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Last summer was the hottest in two millennia. We won’t get any relief this year.
An overwhelming majority of Americans will experience above-average heat this summer, and temperatures in more than half of the contiguous United States are expected to top the historical average by at least 2 degrees Fahrenheit, according to AccuWeather. New York is expected to endure twice as many 90-plus-degree days as last year; Boston could experience up to four times as many.
Americans got a taste of what’s to come this week, with a blistering heat wave that began in the Southwest and has scorched the East Coast for the past three days. That heat may have come early based on the historical averages, but considering more recent trends, it’s right on track.
“The biggest changes that we have seen in recent decades is that the heat wave season has been expanding, starting earlier in the late spring and ending later into early fall, on average,” AccuWeather Senior Meteorologist Brett Anderson told Heatmap.
The northern Rockies, Great Lakes, and the Northeast are areas of particular concern, Paul Pastelok, AccuWeather’s Lead Long-Range Forecaster, told Heatmap. Those regions will likely experience less precipitation and more intense heat this summer compared to their historical average. “The Northern Plains and Upper Midwest are tricky,” Pastelok said. “Right now, this area is getting rain, but this could cut off by the very end of June into July, and turn around to dryness with the heat following.”
While temperatures will most likely peak in the interior Southwest — Nevada, Arizona, and New Mexico — by early July, the region can expect temperatures between 112 and 118 degrees until then. Monsoon season, which brings warm winds and rainfall inland, will likely arrive in late July instead of the usual late June, Pastelok said. Peak heat could come much later — anytime between July and September — for those in the Great Lakes, the Ohio Valley, and the Northeast.
The biggest “warm anomalies” are expected in the Southwest and central Rockies, the Great Lakes, the Ohio Valley and the Northeast, according Tom Kines, a senior meteorologist at AccuWeather. “We are looking at anomalies for the entire summer of +4 degrees (F) which is pretty significant over a 3 month period,” Kines wrote in an email to Heatmap.
Heat won’t be the only extreme weather this season. Drought could be severe, particularly in the Southwest — including parts of Texas, Oklahoma, and Kansas, where rainfall could come in below 50% of the historical average. That dry spell could intensify over the northern Plains, Great Lakes, and the Northeast later in the summer. The Gulf Coast, meanwhile, can anticipate a staggering 22 to 36 inches of rain this season — compared to its usual 15 to 24 inches — which will likely make flooding an issue.
After a wetter winter, meteorologists anticipated a slow start to the wildfire season in California and the Southwest. In fact, the number of wildfires this year is expected to come in below average: AccuWeather meteorologists predict 35,000 to 50,000 wildfires this year, compared to a historical average of about 69,000. Yet the fires in California also seem to have picked up speed a little earlier than normal. Last week saw more than two dozen fires in the state, perhaps heralding increased fire activity to come.
So how will we deal with all this? Northern cities, especially, tend to be less equipped to deal with extreme summer heat. In Boston, temperatures reached a record-breaking 98 degrees on Wednesday, a day after Mayor Michelle Wu declared a heat emergency. The city opened cooling centers this week in an attempt to minimize the number of heat-related medical emergencies.
Boston Green New Deal Director Oliver Sellers-Garcia told Heatmap that the city is bringing more government agencies into the heat management effort. The Fire and Parks departments plan to set up misting stations, and the city will continue to provide extra pop-up cooling centers in coordination with Boston’s Centers for Youth and Families. Those strategies, Sellers-Garcia said, “can have an instant benefit for someone, whether it’s just a super hot day and they have to get to work or it’s a declared heat wave.”
In Florida, people are used to chronic heat, Miami-Dade County’s Chief Heat Officer Jane Gilbert told Heatmap. Last year the county had 42 heat advisories (which happens when the thermometer reaches 105) and 70 warnings (110), Gilbert said, and this season is already proving more intense: May was the warmest ever on record in the state. To protect residents, the county has established a comprehensive public awareness campaign that targets those most affected by the heat, including outdoor workers, children, pregnant women, the elderly, and people with chronic illnesses. It also runs more than 30 cooling centers.
