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At the end of the day, there will always be politics.

Today’s internet is inundated with “AI slop,” and mocking the often bizarre outputs produced of language models (recall the Google AI that recommended making pizza with glue) has become an online pastime. Yet artificial intelligence advocates have not been deterred from their claims of a utopian future made possible by AI. Whatever problems we face — including climate change — one day, we are told, they will be solved by the magical power of computing. The breathless headlines have been around for years: “How artificial intelligence can tackle climate change”; “How AI could power the climate breakthrough the world needs”; “Here are 10 ways AI could help fight climate change”; “9 ways AI is helping tackle climate change.”
Like much of the hype around AI, the specifics aren’t necessarily wrong. AI could help us understand the impacts of climate change more comprehensively, and can be used to locate solutions to particular challenges in technology and manufacturing. But as the extraordinary energy demands AI will impose on our system are coming into focus, and as some of the most important corporate AI leaders join hands with what could be the most anti-environment administration in history, the big picture problem becomes even clearer. Artificial intelligence can’t solve climate change because doing so will always require passing through the bottleneck of politics.
For those hoping to bring us to a glorious future guided by superintelligent computers, claiming that AI will solve climate change has become more urgent as the energy demands of the technology increase. Google reported last summer that since 2019, its emissions have increased by 48% because of its use of AI. The International Energy Agency projects that by 2026, AI will consume 1,000 terawatt-hours of electricity, as much as the entire nation of Japan, the world’s fourth-largest economy. Countries around the world are rushing to develop their own AI systems (the surprising capabilities of a new Chinese system called DeepSeek just sent the stock market tumbling), any of which could entail the same scale of energy demand as the ones created by American tech giants.
But imagine if we could snap our fingers and make that problem disappear? That’s what OpenAI CEO Sam Altman suggested in a recent interview with Bloomberg. “Fusion’s going to work,” he said when asked about AI’s energy demands, going on to say that “quickly permitting fusion reactors” is the answer — particularly those made by Helion Energy, a company whose executive chairman is, you guessed it, Sam Altman.
Of course, Helion has no fusion reactors to permit yet because no one does. Fusion’s promise of essentially limitless clean energy at low cost is tantalizing, which is why billions of public and private dollars have been invested in fusion research. But while technological gains are being made, there is still a great deal of uncertainty about how long it will take until fusion can reach commercial scale. It might be 10 years, or 20, or 50 or 100 — no one knows for sure.
But blithely insisting that incredibly complex problems will be solved easily and quickly is a specialty of tech barons. And if AI itself finds the solution to our energy problems? Even better.
There’s no question that AI is improving at a rapid pace, even if there are some things it’s still terrible at. And when it comes to climate, over time it will probably help produce incremental gains across a wide number of areas, from manufacturing efficiency to urban planning. But the more dramatic and consequential any idea is — whether it comes from AI or not — the more likely it is that it will have to move through the political process in order to be implemented.
And that’s where AI can’t help. A machine learning system can’t tell you the precise formula to please a recalcitrant senator or navigate a hundred city councils with different ideas about what kinds of clean energy projects they’ll allow in their towns. Politics is about people — their goals, their incentives, their fears, their prejudices — and it’s far too messy to be solved with numeric calculation, even by the most powerful AI system imaginable.
Let’s say that a year from now, an AI came up with both an entirely new way to design a fusion reactor and a revolutionary battery design that offered longer and denser storage, together solving so many of the problems scientists and engineers struggle with today. How would the fossil fuel industry react to this development? Would it say, “Oh well, oil and gas had a pretty good run, but now the world can move on”?
Of course not. It would use its extraordinary resources to battle against their competition, just as they always have. That’s what it did in the last election cycle, when it spent $450 million on campaigns and lobbying to preserve the industry and the riches it generates.
And while many hoped that the Republican Party would moderate its views on climate, at the moment it looks more like it is going backward — not just looking to undo every bit of progress made under the Biden administration, but also undermining renewable energy wherever it can. President Trump seems determined to destroy wind energy in America, which has been growing rapidly in recent years. Whether he succeeds will be up to the political system, not the inherent usefulness of a millennium-old technology.
