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On Volkswagen’s Scout revival, an IRA status report, and carbon removal rules
Current conditions: Canada’s Alberta province has declared an early start to wildfire season • The air quality is “unhealthy” today in Milan, recently named the world’s third most polluted city • It will be 50 degrees Fahrenheit and sunny in National Harbor, Md., for the kickoff of the Conservative Political Action Conference.
A year and a half ago, President Biden signed the Inflation Reduction Act, which will spend an estimated $500 billion in grants and tax credits to incentivize people and businesses to switch from burning fossil fuels to using cleaner, zero-carbon technologies. Is it working? In the third episode of Heatmap’s podcast “Shift Key,” hosts Robinson Meyer and Jesse Jenkins dive into a new report from a coalition of major energy analysts — including MIT, the Rhodium Group, and Jenkins’ lab at Princeton — that looks at data from the power and transportation sectors and concludes that yes, the law is starting to decarbonize the American economy. But it isn’t working in the way many people might expect. While the transportation sector came in at the upper end of what modelers projected for this year, the power sector is lagging behind largely because of a drop in new onshore wind projects. As a result, the power sector is not on track to cut emissions 40% by 2030, as compared to 2005 levels, as the bill’s supporters have hoped.
“Unfortunately, we're just not building out at the pace that would be economically justified,” Jenkins told Meyer. “And that is really an indicator that there are a substantial number of other non-economic frictions or barriers to deployment of wind in particular at the pace that we want to see.”
Subscribe to “Shift Key” and find the episode on Apple Podcasts, or wherever you get your podcasts.
Volkswagen wants to double its market share in the United States by 2030, and it’s hoping a little bit of nostalgia will help do the trick, according toThe New York Times. The German company is reviving the iconic Scout brand with a line of electric pickups and sport utility vehicles, and leaning hard on its electric ID.Buzz, which resembles the Microbus – aka the Hippie Van. And Pablo Di Si, president of Volkswagen Group of America, hinted at an EV Beetle revival. Last week the company inaugurated a new factory site in South Carolina where the electric Scout vehicles will be built. “This market is turning electric, and everybody’s starting from scratch,” Arno Antlitz, the chief financial officer of Volkswagen, told the Times. “This is our unique opportunity to grow.” The paper notes that Volkswagen has been trying since the 1970s to grow in the U.S., with little success. The first electric Scouts will go on sale in 2026.
An old Scout modelScout Motors/Instagram
The Biden administration is putting $500 million toward wildfire prevention in 21 areas that the Agriculture Department has identified as being high risk. Those include forests like Mt. Hood National Forest in Oregon, but also 4 million acres in southern California. The money comes from the Inflation Reduction Act (IRA), the Bipartisan Infrastructure Law (BIL), and the U.S. Forest Service’s Collaborative Wildfire Risk Reduction Program. The total IRA and BIL funding for wildfire resilience sits at $2.4 billion, The Hill reported. More than 2.6 million acres were burned in wildfires last year.
The first chemical tanker to be retrofitted with wind “sails” has set out on its first wind-assisted voyage. The MT Chemical Challenger left Antwerp on Friday, headed for Istanbul. Along its journey the ship will test out four newly installed giant aluminum sails that are meant to help reduce fuel consumption by up to 20%. Last year Cargill put “WindWings” made by BAR Technologies on one of its cargo ships, so the Chemical Challenger isn’t breaking entirely new ground, but the project does represent growing interest within the shipping industry to reduce carbon emissions. The International Maritime Organization last year said shipping emissions must drop by at least 40% by 2030, and be eliminated by around 2050, to be in line with Paris Agreement targets. But there are no legally binding measures to implement these guidelines. International shipping accounted for about 2% of global energy-related CO2 emissions in 2022, according to the International Energy Agency.
The European Union is considering implementing a carbon removals certification process that could help legitimize and police an industry that’s still nascent, but growing fast. Companies claiming to remove planet-warming CO2 from the atmosphere have so far been left to police themselves, wrote Justine Calma at The Verge. “Lax rules — or no rules at all — could give companies a way to keep polluting while misleadingly promising to draw down those emissions later.” The EU’s proposed framework sets definitions for “permanent” removal vs. “temporary” carbon storage, and identifies different methods like wood-based construction, forest restoration, soil management, and others. It does not include “activities that do not result in carbon removals or soil emission reductions,” such as “avoided” deforestation or renewable energy products. To be certified in the eyes of the EU, projects will need to be quantifiable, long term, sustainable, and must capture carbon that would have otherwise been released into the atmosphere. The framework has been approved by the European Parliament and the Council and Commission – it now needs formal government adoption. “If adopted, the certification process would be voluntary for carbon removal companies,” Calma explained. “But only certified projects would count toward a country’s progress in meeting the European Union’s climate goals.”
