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If you’ve had the uneasy sense that winter weather isn’t what it used to be, you’re not alone — and you’re probably right. The everyday effects of climate change on the year’s coldest months are quickly becoming too blatant to dismiss.
As annual heat records continue to topple year after year — 2023, now officially the hottest year on record, came terrifyingly close to averaging 1.5 degrees Celsius above preindustrial temperatures — winter weather is responding. In some places, it’s turning snowy days into rainy ones. In others, it’s turning cold days bitterly so.
So — what, exactly, is going on? Let’s start with the basics.
The main thing is that climate change is pushing winter temperatures higher. In fact, the average winter temperature is rising faster than that of any other season. Average temperatures in the lower 48 U.S. states from December through February rose by almost 3 degrees Fahrenheit between 1896 and 2021, compared to 2 degrees in spring and 1.5 degrees in summer and fall, federal data show.
The number of days below freezing each year is also on the decline across the country and across the planet. A decade ago, the U.S. was already seeing two weeks less snow cover, on average, than it did in 1972, according to federal data. And parts of the country, including cities in the Northeast and Northwest, are on track to lose over a month of freezing days by midcentury.
But in many places, daily highs and lows aren’t shifting at the same rate. Winter nights, for instance, are warming even faster than winter days — the total number of freezing nights has been dropping in the U.S. since the 1970s. Colder places are also warming more quickly, with the northern U.S. and especially the Northeast experiencing the most significant rise in average winter temperatures.
That dreary, muddy weather that most of the U.S. saw this past Christmas does, admittedly, happen sometimes for natural reasons. Same with the incessant rain that fell (and then turned to ice) across the Midwest and Northeast in mid-January. With every fraction of a degree the planet warms, however, events like these become more likely — or, at least, that’s what hundreds of the world’s leading climate scientists concluded in the United Nations’ latest synthesis report on the state of the global climate.
Bingo.
Some evidence suggests that climate change is actually making cold shocks more likely by destabilizing the polar jet stream, which keeps the frigid air in the far northern hemisphere from moving too far southward (and keeps warm air in the tropics from moving too far northward). As a result, the polar vortex that’s normally confined to the Arctic is liable to stretch south and blast bitterly cold air into the contiguous U.S. That’s what happened in mid-January, when temperatures in Montana and the Dakotas dropped as low as -30 degrees Fahrenheit and the wind chill bottomed out at -60 degrees. Cold air from the same weather system blew all the way to Texas.
That said, this evidence is not rock solid. Whether or not it bears out in the long term, it’s important to remember that a warmer world doesn’t mean it will never be cold.
Recent experience notwithstanding, cold snaps — short periods of abnormally cold weather — are going away, too. Their average duration dropped by six days between 1970 and 2021, a Climate Central analysis found.
One of the most predictable consequences of climate change is that, as year-round temperatures soar, an increasing share of annual precipitation will fall as rain rather than snow. That’s just what you get when it’s too warm for water vapor to freeze.
One of the less obvious consequences, it turns out, is that a warmer atmosphere holds more moisture, enabling it to dump more precipitation — whether that comes as rain, snow, or wintry mix — during a single storm. As a result, even though climate change is making certain places drier, the biggest winter snowstorms are becoming, well, bigger.
This apparent contradiction had a major impact on the parched West in 2023. Drought is expected to become the norm there as the planet warms, fueling epic wildfires and straining already limited water supplies.
But a string of record snowstorms across the West last winter replenished the region’s dwindling snowpack, feeding mountain streams and helping keep drought conditions at bay (and creating a really good year for ski towns). In California, meanwhile, a barrage of atmospheric rivers drenched lower elevations and broke snowfall records in parts of the Sierra Nevada mountains.
California and its neighbors got off to another rainy (and snowy) start in 2024 — though the recent reprieve from years of severe drought isn’t expected to last.
The best answer we can give you today is to say that yes, snow will most likely still exist. But rising generations probably won’t be able to count on snow falling — and sticking — with the regularity it did when you were their age.
Climate scientists don’t have a perfect picture of how quickly the winters we grew up with will give way to a string of months that are rainy, slushy, and unpredictable, but that’s the direction the evidence is pointing. As global temperatures continue to rise, the trends we’ve seen in winter weather over the past couple of decades aren’t expected to reverse course anytime soon.
Many of the ways climate change affects winter are hard to miss. Snow falls later and less often, and when it does come, it doesn’t last as long. That comes with a few perks for the average American — such as fewer frigid winter days — and huge downsides for the communities, ecosystems, and industries that depend on winter being snowy and cold.