According to Gilbert, the goal is to educate people about the extent of heat impacts so they can make better choices — drink more water, find shade, limit physical activity — and protect their health. “We haven’t fully appreciated, historically as a community, how it impacts our lives,” she said.
Here’s what’s happened so far ...
June 24: On Juneteenth, over 82 million Americans were under active National Weather Service extreme heat alerts — but, due to the national holiday, many publicly operated cooling centers were closed. While Boston had opened 14 new facilities in partnership with the Centers for Youth and Families, for instance, none of them stayed open Wednesday.
The same thing happened in New York, where more than 200 cooling centers were closed for the holiday, most of them libraries. While other heat preparedness measures were still in place — Gov. Kathy Hochul announced free admission for state parks — residents counting on a facility near home had to change plans last minute. On Sunday, New York turned 45 public schools into cooling centers, this time because the public libraries were closed due to budget cuts.
In Chicago, only one cooling center was open during the holiday. The lack of cooling spaces available sparked action from homelessness advocates, who are urging the city to offer more cooling centers that are open 24/7 and also to make those facilities available when the heat index is above 80 degrees Fahrenheit.
Because cooling centers are often multi-purpose spaces, data on their usage is limited. In Boston, 245 people visited cooling centers from June 18 to 20, the mayor’s office told me. New York City’s Department of Emergency Management could only say that six people visited four of the schools open Sunday.
June 21: Communities from Kansas to Maine experienced record-breaking temperatures, with heat indices above 100 degrees Fahrenheit in some places. Cities including Philadelphia, Cleveland, and Burlington, Vermont opened cooling centers, and Boston and New York activated heat emergency plans. Schools in Buffalo, New York moved to half-day schedules for the week in response to temperature advisories.
The heat wave was expected to hold into the weekend, increasing the risk of emergencies. But ensuring that at-risk residents are aware of public services and heat mitigation strategies is often more difficult than simply providing amenities like cooling centers and air conditioners, Benjamin Zaitchik, a professor of climate dynamics at Johns Hopkins University, told Heatmap. “Preventing heat deaths — in principle, at least — is easy,” Zaitchik said. “It just requires good planning, good communication, good networks.”
The same heatwave afflicted much of the Southwestern United States the week before. Temperatures in Phoenix and Las Vegas exceeded 110 degrees, breaking records and prompting cities to issue heat advisories covering tens of millions of people. At a Trump rally in Las Vegas, 24 people received treatment for heat-related complications and six were hospitalized, The Guardianreported.
June 14-19:More than 1,000 people died during the sacred Muslim pilgrimage known as the hajj as extreme heat gripped Saudi Arabia in mid-June. In Mecca, where temperatures exceed 120 degrees Fahrenheit, worshippers gripped umbrellas and water bottles to combat the heat. A study from 2019 predicted that hajj conditions would exceed an “extreme danger heat threshold” more frequently in the coming decades, especially when the pilgrimage — which is scheduled according to the lunar calendar — coincides with the warmer months of the year.
The death toll was about five times higher than last year, according to CNN.
June 10: Passengers on a Qatar Airways flight passed out from heat as their plane sat on the tarmac at Athens International Airport. Flight 204, which was delayed for three hours with passengers stuck inside, experienced a malfunction in its air conditioning. Two days later, authorities shut down the Acropolis for five hours due to the 102 degree weather, which marked Greece’s earliest heat wave on record. Many schools were also closed for the day, and several air-conditioned spaces were opened to the public. Greece’s Health Ministry advised older people and those with chronic illnesses to stay indoors.
The intense weather continued throughout the weekend, and at least five tourists were reported to have died due to extreme heat.
