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A new study from the University of California, Berkeley, breaks down the issues, while also stirring up a controversy of its own.

A new study casts doubt on the integrity of yet another type of carbon offset.
Researchers from the University of California, Berkeley, investigated clean cookstove projects, in which companies distribute stoves that require less or cleaner types of fuel to people who cannot afford them and sell carbon credits based on the resulting emission reductions. These projects have generated, on average, nine times more carbon credits than they should have based on their climate benefits, the researchers found.
This kind of credit inflation obscures climate progress, as the individuals and businesses who buy these credits do so to justify their own emissions under the belief that they are funding climate action elsewhere.
It also threatens a key source of funding to remedy a major public health problem. Nearly a third of the global population — some 2.3 billion people — cook with wood and charcoal burned on open fires or in very basic stoves that expose people to dangerous levels of pollution, including particulate matter and carbon monoxide. The smoke contributes to respiratory and cardiovascular problems and leads to an estimated 4 million premature deaths every year. On top of that, this form of cooking releases roughly 2% of global greenhouse gas emissions.
Companies have jumped at the opportunity to finance solutions by selling carbon offsets, with great success. Between 2017 and 2022, the volume of finance secured for clean cookstoves through the carbon market increased 45-fold, according to a report by the Clean Cookstove Alliance published last fall. Now, cookstove projects make up some 10% of all credits on the carbon market. And they’re one of the fastest growing types of offset projects.
The new study, published in the peer-reviewed journal Nature Sustainability on Wednesday, finds that the methods developers are using to measure the amount of carbon these projects avoid are deeply flawed.
The first red flag the researchers identified was that academic studies of clean cookstoves report much lower adoption rates (whether the new stove was used) and usage rates (how often the new stove was used) than offset projects do. A representative sample of offset projects reported an 86% adoption rate and 98% usage rate, whereas the research literature reported a 58% adoption rate and 52% usage rate.
“The literature at large has found, honestly, devastatingly low rates of adoption and usage,” Annelise Gill-Wiehl, a PhD student at Berkeley and the lead author of the study told me. Some families totally abandon their new stoves, while others continue to use traditional cooking methods in addition to the clean stove. That’s because the new stoves might have smaller burners, not get as hot, change the taste of traditional foods, or else just create more work for cooks. “The first thing you have to ask yourself is, have these offset projects just solved it?” Gill-Wiehl said. “Or are there limitations in their methods?”
One big limitation, according to Gill-Wiehl and her coauthors, is the way offset data is collected. To measure adoption, many project managers use a simple one-time survey that asks households if they used the new stove in the last week or month. If they reply yes, the developer will generate credits as if the household used the stove 100% of the time. Not only is this not exactly robust methodologically, but it may also result in participants inflating their usage to please the survey collectors — a common effect known as “social desirability bias.”
Another major issue stems from the way these projects account for larger environmental impacts. One of the key ways clean cookstove initiatives cut emissions is by reducing the degradation of forests that results from the gathering of fuel to make fires. It would be impossible to measure these cuts directly, but the default estimates that project developers use vastly overstate the level of degradation that would otherwise occur compared to what the peer-reviewed literature has found.
But like anything offsets-related, this study, too, has attracted fierce scrutiny. After an earlier version of it was published a year ago, offset project developers responded with an open letter calling it “misguided.” For instance, the letter calls it inappropriate to compare carbon offset projects to non-commercial projects analyzed in the academic literature. It also accuses the Berkeley researchers of selectively choosing studies and carbon offset projects to include. Finally, the letter also points to the fact that the Better Cooking Company, a cookstove company that is trying to sell credits, provided funding for the study and asserts that the findings benefit that company.
Gill-Wiehl pushed back on all points. The Better Cookstove Company provided less than 5% of the funding, she said, and had no influence over the findings. She added that the results didn’t benefit the company — the study implied that it, too, was guilty of over-crediting, primarily due to inflated forest conservation estimates. (The Better Cookstove Company has since updated its forest conservation estimates to align with the findings in the study, decreasing its sellable credits.)
“We did not write this to burn cookstoves to the ground,” she told me. “This is an incredibly important project type, and it’s so incredibly important that it can't be based on a house of cards.”
Gill-Wiehl said she and her co-authors want the carbon market registries — the groups that design the methodologies project developers must follow to generate and sell credits — to adopt stronger rules that improve the integrity of the market. For example, to measure usage, they could require developers to collect metered data from the stoves or to use fuel sales data. They also want the registries to require that developers use more accurate estimates from the literature for forest degradation. Without significant change, buyers could lose confidence and funding could dry up.