The ramifications of warming winters across the U.S. also extend far beyond the end of the season. Accelerated snowmelt causes plants to green and bloom earlier, which can have cascading effects on soil moisture and drought, as well as on the wildlife that depend on these plants for food and habitat. If snowpack fails to accumulate or melts too early, streams will run dry during the hottest months of the year, when animals, plants, and people need them most.
Traditional strains of some fruit crops — like blueberries, cherries and peaches, for example — don’t grow properly in the spring and summer if the preceding winter was too warm. The increasing volatility of winter weather is also affecting the success rate of wintertime crops, especially in the South. By some estimates, the agriculture sector’s biggest companies could lose tens of billions of dollars in value by 2030 because of climate change.
And pests like ticks and mosquitoes are not only expanding northward, they’re also surviving the winter more easily in their historical range, causing their populations to grow and rates of disease transmission to climb.
Unfortunately, that’s one question we can’t answer — not for every instance of unseasonably warm temperatures everywhere in the world. What we do know for sure is that warmer average temperatures make unseasonable and extreme weather more likely. So in that sense, yes, odds are very good that climate change is playing a role in that thermometer reading.
But also, events rarely have just one cause. Climate change could be exacerbating a natural weather phenomenon, or you might just have gotten a brief winter reprieve. Whether one sultry February day is “because of climate change” isn’t really the point. The point is that, unless and until we stop emitting greenhouse gases into the atmosphere and start pulling them out, the weather will just keep getting weirder. There is no new normal.
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With continued subsidies a big “if” going into next year, deep-pocketed purchasers will have outsized impact.
As Donald Trump prepares to take office (again), the future of the tax policy that underlies clean energy development in the United States has never been more in doubt. Will the clean energy tax credits survive? What about advanced manufacturing? Or will it just be the electric vehicle credits that get tossed aside?
In any case, one thing seems far closer to certain: Big companies, especially large technology companies, will continue to buy renewable and clean power to fulfill their own sustainability goals and keep up their massively expanding data center operations. For them, speed may be the thing that matters most, and reasonable costs and carbon abatement will have to come along with it.
From 2025 to 2028, Morgan Stanley estimates that there will be 57 gigawatts worth of demand from new data centers, with around 6 gigawatts of that currently under construction, and a substantial shortfall in available power to build everything hyperscale technology companies want. This means that there will be a huge need to buy power, no matter the tax credit situation, which would mean continued upward pressure on prices.
Even before the election, power purchase agreement prices for solar power were creeping up due to tariffs on solar equipment, according to LevelTen Energy. Those will likely be maintained and could be ramped up in the new administration.
“Repeal of the tech neutral tax credits and of the manufacturing production tax credits has the potential to increase PPA prices by almost 40%,” Nidhi Thakar, the senior vice president for policy of the Clean Energy Buyers Association, told me, referring to two of the most powerful provisions of the Inflation Reduction Act. She added that repeal would “essentially have an inflationary effect.”
“We have this opportunity right now to capture that economic development if we do things right,” Thakar said. “That is going to require having critical policies in place that are going to support the deployment of more clean firm resources on the grid.”
At least so far, the prospect of repeal has not slowed energy procurement among the biggest buyers. This month, Alphabet announced a $20 billion investment plan with Intersect Power and TPG to build carbon-free power near datacenters with the hope of bringing power and data centers online more quickly. Meta, meanwhile, announced earlier in December that it would build a $10 billion data center campus in Northeast Louisiana, complete with gas and renewable power provided by Entergy, the local utility. The project will come with “at least” 1.5 gigawatts of new renewable power, Entergy said; it also filed an application with the Louisiana utilities regulator for over 2 gigawatts of new gas-fired power plants, including two plants adjacent to the data center site, according to S&P Global Commodities Insights.
While a “double digit” increase in power purchase agreement sale prices could result from tax credits vanishing, there is still “more demand for renewable energy than supply for a whole bunch of reasons,” Peter Freed, the former director of energy strategy at Meta and the founding director of the consultancy Near Horizon Group, told me.
“Obviously the tax credits are pretty central to the pricing on projects,” he said.
Freed was enthusiastic about grid technologies that could enhance capacity, but he also acknowledged “it is very likely we’re going to have a variety of compromises that have to be made over the course of next seven, eight, nine years, in terms of how we’re going to accommodate load that’s coming in the cleanest possible way.”
“That probably means we’re seeing more gas built,” he added.