Other parts of Southern Europe, such as Cyprus and Turk, have also suffered through heat waves this year. During the second week of June, temperatures in Cyprus exceeded 104 degrees every day and classes ended early. On June 14, some areas experienced their hottest June day ever, reaching 113 degrees. That same week, Turkey also battled record temperatures — they were 8 to 12 degrees higher than the average for the season.
May and June: Both Mexico and India faced extreme temperatures during national elections.
Record-breaking heat waves have scorched Mexico since late March, causing blackouts, wildfires, heat strokes, and animal deaths. On May 25, Mexico City set a new heat record, with the temperature there surpassing 94.4 degrees, while other cities in the country registered even higher temperatures — well above 115 degrees. As of June 12, at least 125 deaths had been attributed to the heat, which has been made worse by an intense drought linked to El Niño. With reservoirs at less than 27% capacity, millions could run out of water by the end of this month.
World Weather Attribution, a research group that analyzes the degree to which climate change is causing extreme weather events, estimated that global warming has made extreme temperatures in the region 35 times more likely. “These trends will continue with future warming and events like the one observed in 2024 will be very common” in a world where average temperatures are 2 degrees Celsius higher than pre-industrial levels, the group stated in a release.
Despite sweltering conditions, about 100 million voters elected Claudia Sheinbaum, Mexico’s first female president, on June 2. In her victory speech, Sheinbaum, a climate scientist with a focus on energy engineering, said she will work to maintain the country’s energy sovereignty. While Sheinbaum has vouched to expand the country’s renewable energy, she has also been criticized for her support of Pemex, the state-owned oil company.
Two days later, on June 4, India re-elected Prime Minister Narendra Modi for a third term during the country’s longest-ever heatwave. By the time the weeks-long voting process wrapped, extreme heat had killed more than 100 people. In Uttar Pradesh, at least 33 poll workers died in a single day, CNN reported. In response, local governments have imposed measures to prevent water waste and protect construction workers. Yet, according to analysis by the Centre for Policy Research found in 2023, most of India’s heatwave policies are underfunded and fail to target the country’s most vulnerable groups.
More extreme weather hammered Mexico beginning June 20 as tropical storm Alberto brought torrential rain and flooding to the country’s east. AccuWeather meteorologists said the storm is just the start of a predicted intense hurricane season in the area. Most of India is still under heatwave alerts, but the weather is set to improve in the next few days as the monsoon finally advances after a week-long delay.
May: Scarce rainfall and soaring heat have led to drought conditions that are threatening China’s food production and water supply. The provinces of Shandong and Henan — crucial to the country’s wheat production — are some of the most affected, and the State Flood Control and Drought Relief Headquarters has dispatched two disaster relief guidance teams. New technology, such as multi-functional seeders, and multiple reservoirs have been deployed to ameliorate conditions.
Also on Wednesday, the China Meteorological Administration reported that several regional weather stations recorded the highest temperatures ever in mid-June. Conditions are expected to worsen, as some Chinese provinces are expected to reach 111 degrees this week.
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The EV-maker is now a culture war totem, plus some AI.
During Alan Greenspan’s decade-plus run leading the Federal Reserve, investors and the financial media were convinced that there was a “Greenspan put” underlying the stock market. The basic idea was that if the markets fell too much or too sharply, the Fed would intervene and put a floor on prices analogous to a “put” option on a stock, which allows an investor to sell a stock at a specific price, even if it’s currently selling for less. The existence of this put — which was, to be clear, never a stated policy — was thought to push stock prices up, as it gave investors more confidence that their assets could only fall so far.
While current Fed Chair Jerome Powell would be loath to comment on a specific volatile security, we may be seeing the emergence of a kind of sociopolitical put for Tesla, one coming from the White House and conservative media instead of the Federal Reserve.