Some of the issues with clean cookstove projects were already known, if not quantified to the extent in this new paper, and there are some ongoing efforts in the industry to improve them. An influential United Nations body recently supported research to establish more accurate estimates of forest degradation, and a consortium of government groups and NGOs is working to develop stronger rules for crediting cookstove projects.
The authors of the study hope this increased attention on cookstoves doesn’t just lead to more legitimate offset projects, but also to ones that better prioritize public health. The vast majority of the cookstoves handed out for offset projects are designed to run more efficiently, but still expose users to dangerous levels of pollution. As of November 2022, only 4% of projects provided the types of stoves that the World Health Organization deems “clean for health at point of use.”
“I feel like at this moment when there’s a shake up of the offset market in general — but also, right now around cookstoves — we have an opportunity to direct all of this finance to projects that have a transformative benefit to people’s lives and health,” Barbara Haya, director of the Berkeley Carbon Trading Project and one of the study’s authors, told me. “And we have an obligation to do that if we’re going to use those credits to make claims of reducing emissions.”
Editor’s note: This story has been updated to correct the proportion of funding the Better Cookstove Company provided for the study and to reflect changes the company has made to its offset methodology since the study’s completion. We regret the error.
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The surge in electricity demand from data centers is making innovation a necessity.
Electric utilities aren’t exactly known as innovators. Until recently, that caution seemed perfectly logical — arguably even preferable. If the entity responsible for keeping the lights on and critical services running decides to try out some shiny new tech that fails, heating, cooling, medical equipment, and emergency systems will all trip offline. People could die.
“It’s a very conservative culture for all the right reasons,” Pradeep Tagare, a vice president at the utility National Grid and the head of its corporate venture fund, National Grid Partners, told me. “You really can’t follow the Silicon Valley mantra of move fast, break things. You are not allowed to break things, period.”
But with artificial intelligence-driven load growth booming, customer bills climbing, and the interconnection queue stubbornly backlogged, utilities now face little choice but to do things differently. The West Coast’s Pacific Gas and Electric Company now has a dedicated grid-innovation team of about 60 people; North Carolina-based utility Duke Energy operates an emerging technologies office; and National Grid, which serves U.S. customers in the Northeast, has invested in about 50 startups to date. Some 64% of utilities have expanded their innovation budgets in the past year, according to research by NGP, while 42% reported working with startups in some capacity.
The innovators on these teams are well aware that their reputation precedes them when it comes to bringing novel tech to market — and not in a flattering way. “I think historically we’ve done a poor job partnering with too many companies and spreading ourselves thin,” Quinn Nakayama, the senior director of grid research, innovation, and development at PG&E, told me. That’s led to a pattern known as “death by pilot,” in which utilities trial many promising solutions but are too risk-averse, cost-conscious, and slow-moving to deploy them, leaving the companies with no natural customers.
It doesn’t help that regulators such as public utilities commissions understandably require new investments to meet a strict “prudency” standard, proving that they can achieve the desired result at the lowest reasonable cost consistent with good practices. Yet this can be a high bar for tech that’s yet untested at scale. And because investor-owned utilities earn a guaranteed rate of return on approved infrastructure investments, they’re incentivized to pursue capital-intensive projects over smaller efficiency improvements. Freedom from the pressure of a competitive market has also traditionally meant freedom from the pressure to innovate.
But that’s changing.
To help bridge at least some of these divides, NGP set up a business development unit specifically for startups. “Their sole job is to work with our portfolio companies, work with our business units, and make sure that these things get deployed,” Tagare told me. Over 80% of the firm’s portfolio companies, he said, now have tie-ups of some sort with National Grid — be that a pilot or a long-term deployment — while “many” have secured multi-million dollar contracts with the utility.
While Tagare said that NGP is already reaping the benefits from investments in AI to streamline internal operations and improve critical services, hardware is slower to get to market. The startups in this category run the gamut from immediately deployable technologies to those still five or more years from commercialization. LineVision, a startup operating across parts of National Grid’s service territories in upstate New York and the U.K., is a prime example of the former. Its systems monitor the capacity of transmission lines in real-time via sensors and environmental data analytics, thus allowing utilities to safely push 20% to 30% more power through the wires as conditions permit.