A significant portion of that gas could be built on-site. Anything involving the grid — whether fossil or renewable — involves large investments of cash and time for hyperscalers and developers. “Given the increasing time required to connect to power grids, especially in the U.S., we believe there could be more upcoming ‘off grid’ approaches to powering data centers,” Morgan Stanley analyst Stephen Byrd wrote in a note to clients. “Batteries and smaller gas-fired turbines could be combined with large combined cycle natural gas turbines to provide a robust power source.”
Elon Musk’s xAI has done this the quick-and-dirty way by installing mobile natural gas generators to power its facility in Memphis. GE Vernova, the turbine manufacturer, is also “having direct conversations with hyperscalers for gas orders,” according to Jefferies analyst Julien Dumoulin-Smith in a note to clients, with the first order from a hyperscaler possibly coming in the second half of next year.
Gas isn’t the only answer, however — at least not on its own. A group of energy researchers from Stripe, Paces, and Scale Microgrids, wrote in a white paper published mid-December saying that solar microgrids could provide a “fast, scalable, clean, and cheap enough” option for data center power.
These “off-grid solar microgrids” could potentially be put into operation in “around two years” and would combine solar panels, batteries, and some natural gas backup. Installed across the Southwest, they would be able to power some 1,200 gigawatts of data center demand with 90% solar power, according to Scale Microgrids’ Duncan Campbell, at costs below repowering Three Mile Island. A 44% solar system would be “essentially the same cost” as off-grid gas turbines, the whitepaper said.
No matter what solution hyperscalers pursue — bringing their own power behind the grid, locating near power on the grid, or building out more clean, firm power on local grids — the question will ultimately always be how fast they can get online.
“I think people are initially thinking about colocating a large load with a project — renewable, gas, or anything else — as a fact track to getting load online, and there’s some truth to that,” Freed told me.
“My perspective as someone who is adding new load is that you should be indifferent to location for generation,” Freed said. “What you really should be caring about is when you can interconnect and turn lights on at the scale you desire.”
The most interesting things I haven’t written about yet.
My inbox and calendar have been filled all year with press releases and requests to chat about new carbon removal technologies, artificial intelligence and its attendant energy demand, novel battery designs, advances in fission and fusion, and investors’ ever-present concerns about how to get all of this to market in time to make a real dent in the climate crisis (and also, you know, a profit).
I wrote about a lot of it — but not all of it, and much of the stuff that got left out is no less worthy of your attention than the stuff that made it. So here I present a roundup of the climate technologies that you might not have read about in Heatmap this year, but that have investors, academics, and the climate world at large buzzing as we look toward 2025.
This fall when I spoke with Amy Duffuor, a co-founder and partner at the venture capital firm Azolla Ventures, she told me that her firm, which is focused on “overlooked and neglected” climate solutions, has been fascinated by the shipping industry. Because while aviation and shipping each account for about 3% of global emissions, decarbonizing flight seems to get the bulk of the attention. “Sometimes it’s hard for people to imagine what they don’t see or what they’re not interacting with on a day to day basis,” Duffuor told me.
This fall, the firm co-led a $4.5 million seed round of investment in clean fuels producer Oxylus Energy, which converts carbon dioxide into green methanol for use in shipping and other transportation fuels. The tech relies on renewable-powered electrolyzers similar to those used to make green hydrogen, but the company’s secret sauce is a special catalyst that can convert carbon dioxide into methanol at low temperature and pressure, makingthe whole process more efficient and more economical than ever before.
Duffuor told me that green methanol has a leg up on other clean fuels such as green hydrogen, which has a low energy density, or green ammonia, which is highly toxic and corrosive. While supply of all of these is still limited and costly, Duffuor said that retrofitting an engine to run on green methanol is much simpler than adapting to other alternative fuels, which is why it’s already being done on a small scale today. Indeed, shipping giant Maersk has a number of green methanol boats in its fleet, one of which completed the world’s first green methanol-powered voyage last fall.
Long considered “one of climate science’s biggest taboos,” according to Heatmap’s own Robinson Meyer, geoengineering had a big 2024, and it looks poised to be taken increasingly seriously. In fact, one investor I spoke with this month, Lee Larson of Piva Capital, which focuses on decarbonizing heavy industry, told me he foresees a splashy but undeniably controversial funding announcement coming in the near future. “I don’t think it’s going to be Piva, but someone is going to take a bet on this, and there’s going to be a big funding round for a startup in this space,” he predicted. “Because there’s enough interested people with deep pockets that have been thinking about this space for someone to raise money off of it.”
