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A conversation with former congressman Bob Inglis.

Bob Inglis was snorkeling in Australia’s Great Barrier reef in 2008 when he had what he called “an epiphany.’’
The then-Republican congressman from a very conservative district in South Carolina had scoffed at climate change throughout his two terms in the House, but his certainty had begun to give way four years earlier when his son told him, upon turning 18, that he needed to “clean up his act on the environment.’’
The comment stung. Inglis was still thinking about it in 2008 during a congressional trip to Antarctica, where he saw researchers extract ice cores that showed steadily rising levels of carbon dioxide since the Industrial Age began. His belief that climate change was a hoax began to weaken.
It was on another fact-finding trip that Inglis toured the Great Barrier Reef. Alongside the Australian oceanographer Scott Heron, he saw that the once-colorful reef was being bleached and killed by warmer, more acidic waters. It was visible proof of the destructive power of climate change.
Heron, a fellow Christian, talked about the need to save the reef and the planet with such passion, Inglis said, that “I could see that he was worshipping God in what he was showing me. My metamorphosis was complete. I decided that I was ready to act.’’
The next year, Inglis co-sponsored legislation to impose a tax on carbon emissions. That “heresy’’ did not go over well in his district, and he was crushed in the 2010 primary, 71% to 29%. (The bill, meanwhile, never made it out of committee.) “I knew that I was making the right choice,’’ he said. “It’s a choice that I’d make again.’’
His newfound commitment to addressing climate change led him to launch a nonprofit group, RepublicEn, devoted to bringing conservatives into the climate conversation. Today, Inglis tours the country, doing about 100 events a year at conservative groups such as College Republicans, Rotary Clubs, hunting and fishing clubs, and local GOP organizations.
The following interview has been edited for length and clarity.
You’ve talked about how, as a Republican congressman, you refused to accept climate change because the issue was associated with Al Gore, a Democrat. Do you think that what political scientists call “negative partisanship’’ is a major reason why conservatives still resist action on climate change?
Yes, it is. That’s why we need credible messengers who can speak the language of the tribe and who can make the tribe believe that conservative ideas can add something to this conversation. Conservatives have an undeserved inferiority complex on climate and energy. We understand the concepts of negative externalities and market distortion and accountability. Free enterprise — accountable free enterprise — can fix climate change.
You are referring to the libertarian concept of negative externalities, actions that negatively affect other people. Can you explain how it relates to carbon emissions?
When you burn fossil fuels, you’re basically dumping trash into the sky. You don’t pay a tipping fee for putting carbon waste into the atmosphere and contributing to climate change, so there is an implicit subsidy for burning these fuels and belching carbon — in fact, it’s the granddaddy of all energy subsidies.
Take that subsidy away and everything changes. Virtually all coal would be quickly replaced with natural gas and wind and solar and other methods. If you use a tax to set the real price of carbon, the free market will figure out cheaper and better ways to produce electricity. Things will start happening faster. You’ll see more development of hydrogen and better batteries that don’t use lithium to store the energy created by solar and wind. Climate change is an economic problem. Just fix the economics and innovation will happen. That’s the language of conservatism, and it’s how I talk to conservatives about it.
Why do you believe a carbon tax is the best way to bring Republicans aboard?
It is still the most obvious way to solve climate change, and the most efficient. This is an idea that goes back to Milton Friedman in the 1980s, when he said, instead of trying to regulate polluters, tax pollution. Make them pay for their negative externalities. You tax the trash they dump into the sky, just the way we impose a cost for dumping trash on land. It has to be a substantial tax, and it has to be steadily rising to increase incentives to find other forms of energy that don’t turn the sky into a dump for emissions. If you do that, you don’t need tax incentives for solar and wind — the rising cost of fossil fuels will provide all the incentives they need. But you also need to make this tax apply to other nations and the goods they import into the U.S.
How do you do that?
