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Why Patagonia, REI, and just about every other gear retailer are going PFAS-free.

Hiking gear exists so that, when nature tries to kill you, it is a little less likely to succeed. Sometimes this gear’s life-saving function is obvious — a Nalgene to carry extra water so you don’t die of thirst, or a fist-sized first-aid kit so you don’t bleed to death — while other things you don’t necessarily purchase with the thought that they might one day save your life. Like, say, a small Swiss Army Knife. Or, in my case, a raincoat.
Last summer, on a casual day hike in Mount Rainier National Park, my family was overtaken by a storm that, quite literally, rose up out of nowhere. It had been a sunny, clear day when we left the parking lot; at four miles in, we were being lashed by hail and gale-force winds on an exposed alpine trail, with no trees or boulders nearby for shelter.
Then, one member of our hiking party tripped.
In the split second before she stood up and confirmed she could walk out on her own, my mind raced through what I had in my pack. Stupidly, I had nothing to assemble a makeshift shelter, no warmer layers. But I did have my blue waterproof rainshell. In weather as extreme as the storm off Rainier that day, keeping dry is essential; if we’d had to wait out the rain due to a broken ankle, we’d have become soaked and hypothermic long before help arrived. My raincoat, I realized during those terrifying seconds, could save my life.
But what made my raincoat so trustworthy that day on the mountain could also, in theory, kill me — or, more likely, kill or sicken any of the thousands of people who live downstream of the manufacturers that make waterproofing chemicals and the landfills where waterproof clothing is incinerated or interred. Outdoor apparel is typically ultraprocessed and treated using perfluoroalkyl and poly-fluoroalkyl substances, a class of water- and stain-resistant “forever chemicals” that are more commonly referred to as PFAS (pronounced “pee-fass”). After decades of work by environmental groups and health advocates, states and retailers are finally banning the sale of textiles that have been treated with the chemicals, which in the outdoor industry often manifest in the form of Gore-Tex membranes or “durable water repellent” treatments.
These bans are fast approaching: Beginning in 2025 — less than 12 months from now — California will forbid the sale of most PFAS-treated textiles; New York will restrict them in apparel; and Washington will regulate stain- and waterproofing treatments, with similar regulations pending or approved in a number of other states. Following pressure from activists, the nation’s largest outdoor retailer, REI, also announced last winter that it will ban PFAS in all the textile products and cookware sold in its stores starting fall 2024; Dick’s Sporting Goods will also eliminate PFAS from its brand-name clothing.
This will upend the outdoor apparel industry. Some of the best coats in the world — legendary gear like Arc’teryx’s Beta AR and the traditional construction of the Patagonia Torrentshell — use, or until recently used, PFAS in their waterproofing processes or in their jackets’ physical membranes. Though the bans frequently allow vague, temporary loopholes for gear intended for “extreme wet conditions” or “expeditions,” such exceptions will be closed off by the end of the 2020s. (Patagonia has “committed to making all membranes and water-repellent finishes without [PFAS] by 2025,” Gin Ando, a spokesperson for the company, told me; Arc’teryx spokesperson Amy May shared that the company is “committed to moving towards PFAS-free materials in its products.”)
Even if you aren’t buying expedition-level gear, your closet almost certainly contains PFAS. A 2022 study by Toxic-Free Future found the chemicals in nearly 75% of products labeled as waterproof or stain-resistant. Another study found that the concentration of fluorotelomer alcohols, which are used in the production of PFAS, was 30 times higher inside stores that sold outdoor clothing than in other workplaces.
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The reason outdoor companies have historically loved PFAS so much is simple: The chemicals are unrivaled in their water repellency. PFAS are manufactured chains of fluorine-carbon bonds that are incredibly difficult to break (the precise number of carbons is also used in the naming process, which is why you’ll hear them called “C8” or “C6,” sometimes, as well). Because of this strong bond, other molecules slip off when they come into contact with the fluorine-carbon chain; you can observe this in a DIY test at home by dripping water onto a fabric and watching it roll off, leaving your garment perfectly dry.
It is also because of this bond that PFAS are so stubbornly persistent — in the environment, certainly, but also in us. An estimated 98% to 99% of people have traces of PFAS in their bodies. Researchers have found the molecules in breast milk, rainwater, and Antarctica’s snow. We inhale them in dust and drink them in our tap water, and because they look a little like a fatty acid to our bodies, they can cause health problems that we’re only beginning to grasp. So far, PFAS have been linked to kidney and testicular cancer, decreased fertility, elevated cholesterol, weight gain, thyroid disease, the pregnancy complication pre-eclampsia, increased risk of preterm birth and low birth weight, hormone interference, and reduced vaccine response in children.