The company’s high-flying stock shed over $100 billion of value on Monday, falling around 15% and leaving the price down around 50% from its previous all-time high. While the market as a whole also swooned, especially high-value technology companies like Nvidia and Meta, Tesla was the worst hit. Analysts attributed the particularly steep fall to concerns that CEO Elon Musk was spending too much time in Washington, and that the politicization of the brand had made it toxic to buyers in Europe and among liberals in the United States.
Then the cavalry came in. Sean Hannity told his Fox News audience that he had bought a Model S, while President Donald Trump posted on Truth Social that “I’m going to buy a brand new Tesla tomorrow morning as a show of confidence and support for Elon Musk, a truly great American.” By this afternoon, Trump had turned the White House lawn into a sales floor for Musk’s electric vehicles. Tesla shares closed the day up almost 4%, while the market overall closed down after Trump and his advisors’ furious whiplash policy pronouncements on tariffs.
Whether the Tesla put succeeds remains to be seen. The stock is still well, well below its all-time highs, but it may confirm a new way to understand Tesla — not as a company that sells electric vehicles to people concerned about climate change, but rather as a conservative culture war totem that has also made sizable investments in artificial intelligence and robotics.
When Musk bought Twitter and devoted more of his time, energy, money, and public pronouncements to right wing politics, some observers thought that maybe he could lift the dreadful image of electric vehicles among Trump voters. But when Pew did a survey on public attitudes towards electric vehicles back in 2023, it found that “Democrats and Democratic-leaning independents, younger adults, and people living in urban areas are among the most likely to say they would consider purchasing an EV” — hardly a broad swathe of Trump’s America. More than two-thirds of Republicans surveyed said they weren’t interested in buying an electric car, compared to 30% of Democrats.
On the campaign trail, Trump regularly lambasted EVs, although by the end of the campaign, as Musk’s support became more voluminous, he’s lightened up a bit. In any case, the Biden administration’s pro-electric-vehicle policies were an early target for the Trump administration, and the consumer subsidies for EVs passed under the 2022 Inflation Reduction Act are widely considered to be one of the softest targets for repeal.
But newer data shows that the tide may be turning, not so much for electric vehicles, but likely for Tesla itself.
The Wall Street Journalreported survey data last week showing that only 13% of Democrats would consider buying a Tesla, down from 23% from August of 2023, while 26% of Republicans would consider buying a Tesla, up from 15%. Vehicle registration data cited by the Journal suggested a shift in new Tesla purchases from liberal urban areas such as New York, San Francisco, and Los Angeles, towards more conservative-friendly metropolises like Las Vegas, Salt Lake City, and Miami.
At the same time, many Tesla investors appear to be mostly seeing through the gyrations in the famously volatile stock and relatively unconcerned about month-to-month or quarter-to-quarter sales data. After all, even after the epic fall in Tesla’s stock price, the company is still worth over $700 billion, more than Toyota, General Motors, and Ford combined, each of which sells several times more cars per year than Tesla.
Many investors simply do not view Tesla as a luxury or mass market automaker, instead seeing it as an artificial intelligence and robotics company. When I speak to individual Tesla shareholders, they’re always telling me how great Full Self-Driving is, not how many cars they expect the company to sell in August. In many cases, Musk has made Tesla stockholders a lot of money, so they’re willing to cut him tremendous slack and generally believe that he has the future figured out.
Longtime Tesla investor Ron Baron, who bought hundreds of millions of dollars worth of shares from 2014 to 2016, told CNBC Tuesday morning, that Musk “believes that digitization [and] autonomy is going to be driving the future. And he thinks we’re … on the verge of having an era of incredible abundance.”Baron also committed that he hasn’t, won’t, and will never sell. “I’m the last in, I’ll be the last out. So I won’t sell a single share personally until I sell all the shares for clients, and that’s what I’ve done.”
Wedbush Securities’ Dan Ives, one of the biggest Tesla bulls on the street, has told clients that he expects Tesla’s valuation to exceed $2 trillion, and that its self-driving and robotics business “will represent 90% of the valuation.”
