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Economy

European Energy Is Worried

On flaring, forests, and boardroom deliberations.

Tuesday.
Heatmap Illustration/Getty Images

Current conditions: At least 45 are dead and many more are trapped in the Indian state of Kerala after heavy rainfall triggered landslides • California’s Park Fire, only 14% contained, is now the sixth-largest in the state’s history • Typhoon Gaemi’s death toll continues to climb as the storm’s remnants batter southern China • A flash flood hit the popular Dollywood theme park in Tennessee.

THE TOP FIVE

1. European clean energy companies weigh their futures in the U.S. ahead of the presidential election

European companies are considering whether to invest in new clean energy projects in the U.S. as November’s election looms, Reuters reported on Monday. The Inflation Reduction Act’s incentives for clean energy, EVs, and hydrogen – which drew many European firms to cross the Atlantic – are perceived to be in jeopardy in the event of a Trump victory. Companies like Thyssenkrupp Nucera, Nel, SMA Solar, and H2Apex, which have undertaken clean energy projects in the U.S. in the last two years, are all delaying investment decisions over worries that tax credits and demand could dry up.

Their concerns are warranted. Donald Trump has pledged to redirect clean energy funding to other priorities like roads and bridges should he win re-election. And the Heritage Foundation’s Project 2025 (widely seen as a policy map for a second Trump term) proposes gutting key climate agencies like the Environmental Protection Agency and the Department of Energy’s Loans Program Office.

2. Nuclear fusion company concludes giant funding round

Type One Energy closed its seed funding round at $82.5 million, a testament to the hype surrounding the emerging nuclear fusion company. As Heatmap’s Katie Brigham reports, the company uses a reactor design known as a stellarator, which – unlike the traditional tokamak reactor – employs a twisted magnetic field to keep the plasma stabilized inside. The company’s novel technology sparked interest from major funders like Breakthrough Energy, Centaurus Capital, and New Zealand-based GD1. Type One CEO Chris Mowry called the funding round, “one of the largest, if not the largest ever, seed financings in the history of energy.”

3. Gas flaring in Azerbaijan hits a decadal high

The host of the UN COP29 climate summit flared 10.5% more methane in 2023 than it did in 2018, the last time the country reported its emissions, according to recent analysis by nonprofit group Global Witness. Flaring involves burning (rather than capturing) the natural gas produced as a byproduct of oil drilling, and it is responsible for over 381 million metric tons of CO2 equivalent emissions annually, according to the World Bank. Several of the facilities most at fault for the increase in flaring are owned or operated by British multinational energy company BP.

It’s a new black mark on Azerbaijan’s climate record, already under scrutiny by those who object to holding another climate conference in a major oil and gas-producing country.

4. Wildfires are hurting the U.S. economy

A forthcoming report by economic analysis group IMPLAN finds that wildfires could punch a nearly $90 billion hole in U.S. economic output this year. Wildfires are already displacing entire communities as they rage across much of the American West. That’s going to have an impact, says IMPLAN — potentially eliminating as many as 466,000 jobs by the end of the year. The report notes that some industries may actually benefit from the surge in wildfires. Businesses like electricity, healthcare, and (of course) fire prevention could see elevated spending as climate change increases the frequency of these destructive blazes.

5. A new study casts doubt on forests’ ability to curb emissions

Vegetation isn’t acting as the carbon sponge many had hoped it would. A new study by the French research organization Laboratory for Climate and Environmental Sciences (LCES) found that between 2022 and 2023, the growth rate of carbon dioxide in the atmosphere increased 86%. That’s partly because drought in the Amazon and wildfires in Canada constrained forests’ ability to sequester carbon as they normally do. While the report’s authors noted that carbon uptake changes from year to year, these findings cast doubt on forests’ reliability as a carbon sponge in the future. “We are pumping less carbon from the atmosphere into the land,” one of the study’s authors told Reuters. “Suddenly the pump is choking, and it's pumping less.”

THE KICKER

“Unfortunately, meteorological events beyond our control ... can alter water quality and compel us to reschedule the event for health reasons.” – A joint statement by World Triathlon and Paris 2024 blaming the weekend’s rain storms for the pollution in the Seine that caused them to postpone today’s men’s Olympic triathlon.

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AM Briefing

New York Quits

On microreactor milestones, the Colorado River, and ‘crazy’ Europe

New York Abandons Its Fifth Offshore Wind Solicitation
Heatmap Illustration/Getty Images

Current conditions: A train of three storms is set to pummel Southern California with flooding rain and up to 9 inches mountain snow • Cyclone Gezani just killed at least four people in Mozambique after leaving close to 60 dead in Madagascar • Temperatures in the southern Indian state of Kerala are on track to eclipse 100 degrees Fahrenheit.


THE TOP FIVE

1. New York abandons its fifth offshore wind solicitation

What a difference two years makes. In April 2024, New York announced plans to open a fifth offshore wind solicitation, this time with a faster timeline and $200 million from the state to support the establishment of a turbine supply chain. Seven months later, at least four developers, including Germany’s RWE and the Danish wind giant Orsted, submitted bids. But as the Trump administration launched a war against offshore wind, developers withdrew their bids. On Friday, Albany formally canceled the auction. In a statement, the state government said the reversal was due to “federal actions disrupting the offshore wind market and instilling significant uncertainty into offshore wind project development.” That doesn’t mean offshore wind is kaput. As I wrote last week, Orsted’s projects are back on track after its most recent court victory against the White House’s stop-work orders. Equinor's Empire Wind, as Heatmap’s Jael Holzman wrote last month, is cruising to completion. If numbers developers shared with Canary Media are to be believed, the few offshore wind turbines already spinning on the East Coast actually churned out power more than half the time during the recent cold snap, reaching capacity factors typically associated with natural gas plants. That would be a big success. But that success may need the political winds to shift before it can be translated into more projects.

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Trump’s Assault on the Clean Air Act and What Happens Next

In this special episode, Rob goes over the repeal of the “endangerment finding” for greenhouse gases with Harvard Law School’s Jody Freeman.

Donald Trump and Lee Zeldin.
Heatmap Illustration/Getty Images

President Trump has opened a new and aggressive war on the Environmental Protection Agency’s ability to limit climate pollution. Last week, the EPA formally repealed its scientific determination that greenhouse gases endanger human health and the environment.

On this week’s episode of Shift Key, we find out what happens next.

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Donald Trump and Lee Zeldin.
Heatmap Illustration/Getty Images

This transcript has been automatically generated.

Subscribe to “Shift Key” and find this episode on Apple Podcasts, Spotify, Amazon, or wherever you get your podcasts.

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