Chemical companies and industry groups often argue that certain PFAS are demonstrably worse than others; the so-called “long-chain” molecules, for instance, are thought to have higher bioaccumulation and toxicity potential, and have mostly been replaced by “short-chain” molecules. But as Arlene Blum, a pioneering mountaineer and the founder of the Green Science Policy Institute, an environmental advocacy organization that opposes PFAS, told me, “in all the cases that we’ve studied,” forever chemicals have been found “to be harmful in one way or another,” whether they’re short or long.
From a health perspective, the good news is that activists are winning. While initial efforts to protect humans and the environment from PFAS in the mid-2000s resulted only in the voluntary phase-out of long-chain chemicals like PFOA and PFOS, the new laws target the entire class of thousands of compounds to prevent an ongoing game of whack-a-mole with chemical manufacturers. (A recent report by The Guardian found that the chemical industry spent $110 million in the last two U.S. election cycles trying to thwart or slow the various bans.) Public pressure campaigns mounted against ostensibly sustainability-minded companies like REI have prompted store-initiated PFAS bans that will also influence future gear sold in the United States. (REI was long a PFAS laggard, and was even hit in 2022 with a class-action lawsuit over allegedly marketing PFAS-containing clothes as “sustainable.” The company declined to comment for this story. Dick’s Sporting Goods did not respond to requests for comment.)
But as the days tick closer to the first PFAS bans coming into effect in stores this fall, outdoor apparel companies are still scrambling to redesign their clothing. Some alternatives to PFAS do exist — Blum swears by her PFAS-free Black Diamond jacket — though even the most ardent supporters of the forever chemical bans will admit the waterproofing alternatives haven’t 100% caught up yet.
“The main concern that most people have in the industry is the amount of work that it’s going to take to meet these guidelines,” Chris Steinkamp, the head of advocacy at the trade association Snowsports Industries America, told me. “Because PFAS is omnipresent. Unfortunately, they’re pretty much in everything.”
Many outdoor apparel companies genuinely want to comply with the coming bans, Karolína Brabcová, the campaign manager for toxic chemicals in consumer products at Arnika, a Czech environmental non-profit, told me. “It’s not such a matter of greenwashing here,” she said. “It’s more about the fact that you’ve got the chemical industry on one side and the downstream users joining the consumers on the other side. And the downstream users don’t know everywhere the PFAS are being used; it’s a business secret.”
In one case detailed by Bloomberg, the Swedish company Fjällräven had stopped using PFAS in its products, only to learn from a 2012 Greenpeace investigation that the chemicals were still present in its apparel. “A supplier using fluorochemistry on another company’s products was cross-contaminating Fjällräven’s,” the Bloomberg authors write, adding that “subsequent testing revealed” just having “products in stores near products from other companies that used the chemicals still resulted in low levels of contamination.”
It isn’t always the case, however, that clothing manufacturers are unwitting victims of chemical sloppiness. Some apparel companies have taken advantage of the alphabet soup of chemical names to look more sustainable than they are. “We’ve seen in recent years products labeled as ‘PFOA-free’ or ‘PFOS-free,’ which suggests that they do not contain the long-chain PFAS that have largely been phased out from production in the United States,” Blum warned me. “That’s really misleading because oftentimes it’s a signal a product likely contains other PFAS chemicals, which may be just as persistent and may also be quite toxic in production to disposal.”
The reason I could count on my raincoat to protect me in the mountains, though, was because, like most expedition-level gear, it is made of a membrane manufactured by Gore-Tex, with an additional DWR waterproofing finish that also contains PFAS. Gore-Tex is known in the outdoors industry for making the holy grail of performance fabrics: Its membranes are waterproof, durable, and breathable enough to exercise in, a challenging and impressive combination to nail. But to achieve this, the company has traditionally used the fluoropolymer PTFE, a notorious forever chemical you probably know by the trademarked name Teflon.
This technology — or rather, these chemicals — are incredibly and irresistibly good at what they do. “The terrible truth,” Wired wrote in its list of raincoat recommendations updated this past December, “is that if you’re going to be exposed [to inclement weather] for multiple hours, you are probably not going to be able to rely on a [PFAS]-free DWR to keep hypothermia at bay.”
