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The story of natural gas taxes and bans this election cycle is far more nuanced than that.

Berkeley, California and Washington State put the transition to all-electric buildings on the ballot last week, and in both cases, it seemed to fail the test. Voters in Berkeley overwhelmingly rejected a proposed tax on natural gas that would raise money for electrification projects. In one fell swoop, voters in Washington State repealed several of their nation-leading policies that encourage electric over gas appliances and barred cities and towns from passing similar policies in the future.
On the face of things, the results appear to show voters retreating from ambitious climate action and rejecting electrification — a concerning signal at a time when federal support for decarbonization is about to evaporate and state and local leadership to cut emissions will become paramount. But the specific circumstances behind each vote suggest that’s not the whole story.
The Berkeley proposal was submitted by a small group of activists who knew it was more ideologically driven than politically feasible, and it proved to be controversial even among diehard climate advocates in the city. The Washington State initiative slid onto the ballot just three months before the election and ultimately passed on a razor thin margin. The two cases offer distinct lessons and takeaways, but to climate advocates, a budding backlash to electrification is not one of them.
The Berkeley proposal, otherwise known as Measure GG, was largely written by one person. Daniel Tahara is a software engineer at Tesla by day, and a climate activist by night with 350 Bay Area, a local chapter of the national climate advocacy group 350.org. For the past few years, he’s been animated by a question that I, too, am frequently asking: How are most people going to afford the steep cost of retrofitting their homes to use electric appliances?
To Tahara, finding an answer became more pressing last year when the Bay Area Air Quality Management District, a regional authority that regulates pollution, approved rules to phase out the sale of gas appliances. Starting in 2027, Berkeley residents will no longer be able to purchase a new gas-fired water heater if their old one fails — they’ll have to go electric. The rule applies to gas-fired furnaces and boilers in 2029. “We've got a lot of old buildings,” Tahara told me. “They would need a lot of electrical work to support new appliances, and people just don't have the money for it.”
His solution was Measure GG, an ordinance that would have imposed a tax of $2.96 per therm of natural gas used by buildings larger than 15,000 square feet. The estimated $26.7 million per year raised by the tax would go into a fund to help everyone else in town pay for electrification retrofits.
Tahara rallied a number of local environmental and community groups around the idea, but he did not have the support of the bigger non-profits and advocacy orgs that work on electrification policy in California, including the Building Decarbonization Coalition, Rewiring America, RMI, the Sierra Club, or the Natural Resources Defense Council.
"Any large blanket tax hike without input from those it would impact, no plans for a managed transition to the new fees, and no analysis on who is most likely to benefit or be burdened is likely to face real challenges with voters,” Alejandra Mejia Cunningham, the senior manager of building decarbonization for the NRDC, told me via email. “It is very important for tax-based policy proposals to be robust and thoroughly socialized."
I also talked to several Berkeley-based electrification supporters who voted no on Measure GG. Tom Graly, who chairs a local electrification working group, told me part of the reason the policy proved so controversial is that it singled out some of the city’s most beloved institutions, such as the Berkeley Bowl supermarket, a local chain, and the Berkeley Repertory Theater. The theater estimated the tax would cost it up to $69,000 per year, while converting off of gas would cost millions. “This well-intentioned ballot measure with its immediate implementation would be very harmful to our struggling organization,” Tom Parrish, the theater’s managing director said in a statement for the “No on GG” campaign.
Tahara based the tax on estimates for what’s called the “social cost of carbon,” or the projected economic damage that every additional ton of carbon dioxide put into the atmosphere will cause. But the number Tahara chose was on the high end — more than double the number the Biden administration uses when it weighs the costs and benefits of new regulations on carbon. If passed, the tax would more than double the cost of using natural gas in large buildings. He said some national groups gave him feedback on the proposal, like phasing in the tax over time and building in more exemptions, which he might consider for a future version. But he and his partners on the measure wanted to preserve their core thesis, which was that climate damages are already happening and are unaccounted for.
“I think part of our responsibility as local activists is to put out new ideas, to push the status quo,” he said. “I don’t think there’s been a lot of that that’s been happening in the last couple years.”