In politics, good ideas don’t always win out. Who has power and what they are after will always matter a great deal, as Trump and the people he is bringing into the federal government are showing us right now.
AI can be a tool that helps us reduce emissions and mitigate the effects of climate change; the fact that its boosters regularly offer absurdly optimistic timelines for societal transformation doesn’t mean the underlying technology isn’t remarkable. But “solving” climate change isn’t merely a technological problem. It will always be a political one as well, and even the smartest piece of software won’t solve it for us.
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The attacks on Iran have not redounded to renewables’ benefit. Here are three reasons why.
The fragility of the global fossil fuel complex has been put on full display. The Strait of Hormuz has been effectively closed, causing a shock to oil and natural gas prices, putting fuel supplies from Incheon to Karachi at risk. American drivers are already paying more at the pump, despite the United States’s much-vaunted energy independence. Never has the case for a transition to renewable energy been more urgent, clear, and necessary.
So despite the stock market overall being down, clean energy companies’ shares are soaring, right?
Wrong.
First Solar: down over 1% on the day. Enphase: down over 3%. Sunrun: down almost 8%; Tesla: down around 2.5%
Why the slump? There are a few big reasons:
Several analysts described the market action today as “risk-off,” where traders sell almost anything to raise cash. Even safe haven assets like U.S. Treasuries sold off earlier today while the U.S. dollar strengthened.
“A lot of things that worked well recently, they’re taking a big beating,” Gautam Jain, a senior research scholar at the Columbia University Center on Global Energy Policy, told me. “It’s mostly risk aversion.”
Several trackers of clean energy stocks, including the S&P Global Clean Energy Transition Index (down 3% today) or the iShares Global Clean Energy ETF (down over 3%) have actually outperformed the broader market so far this year, making them potentially attractive to sell off for cash.
And some clean energy stocks are just volatile and tend to magnify broader market movements. The iShares Global Clean Energy ETF has a beta — a measure of how a stock’s movements compare with the overall market — higher than 1, which means it has tended to move more than the market up or down.
Then there’s the actual news. After President Trump announced Tuesday afternoon that the United States Development Finance Corporation would be insuring maritime trade “for a very reasonable price,” and that “if necessary” the U.S. would escort ships through the Strait of Hormuz, the overall market picked up slightly and oil prices dropped.
It’s often said that what makes renewables so special is that they don’t rely on fuel. The sun or the wind can’t be trapped in a Middle Eastern strait because insurers refuse to cover the boats it arrives on.
But what renewables do need is cash. The overwhelming share of the lifetime expense of a renewable project is upfront capital expenditure, not ongoing operational expenditures like fuel. This makes renewables very sensitive to interest rates because they rely on borrowed money to get built. If snarled supply chains translate to higher inflation, that could send interest rates higher, or at the very least delay expected interest rate cuts from central banks.
Sustained inflation due to high energy prices “likely pushes interest rate cuts out,” Jain told me, which means higher costs for renewables projects.
While in the long run it may make sense to respond to an oil or natural gas supply shock by diversifying your energy supply into renewables, political leaders often opt to try to maintain stability, even if it’s very expensive.
“The moment you start thinking about energy security, renewables jump up as a priority,” Jain said. Most countries realize how important it is to be independent of the global supply chain. In the long term it works in favor of renewables. The problem is the short term.”
In the short term, governments often try to mitigate spiking fuel prices by subsidizing fossil fuels and locking in supply contracts to reinforce their countries’ energy supplies. Renewables may thereby lose out on investment that might more logically flow their way.
The other issue is that the same fractured supply chain that drives up oil and gas prices also affects renewables, which are still often dependent on imports for components. “Freight costs go up,” Jain said. “That impacts clean energy industry more.”
As for the Strait of Hormuz, Trump said the Navy would start escorting ships “as soon as possible.”
“It is difficult to imagine more arbitrary and capricious decisionmaking than that at issue here.”