When I reached out to Gore-Tex about its use of PFAS, company spokesperson Julie Evans told me via email that “there are important distinctions among materials associated with the term PFAS” and that the fluoropolymers Gore uses, such as PTFE, “are not the same as those substances that are bioavailable, mobile, and persistent.” She stressed that “not all PFAS are the same” and that PTFE and the other fluoropolymers in the Gore arsenal meet the standards of low concern, and are “extremely stable and do not degrade in the environment,” are “too large to be bioavailable,” and are “non-toxic [and] safe to use from an environmental and human perspective.” The National Resource Defense Council, by contrast, writes that PFAS polymers like PTFE, “when added as a coating or membrane to a raincoat or other product, can pose a toxic risk to wearers, just as other PFAS can.”
Some of the environmental health advocates I spoke with said Gore-Tex’s language was misleading. Mike Schade, the director of Toxic-Free Future’s Mind the Store program, which pressures retailers to avoid stocking items that use hazardous chemicals, told me that while it is “laudable that the company has phased some PFAS out of their products … what we’re concerned about is the entire class. We think it’s misleading to consumers and to the public to suggest that other PFAS are not of environmental concern.”
Blum, of the Green Science Policy Institute, admitted that while “probably your Gore-Tex jacket won’t hurt you” — there is limited evidence that PFAS will leech into your body just from wearing it — there’s a more significant issue at the heart of the PFAS debate. “When you go from the monomer to the polymer” in the chemical manufacturing process, she said, it “contaminates the drinking water in the area where it’s made.” The disposal process — and especially incineration, a common fate for discarded clothing — is another opportunity for PFAS to shed into the environment. People who live near landfills and chemical manufacturing plants in industrial hubs like Michigan and many cities in Bangladesh suffer from PFAS at disproportionate levels.
So then, where do we go from here? Hikers, skiers, mountaineers, fly-fishers — they all still need clothing to stay dry. “Our industry is committed to performance and making sure that the gear that people are sold can live up to the standards that athletes need,” Steinkamp said. “I know that is top of mind, and that’s what’s making [the transition] so hard.”
But it also might be the case that our gear is too waterproof. “When we think about the intended performance of outdoor gear, there’s a lot of expectation that your gear will keep you extremely dry,” Kaytlin Moeller, the regional sustainability manager at Fenix Outdoor North America, the parent company of outdoors brands like Fjällräven and Royal Robbins, told me. “But when we really start to look at it,” she added, “I think part of the question is: What is the level of functionality that is really necessary for the customer to have a positive experience outdoors and be prepared for their adventure?”
It’s probably less than you think; consumers frequently don Everest-level technologies to walk their dogs for 15 minutes in a drizzle. “As responsible creators of products, it’s our job to balance functionality with impact,” Moeller said. “And in terms of [PFAS], it just wasn’t worth the risk and the carcinogenic qualities to continue putting that treatment on our products when there are other innovative coatings and constructions that we can use.”
Those alternatives, like innovative fabric weavings and proprietary waxes, might not sound as high-tech as hydrophobic chemicals. Still, for the vast majority of regular people — and even most outdoor recreators — it’s likely more than enough to stay comfortably dry. “We’ve been going into the outdoors for hundreds and hundreds of years without these chemicals,” Schade pointed out. “We can do it again.”
Luckily for everything and everyone on the planet, new waterproofing products are getting better by the day. Gore-Tex has spent “the better part of the last decade” developing its new PFAS-free “ePE membrane,” Evans told me. Short for expanded polyethylene, ePE is fluorine-free (albeit, derived from fossil fuels) and has been adopted by Patagonia, Arc’teryx, and others in the outdoor industry as a PFAS-free alternative. Evans described it as feeling “a little lighter and softer” than old-school Gore-Tex, but “with all the same level of performance benefits” as the historic products.
Other companies, including Patagonia, have been transparent about their phase-out goals and the ongoing difficulties of the PFAS-free transition; Gin, the Patagonia spokesperson, told me that as of this fall, “92% of our materials by volume with water-repellent chemistries are made without” PFAS, and that the new waterproofing “stands up to the demands of our most technical items.” Deuter, Black Diamond, Outdoor Research, Jack Wolfskin, Mammut, Marmot, and prAna are among other outdoor brands that are working to remove PFAS from their gear.
“We have to work together, collaboratively, if we really want to eliminate them — to the point of the verbiage around being [PFAS]-free,” Moeller stressed. “No one can be [PFAS]-free ‘til everyone in the industry is, because of the risk of cross-contamination.”
Then there are the consumers who will need to adjust. I admit, in the weeks before beginning the reporting for this article, I bought myself another raincoat. It was on sale from one of my favorite outdoor brands, and I was attracted to its aggressively cheerful shade of Morton Salt-girl yellow, which I thought would also help me stand out in the case of a future emergency.