Another longtime Tesla bull, Morgan Stanley’s Adam Jonas, told clients in a note Monday that Tesla remained a “Top Pick,” and that his price target was still $430, compared to the stock’s $230.58 close price on the day. His bull case, he said, was $800, which would give the company a valuation over $2.5 trillion.
When the stock lags, Jonas wrote, investors see Tesla as a car company. “In December with the stock testing $500/share, the prevailing sentiment was that the company is an AI ‘winner’ with untapped exposure to embodied AI expressions such as humanoid robotics,” Jonas wrote. “Today with the stock down 50% our investor conversations are focused on management distraction, brand degradation and lost auto sales.”
In a note to clients Tuesday, Ives beseeched Musk to “step up as CEO,” and lamented that there has been “little to no sign of Musk at any Tesla factory or manufacturing facility the last two months.” But his bullishness for Tesla was undaunted. He argued that the scheduled launch of unsupervised Full Self-Driving in June “kicks off the autonomous era at Tesla that we value at $1 trillion alone on a sum-of-the-parts valuation.”
“Autonomous will be the biggest transformation to the auto industry in modern day history,” Ives wrote, “and in our view Tesla will own the autonomous market in the U.S. and globally.”
The most effective put of all may not be anything Trump says or does, but rather investors’ optimism about the future — as long as it’s Elon Musk’s future.
The uncertainty created by Trump’s erratic policymaking could not have come at a worse time for the industry.
This is the second story in a Heatmap series on the “green freeze” under Trump.
Climate tech investment rode to record highs during the Biden administration, supercharged by a surge in ESG investing and net-zero commitments, the passage of the Infrastructure Investment and Jobs Act and Inflation Reduction Act, and at least initially, low interest rates. Though the market had already dropped somewhat from its recent peak, climate tech investors told me that the Trump administration is now shepherding in a detrimental overcorrection. The president’s fossil fuel-friendly rhetoric, dubiously legal IIJA and IRA funding freezes, and aggressive tariffs, have left climate tech startups in the worst possible place: a state of deep uncertainty.
“Uncertainty is the enemy of economic progress,” Andrew Beebe, managing director at Obvious Ventures, told me.
The lack of clarity is understandably causing investors to throw on the brakes. “We’ve talked internally about, let’s be a little bit more cautious, let’s be a little more judicious with our dollars right now,” Gabriel Kra, co-founder at the climate tech firm Prelude Ventures, told me. “We’re not out in the market, but I would think this would be a really tough time to try and go out and raise a new fund.”
This reluctance comes at a particularly bad time for climate tech startups, many of which are now reaching a point where they are ready to scale up and build first-of-a-kind infrastructure projects and factories. That takes serious capital, the kind that wasn’t as necessary during Trump’s first term, or even much of Biden’s, when many of these companies were in a more nascent research and development or proof-of-concept stage.
I also heard from investors that the pace of Trump’s actions and the extent of the economic upheaval across every sector feels unique this time around. “We’re entering a pretty different economic construct,” Beebe told me, citing the swirling unknowns around how Trump’s policies will impact economic indicators such as inflation and interest rates. “We haven’t seen this kind of economic warfare in decades,” he said.
Even before Trump took office, it was notoriously difficult for climate companies to raise funding in the so-called “missing middle,” when startups are too mature for early-stage venture capital but not mature enough for traditional infrastructure investors to take a bet on them. This is exactly the point at which government support — say, a loan guarantee from the Department of Energy’s Loan Programs Office or a grant from the DOE’s Office of Clean Energy Demonstrations — could be most useful in helping a company prove its commercial viability.
But now that Trump has frozen funding — even some that’s been contractually obligated — companies are left with fewer options than ever to reach scale.