Matt Brady, The University of Texas at El Paso
This is the first known photo of the Yellow-crested Helmetshrike, a bird species thought to have been lost, but recently stumbled upon by researchers in the Democratic Republic of the Congo.
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On the looming climate summit, clean energy stocks, and Hurricane Rafael
Current conditions: A winter storm could bring up to 4 feet of snow to parts of Colorado and New Mexico • At least 89 people are still missing from extreme flooding in Spain • The Mountain Fire in Southern California has consumed 14,000 acres and is zero percent contained.
The world is still reeling from the results of this week’s U.S. presidential election, and everyone is trying to get some idea of what a second Trump term means for policy – both at home and abroad. Perhaps most immediately, Trump’s election is “set to cast a pall over the UN COP29 summit next week,” said the Financial Times. Already many world leaders and business executives have said they will not attend the climate talks in Azerbaijan, where countries will aim to set a new goal for climate finance. “The U.S., as the world’s richest country and key shareholder in international financial institutions, is viewed as crucial to that goal,” the FT added.
Trump has called climate change a hoax, vowed to once again remove the U.S. from the Paris Agreement, and promised to stop U.S. climate finance contributions. He has also promised to “drill, baby, drill.” Yesterday President Biden put new environmental limitations on an oil-and-gas lease sale in Alaska’s Arctic National Wildlife Refuge. The lease sale was originally required by law in 2017 by Trump himself, and Biden is trying to “narrow” the lease sale without breaking that law, according to The Washington Post. “The election results have made the threat to America's Arctic clear,” Kristen Miller, executive director of Alaska Wilderness League, toldReuters. “The fight to save the Arctic Refuge is back, and we are ready for the next four years.”
Another early effect of the decisive election result is that clean energy stocks are down. The iShares Global Clean Energy exchange traded fund, whose biggest holdings are the solar panel company First Solar and the Spanish utility and renewables developer Iberdola, is down about 6%. The iShares U.S. Energy ETF, meanwhile, whose largest holdings are Exxon and Chevron, is up over 3%. Some specific publicly traded clean energy stocks have sunk, especially residential solar companies like Sunrun, which is down about 30% compared to Tuesday. “That renewables companies are falling more than fossil energy companies are rising, however, indicates that the market is not expecting a Trump White House to do much to improve oil and gas profitability or production, which has actually increased in the Biden years thanks to the spikes in energy prices following the Russian invasion of Ukraine and continued exploitation of America’s oil and gas resources through hydraulic fracturing,” wrote Heatmap’s Matthew Zeitlin.
Hurricane Rafael swept through Cuba yesterday as a Category 3 storm, knocking out the power grid and leaving 10 million people without electricity. Widespread flooding is reported. The island was still recovering from last month’s Hurricane Oscar, which left at least six people dead. The electrical grid – run by oil-fired power plants – has collapsed several times over the last few weeks. Meanwhile, the U.S. Bureau of Safety and Environmental Enforcement said yesterday that about 17% of crude oil production and 7% of natural gas output in the Gulf of Mexico was shut down because of Rafael.
It is “virtually certain” that 2024 will be the warmest year on record, according to the European Copernicus Climate Change Service. In October, the global average surface air temperature was about 60 degrees Fahrenheit, or nearly 3 degrees Fahrenheit warmer than pre-industrial averages for that month. This year is also on track to be the first entire calendar year in which temperatures are more than 1.5 degrees Celsius above pre-industrial levels. “This marks a new milestone in global temperature records and should serve as a catalyst to raise ambition for the upcoming climate change conference,” said Copernicus deputy director Dr. Samantha Burgess.
C3S
The world is falling short of its goal to double the rate of energy efficiency improvements by 2030, the International Energy Agency said in its new Energy Efficiency 2024 report. Global primary energy intensity – which the IEA explained is a measure of efficiency – will improve by 1% this year, the same as last year. It needs to be increasing by 4% by the end of the decade to meet a goal set at last year’s COP. “Boosting energy efficiency is about getting more from everyday technologies and industrial processes for the same amount of energy input, and means more jobs, healthier cities and a range of other benefits,” the IEA said. “Improving the efficiency of buildings and vehicles, as well as in other areas, is central to clean energy transitions, since it simultaneously improves energy security, lowers energy bills for consumers and reduces greenhouse gas emissions.” The group called for more government action as well as investment in energy efficient technologies.
Deforestation in Brazil’s Amazon fell by 30.6% in the 12 months leading up to July, compared to a year earlier. It is now at the lowest levels since 2015.