In Tahara’s view, the measure failed because the opposition campaign had a lot more money, and because even though Berkeley is often called the birthplace of the electrify everything movement, there’s still a lot of people in town who are completely unaware of the harm natural gas causes to the climate and to public health. On that, Graly agreed. “There's a huge education gap,” he said. “People just don't think about hot water. They turn on the faucet and the water is hot, and they're happy.”
Initiative 2066 in Washington State was a wide-ranging proposal to both roll back existing policies and preempt future ones. It was so wide-ranging, in fact, that its opponents believe it’s illegal under the state’s “single subject” rule for ballot measures, and they plan to fight it in court.
If the measure stands, it will invalidate the state’s nation-leading residential and commercial energy codes that strongly incentivize builders to forego gas hookups. It will remove a provision in state statute that requires Washington’s energy codes to gradually tighten toward zero-emissions new construction by 2031. It will repeal key parts of a law the state legislature passed earlier this year that require Washington’s biggest utility, Puget Sound Energy, to consider alternatives to replacing aging gas infrastructure or building new gas pipelines. And it will ban cities and towns from passing any local ordinances that “prohibit, penalize, or discourage” the use of gas in buildings.
The initiative was one of four put on the ballot by Let’s Go Washington, a group bankrolled by hedge fund manager and multimillionaire Brian Heywood, and had the Building Industry Association of Washington as its primary sponsor, alongside a number of other pro-gas, pro-business, and realty groups.
There’s no doubt 2066 is a significant setback in the state’s progress toward cutting carbon emissions. But when I asked climate advocates in Washington how they were interpreting the outcome, they pointed to a handful of reasons why they weren’t too concerned about public sentiment around decarbonization.
First, the vote was incredibly close, with just over 51% of voters checking “yes.” Second, another initiative Let’s Go Washington put on the ballot — 2117, which would have repealed the state’s big umbrella climate law that puts a declining cap on emissions — unambiguously failed, with 62% voting “no.” Third, they argue the split reflects confusion about what 2066 would do.
The “yes on 2066” campaign sold it as a measure to “protect energy choice” and “stop the gas ban,” warning that otherwise utility rates would increase and the state would force homeowners to pay tens of thousands of dollars to retrofit their homes. There are kernels of truth to the messaging — the state’s building codes seriously limit developers’ ability to put gas hookups in new construction without outright banning them. The new law affecting Puget Sound Energy is primarily a planning policy that requires the utility to consider alternatives to gas infrastructure, but it doesn’t force anyone to get off gas, and regulators are likely to approve only those alternatives that save ratepayers money.
“I think voters were responding to a lot of misinformation and fear-mongering,” said Leah Missik, the Washington deputy policy director for Climate Solutions, a regional nonprofit that helped spearhead the “no on 2066” campaign. She emphasized that it was put on the ballot in July, giving groups like hers only a few months to drum up their response to it, whereas they knew about 2117 for over a year, and thus had a lot more time to educate voters on what that initiative would do.
The confusion probably also wasn’t helped by the fact that the policies 2066 repealed were incredibly wonky, dealing with building codes and utility planning.
“I think that given all of those headwinds, the fact that about half of Washingtonians still voted against initiative 2066 is a testament to how popular climate action is in the state,” Emily Moore, the director of the climate and energy program at the Sightline Institute, a Seattle-based think tank, told me.
Sightline didn’t campaign for or against the measure, but Moore had some takeaways from the vote. She said environmental groups spent a lot of their energy countering the narrative that there was a gas ban, which may have inadvertently reinforced the idea. One lesson for the future might be to put more emphasis on the benefits of electrification, like the fact that heat pumps provide both heating and cooling and half of the state doesn’t currently have air conditioning. The other anti-climate measure, 2117, may have failed so decisively because Washington’s emission cap policy has raised more then $2 billion in funding for projects that people are already seeing the benefits of, like free transit passes.
“Likely a no vote on that one felt like getting to keep good things,” she told me. “I think we have more to do to show that getting off of gas means getting good things too.”
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New data from the Clean Investment Monitor shows the first year-over-year quarterly decline since the project began.
Investment in the clean economy is flagging — and the electric vehicle supply chain is taking the biggest hit.
