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Climate

Musk, Trump Split Over Deficit, Cuts to Subsidies

On Musk vs. Trump, tech emissions, and V2G charging

Musk, Trump Split Over Deficit, Cuts to Subsidies
Heatmap Illustration/Getty Images

Current conditions: Polar air could deliver Australia’s most widespread snowfall in years this weekend • Toronto and Montreal have some of the worst air quality in the world going into Friday due to smoke from the Manitoba fires • Global average concentrations of CO2 exceeded 430 parts per million in May, the highest level in millions or possibly tens of millions of years.

THE TOP FIVE

1. Musk’s criticisms of deficit, cuts to subsidies set off public breakup with Trump

Elon Musk’s criticisms of the Republican reconciliation bill triggered a very public falling out with President Trump on Thursday. Earlier this week, just days after his Oval Office send-off from the government, Musk took to Twitter to slam Trump’s “Big, Beautiful” bill, which he claimed would “massively increase the already gigantic budget deficit to $2.5 trillion (!!!) and burden America citizens with crushingly unsustainable debt.” By Thursday, Musk was calling for Congress to kill the bill, and his criticisms had escalated: “Keep the EV/solar incentive cuts in the bill, even though no oil & gas subsidies are touched (very unfair!!), but ditch the MOUNTAIN of DISGUSTING PORK in the bill,” he tweeted. Trump responded by telling reporters on Thursday afternoon that “Elon and I had a great relationship — I don’t know if we will anymore,” touching off a back-and-forth on social media that culminated in Musk claiming Trump is “in the Epstein files,” a reference to Jeffrey Epstein.

The conflict also sent “the value of Tesla shares into a freefall,” my colleague Matthew Zeitlin wrote in his accounting of the breakup. The company’s stock was down 14% by the time the dust settled, erasing $153 billion from Tesla’s market value in the company’s biggest one-day drop on record. “The whole thing is idiotic,” Wayne Kaufman, the chief market analyst at Phoenix Financial Services, said, per Bloomberg. “People in these kinds of positions should know better than to act like kids in junior high.”

2. Tech emissions rose 150% in 3 years due to AI: UN

Indirect emissions from Amazon, Microsoft, Alphabet, and Meta rose 150% in the three years between 2020 and 2023 due to the energy demands of artificial intelligence, a new report by the United Nations’ International Telecommunication Union found. Amazon saw the most significant jump in emissions, up 182% in 2023 compared to 2020, followed by Microsoft at 155%, Meta at 145%, and Alphabet at 138% over the same periods. In total, 166 digital companies reviewed by the report contributed just under 1% of all global energy-related emissions in 2023.

Indirect emissions, also called scope 2 emissions, account for those from “purchased electricity, steam, heating, and cooling consumed by the company.” However, the report also found that nearly half of the companies it examined have committed to achieving net-zero emissions goals, with 51 companies setting ambitious deadlines of 2050 or earlier. Twenty-three of the companies in the report already operated on 100% renewable energy in 2023, up from 16 in 2022. You can read the full report here.

3. Utrecht becomes first European city with vehicle-to-grid bidirectional charging

Renault Group

Renault Group announced Thursday that the Dutch city of Utrecht is officially the first in Europe to debut a vehicle-to-grid car-sharing service. The program, called Utrecht Energized, was announced last fall, with Renault supplying an initial 500 electric models featuring V2G bidirectional charging technology, allowing the cars to charge using clean energy and also feed power back into the grid during times of high demand.

Utrecht was already one of Europe’s “most progressive renewable-energy cities,” per the announcement, with 35% of its roofs equipped with solar panels. “To manage the grid with a high proportion of renewables requires a system that quickly adapts to the changes in energy generation and consumption,” Renault wrote in its announcement, adding that the bidirectional cars in the program can deliver 10% of the flexibility to balance Utrecht’s wind-and-solar-generated electricity during peak times. Although the program is the first of its kind in Europe, similar programs are also underway in China, Japan, and Australia, Autoevolution writes.

4. South Carolina battery plant suspends construction, citing policy uncertainty

Battery cell maker Envision Automotive Energy Supply Co. announced a work stoppage on Thursday of the construction of its manufacturing plant near Florence, South Carolina. “AESC has informed the state of South Carolina and our local partners that due to policy and market uncertainty, we are pausing construction at our South Carolina facility at this time,” spokesman Brad Grantham said in a statement, per the South Carolina Daily Gazette. The pause jeopardizes 1,600 new jobs and a planned $1.6 billion investment in the facility by the Japan-based company. The state’s Republican Governor Henry McMaster, a Trump ally, acknowledged that “the tariffs are going up and down” and some projects are “being paused,” but added, “Let things play out, because all of these changes are taking place. So, I’d say, relax if you can.”

5. Snowpack is melting at record levels in the West, could worsen wildfire season

Record-fast snowmelt in the western United States could be cueing up a particularly severe fire season, The Guardian reports. Despite some states, including California, seeing above-average snowfall this winter, all western states already have below-normal snowpacks, indicative of a rapid melt rate that the National Oceanic and Atmospheric Administration described in a recent special notice as “not normal.” Additionally, a third of the states in the West are in “severe” drought or worse, the highest proportion in more than two years. Combined with a forecast for above-average summer temperatures, the “quickly depleting mountain snows will limit summertime water availability in streams and rivers throughout the West, and may kick off a potential feedback loop that could intensify and expand the current drought,” The Guardian writes, singling out the Pacific Northwest as especially vulnerable to wildfires as a result.

THE KICKER

A Ginko tree at the Miaoying Temple in Beijing. Kevin Frayer/Getty Images

A study of 50,000 trees in China found that thousands of endangered varieties have been preserved for centuries within the walls of religious sites and temples. “The researchers found that the density of ancient trees inside the temples was more than 7,000 times higher than those outside temples and in the wild,”Nature writes. Eight of the tree species identified by the researchers can only be found on temple grounds.

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