There’s also TS Conductor, a materials science startup that’s developed a novel conductor wire with a lightweight carbon core and aluminum coating that can double or triple a line’s capacity without building new towers and poles. It’s a few years from achieving the technical and safety validation necessary to become an approved supplier for National Grid. Then five or more years down the line, NGP hopes to be able to deploy the startup Veir’s superconductors, which promise to boost transmission capacity five- to tenfold with materials that carry electricity with virtually zero resistance. But because this requires cooling the lines to cryogenic temperatures — and the bulky insulation and cooling systems need to do so — it necessitates a major infrastructure overhaul.
PG&E, for its part, is pursuing similar efficiency goals as it trials tech from startups including Heimdell Power and Smart Wires, which aim to squeeze more power out of the utility’s existing assets. But because the utility operates in California — the U.S. leader in EV adoption, with strong incentives for all types of home electrification — it’s also focused on solutions at the grid edge, where the distribution network meets customer-side assets like smart meters and EV charging infrastructure.
For example, the utility has a partnership with smart electric panel maker Span, which allows customers to adopt electric appliances such as heat pumps and EV chargers without the need for expensive electrical upgrades. Span’s device connects directly to a home’s existing electric panel, enabling PG&E to monitor and adjust electricity use in real time to prevent the panel from overloading while letting customers determine what devices to prioritize powering. Another partnership with smart infrastructure company Itron has similar aims — allowing customers to get EV fast chargers without a panel upgrade, with the company’s smart meters automatically adjusting charging speed based on panel limits and local grid conditions.
Of course, it’s natural to question how motivated investor-owned utilities really are to deploy this type of efficiency tech — after all, the likes of PG&E and National Grid make money by undertaking large infrastructure projects, not by finding clever means of avoiding them. And while both Nakayama and Tagare can’t deny what appears to be a fundamental misalignment of incentives, they both argue that there’s so much infrastructure investment needed — more than they can handle — that the friction is a non-issue.
“We have capital coming out of our ears,” Nakayama told me. Given that, he said, PG&E’s job is to accelerate interconnection for all types of loads, which will bring in revenue to offset the cost of the upgrades and thus lower customer rates. Tagare agreed.
“At least for the next — pick a number, five, seven, 10 years — I don’t see any of this slowing down,” he said.
And yet despite all that capital flow, PG&E still carries billions of dollars in wildfire-related financial obligations after its faulty equipment was found liable for sparking a number of blazes in Northern California in 2017 and 2018. The resulting legal claims drove the utility into bankruptcy in 2019, before it restructured and reemerged the following year. But the threat of wildfires in its service territory still looms large, which Nakayama said limits the company’s ability to allocate funds toward the basic poles and wires upgrades that are so crucial for easing the congested interconnection queue and bringing new load online.
Nakayama wants California’s legislature and courts to revise rules that make utilities strictly liable for wildfires caused by their equipment, even when all safety and mitigation procedures were followed. “In order for me to feel comfortable moving some of my investments out of wildfire into other areas of our business in a more accelerated fashion, I have to know that if I make the prudent investments for wildfire risk mitigation, I’m not going to be held liable for everything in my system,” he told me.
And while wildfire prevention itself is an area rich with technical innovation and a central focus of the utility’s startup ecosystem, Nakayama emphasizes that PG&E has a host of additional priorities to consider. “We need [virtual power plants]. We need new technologies. We need new investments. We need new capital. We need new wildfire-related liability,” he told me.
Utilities — especially his — rarely get seen as the good guys in this story. “I know that PGE gets vilified a lot,” Nakayama acknowledged. But he and his colleagues are “almost desperate to try to figure out how to bring down rates,” he promised.
Current conditions: The Central United States is facing this year’s largest outbreak of severe weather so far, with intense thunderstorms set to hit an area stretching from Texas to the Great Lakes for the next four days • Northern India is sweltering in temperatures as high as 13 degrees Celsius above historical norms • Australia issued evacuation alerts for parts of Queensland as floodwaters inundate dozens of roads.
The price of futures contracts for crude oil fell below $85 per barrel Monday after President Donald Trump called the war against Iran “very complete, pretty much,” declaring that there was “nothing left in a military sense” in the country. “They have no navy, no communications, they’ve got no air force. Their missiles are down to a scatter. Their drones are being blown up all over the place, including their manufacturing of drones,” Trump told CBS News in a phone interview Monday. “If you look, they have nothing left.”
