That’s the biggest year-on-year jump so far. “Exceeding this annual commitment materially by more than 15% is an important and symbolic achievement which goes some way towards making up for the two-year delay, which should help build trust,” OECD Secretary-General Mathias Cormann said in a statement.

Climate advocates warned, however, that achieving this aim is not an end point in itself. Transitioning to clean energy and adapting to new climate realities are both expensive processes. “While domestic finance, strong policies and private finance are important, for these countries, international public finance needs to play a lynchpin role,” Melanie Robinson, global climate, economics and finance director at the World Resources Institute, said in a statement. Discussions about setting a new climate finance goal will be a centerpiece of COP29 in Azerbaijan.

4. An IRA rebate roll-out

New York will be the first state to launch home energy rebates created by the Inflation Reduction Act, the Biden administration announced Thursday. The initial phase of New York’s $158 million rebate program will be aimed at single-family homes and multifamily properties with up to four units, while later phases will expand to larger buildings and retailers. It will provide up to $14,000 per housing unit for upgrades such as better insulation, heat pumps, and heat pump water heaters. A separate, $159 million IRA home efficiency rebate program is expected to follow. Massachusetts, Michigan and Rhode Island have all applied for the funding to establish their own home energy rebate programs under the IRA — a process that’s turned out to be messier than some had hoped, according to Heatmap’s Emily Pontecorvo.

5. Study: Extra-hot days are on the rise

The average American experienced 20 more extra-hot days over the past year than would have been expected without climate change, a new scientific analysis found. Globally, the average person experienced 26 more extra-hot days due to climate change, while in a few countries, that number exceeded 120, according to the report by Climate Central, the Red Cross Red Crescent Climate Centre, and World Weather Attribution. The researchers considered temperatures abnormal when they exceeded 90% of a location’s daily readings recorded between 1991 and 2020. Americans experienced 39 such days in total over the last 12 months. Almost 80% of the world’s population experienced 31 or more.

Manila residents swelter during a May heat wave. Manila residents swelter during a May heat wave. Ezra Acayan/Getty Images

THE KICKER

The National Weather Service issued its first-ever warning for hail the size of a DVD — that is, a diameter of approximately 5 inches — in northern Texas on Tuesday.

Yellow

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AM Briefing

Pump and Trump

On OpenAI’s pledge, power plant emissions, and Kazakh tungsten

A gas station.
Heatmap Illustration/Getty Images

Current conditions: The polar vortex that keeps air circulating around the North Pole collapsed months ahead of schedule, threatening to send frigid temperatures southward • India’s east coast Andhra Pradesh state is facing down yet another major storm as Severe Cyclone Murasu makes landfall • The catastrophic atmospheric river over the American Southwest has dumped more than 20 trillion gallons of water across Arizona, Colorado, New Mexico, and Utah.


THE TOP FIVE

1. Gas prices hit a record high on the eve of America’s midterm elections

The average price of a gallon of gasoline during President Donald Trump’s second term topped $3.46 as of Monday, a record that exceeds the previous high set under the Biden administration. That’s according to a new analysis by the Financial Times. And that’s just the average across the past 22 months. The average price nationwide on November 2 clocked in at just under $4.17 per gallon. “If modern living boiled down to a price, it’s the price at the pump,” Bob McNally, a former energy advisor to the George W Bush administration and president of consultancy Rapidan Energy, told the newspaper. “Whether a voter is filling up that day or not, it’s likely that they see a pump price.”

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Daily Briefing

Think Congress Is Slow? Meet the Power Sector.

BAAJA would likely help speed up the U.S. transmission buildout, but there’s a chance we’re undercounting the benefits.

Power lines.
Heatmap Illustration/Getty Images

This is Heatmap Daily, a weekday digest written by our executive editor. Subscribe here.

As you may have seen, my colleague Emily Pontecorvo and I got the first look at the Rhodium Group’s analysis of what the bipartisan permitting bill will do to emissions.

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AM Briefing

Neutral, at Worst

On Chinese hydrogen, Fermi upheaval, and British offshore wind

Smokestacks.
Heatmap Illustration/Getty Images

Current conditions: The Pineapple Express, an atmospheric river originating in the Pacific near Hawaii, is arriving in the Southwest laden with heavy rain that’s set to flood the region • Indonesia has the worst air quality in the world as forest fires rage along Sumatra’s southern coast • A cross-country storm will soak much of the United States on Tuesday’s Election Day.


THE TOP FIVE

1. Permitting bill’s worst-case climate scenario is still carbon neutral

The Senate’s grand compromise to simplify federal permitting on energy projects would likely drop emissions slightly as the benefits to accelerating deployments of clean energy infrastructure outweigh the boost the legislation could give to fossil fuels. Even under the worst-case scenario, emissions remain on the same trajectory as today. That’s according to a hotly anticipated new analysis by the Rhodium Group, the consultancy whose U.S. emissions estimates are among the most widely cited in American politics. The report, shared first with my colleague Emily Pontecorvo, found that provisions in the Bipartisan American Affordability and Jobs Act largely counteract each other on climate. The bill makes building transmission lines much easier, a key step to patching more renewables onto the grid. But it also makes new gas pipelines simpler to permit, clearing the way for a buildout of the infrastructure for the fossil fuel already dominating U.S. electricity and heating systems. Still, under the best-case scenario, the legislation could cut U.S. economy-wide emissions by 5% below where they would otherwise go in 2040. The bill could also slash energy bills by $78 per year and support construction of more than 200 gigawatts of clean energy capacity, as compared to a world where it didn’t pass. The Rhodium report is at least the second analysis yet to find that the bill could modestly lower emissions. The first, as I reported last week, came from the think tank Resources for the Future, which saw a slight drop in power-sector emissions relative to a world without BAAJA.

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Blue