At the time, I hadn’t even thought to check what it was made of; what mattered to me was how, when I slipped it on, I became amphibious — like some kind of marine mammal, slick and impervious to the rain. Stepping out of my front door and into a downpour, I felt practically invincible.
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An investment boom is exploding in outer space. Investors have thrown their backing behind space-based solar power, orbital data centers, and even extraterrestrial power grids. SpaceX is pursuing an IPO — potentially the largest the world has ever seen — in part to fund its own off-Earth data center ambitions. The Space Foundation reported that the global space economy reached $613 billion in 2024, combining commercial revenue and government funding, while PricewaterhouseCoopers estimates the sector could grow to reach $2 trillion by 2040, largely driven by private sector innovation and support.
Different though they may be, these technologies all leverage the vast unknown outside our atmosphere to monitor, manage, and optimize terrestrial energy and climate systems.
This boom comes after roughly a decade of sharply falling launch costs, which has fueled a surge in satellite deployments for telecommunications and remote sensing applications. Together, these shifts have expanded the scope of what’s technically and economically possible in space — and in turn, broadened the range of systems and services needed to make this off-Earth infrastructure work.
“We’ve got over 14,000 satellites in space already, and that’s growing every day. It’s going to triple over the next five, six years,” Jeff Johnson, a general partner at the venture firm B Capital, told me. “And if you look at the other trend that’s happening, the power requirements for what’s going up in space have been growing dramatically and will continue to do so.” As Johnson explained, that’s because we’re asking satellites to do more — and to do it faster — than ever before: deliver high-speed internet globally, extend cell coverage in remote areas, and perform onboard data processing before transmitting imagery and other information down to Earth.
SpaceX, of course, has been the dominant force driving down launch costs while dramatically increasing the scale of satellite deployments with its partially reusable Falcon 9 rockets. More recently, it’s laid out an ambitious plan to put 100 gigawatts of “AI compute satellites” into orbit each year, with launches beginning as soon as 2028. As the company wrote in its S-1 filing ahead of its pending IPO, “we believe orbital AI compute is an incredibly difficult technical challenge that only we can solve at scale in the near term.” It also acknowledged, however, that the effort involves “significant technical complexity, unproven technologies, or technologies that do not exist,” and that ultimately, “such initiatives may not achieve commercial viability.”
It’s a startlingly frank assessment of an industry that holds both great potential and significant uncertainty. Much of SpaceX’s growth strategy — and likely the prospects of numerous other companies looking to launch large infrastructure into space — hinges on the success of its next-generation rocket called Starship. Designed to be fully reusable and much larger than any rocket built before, Starship will be capable of carrying roughly five to six times the volume and over eight times the massas Falcon 9. Throughout its 12 test launches so far, the rocket has seen both success and failures, accumulating mounting delays along the way.
The uncertainty around Starship’s future is one reason Johnson’s firm invested in Star Catcher, a startup that bills itself as “the first power grid in space.” He doesn’t view the startup’s value proposition as dependent on Starship’s success, betting that it can serve as critical infrastructure for satellites already in orbit today — not just for the bigger and better systems that future launch vehicles could enable.
Founded less than two years ago, Star Catcher is developing a laser-based system to beam solar energy to satellites in low Earth orbit, supplying additional power directly to their solar arrays even when they’re in Earth’s shadow. This enables satellites to perform ever more power-intensive operations. It also addresses a fundamental constraint of satellite design: A satellite is only as powerful as the size of its solar array, which must be small enough to fit inside a rocket and also degrades over time.
“The average satellite in the Earth’s orbit has like 1,500 watts of power generation, which is as much as my kids’ gaming computer uses,” Andrew Rush, Star Catcher’s CEO, told me. “But we’re saying that satellite is going to be a cell tower, it’s going to be a data center, and those are multi-kilowatt, tens of kilowatts, hundreds of kilowatts applications. There’s a big disconnect there.”
B Capital led Star Catcher’s oversubscribed $65 million Series A round, which closed earlier this month. The fresh capital will help the company demonstrate its system in orbit and move towards commercialization. Star Catcher plans to launch its own constellation of power node satellites with the sole purpose of harnessing energy from the sun — or, as Rush quipped, “the greatest fusion reactor known to humankind.” Each node will then beam that energy to other power-hungry satellites by directing concentrated, near-infrared laser light at their solar panels. This type of light can deliver far greater power density than diffuse sunlight, providing satellites with a roughly 10-fold increase in power capacity compared to what they would generate alone.