But if nothing else, this year proved that the backlash would be swift. In June, the city council in the small town of Alameda, California, shut down testing of a solar geoengineering device that could one day be used for “marine cloud brightening” — that is, spraying aerosols into the sky to enable clouds to reflect more sunlight away from Earth — and Harvard University abandoned another solar geoengineering project, which aimed to study how aerosol plumes behave in the stratosphere. At the same time, though, the nonprofit Environmental Defense Fund announced that it would fund research into solar geoengineering to help inform policymakers should it one day become regulated, and the UK also committed to supporting research into various solar geoengineering pathways, including conducting outdoor experiments.
“There’s a growing understanding that, on a per unit of warming avoidance basis, this is just way cheaper than carbon dioxide removal solutions,” Larson told me. From his perspective, the world needs to support this type of research lest a layperson, a billionaire, or a small nation choose to go rogue. “Just given how cheap it is, given how little we know about it, that’s a poor combination — because the chance of someone doing something with a lot of unintended consequences goes up and up.”
The idea is pretty straightforward — install solar panels that can float on the surface of reservoirs, canals, lakes, and the like — but this year it really began to pick up steam. There are myriad benefits to this solution: eliminating land use controversies, built-in temperature regulation (water keeps the panels cool, thus increasing their efficiency), and reducing evaporation from the water bodies. A paper published in Nature this June found that floating solar could meet, on average, 16% of countries’ total energy needs.
And countries big and small are taking note. While there aren’t a lot of specialized floating solar startups seeking VC funding, governments as well as traditional solar manufacturers and project developers are stepping up. The U.S. Department of the Interior announced in April that it’s investing $19 million to install panels over irrigation canals in California, Oregon, and Utah. Zimbabwe recently secured $250 million from the African Export-Import Bank to install floating solar on the world’s largest man-made lake, while China turned on the largest offshore solar farm in the world in November. Taiwan and India have also already deployed large installations, and have plans for more.
I spoke with the lead author of the Nature paper, Dr. Iestyn Woolway of the UK-based Bangor University, way back in June about floating solar’s decarbonization potential. Even he was “quite surprised with the number of countries that could meet a sizable fraction of the energy demands by [floating photovoltaics],” he told me.His modeling shows that Bolivia, for example, could meet about 80% of its energy demand with floating solar, while Ethiopia could meet 100% of its demand, with extra energy to spare.
The next step, he said, is gaining a deeper understanding of the ecological impacts of this technology. “Even if you do cover a water body by something small, like 10%, we don’t know what knock-on effect that would have,” he said.
Soils are some of the world’s most effective carbon sinks, and sustainable farming techniques can enhance soil’s natural carbon sequestration potential. Thus, soil carbon sequestration plays at the intersection of the fuzzy and buzzy regenerative agriculture space and the increasingly scientifically rigorous carbon dioxide removal sector, with its carbon crediting schemes and verification requirements. One investor I spoke with, Amy Francetic of Buoyant Ventures, is eager to find and back a company that can merge these two worlds. “If you could figure out how to sink carbon in a farm and do that in a way that is easy to measure and validate, we don’t have a good solution for that today,” she told me.
As of now, Francetic said, startups are going about this problem by doing labor intensive and expensive soil sampling and “marrying that with geospatial data to try to measure what climate benefits there are of changing certain agricultural practices, doing different row crops, changing the crop rotation, the amount of inputs you put into the crops.” Many have pitched Buoyant on their methodologies for bridging satellite data with soil sampling data, but thus far she’s passed. “None of them have, I think, met the standard of reliability that the financial industry would back from a carbon credit standpoint,” she explained. “That might be one of these holy grail things. If somebody could really do that, it could be very impactful.”
I’ll be honest, before this year I didn’t know what parametric insurance was. But since it came up time and again in conversations with investors about extreme weather and the necessity of climate resilience and adaptation measures, I decided to dig in. Here’s what parametric insurance is: an insurance product that automatically provides rapid payouts to customers in the case of natural disasters or weather events, assuming these events exceed a predefined limit. For example, a policyholder might be paid if the rainfall, wind speed, or temperature of a particular weather event is above or below a certain threshold, with the amount tied to how much the measurement deviates from the limit, not the damages incurred.
With extreme weather events getting more frequent and more intense due to climate change, this has given rise to a crop of startups that can leverage sensors, satellites, and artificial intelligence to quickly and accurately measure the extent of these events, thus enabling parametric insurance for a host of new customers. To name a few companies that have taken advantage: There’s Floodbase and FloodFlash (both focusing on flood insurance, naturally), which have each raised over $10 million in Series A financing; FloodFlash made a series of rapid payouts this year following storms in the UK, getting policyholders their money in as little as 10 hours after the water level exceeded its threshold. There’s Arbol, which protects against a host of weather events from drought to heat waves and cold snaps, and raised a $40 million Series B round this year. And there’s Pula, which helps provide parametric insurance to small-holder farmers in emerging markets, and raised a $20 million Series B round this year.