The Clean Investment Monitor, a project by the Rhodium Group and the Massachusetts Institute of Technology’s Center for Energy and Environmental Policy Research that tracks spending on the energy transition, found that total investment in clean technology in the last three months of 2025 was $60 billion. That compares to $68 billion in the fourth quarter of 2024 and $79 billion in the third quarter of last year. While total clean investment in 2025 was $277 billion — the highest the group has ever recorded — the fourth quarter of 2025 was the first time since the Clean Investment Monitor began tracking that the numbers fell compared to the same quarter the year before.
“Since 2019, quarterly investment has surpassed the level observed in the same period of the previous year — even when quarter-on-quarter declines occurred,” the report says. “That trend ended in Q4 2025, when investment declined 11% from the level observed in Q4 2024.”
It starts downstream, with consumer purchases of clean energy technology once favored by federal tax policy: electric vehicles, heat pumps, and home electricity generation. Consumer purchases fell 36% from the third quarter to the fourth quarter, after the $7,500 federal EV credit expired on September 30.
With a consumer market for EVs being undercut, car companies responded by canceling projects and redirecting investment.
“There were a lot of big, multi-billion dollar cancellations coming from Ford specifically,” Harold Tavarez, a research analyst at Rhodium, told me. There’s been a lot of pivots from having fully electric vehicles to doing more hybrids, more internal combustion, and even extended range EVs.”
Ford alone took an almost $20 billion hit on its EV investments in 2025. The company suspended production of its all-electric F-150 Lightning late last year, despite its status as the best-selling electric pickup in the country for 2025, and announced a pivot into hybrids and extended-range EVs (which have gasoline-powered boosters onboard), including a revamped Lightning. It has also announced plans to convert some manufacturing facilities designed to produce EVs back into internal combustion plants, but it hasn’t abandoned electricity entirely. Other decommissioned EV factories will instead produce battery electric storage systems, and the company has announced a pivot to smaller, cheaper EVs.
Ford is far from alone in its EV-related pain, however. Rival Big Three automaker GM also booked $6 billion in losses for 2025, while Stellantis, the European parent company of the Chrysler, Dodge, and Jeep brands, will take as much as $26 billion in charges. EV sales fell some 46% in the fourth quarter of last year compared to the third quarter, and 36% compared to the fourth quarter of 2024, according to Cox Automotive.
Looking at the investment data holistically, the true dramatic decline was in forward-looking announcements, again heavily concentrated in the EV supply chain. The $3 billion in clean manufacturing announced in the fourth quarter of last year was an almost 50% drop from the previous quarter, “marking this quarter as the lowest period of announcements since Q4 2020,” the report says. Announcements were down about 25% for the year as a whole compared to 2024. Of the $29 billion of canceled projects Clean Investment Monitor tracked from 2018 through the end of last year, almost three quarters — some $23 billion — happened in 2025.
“Collectively, we estimate around 27,000 operational jobs in the manufacturing segment were affected by cancellations,” the report says, “two-thirds (68%) of which were tied to projects canceled in 2025.”
“One of the most frustrating parts of watching Trump wage war on all things clean energy is the apparent lack of understanding — or care — of how it impacts his stated goals,” Alex Jacquez, a former Biden economic policy official who is chief of policy and advocacy at the Groundwork Collective, told me. “The IRA built a real, competitive manufacturing base in the U.S. in a new sector for the first time in decades. Administration priorities are being hampered by blind opposition to anything Biden, IRA, or clean energy.”
A conversation on FEMA, ICE, and why local disaster response still needs federal support with the National Low-Income Housing Coalition’s Noah Patton.
Congress left for recess last week without reaching an agreement to fund the Department of Homeland Security, the parent agency of, among other offices, Customs and Border Protection, Immigration and Customs Enforcement, and somewhat incongruously, the Federal Emergency Management Agency. Democrats and Republicans remain leagues apart on their primary sticking point, ending the deadly and inhumane uses of force and detention against U.S. citizens and migrant communities. That also leaves FEMA without money for payroll and non-emergency programs.
The situation at the disaster response agency was already precarious — the office has had three acting administrators in less than a year; cut thousands of staff with another 10,000 on the chopping block; and has blocked and delayed funding to its local partners, including pausing the issuance of its Emergency Management Performance Grants, which are used for staffing, training, and equipping state-, city-, and tribal-level teams, pending updated population statistics post deportations.