As Rush explained, this then enables both satellite and rocket companies to “shrink the size of the solar arrays, and therefore, shrink the size of the spacecraft — actually make it less complex, less massive, and therefore less costly to field.” Already, he said the startup has signed seven power purchase agreements with satellite companies such as Loft Orbital and Astro Digital, as well as agreements or letters of intent with “almost every orbital data center startup” including Starcloud, which wants to begin offering cloud computing in space by early 2027.
For its part, Star Catcher aims to scale commercially by the end of the decade. Rush argues that just as bringing data processing closer to mobile users on the ground speeds up browsing and streaming, the growth of satellite broadband will create demand for the same infrastructure in space. That means everything from caching streaming content to running AI inference and processing satellite data in orbit, thus reducing the latency involved with routing everything to space and back.
While Star Catcher is focused on providing grid infrastructure for conventional satellites and orbital data centers, another recently funded startup, Cowboy Space, wants to build those data centers itself — and the rockets that will bring them to space. The company was founded in 2024 under the name Aetherflux, with the goal of beaming solar energy from space down to Earth. But with its latest $275 million Series B fundraise earlier this month, the company unveiled both a new name and a new mission.
Modern rocket designs from SpaceX — Cowboy Space’s most formidable competitor — pair a reusable lower section with a disposable upper section that carries satellites into orbit mounted at the rocket’s tip. After that upper section releases the satellite into orbit, the now purposeless component drifts through space, eventually burning up as it reenters Earth’s atmosphere. But Cowboy Space aims to transform what would otherwise be discarded debris into an orbital, 1-megawatt data center, integrating hundreds of Nvidia chips into the rocket’s upper section.
“We started with a blank sheet of paper with a goal of packing as many GPUs as tightly and densely as possible, and getting them to space,” Joseph Yaffe, the startup’s COO, told me over email. “We believe that this is a first-of-its-kind approach — the launch vehicle and the orbital data center designed as a single integrated system from day one.”
He told me that existing launch providers couldn’t offer the launch capacity or flexibility that Cowboy Space needs, and that the economics just wouldn’t pencil unless they did it themselves. Of course that’s an extremely tall order. SpaceX currently dominates the market for private rocket launches, a sector notoriously littered with failures. Only a few other private companies have even managed to make a dent in the space, and they’re still far behind Elon Musk’s industry giant.
Yaffe naturally thinks his company is well-positioned to become the exception, and prominent backers such as Index Ventures, Breakthrough Energy Ventures, and Andreessen Horowitz seem to agree. The startup is targeting the end of 2028 for its first proprietary rocket launch. Eventually, Cowboy Space plans to deliver processing power on par with conventional data centers, with Yaffe explaining that “abundant solar power and radiative cooling in orbit are what make that cost structure achievable.”
It’s true that space-based data centers would not require the same energy- and water-intensive fans, chillers, or cooling towers used on Earth, instead dissipating heat into space via infrared radiation — essentially emitting thermal energy as invisible light. But using today’s technology, power dense satellites can’t radiate heat quickly enough to sustain AI workloads, and how Cowboy Space plans to overcome this remains an open question. Even Nvidia CEO Jensen Huang acknowledged the difficulty, remarking in a recent keynote address at the GPU Technology Conference in San Jose that “we have to figure out how to cool these systems out in space.”
But if Cowboy Space and others can overcome these technical hurdles, there are some clear advantages to putting data centers into orbit. For one, building these energy-hungry behemoths has become a fraught political issue on both sides of the aisle, with local opposition exploding this year. Then there are the familiar constraints of limited power availability and interminably long grid interconnection queues, which are preventing hyperscalers from ramping up their AI efforts as quickly — and cleanly — as they’d like.
“AI demand is growing faster than terrestrial infrastructure can scale,” Yaffe argues. He’s betting that this dynamic will hold even if policy fixes such as permitting reform eventually materialize. “Orbital data centers aren’t a replacement for terrestrial infrastructure. The long-term opportunity is about expanding total compute capacity.”
Likewise, Johnson of B Capital doesn’t see the primary value proposition of orbital data centers as alleviating power or permitting constraints. “The reason why things are moving to space isn’t because we don’t have telecommunications that work right on Earth, it’s because new use cases are getting unlocked that are better,” he told me. “The first time you’re on a plane and use Startlink, you see that. The first time you need to be somewhere that isn’t really served well by Wi-Fi, and you use it, you see that. So there’s use cases that are transformational that can get unlocked by the space economy”
Not everyone is as bullish, however. Luigi Scatteia, the lead of PwC’s global space practice, told me he expects there to be “some form of data relay in orbit.” That might look more like space-based computing networks processing data from Earth observation satellites, as we’re already seeing the beginnings of today. But full-on data centers with the capabilities of terrestrial server farms? Launched from rockets? “I’m just going to say what my professor in university always used to tell us: Anything you do on Earth is always going to be more difficult in space.”