State-level policies and “unstoppable” momentum for clean energy.
As the realities of Trump’s return to office and the likelihood of a Republican trifecta in Washington began to set in on Wednesday morning, climate and clean energy advocates mostly did not sugarcoat the result or look for a silver lining. But in press releases and interviews, reactions to the news coalesced around two key ways to think about what happens next.
Like last time Trump was elected, the onus will now fall on state and local leaders to make progress on climate change in spite of — and likely in direct conflict with — shifting federal priorities. Working to their advantage, though, much more so than last time, is global political and economic momentum behind the growth of clean energy.
“No matter what Trump may say, the shift to clean energy is unstoppable,” former White House National Climate Advisor Gina McCarthy said in a statement.
“This is a dark day, but despite this election result, momentum is on our side,” Sierra Club Executive Director Ben Jealous wrote. “The transition away from dirty fossil fuels to affordable clean energy is already underway.”
“States are the critical last line of defense on climate,” said Caroline Spears, the executive director of Climate Cabinet, a group that campaigns for local climate leaders, during a press call on Wednesday. “I used to work in the solar industry under the Trump administration. We still built solar and it was on the back of great state policy.”
Reached by phone on Wednesday, the climate policy strategist Sam Ricketts offered a blunt assessment of where things stand. “First things first, this outcome sucks,” he said. He worried aloud about what another four years of Trump would mean for his kids and the planet they inherit. But Ricketts has also been here before. During Trump’s first term, he worked for the “climate governor,” Washington’s Jay Inslee, and helped further state and local climate policy around the country for the Democratic Governors Association. “For me, it is a familiar song,” he said.
Ricketts believes the transition to clean energy has become inevitable. But he offered other reasons states may be in a better position to make progress over the next four years than they were last time. There are now 23 states with Democratic governors and at least 15 with Democratic trifectas — compare that to 2017, when there were just 16 Democratic governors and seven trifectas. Additionally, Democrats won key seats in the state houses of Wisconsin and North Carolina that will break up previous Republican supermajorities and give the Democratic governors in those states more opportunity to make progress.
Spears also highlighted these victories during the Climate Cabinet press call, adding that they help illustrate that the election was not a referendum on climate policy. “We have examples of candidates who ran forward on climate, they ran forward on clean energy, and they still won last night in some tough toss-up districts,” she said.
Ricketts also pointed to signs that climate policy itself is popular. In Washington, a ballot measure that would have repealed the state’s emissions cap-and-invest policy failed. “The vote returns aren’t all in, but that initiative has been obliterated at the ballot box by voters in Washington State who want to continue that state’s climate progress,” he said.
But the enduring popularity of climate policy in Democratic states is not a given. Though the measure to overturn Washington’s cap-and-invest law was defeated, another measure that would revoke the state’s nation-leading policies to regulate the use of natural gas in buildings hangs in the balance. If it passes, it will not only undo existing policies but also hamstring state and local policymakers from discouraging natural gas in the future. In Berkeley, California, the birthplace of the movement to ban gas in buildings, a last-ditch effort to preserve that policy through a tax on natural gas was rejected by voters.
Meanwhile, two counties in Oregon overwhelmingly voted in favor of a nonbinding ballot measure opposing offshore wind development. And while 2024 brought many examples of climate policy progress at the state level, there were also some signs of states pulling back due to concerns about cost, exemplified by New York Governor Kathy Hochul’s major reversal on congestion pricing in New York City.
The oft-repeated hypothesis that Republican governors and legislators might defend President Biden’s climate policies because of the investments flowing to red states is also about to be put to the test. “I think that's going to be a huge issue and question,” Barry Rabe, a public policy professor at the University of Michigan, told me. “You know, not only can Democrats close ranks to oppose any changes, but is there any kind of cross-party Republican base of support?”
Josh Freed, the senior vice president for the climate and clean energy program at Third Way, warned that the climate community has a lot of work to do to build more public support for clean energy. He pointed to the rise of right-wing populism around the world, driven in part by the perception that the transition away from fossil fuels is hurting real people at the expense of corporate and political interests.
“We’ve seen, in many places, a backlash against adopting electric vehicles,” he told me. “We’ve seen, at the local county level, opposition to siting of renewables. People perceive a push for eliminating natural gas from cooking or from home heating as an infringement on their choice and as something that’s going to raise costs, and we have to take that seriously.”
One place Freed sees potential for continued progress is in corporate action. A lot of the momentum on clean energy is coming from the private sector, he said, naming companies such as Microsoft, Amazon, and Google that have invested considerable funds in decarbonization. He doesn’t see that changing.