Even so, FEMA remains technically capable of fulfilling its congressionally mandated duties due to an estimated $7 billion that remains in its Disaster Relief Fund. Still, the shutdown has placed renewed scrutiny on DHS Secretary Kristi Noem’s oversight of the agency. It has also elevated existing questions about what FEMA is doing alongside CBP and ICE in the first place.
To learn more about how the effects of the shutdown are trickling down through FEMA’s local operations, I spoke with Noah Patton, the director of disaster recovery at the National Low-Income Housing Coalition, which has publicly condemned the use of FEMA funding as a “political bargaining chip to allow ICE and CBP to continue their ongoing and imminent threats to the areas where they operate.”
When asked for comment, a FEMA spokesperson directed me to a DHS press release titled “Another Democrat Government Shutdown Dramatically Hurts America’s National Security.”
The conversation below has been edited for length and clarity.
Why is the DHS shutdown an issue you care about as a low-income housing organization? What are the stakes?
How the country responds to and recovers from disasters is inextricably linked to the issue of affordable housing. Often, households with the lowest incomes are in areas with the highest risk of disaster impacts. Our system has a lot of cracks in it. If you don’t have a rainy day fund for such things; if you’re someone who is not fully insured; if you have non-permanent employment — when disasters occur, you’re going to be hit the hardest. At the same time, you’ll receive the least assistance.
That not only exacerbates existing economic issues but also reduces the affordable housing stock available to the lowest-income households, as units are physically removed from the market when they’re destroyed or damaged by disasters.
What disasters are we talking about specifically at the moment? Are reimbursements for, say, the recent winter storms impacted by the shutdown?
Typically, when the [Disaster Relief Fund] is low, FEMA will implement critical needs funding. It pauses reimbursements for non-specific disaster-response projects and reallocates funds to preserve operational capacity for direct disaster response. That hasn’t happened yet because the DRF has sufficient funds. On the administrative end, reimbursements will be processed as we go along.
Is there anything you’re concerned about in the short term with regard to the DHS shutdown? Or has NLIHC pushed for the depoliticization of FEMA funding because of the cascading effects for the people you advocate for?
FEMA is okay as of right now. The need to stop ICE and CBP and the violence in communities across the country is taking precedence. We appreciate Congress’ interest in ensuring FEMA is adequately funded, but the DHS appropriations bill is not the only vehicle for providing FEMA funding. That’s why we’ve been pushing for a disaster-specific supplemental spending bill. That bill could also have longer-term assistance under HUD for places like Alaska [following Typhoon Halong], Los Angeles [following the January 2025 wildfires], and St. Louis [following the May 2025 tornado].
Maybe you’ve already answered my next question: How has NLIHC been navigating the tension between condemning ICE and CBP, while at the same time pushing for FEMA funding?
We have been big supporters of the House’s FEMA Act: the Fixing Emergency Management for Americans Act. It’s a bill that would remove FEMA from DHS, reestablish it as an independent agency as it was prior to 2003, and implement reforms to expand access to federal assistance for households with the lowest incomes after disasters. We’ve been supporters of that bill since it came out.
I’d also say, in the short term, I don’t see a huge amount of impact on the disaster response and recovery systems. It’s worth pausing on that, given everything going on with ICE and CBP.
What else is on your minds right now at NLIHC?
Much of the work we’re doing stems from the rapid, forced decentralization of the federal government’s emergency management capability — because emergency response and recovery now falls to the states. But many states lack robust disaster response and recovery programs. The state of Oklahoma, for example — I think their Emergency Management Office is 90% federally funded.
The administration’s pull-back of state-level emergency management performance grants and the coordination FEMA was providing on that will get the ball rolling; as we’ve seen in other disasters, the ball ends at households with the lowest incomes being the most impacted. We’re trying to head that off by coordinating advocates at the state and local levels to work with their local governments and facilitate more robust conversations on emergency management and related programs. A good example of that would be what we’re seeing in Washington State after the flooding from the atmospheric rivers. They have not received a disaster declaration from FEMA, so they’re not receiving federal assistance, but people are experiencing homelessness due to those floods. We’re working with folks there to craft programs that ensure that, in the absence of federal assistance, some form of aid continues.
For many years, the federal government was heavily involved in emergency management and served as the main coordinator. They were the source of the vast, vast, vast majority of funding. Now we’re looking toward a world where that’s less true, and where state-level mechanisms will be all the more important. Even if the FEMA Act is passed, it encourages state-level systems to emerge for responding to and recovering from disasters. We’re adding a focus to that state-level work that we didn’t necessarily need before.