“This is affecting everybody,” Clea Kolster of Lowercarbon Capital, which led Floodbase’s Series A round, told me when we met at this year’s San Francisco Climate Week. “So how do you actually make sure that people have coverage for it and can continue to have as close to livable lives as possible, even when they’re subject to more frequent extreme weather events?” Investors know the storms are going to keep coming, so this category of adaptation tech is only set to grow.
Jesse hosts a panel discussion at the annual meeting of Princeton’s Andlinger Center for Energy and the Environment.
The rise of artificial intelligence and the associated expansion of data centers is driving surging demand for new power supply. Earlier this fall at the annual meeting of Princeton University’s Andlinger Center for Energy and the Environment, Jesse sat down with a panel of experts to discuss how society can meet the growing energy demands of AI while staying on track broader decarbonization efforts.
How will we power the growing demand from AI and data centers? What role can nuclear power really play? Will AI lock us into a new generation of gas power plants? Are regulators prepared for what's coming? Jesse dives into all this and more with Allison Clements, former commissioner of the Federal Energy Regulatory Commission, Matt DeNichilo, partner at energy investment firm ECP, and Lucia Tian, head of clean energy and decarbonization technologies at Google.
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. Rob is off this week.
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Here is an excerpt from the conversation:
Allison Clements: FERC, the agency, which, I was one of five commissioners, has jurisdiction over what resources sign up for and retire from participating on the grid. And over the last decade, two decades, what has happened is, as this 1.5 terawatts of generation have gotten in line, it’s just overwhelmed the interconnection system. The interconnection processes weren’t designed for anything other than central station, dispatchable, most recently gas plants, combined cycle gas plants, peaking plants, closer to load, you don’t need as much network upgrades.
There’s lots of room on the grid because there was an investment in the grid many decades ago. But now we’ve got this situation where there’s all these resources who want to sign up, and they can’t get on. In fact, this has been going on for a long time. And most of the supply resources waiting to get on today do have site control, do have the financial and commercial readiness. There’s some that we’re still clearing out from the days of the Wild West, where people would just sign up six interconnection applications and see what happened, which would cause a lot of problems for everybody else when they would drop out of those lines.
So, what do we do about it? FERC has passed a couple of different rules to clean up regional transmission planning. A comment about planning during this morning’s session that utilities plan so much — well, if we had been planning for an increasingly electrified economy 10 years ago, 15 years ago, 20 years ago, we would have a lot more transmission, a lot more space on the grid to give access to these resources.
We have taken action as an agency to try and fix that through one rule. We’ve also taken action as an agency to try and fix the interconnection lines themselves through some nuts and bolts requirements to make it harder to get through, so you don’t come until you’re ready to go. But those rules and policy changes that are very positive aren’t going to have impact for, let’s say, five years, seven years. I mean, the reality is we’re not going to be picking new transmission lines from these processes we’ve developed until at least 2029.
2024 — what do we do for the next five years, right? Even these really exciting new deals with SMR, advanced geothermal, we’re looking in the 2030 timeline. Well, the existing grid is really inefficient, and if we can use AI to improve it, that would be really, really important in validating and making this a positive cycle of affirmation.
The last thing I’ll say is, what are those inefficiencies? The lines between regions, the lines between PJM, which is the region we’re sitting in today, a grid operator, and the New York State grid operator, and the New England grid operator at the interties, the transfers, are very inefficient and they’re often counter to good economics. We have no hardware and software solutions, grid-enhancing technologies, advanced transmission technologies that can automatically double existing capacity, or existing room, extra room on the grid. We have surplus interconnection. We have the opportunity to put more resources behind existing points of interconnection and use that system more efficiently. So, the reality is to solve the power for AI, we need the AI to come back and help us do it.
This episode of Shift Key is sponsored by …
Watershed’s climate data engine helps companies measure and reduce their emissions, turning the data they already have into an audit-ready carbon footprint backed by the latest climate science. Get the sustainability data you need in weeks, not months. Learn more at watershed.com.
As a global leader in PV and ESS solutions, Sungrow invests heavily in research and development, constantly pushing the boundaries of solar and battery inverter technology. Discover why Sungrow is the essential component of the clean energy transition by visiting sungrowpower.com.
Music for Shift Key is by Adam Kromelow.