The dip, just a day after prices surged well past $100 per barrel, highlights what Heatmap’s Matthew Zeitlin described as the challenge of depending too much on fossil fuels for a payday. “Even $85 is substantially higher than the $57 per barrel price from the end of last year. At that point, forecasters from both the public and the private sectors were expecting oil to stick around $60 a barrel through 2026,” he wrote. “Of course, crude oil itself is not something any consumer buys — but those high prices would likely feed through to higher consumer prices throughout the U.S. economy.”

The global wind industry set a record last year, adding 169 gigawatts of turbines throughout 2025, according to the latest analysis from the consultancy BloombergNEF. The 38% surge compared to 2024 came as the momentum in the sector shifted to Asia. Chinese companies made up eight of the top 10 global wind turbine suppliers, the report found, as domestic installations in the People’s Republic reached an all-time high. India, meanwhile, edged out the U.S. and Germany as the world’s second largest market after China. Of all global wind additions, 161 gigawatts, or 95%, were onshore turbines, mostly spurred on by the domestic boom in China. Not only did that same building blitz help Beijing-based Goldwind hold onto its top spot as the world’s leading turbine supplier, it vaulted Chinese manufacturers into the next five slots in the global ranking. “Thanks to stable long-term policy support, wind installations over the past decade have become increasingly concentrated in mainland China,” Cristian Dinca, wind associate at BloombergNEF and lead author of the report, said in a statement. “Chinese manufacturers consistently top the global rankings. They benefitted particularly in 2025, as companies and provinces rushed to commission projects ahead of power market reforms and to meet targets set out in the Five Year Plan.”
Like in solar and batteries, the domestic boom in China is starting to spill over abroad. As Matthew wrote last year, Chinese manufacturers are making a big push into the European market.
Arizona’s utility regulator has repealed rules requiring electricity providers to generate at least 15% of their energy from renewables. Citing “dramatic” changes to the renewable energy landscape, the Arizona Corporation Commission said the cost to ratepayers of the rules adopted two decades ago was no longer justifiable, Utility Dive reported Monday. Since the rules first took effect in 2006, the utilities Arizona Public Services, Tucson Electric Power, and UniSource Energy Services “have collected more than $2.3 billion” in “surcharges from all customer classes to meet these mandates,” the regulator said in a press release following the March 4 ruling. “The mandates are no longer needed and the costs are no longer justified.”
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Reflect Orbital wants to launch 50,000 giant mirrors into space to bounce sunlight to the night side of the planet to power solar farms after sunset, provide lighting to rescue workers, and light city streets. Now, The New York Times reported Monday, the Hawthorne, California-based startup is asking the Federal Communications Commission for permission to send its first prototype satellite into space with a 60-foot-wide mirror. The company, which has raised more than $28 million from investors, could launch its test project as early as this summer. The public comment period on the FCC application closed yesterday. “We’re trying to build something that could replace fossil fuels and really power everything,” Ben Nowack, Reflect Orbital’s chief executive, told the newspaper.
It’s emblematic of the kind of audacious climate interventions on which investors are increasingly gambling. Last fall, Heatmap’s Robinson Meyer broke news that Stardust Solutions, a startup promising to artificially cool the planet by spraying aerosols into the atmosphere that reflect the sun’s light back into space, had raised $60 million to commercialize its technology. In December, Heatmap’s Katie Brigham had a scoop on the startup Overview Energy raising $20 million to build panels in space and beam solar power back down to Earth.
Emerald AI is a startup whose software Katie wrote last year “could save the grid” by helping data centers to ramp electricity usage up and down like a smart thermostat to allow more computing power to come online on the existing grid. InfraPartners is a company that designs, manufactures, and deploys prefabricated, modular data centers parts. You don’t need to be an expert in the data center industry’s energy problems to hear the wedding bells ringing. On Tuesday, the two companies announced a deal to partner on what they’re calling “flex-ready data centers,” a version of InfraPartners’ off the shelf computing hardware that comes equipped with Emerald AI’s software. “Building more infrastructure the way we have historically will not be fast enough. We need to make the infrastructure we have more intelligent by leveraging AI,” Bal Aujla, InfraPartners’ director of advanced research and engineering, said in a statement. “This partnership will turn data centers from grid constraints into grid partners and unlock more usable capacity from existing infrastructure. The result will be enhanced AI deployment without compromising reliability or sustainability.” Rather than rush to invest in big new power plants, Emerald AI chief scientist Ayse Coskun said making data centers flexible means “we can prudently expand our grid.”