He, too, thinks the real unlock for orbital data centers and beyond would be “if Starship really works as intended,” he told me. “If you really want to do massive things in space — if you want to have a paradigm shift, a Copernican change — you need to drastically raise the capacity and lower the cost to orbit.”
No question these are two incredibly difficult tasks, not just for SpaceX but for the broader ecosystem of emerging space startups betting that private industry can fundamentally reshape the space economy. But according to Rush of Star Catcher, investors are now increasingly willing to take that bet too, in a way they weren’t when he first entered the industry a decade ago.
“Now, there’s the full spectrum of capital available, from seed all the way through IPO and beyond,” Rush told me. And that money is flowing to “really every flavor of space company. And so just by that metric alone, this is the golden age to build in space.”
Current conditions: The French government has recorded at least seven deaths linked to the record early heatwave roasting Western Europe • New York City’s springtime temperature swing is surging upward to about 85 degrees Fahrenheit before dropping back into the 60s later this week • Temperatures in Berbera, the prized Red Sea port city in the de facto independent state of Somaliland, are revving up to 100 degrees today.
The Trump administration is considering handing over leftover weapons-grade plutonium that was set to be buried to companies that aim to use the highly radioactive material as reactor fuel. On Tuesday, the Department of Energy selected five finalists to submit plans to safely transfer the plutonium from a government stockpile. The companies include fuel maker Standard Nuclear, waste reprocessor Exodys Energy, fusion company Shine Technologies, and reactor developers Flibe Energy and Oklo. The move is sure to draw criticism from non-proliferation experts who worry that, unlike the low-enriched uranium used as fuel in conventional reactors, plutonium increases the threat of a rogue actor obtaining material for a bomb. “Countries have tried this before, and they concluded that, as nice as it would be to use that plutonium as fuel, it’s really just a liability and we need to dispose of it permanently,” Scott Roecker, a vice president at the Nuclear Threat Initiative, told The New York Times. In an emailed statement to me, Shine Technologies CEO Greg Piefer said the access to fuel solves “one of the hardest problems in the advanced reactor industry right now.”

China is constructing more reactors at home than any other country by far, and it’s gotten quite good at building its standardized designs for large light water reactors faster and more cheaply than anyone else in the business. Yet Beijing has been slow to make export deals, so far selling just six reactors to two separate power plants in Pakistan. But the People’s Republic is stepping up. With a growing number of countries now seeking to build their first or latest nuclear stations, China is now bidding on major projects. Beijing went head to head with Washington in Riyadh when offering to build Saudi Arabia’s first atomic power station. Now China has submitted what Serbian President Aleksandar Vucic called “an incredible proposal” to build what would be the country’s first nuclear project in a European country, according to NucNet. It’s part of a broader investment scheme that includes $1.1 billion to boost production of artificial intelligence, automobiles, and robots, Bloomberg reported.
That’s far from the country where green technology is finding ways out of China. On Tuesday, InsideEVs reported that Jeep-owner Stellantis is considering manufacturing Chinese-branded cars in Mexico and Canada. Stellantis already owns a majority stake in the Chinese joint venture Leapmotor, and maintains a small North American factory footprint for the brand. The company is using one of its factories in Spain to produce Leapmotor cars in Europe, and now it’s also in talks with the Chinese automaker Dongfeng about adding its more expensive Voyah models to its lineup in France. Still, Stellantis CEO Antonio Filosa warned that such vehicles won’t be hitting American streets anytime soon. “I believe that there is space in Mexico. There is, maybe, space in Canada. We’ll see,” Filosa told CNBC. “Now there is no space in the United States. We don’t see that.” Maybe not for long. As Heatmap contributor Andrew Moseman put it in January: “Chinese EVs are at the gates.”
The United States achieved energy dominance over Europe as the continent started buying loads of liquified natural gas from America to replace pipeline fuel that once flowed west from Russia once the war in Ukraine began. The Iran War looked set to only deepen that advantage as the blockade of the Strait of Hormuz kept shipments of Qatari LNG at bay. But North America’s other big energy producer is muscling in. On Tuesday, The New York Times reported that Canada had struck a deal to export up to a million metric tons of LNG to Germany each year from a Pacific Coast terminal in British Columbia. The first deliveries would be due in the early 2030s, and the contract would continue for 20 years. Officials told the newspaper the deal would be announced today.