The Trump administration has justified its defunding of FEMA by saying, “Well, disaster response is local, so this should be the responsibility of the states.” But like you were saying, places like Oklahoma get all their support from the federal government to begin with.
They always say, “Disaster response is local” because operationally, it needs to be. You’re not going to have a FEMA guy parachute in and start telling the local firefighters and cops what to do; that’s best handled by the folks who are on the ground and are familiar with their communities.
But it’s wrong to say, “If all disaster response is local, then why are we even involved?” FEMA provides the coordination and additional resources that are pivotal. Federal resources are allocated to local officials to respond to the disaster. The salaries of all those local emergency managers — at least, a high percentage of them — that money comes from the feds.
If the shutdown continues much longer, would that be another impact: local emergency managers not receiving their salaries?
The grant-making fight is separate. The administration is trying to slow down the flow of [emergency management preparedness grants] to state governments. Several states have filed high-profile lawsuits to obtain the grants that the federal government arbitrarily paused. Regardless of any shutdown, that will still be an issue.
On Georgia’s utility regulator, copper prices, and greening Mardi Gras
Current conditions: Multiple wildfires are raging on Oklahoma’s panhandle border with Texas • New York City and its suburbs are under a weather advisory over dense fog this morning • Ahmedabad, the largest city in the northwest Indian state of Gujarat, is facing temperatures as much as 4 degrees Celsius higher than historical averages this week.
The United States could still withdraw from the International Energy Agency if the Paris-based watchdog, considered one of the leading sources of global data and forecasts on energy demand, continues to promote and plan for “ridiculous” net-zero scenarios by 2050. That’s what Secretary of Energy Chris Wright said on stage Tuesday at a conference in the French capital. Noting that the IEA was founded in the wake of the oil embargoes that accompanied the 1973 Yom Kippur War, the Trump administration wants the organization to refocus on issues of energy security and poverty, Wright said. He cited a recent effort to promote clean cooking fuels for the 2 billion people who still lack regular access to energy — more than 2 million of whom are estimated to die each year from exposure to fumes from igniting wood, crop residue, or dung indoors — as evidence that the IEA was shifting in Washington’s direction. But, Wright said, “We’re definitely not satisfied. We’re not there yet.” Wright described decarbonization policies as “politicians’ dreams about greater control” through driving “up the price of energy so high that the demand for energy” plummets. “To me, that’s inhuman,” Wright said. “It’s immoral. It’s totally unrealistic. It’s not going to happen. And if so much of the data reporting agencies are on these sort of left-wing big government fantasies, that just distorts” the IEA’s mission.

Wright didn’t, however, just come to Paris to chastise the Europeans. Prompted by a remark from Jean-Luc Palayer, the top U.S. executive of French uranium giant Orano, Wright called the company “fantastic” and praised plans to build new enrichment facilities and bring waste reprocessing to America. While the French, Russians, and Japanese have long recycled spent nuclear waste into fresh fuel, the U.S. briefly but “foolishly” banned commercial reprocessing in the 1970s, Wright said, and never got an industry going again. As a result, all the spent fuel from the past seven decades of nuclear energy production is sitting on site in swimming pools or dry cask storage. “We want to have a nuclear renaissance. We have got to get serious about this stuff. So we will start reprocessing, likely in partnership with Orano,” Wright said. Designating Yucca Mountain as the first U.S. permanent repository for nuclear waste set the project in Nevada up for failure in the early 2000s, Wright added. “In the United States, we’ve tried to find a permanent repository for waste and we’ve had, I think, the wrong approach,” he noted. The Trump administration, he said, was “doing it differently” by inviting states to submit proposals for federally backed campuses to host nuclear enrichment and waste reprocessing facilities. Still, reprocessing leaves behind a small amount of waste that needs to be buried, so, Wright said, “we’re going to develop multiple long-term repositories.”