A federal court shot down President Trump’s attempt to kill New York City’s congestion pricing program on Tuesday, allowing the city’s $9 toll on cars entering downtown Manhattan during peak hours to remain in effect.
Judge Lewis Liman of the U.S. District Court for the Southern District of New York ruled that the Trump administration’s termination of the program was illegal, writing, “It is difficult to imagine more arbitrary and capricious decisionmaking than that at issue here.”
So concludes a fight that began almost exactly one year ago, just after Trump returned to the White House. On February 19, 2025, the newly minted Transportation Secretary Sean Duffy sent a letter to Kathy Hochul, the governor of New York, rescinding the federal government’s approval of the congestion pricing fee. President Trump had expressed concerns about the program, Duffy said, leading his department to review its agreement with the state and determine that the program did not adhere to the federal statute under which it was approved.
Duffy argued that the city was not allowed to cordon off part of the city and not provide any toll-free options for drivers to enter it. He also asserted that the program had to be designed solely to relieve congestion — and that New York’s explicit secondary goal of raising money to improve public transit was a violation.
Trump, meanwhile, likened himself to a monarch who had risen to power just in time to rescue New Yorkers from tyranny. That same day, the White House posted an image to social media of Trump standing in front of the New York City skyline donning a gold crown, with the caption, "CONGESTION PRICING IS DEAD. Manhattan, and all of New York, is SAVED. LONG LIVE THE KING!"
New York had only just launched the tolling program a month earlier after nearly 20 years of deliberation — or, as reporter and Hell Gate cofounder Christopher Robbins put it in his account of those years for Heatmap, “procrastination.” The program was supposed to go into effect months earlier before, at the last minute, Hochul tried to delay the program indefinitely, claiming it was too much of a burden on New Yorkers’ wallets. She ultimately allowed congestion pricing to proceed with the fee reduced from $15 during peak hours to $9, and thereafter became one of its champions. The state immediately challenged Duffy’s termination order in court and defied the agency’s instruction to shut down the program, keeping the toll in place for the entirety of the court case.
In May, Judge Liman issued a preliminary injunction prohibiting the DOT from terminating the agreement, noting that New York was likely to succeed in demonstrating that Duffy had exceeded his authority in rescinding it.
After the first full year the program was operating, the state reported 27 million fewer vehicles entering lower Manhattan and a 7% boost to transit ridership. Bus speeds were also up, traffic noise complaints were down, and the program raised $550 million in net revenue.
The final court order issued Tuesday rejected Duffy’s initial arguments for terminating the program, as well as additional justifications he supplied later in the case.
“We disagree with the court’s ruling,” a spokesperson for the Transportation Department told me, adding that congestion pricing imposes a “massive tax on every New Yorker” and has “made federally funded roads inaccessible to commuters without providing a toll-free alternative.” The Department is “reviewing all legal options — including an appeal — with the Justice Department,” they said.
Current conditions: A cluster of thunderstorms is moving northeast across the middle of the United States, from San Antonio to Cincinnati • Thailand’s disaster agency has put 62 provinces, including Bangkok, on alert for severe summer storms through the end of the week • The American Samoan capital of Pago Pago is in the midst of days of intense thunderstorms.
We are only four days into the bombing campaign the United States and Israel began Saturday in a bid to topple the Islamic Republic’s regime. Oil prices closed Monday nearly 9% higher than where trading started last Friday. Natural gas prices, meanwhile, spiked by 5% in the U.S. and 45% in Europe after Qatar announced a halt to shipments of liquified natural gas through the Strait of Hormuz, which tapers at its narrowest point to just 20 miles between the shores of Iran and the United Arab Emirates. It’s a sign that the war “isn’t just an oil story,” Heatmap’s Matthew Zeitlin wrote yesterday. Like any good tale, it has some irony: “The one U.S. natural gas export project scheduled to start up soon is, of all things, a QatarEnergy-ExxonMobil joint venture.” Heatmap’s Robinson Meyer further explored the LNG angle with Eurasia Group analyst Gregory Brew on the latest episode of Shift Key.