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Last week, I told you about Otovo, a U.S. -Norwegian startup that billed itself as a kind of AAA for rooftop solar panels and other home energy systems. Founded by the former chief executive of the bankrupt solar installer Sunnova, Otovo aims to serve the very customers “orphaned” by the Chapter 11 and left without a go-to company to fix faulty panels, batteries, or generators. So far, Otovo has built a base of about 30,000 customers subscribed to its repair service, two-thirds of whom are in Europe. On Wednesday morning, I can report exclusively for this newsletter, the company plans to announce that it acquired the customer book from SunSystem Technology. The customer base covers nine U.S. states, nearly tripling Otovo’s footprint to 14 states in total. The deal marks Otovo’s seventh acquisition since its relaunch less than a year ago.
Last week, the Department of Housing and Urban Development published an interim final rule axing a key step from the environmental review process for large, federally-backed developments. Environmental assessments conducted by HUD staff on projects with more than 200 units will now, according to E&E News, “no longer need an additional review by the field environmental clearance officer.” The change, set to take effect June 22, is meant to streamline affordable housing construction.
The National Oceanic and Atmospheric Administration’s effort to smooth the permitting rules for companies looking to start a whole new sector the deep seafloor is similarly picking up pace. The Metals Company, the U.S.-Canadian startup that helped pioneer the latest effort at establishing a global industry, is the well-known frontrunner racing for U.S. approval, even as the United Nations body that regulates commerce in international waters has yet to lay out its own ground rules for tapping the ocean floor for minerals. As I told you back in March, that U.N. entity, the International Seabed Authority, promised to broker a deal for a global permitting regime this summer. In the meantime, E&E News reports that at least eight ventures are now vying for federal permits in the U.S.
Amazon, Google, Meta, and Microsoft were among the companies to sign onto a new initiative designed to support investment in next-generation energy and materials technologies meant to reduce the environmental impact of data centers. The Data Center Innovation Initiative, organized by the nonprofit investor group Elemental Impact, “will test and validate critical technologies in data center environments, creating potential pathways for future adoption across broader energy and industrial sectors.” Other participants include Salesforce and Bill Gates’ Breakthrough Energy. “Data centers are uniquely positioned to serve as catalysts for clean energy and sustainable building materials,” Nat Sahlstrom, Meta’s vice president of energy and sustainability, said in a press release. “By sharing what we learn together, we can support entrepreneurs to scale faster and move these innovations to real-world impact.”
Update: This article originally misidentified a signatory of the Data Center Innovation Initiative. It has since been corrected. We regret the error.
The state is the first to backtrack on binding emissions legislation.
A wave of climate action swept the country’s statehouses in the early 2020s, with nearly two dozen states setting targets to slash their emissions. New York was ahead of the pack and among the most ambitious, passing the Climate Leadership and Community Protection Act, or CLCPA, in the summer of 2019 to achieve net zero emissions by 2050.
Now, however, the Empire State will distinguish itself as the first of the bunch to walk back its landmark climate law in the wake of Trump’s re-election.
The New York legislature released the text of the deal it reached with Governor Kathy Hochul to reform the state’s climate law on Tuesday. The deal includes two consequential changes: delaying a plan to regulate carbon from 2024 (it was already behind schedule) until 2028, and modifying how the state accounts for the powerful greenhouse gas methane in a way that will look like the state has accomplished deeper reductions than under the current method.
The governor has been signalling her intent to weaken the CLCPA for months, arguing that as written, it would have imposed untenable costs on New Yorkers. “Reality has been harsh,” she said during a press conference about the budget agreement in early May, before the text was released. “We cannot meet the current timelines without driving energy costs higher.”
Local environmental groups were widely critical of the deal, with New York Renews calling it a “major blow for New Yorkers and for the country” that would set “a dangerous precedent,” and Environmental Advocates NY deeming the rollbacks “bad politics and bad policy.”
Some remained hopeful that the changes would not derail the state’s progress by much, however. “There’s no way to sugarcoat it, this is a setback,” Jackson Morris, the director of state power sector, climate and energy for the Natural Resources Defense Council, told me. “At the same time, I don’t think it’s a setback that we can’t recover from.”
The CLCPA set targets to cut economy-wide emissions 40% by 2030 relative to 1990 levels, and achieve net zero emissions by 2050. It also codified an earlier plan to source 70% of the state’s electricity from renewable sources by 2030 and power the state entirely with zero-emissions resources by 2040.