One investor who wished to remain anonymous in order to speak more openly told me that “a lot of the missing middle companies are living in a dicier world.” A 2023 white paper on “capital imbalances in the energy transition” from S2G Investments, a firm that supports both early-stage and growth-stage companies, found that from 2017 to 2022, only 20% of climate capital flowed toward companies at this critical inflection point, while 43% went to early-stage companies and 37% towards established technologies. For companies at this precarious growth stage, a funding delay on the order of months could be the difference between life and death, the investor added. Many of these companies may also be reliant on debt financing, they explained. “Unless they’ve been extremely disciplined, they could run into a situation where they’re just not able to service that debt.”
The months or even years that it could take for Trump’s rash funding rescission to wind through the courts will end up killing some companies, Beebe told me. “And unfortunately, that’s what people on the other side of this debate would like, is just to litigate and escalate. And even if they ultimately lose, they’ve won, because startups just don’t have the balance sheets that big companies would,” he explained.
Kra’s Prelude Ventures has a number of prominent companies in its portfolio that have benefitted from DOE grants. This includes Electric Hydrogen, which received a $43.3 million DOE grant to scale electrolyzer manufacturing; Form Energy, which received $150 million to help build a long-duration battery storage manufacturing plant; Boston Metal, which was awarded $50 million for a green steel facility; and Heirloom, which is a part of the $600 million Project Cypress Direct Air Capture hub. DOE funding is often doled out in tranches, with some usually provided upfront and further payments tied to specific project milestones. So even if a grant has officially been awarded, that doesn’t mean all of the funding has been disbursed, giving the Trump administration an opening to break government contracts and claw it back.
Kra told me that a few of his firm’s companies were on the verge of securing government funding before Trump took office, or have a project in the works that is now on hold. “We and the board are working closely with those companies to figure out what to do,” he told me. “If the mandates or supports aren’t there for that company, you’ve got to figure out how to make that cash last a bunch longer so you can still meet some commercially meaningful milestones.”
In this environment, Kra said his firm will be taking a closer look at companies that claim they will be able to attract federal funds. “Let’s make sure we understand what they can do without that non-dilutive capital, without those grants, without that project level support,” he told me, noting that “several” companies in his portfolio will also be impacted by Trump’s ever-changing tariffs on imports from Canada, Mexico, and China. Prelude Ventures is working with its portfolio companies to figure how to “smooth out the hit,” Kra told me later via email, but inevitably the tariffs “will affect the prices consumers pay in the short and long run.”
While investors can’t avoid the impacts of all government policies and impulses, the growth-stage firm G2 Venture Partners has long tried to inoculate itself against the vicissitudes of government financing. “None of our companies actually have any exposure to DOE loans,” Brook Porter, a partner and co-founder at G2, told me in an email, nor have they received government grants. If you add up the revenue from all of the companies in G2’s portfolio, which is made up mainly of sustainability-focused startups, only about 3% “has any exposure to the IRA,” Porter told me. So even if the law’s generous clean energy tax credits are slashed or the programs it supports are left to languish, G2’s companies will likely soldier on.
Then there are the venture capitalists themselves. Many of the investors I spoke with emphasized that not all firms will have the ability or will to weather this storm. “I definitely believe many generalist funds who dabbled in climate will pull back,” Beebe told me. Porter agreed. “The generalists are much more interested in AI, then I think in climate,” he said. It’s not as if there’s been a rash of generalist investors announcing pullbacks, though Kra told me he knows of “a couple of firms” that are rethinking their climate investment strategies, potentially opting to fold these investments under an umbrella category such as “hard tech” instead of highlighting a sectoral focus on energy or climate, specifically.
Last month, the investment firm Coatue, which has about $70 billion in assets under management, raised around $250 million for a climate-focused fund, showing it’s not all doom and gloom for the generalists’ climate ambitions. But Porter told me this is exactly the type of large firm he wouldexpect to back out soon, citing Tiger Global Management and Softbank as others that started investing heavily during climate tech’s boom years from 2020 to 2022 that he could imagine winding down that line of business.