A counterpoint, raised by Rabe, is those companies’ contribution to increasing demand for electricity — which has simultaneously raised interest in financing clean energy projects and expanding natural gas plants.
As I was wrapping up my call with Ricketts, he acknowledged that state and local action was no substitute for federal leadership in tackling climate change. But he also emphasized that these are the levers we have right now. Before signing off, he paraphrased something the writer Rebecca Solnit posted on social media in the wee hours of the morning after the electoral college was called. It’s a motto that I imagine will become something of a rallying cry for the climate movement over the next four years. “We can’t save everything, but we can save some things, and those things are worth saving,” Ricketts said.
Rob and Jesse talk about what comes next in the shift to clean energy.
Last night, Donald Trump secured a second term in the White House. He campaigned on an aggressively pro-fossil -fuel agenda, promising to repeal the Inflation Reduction Act, Biden’s landmark 2022 climate law, and roll back Environmental Protection Agency rules governing power plant and car and truck pollution.
On this week’s episode of Shift Key, Jesse and Rob pick through the results of the election and try to figure out where climate advocates go from here. What will Trump 2.0 mean for the federal government’s climate policy? Did climate policies notch any wins at the state level on Tuesday night? And where should decarbonization advocates focus their energy in the months and years to come? Shift Key is hosted by Robinson Meyer, the founding executive editor of Heatmap, and Jesse Jenkins, a professor of energy systems engineering at Princeton University.
Subscribe to “Shift Key” and find this episode on Apple Podcasts, Spotify, Amazon, or wherever you get your podcasts.
You can also add the show’s RSS feed to your podcast app to follow us directly.
Here is an excerpt from our conversation:
Jesse Jenkins: You know the real question, I guess — and I just, I don’t have a ton of optimism here — is if there can be some kind of bipartisan support for the idea that changing the way we permit transmission lines is good for economic growth. It’s good for resilience. It’s good for meeting demand from data centers and factories and other things that we need going forward. Whether that case can be made in a different, entirely different political context is to be seen, but it certainly will not move forward in the same context as the [Energy Permitting Reform Act of 2024] negotiations.
Robinson Meyer: And I think there’s a broad question here about what the Trump administration looks like in terms of its energy agenda. We know the environmental agenda will be highly deregulatory and interested in recarbonizing the economy, so to speak, or at least slowing down decarbonization — very oil- and gas-friendly.
I think on the energy agenda, we can expect oil and gas friendliness as well, obviously. But I do think, in terms of who will be appointed to lead or nominated to lead the Department of Energy, I think there’s a range of whether you would see a nominee who is aggressively focused on only doing things to support oil and gas, or a nominee who takes a more Catholic approach and is interested in all forms of energy development.
And I don’t, I don’t mean to be … I don’t think that’s obvious. I just think that’s like a … you kind of can see threads of that across the Republican Party. You can see some politicians who are interested only, really, in helping fossil fuels. You can see some politicians who are very excited, say, about geothermal, who are excited about shoring up the grid, right? Who are excited about carbon capture.
And I think the question of who winds up taking control of the energy portfolio in a future Trump administration means … One thing that was true of the first Trump administration that I don’t expect to go away this time is that the Trump policymaking process is extremely chaotic, right? He’s surrounded by different actors. There’s a lot of informal delegation. Things happen, and he’s kind of involved in it, but sometimes he’s not involved in it. He likes having this team of rivals who are constantly jockeying for position. In some ways it’s a very imperial-type system, and I think that will continue.
One topic I’ve been paying a lot of attention to, for instance, is nuclear. The first Trump administration said a lot of nice things about nuclear, and they passed some affirmatively supportive policy for the advanced nuclear industry, and they did some nice things for small modular reactors. I think if you look at this administration, it’s actually a little bit more of a mixed bag for nuclear.
RFK, who we know is going to be an important figure in the administration, at least at the beginning, is one of the biggest anti nuclear advocates there is. And his big, crowning achievement, one of his big crowning achievements was helping to shut down Indian Point, the large nuclear reactor in New York state. JD Vance, Vice President-elect JD Vance, has said that shutting down nuclear reactors is one of the dumbest things that we can do and seems to be quite pro, we should be producing more nuclear.
Jenkins: On the other hand, Tucker Carlson was on, uh …
Meyer: … suggested it was demonic, yeah.
Jenkins: Exactly, and no one understands how nuclear technology works or where it came from.
Meyer: And Donald Trump has kind of said both things. It’s just super uncertain and … it’s super uncertain.
This episode of Shift Key is sponsored by …
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Music for Shift Key is by Adam Kromelow.