New York didn’t make up these targets. They’re based on reports from the U.S. Global Change Research Program and the United Nations Intergovernmental Panel on Climate Change, which mapped out how the world could minimize the risks of climate change in line with the Paris Agreement. After Donald Trump announced he would pull the U.S. out of the Paris Agreement when he first took office in 2017, a number of Democratic governors banded together to show that America was still “all in” to achieve the pact’s goals, leading to a flurry of state climate laws in the years that followed.
Hochul’s budget deal doesn’t change the renewable electricity targets or the overall trajectory of the original law. Instead, it delays the regulations that would make the economy-wide emissions reductions possible to achieve.
The CLCPA directed state agencies to promulgate rules and regulations by 2024 that would put New York on the path to achieve the 2030 and 2050 targets. In the years since the law passed, the state has been developing a cap-and-invest program that would tax carbon emissions progressively over time, and use the proceeds to fund clean energy programs throughout the state. This program was the crux of Hochul’s affordability concerns, as it would make energy more expensive for some New Yorkers in the near term.
The budget deal moves the deadline for the regulations to the end of 2028. Crucially, it also does not require that those regulations help the state achieve the 2030 emissions target. Instead, it specifies that the regulations be designed to achieve a new goal of reducing emissions 60% by 2040, in addition to the original net zero by 2050 target.
Morris, of the NRDC, was quick to note that the deal does not get rid of the 2030 target. While there will be no state programs aimed at achieving it, it still provides a statutory foundation that agencies such as the Department of Environmental Conservation can point to as a reason to reject fossil fuel project permits, for example, he said. Meanwhile, Morris is optimistic that the new 2028 deadline and 2040 target can keep the state on track.
“We obviously prefer that none of this is happening,” he said. “But because it’s happening, I think that’s one aspect of this deal that we see as providing some ground to stand on.”
One of the aspects of the CLCPA that made it more ambitious than other state climate laws was the way it required New York to account for methane. The budget deal will eliminate this edge.
There were two key components to New York’s unique methane rules. The first was that they forced the state to take responsibility for methane emissions that occurred outside its borders that were nevertheless tied to its natural gas use. For instance, a major source of methane emissions is leakage from the infrastructure used to drill, process, and transport natural gas. New York banned fracking in 2014, and the state gets most of its natural gas via pipeline from Pennsylvania and West Virginia. Under Hochul’s changes, the state can take these “imported” emissions off its books.
The second is a bit more convoluted and has to do with how methane behaves in the atmosphere. When governments or companies set emissions targets, they typically convert all greenhouse gases into “carbon dioxide equivalents” so that they can set one round number goal for all emissions, like New York’s 60% reduction by 2040. There’s no single way to do this, since unlike carbon dioxide, which remains in the atmosphere for centuries, methane breaks down quickly. Over 20 years, one metric ton of methane has a similar effect to about 80 metric tons of carbon, but over 100 years, it’s more akin to 25 metric tons of carbon. New York uses the 20-year effect as its conversion factor, but under the budget deal, it will switch to the 100-year method. That will make its methane emissions suddenly appear much lower, and thus make the state look further along in fighting climate change without actually changing anything about its strategy.
This will ease the pressure on the state to electrify buildings, clean up landfills, and take other difficult steps to cut methane emissions. It will also, however, align New York’s methane math with that of most U.S. states and much of the rest of the world.
The national climate advocacy group Evergreen Action, which focuses on state policy, is less concerned about the changes to the climate law and more concerned about how they happened. Justin Balik, the nonprofit’s vice president for states, told me that Hochul never brought her concerns to environmental stakeholders or asked for policy proposals for how to accelerate clean energy while lowering costs.
“We need to see more urgency from the governor and the legislature to actually do the things that will result in emissions reductions and cutting costs for people,” Balik told me, “and less fretting about the targets that are written into law.”
Balik argued that the changes will do nothing to address the factors that are increasing energy rates. He cited the state’s dependence on natural gas as a key driver, as natural gas prices can fluctuate dramatically due to geopolitics and supply and demand. If anything, he said, delaying the cap-and-invest regulations will delay clean energy deployment and exacerbate affordability by deferring the revenue the state would have collected to and used to fund emissions-cutting programs and rate relief.
The budget deal attempts to make up for the shortfall with a $1 billion allocation to the state’s Sustainable Future Fund, which will support state programs to cut emissions from buildings and roads with heat pumps, thermal energy networks, electric school buses, and fast-charging stations.
Evergreen, NRDC, and other groups now have their sights set on the 2028 regulations.
“If we can move forward quickly with a robust process to stand up that cap-and-invest construct in New York State, and get it cutting pollution and generating billions of dollars in revenue for reinvestment in communities, that's going to be a huge breakthrough for the state of New York,” Morris said.