War in Iran may be halting shipments of oil and liquified natural gas out of the Persian Gulf. But that isn’t stopping Chinese clean energy manufacturers from preparing to send shipments toward the war-torn region. Despite the conflict, the Jiangsu-based Shuangliang announced last week that it had delivered 80 megawatts of electrolyzers to a Chinese port for shipment to a 300-megawatt green hydrogen and ammonia plant in the special economic zone in Duqm, Oman. I know what you’re going to say: Oman’s status as the region’s Switzerland — a diplomatic powerhouse with a modern history of strategic neutrality in even the most heated geopolitical conflicts — means it isn’t a target for Iranian missiles. And there’s no guarantee the shipment will head there immediately. But it’s a sign of how determined China’s electrolyzer industry is to sell its hardware overseas amid inklings of a domestic slowdown.
Topsy turvy oil prices aren’t great for the U.S.
Oil prices are all over the place as markets reopened this week, climbing as high as $120 a barrel before crashing to around $85 after Donald Trump told CBS News that the war with Iran “is very complete, pretty much,” and that he was “thinking about taking it over,” referring to the Strait of Hormuz, the artery through which about a third of the world’s traded oil flows.
Even $85 is substantially higher than the $57 per barrel price from the end of last year. At that point, forecasters from both the public and the private sectors were expecting oil to stick around $60 a barrel through 2026.
Of course, crude oil itself is not something any consumer buys — but those high prices would likely feed through to higher consumer prices throughout the U.S. economy. That includes the price of gasoline, of course, which has risen by about $0.50 a gallon in the past month, according to AAA, — and jet fuel, which will mean increased travel costs. “Book your airfares now if they haven’t moved already,” Skanda Amarnath, the executive director of the economic policy think tank Employ America, told me.
High oil prices also raise the price of goods and services not directly linked to oil prices — groceries, for instance. “The cost of food, especially at the grocery store, is a function of the cost of diesel,” which fuels the trucks that get food to shelves, Amarnath told me. Diesel prices have risen even more than gasoline in the past week, by over $0.85 a gallon.
“We’ll see how long these prices stay elevated, how they feed their way through the supply chain and the value chain. But it’s clearly the case that it is a pretty adverse situation for both businesses and consumers.”
The oil market is going through one of the largest physical shocks in its modern history. Bloomberg’s Javier Blas estimates that of the 15 million barrels per day that regularly flow through the Strait of Hormuz, only about a third is getting through to the global market, whether through the strait itself or by alternative routes, such as the pipeline from Saudi Arabia’s eastern oil fields to the Red Sea.
Global daily oil production is just above 100 million barrels per day, meaning that around 10% of the oil supply on the market is stuck behind an effective blockade.
“The world is suddenly ‘short’ a volume that, in normal times, would dwarf almost any supply/demand imbalance we debate,” Morgan Stanley oil analyst Martjin Rats wrote in a note to clients on Sunday.
The fact that the U.S. is itself a leading producer and exporter of oil will only provide so much relief. Private sector economists have estimated that every $10 increase in the price of oil reduces economic growth somewhere between 0.1 and 0.2 percentage points.
“Petroleum product prices here in the U.S. tend to reflect global market conditions, so the price at the pump for gasoline and diesel reflect what’s going on with global prices,” Ben Cahill, a senior associate at the Center for Strategic and International Studies, told me. “What happens in the rest of the world still has a deep impact on U.S. energy prices.”
To the extent the U.S. economy benefits from its export capacity, the effects are likely localized to areas where oil production and export takes place, such as Texas and Louisiana. For the economy as a whole, higher oil prices will improve the “terms of trade,” essentially a measure of the value of imports a certain quantity of exports can “buy,” Ryan Cummings, chief of staff at Stanford Institute for Economic Policymaking, told me.
Could the U.S. oil industry ramp up production to capture those high prices and induce some relief?
Oil industry analysts, Heatmap founding executive editor Robinson Meyer, and the TV show Landman have all theorized that there is a “goldilocks” range of oil prices that are high enough to encourage exploration and production but not so high as to take out the economy as a whole. This range starts at around $60 or $70 on the low end and tops out at around $90 or $95. Above that, the economic damage from high prices would likely outweigh any benefit to drillers from expanded production.
And that’s if production were to expand at all.
“Capital discipline” has been the watchword of the U.S. oil and gas industry for years since the shale boom, meaning drillers are unlikely to chase price spikes by ramping up production heedlessly, CSIS’ Ben Cahill told me. “I think they’ll be quite cautious about doing that,” he said.