Strategic investors such as oil companies have also been quick to dial back their clean energy ambitions and refocus their sights on the fossil fuels championed by the Trump administration. “Corporate venture is very cyclical,” Beebe told me, explaining that large companies tend to make venture investments when they have excess budget or when a sector looks hot, but tighten the purse strings during periods of uncertainty.
But Cody Simms, a managing partner at the climate tech investment firm MCJ, told me that at the moment, he actually sees the corporate venture ecosystem as “quite strong and quite active.” The firm’s investments include the low-carbon cement company Sublime Systems, which last year got strategic backing from two of the world’s largest building materials companies, and the methane capture company Windfall Bio, which has received strategic funding from Amazon’s Climate Pledge Fund. Simms noted that this momentum could represent an overexuberance among corporations who just recently stood up their climate-focused venture arms, and “we’ll see if it continues into the next few years.”
Notably, Sublime and Windfall Bio both also have millions in DOE grants, and another of MCJ’s portfolio companies, bio-based chemicals maker Solugen, has a “conditional commitment” from the LPO for a loan guarantee of over $200 million. Since that money isn’t yet obligated, there’s a good chance it might never actually materialize, which could stall construction on the company’s in-progress biomanufacturing facility.
Simms told me that the main thing he’s encouraging MCJ’s portfolio companies to do at this stage is to contact their local representatives — not to advocate for climate action in general, but rather “to push on the very specific tax credit that they are planning to use and to talk about how it creates jobs locally in their districts.”
Getting startups to shift the narrative away from decarbonization and climate and toward their multitudinous co-benefits — from energy security to supply chain resilience — is of course a strategy many are already deploying to one degree or another. And investors were quick to remind me that the landscape may not be quite as bleak as it appears.
“We’ve made more investments, and we have a pipeline of more attractive investments now than we have in the last couple of years,” Porter told me. That’s because in spite of whatever havoc the Trump administration is wreaking, a lot of climate tech companies are reaching a critical juncture that could position the sector overall for “a record number of IPOs this year and next,” Porter said. The question is, “will these macro uncertainties — political, economic, financial uncertainty — hold companies back from going public?”
As with so many economic downturns and periods of instability, investors also see this as a moment for the true blue startups and venture capitalists to prove their worth and business acumen in an environment that’s working against them. “Now we have the hardcore founders, the people who really are driven by building economically viable, long-term, massively impactful companies, and the investors who understand the markets very well, coming together around clean business models that aren’t dependent on swinging from one subsidy vine to the next subsidy vine,” Beebe told me.
“There is no opportunity that’s an absolute no, even in this current situation, across the entire space,” the anonymous climate tech investor told me. “And so this might be one of the most important points — I won’t say a high point, necessarily — but it might be a moment of truth that the energy transition needs to embrace.”
On the energy secretary’s keynote, Ontario’s electricity surcharge, and record solar power
Current conditions: Critical fire weather returns to New Mexico and Texas and will remain through Saturday • Sharks have been spotted in flooded canals along Australia’s Gold Coast after Cyclone Alfred dropped more than two feet of rain • A tanker carrying jet fuel is still burning after it collided with a cargo ship in the North Sea yesterday. The ship was transporting toxic chemicals that could devastate ecosystems along England’s northeast coast.
In a keynote speech at the energy industry’s annual CERAWeek conference, Energy Secretary Chris Wright told executives and policymakers that the Trump administration sees climate change as “a side effect of building the modern world,” and said that “everything in life involves trade-offs." He pledged to “end the Biden administration’s irrational, quasi-religious policies on climate change” and insisted he’s not a climate change denier, but rather a “climate realist.” According toThe New York Times, “Mr. Wright’s speech was greeted with enthusiastic applause.” Wright also reportedly told fossil fuel bosses he intended to speed up permitting for their projects.