At least for now, the bombing of Iranian nuclear enrichment sites hasn’t led to any detectable increase in radiation levels in countries bordering Iran, the International Atomic Energy Agency said Monday. That includes the Bushehr nuclear power plant, the Tehran research reactor, and other facilities. “So far, no elevation of radiation levels above the usual background levels has been detected in countries bordering Iran,” Director General Rafael Grossi said in a statement.
Financial giants are once again buying a utility in a bet on electricity growth. A consortium led by BlackRock subsidiary Global Infrastructure Partners and Swedish private equity heavyweight EQT announced a deal Monday to buy utility giant AES Corp. The acquisition was valued at more than $33 billion and is expected to close by early next year at the latest. “AES is a leader in competitive generation,” Bayo Ogunlesi, the chief executive officer of BlackRock’s Global Infrastructure Partners, said in a statement. “At a time in which there is a need for significant investments in new capacity in electricity generation, transmission, and distribution, especially in the United States of America, we look forward to utilizing GIP’s experience in energy infrastructure investing, as well as our operational capabilities to help accelerate AES’ commitment to serve the market needs for affordable, safe and reliable power.” The move comes almost exactly a year after the infrastructure divisions at Blackstone, the world’s largest alternative asset manager, bought the Albuquerque-based utility TXNM Energy in an $11.5 billion gamble on surging power demand.
China’s output of solar power surpassed that of wind for the first time last year as cheap panels flooded the market at home and abroad. The country produced nearly 1.2 million gigawatt-hours of electricity from solar power in 2025, up 40% from a year earlier, according to a Bloomberg analysis of National Bureau of Statistics data published Saturday. Wind generation increased just 13% to more than 1.1 gigawatt-hours. The solar boom comes as Beijing bolsters spending on green industry across the board. China went from spending virtually nothing on fusion energy development to investing more in one year than the entire rest of the world combined, as I have previously reported. To some, China is — despite its continued heavy use of coal — a climate hero, as Heatmap’s Katie Brigham has written.
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Canada and India have a longstanding special friendship on nuclear power. Both countries — two of the juggernauts of the 56-country Commonwealth of Nations — operate fleets that rely heavily on pressurized heavy water reactors, a very different design than the light water reactors that make up the vast majority of the fleets in Europe and the United States. Ottawa helped New Delhi build its first nuclear plants. Now the two countries have renewed their atomic ties in what the BBC called a “landmark” deal Monday. As part of the pact, India signed a nine-year agreement with Canada’s largest uranium miner, Cameco, to supply fuel to New Delhi’s growing fleet of seven nuclear plants. The $1.9 billion deal opens a new market for Canada’s expanding production of uranium ore and gives India, which has long worried about its lack of domestic deposits, a stable supply of fuel.
India, meanwhile, is charging ahead with two new reactors at the Kaiga atomic power station in the southwestern state of Karnataka. The units are set to be IPHWR-700, natively designed pressurized heavy water reactors. Last week, the Nuclear Power Corporation of India poured the first concrete on the new pair of reactors, NucNet reported Monday.
The Spanish refiner Moeve has decided to move forward with an investment into building what Hydrogen Insight called “a scaled-back version” of the first phase of its giant 2-gigawatt Andalusian Green Hydrogen Valley project. Even in a less ambitious form, Reuters pegged the total value of the project at $1.2 billion. Meanwhile in the U.S., as I wrote yesterday, is losing major projects right as big production facilities planned before Trump returned to office come online.
Speaking of building, the LEGO Group is investing another $2.8 million into carbon dioxide removal. The Danish toymaker had already pumped money into carbon-removal projects overseen by Climate Impact Partners and ClimeFi. At this point, LEGO has committed $8.5 million to sucking planet-heating carbon out of the atmosphere, where it circulates for centuries. “As the program expands, it is helping to strengthen our understanding of different approaches and inform future decision-making on how carbon removal may complement our wider climate goals,” Annette Stube, LEGO’s chief sustainability officer, told Carbon Herald.