The Trump administration could tweak tariffs on metals and other materials, U.S. Trade Representative Jamieson Greer said Tuesday. During an appearance on CNBC’s “Squawk Box,” Greer said he’d heard from companies who claimed they needed to hire more workers to navigate the tariffs. “You may want to sometimes adjust the way some of the tariffs are for compliance purposes,” he said. “We’re not trying to have people deal with so much beancounting that they’re not running their company correctly.” Still, he said, the U.S. is “shipping more steel than ever,” and has, as I reported in a newsletter last month, the first new aluminum smelter in the works in half a century. “So clearly those [tariffs] are going in the right direction and they’re going to stay in place.”
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California Governor Gavin Newsom, widely seen as a frontrunner for the Democratic presidential nod in two years, is already staking out an alternative energy approach to Trump. During a stop in London on his tour of Europe, Newsom this week signed onto a new pact with British Energy Secretary Ed Miliband, pledging to work together with the United Kingdom on deploying more clean energy technologies such as offshore wind in the nation’s most populous state. One of the biggest winners of the deal, according to Politico, is Octopus Energy, the biggest British energy supplier, which is looking to enter the California market. But the agreement also sets the stage for more joint atmospheric research between California and the U.K. “California is the best place in America to invest in a clean economy because we set clear goals and we deliver,” Newsom said. “Today, we deepened our partnership with the United Kingdom on climate action and welcomed nearly a billion dollars in clean tech investment from Octopus Energy.”
France, meanwhile, is realigning its energy plan for the next nine years in a way the Trump administration will like. The draft version of the plan released last year called for 90 gigawatts of installed solar capacity by 2035. But the latest plan published last week reduced the target to a range of 55 to 80 gigawatts. Onshore wind falls to 35 to 40 gigawatts from 40 to 45 gigawatts. Offshore wind drops to 15 gigawatts from 18 gigawatts. Instead, Renewables Now reported, the country is betting on a nuclear revival.
When Democrats unseated two Republicans on Georgia’s five-member Public Service Commission, the upsets signaled a change to the state’s utility regulator so big one expert described it to Heatmap’s Emily Pontecorvo at the time as “seismic.” Now one of the three remaining Republicans on the body is stepping aside in this year’s election. In a lengthy post on X, Tricia Pridemore said she would end her eight-year tenure on the commission by opting out of reelection. “I have consistently championed common-sense, America First policies that prioritize energy independence, grid reliability, and practical solutions over partisan rhetoric,” wrote Pridemore, who both championed the nuclear expansion at Georgia Power’s Plant Vogtle and pushed for more natural gas generation. “These efforts have laid the foundation for job creation, national security, and opportunity across our state. By emphasizing results over rhetoric, we have positioned Georgia as a leader in affordability, reliability, and forward-thinking energy planning.”
BHP, the world’s most valuable mining company, reported a nearly 30% spike in net profits for the first half of this year thanks to soaring demand for copper. The Australian giant’s chief executive, Mike Henry, said the earnings marked a “milestone” as copper contributed the largest share of its profit for the first time, accounting for 51% of income before interest, tax, depreciation, and amortization. The company also signed a $4.3 billion deal with Canada’s Wheaton Precious Metals to supply silver from its Antamina mine in Peru in a deal the Financial Times called “the largest of its kind for so-called precious metals streaming, where miners make deals to sell gold or silver that is a byproduct of their main business.”
The mining companies the Trump administration is investing in, on the other hand, may have less rosy news for the market. Back in October, I told you that the U.S. was taking a stake in Trilogy Metals after approving its request to build a mining road in a remote corner of Alaska that’s largely untouched by industry. On Tuesday, the company reported a net loss of $42 million. The loss largely stemmed from what Mining.com called “the treatment of the proposed U.S. government’s investment as a derivative financial instrument” under standard American accounting rules. The accounting impact, however, had no effect on the cash the company had on hand and “is expected to resolve once applicable conditions are met.”
“It’s an environmental catastrophe.” That’s how Brett Davis, the head of a nonprofit that advocates for less pollution at Mardi Gras, referred to the waste the carnival generates each year in New Orleans. Data the city’s sanitation department gave The New York Times showed that the weekslong party produced an average of 1,123 tons of waste per year for the last decade. Reusing the plastic beads that became popular in the 1970s when manufacturing moved overseas and made cheap goods widely accessible just amounts to “recirculating toxic plastic junk no one wants,” Davis told the newspaper. Instead, he’s sold more than $1 million in more sustainable alternative items to throw during the parade, including jambalaya mix, native flower start kits, and plant-based glitter.