Other things overheard at Day 1 of CERAWeek:
The premier of Canada’s Ontario province announced he is hiking fees on electricity exported to the U.S. by 25%, escalating the trade war kicked off by President Trump’s tariffs on Canadian goods, including a 10% tariff on Canadian energy resources. The decision could affect prices in Minnesota, New York, and Michigan, which get some of their electricity from the province. Ontario Premier Doug Ford estimated the surcharge will add about $70 to the monthly bills of affected customers. “I will not hesitate to increase this charge,” Ford said. “If the United States escalates, I will not hesitate to shut the electricity off completely.” The U.S. tariffs went into effect on March 4. Trump issued another 30-day pause just days later, but Ford said Ontario “will not relent” until the threat of tariffs is gone for good.
There was a lot of news from the White House yesterday that relates to climate and the energy transition. Here’s a quick rundown:
The EPA cancelled hundreds of environmental justice grants: EPA Administrator Lee Zeldin and Elon Musk’s so-called Department of Government Efficiency nixed 400 grants across environmental justice programs and diversity, equity, and inclusion programs worth $1.7 billion. Zeldin said this round of cuts “was our biggest yet.”
Transportation Secretary Sean Duffy rescinded Biden memos about infrastructure projects: The two memos encouraged states to prioritize climate change resilience in infrastructure projects funded by the Bipartisan Infrastructure Law, and to include under-represented groups when planning projects.
The military ended funding for climate studies: This one technically broke on Friday. The Department of Defense is scrapping its funding for social science research, which covers climate change studies. In a post on X, Defense Secretary Pete Hegseth said DOD “does not do climate change crap. We do training and war fighting.”
Meanwhile, a second nonprofit – the Coalition for Green Capital – filed a lawsuit against Citibank over climate grant money awarded under the Inflation Reduction Act but frozen by Zeldin’s EPA. Climate United filed a similar lawsuit (but targeting the EPA, as well as Citibank) on Saturday.
A new report from the Princeton ZERO Lab’s REPEAT Project examines the potential consequences of the Trump administration’s plans to kill existing EV tax credits and repeal EPA tailpipe regulations. It finds that, compared to a scenario in which the current policies are kept in place:
“In other words, killing the IRA tax credits for EVs will decimate the nascent renaissance in vehicle and battery manufacturing investment and employment we’re currently seeing play out across the United States,” said Jesse Jenkins, an assistant professor and expert in energy systems engineering and policy at Princeton University and head of the REPEAT Project. (Jenkins is also the co-host of Heatmap’s Shift Key podcast.)
REPEAT Project
The U.S. installed nearly 50 gigawatts of new solar power capacity last year, up 21% from 2023, according to a new report from the Solar Energy Industries Association (SEIA) and Wood Mackenzie. That’s a record, and the largest annual grid capacity increase from any energy technology in the U.S. in more than 20 years. Combined with storage, solar represents 84% of all new grid capacity added in 2024.
SEIA and Wood Mackenzie
Last year was “the year of materialization of the IRA,” with supply chains becoming more resilient and interest from utilities and corporate buyers growing. Installations are expected to remain steady this year, with little growth, because of policy uncertainty. Total U.S. solar capacity is expected to reach 739 GW by 2035, but this depends on policy. The worst case scenario shows a 130 GW decline in deployment through 2035, which would represent $250 billion in lost investments.
“Last year’s record-level of installations was aided by several solar policies and credits within the Inflation Reduction Act that helped drive interest in the solar market,” said Sylvia Levya Martinez, a principal analyst of North America utility-scale solar for Wood Mackenzie. “We still have many challenges ahead, including unprecedented load growth on the power grid. If many of these policies were eliminated or significantly altered, it would be very detrimental to the industry’s continued growth.”
Tesla shares plunged yesterday by 15%, marking the company’s worst day on the market since 2020 and erasing its post-election stock bump.