You can put a tax on the carbon produced in goods imported from China. Sen. Bill Cassidy [R-Louisiana] recently proposed a foreign pollution tax like the carbon border adjustment mechanism the European Union has already adopted. We very much welcome this idea because it’s a way of making the transition away from fossil fuels worldwide. Many Republicans say it’s not fair if the U.S. lowers emissions while China can do what it wants. The beauty of a foreign pollution fee is that it addresses this problem in an efficient way. It creates economic incentives for China to reduce its own emissions.
A carbon tax has been talked about for a long time but has gone nowhere in Congress. Do you see any evidence that it’s more politically palatable today?
I think a carbon tax is like the rescue of the banks after the financial crisis in 2008. Until the banks collapsed, bailing out the U.S. financial system seemed impossible. But when the consequences of not doing it became clear, the bailout went from impossible to inevitable without passing through probable.
Several catalyzing events could propel the carbon tax forward. The most likely is the momentum created by the European border adjustment mechanism, which is really a carbon tariff. Companies in the U.S. who deal with Europe are going to be calling their members of Congress and Senators and saying, wouldn’t you really rather collect that revenue for carbon emissions here at home through a carbon tax rather than sending the money to Europe? At some point, the light will go on at the U.S. Capitol — wow, the Europeans are getting a lot of revenue with a tariff on carbon, and we could do that, too. We could do that to China. We could say, the stuff you are selling here, you have to pay a carbon tariff.
Another momentum-maker is our federal debt. If interest rates stay high, interest will really start eating more and more of the federal budget. I have always said that a carbon tax should be revenue neutral, but given what’s happening to the deficit, it could also provide that revenue. Necessity may force Congress to turn to what used to seem impossible.
Could extreme weather provide another incentive?
Yes, there could be some catalyzing climate event that really focuses the mind. I don’t know what it will be. During the civil rights movement, when Americans saw segregated cities turn the police dogs and fire hoses on protestors, it really turned the tide on Jim Crow. We’ve had so much extreme weather that people are getting desensitized to it, but there still might be a catastrophic event that changes people’s priorities.
This year, we’ve already seen some of the most extreme weather and weather-related disasters in recent human history — massive wildfires that darkened skies across the country, relentless heat waves, fierce storms, and destructive flooding. Do you see evidence that this is registering with conservatives?
A lot of people won’t change their minds because of what a scientist says. But experience is different. Experience is a harsh teacher. You can’t argue with the thermometer. You can’t argue with the yardstick showing that sea is rising. You can’t argue with the water coming into your home. In 2010, when I was getting tossed out of Congress, there was a lot of aggressive disbelief in climate change. People told me, I don’t believe in climate change, and you shouldn’t, either.
Right now, it’s quite different. Conservatives say to me, sure, you can switch to clean energy here, but what difference does it make if you don’t get the rest of the world in on this? Why should we do this alone? That’s when I talk about negative externalities and a carbon tax, and imposing a carbon tariff on China and other countries. That changes their perspective.
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What do you say to The Wall Street Journal conservatives who concede that climate change is occurring but insist that it’s less disruptive and cheaper to invest in adaptation to a hotter, more extreme climate?
Adaptation is a defeatist argument. Good luck building a seawall in Miami-Dade, for example. As sea levels rise, the water there is coming up into streets through the porous bedrock under that area. In South Carolina, go to coastal areas and you’ll see the big stands of pine trees dying because of salt water intrusion. In Montana, the forests are now filled with dead and dying trees because bark beetles that used to die in the winter now survive and go on attacking the trees year-round.
Adaptation won’t work in many places where people are going to lose what they love. It won’t work in New England when maple trees no longer produce maple sap for syrup because the winters are too warm. It won’t work at ski resorts that no longer have snow. When you stop arguing and pay attention to what you’re losing, you start saying, wow, how do we fix this?
Polls show there is still a big partisan divide on climate change. Do you think that can change?
The problem is no longer a lack of information. People can see what is happening. The problem is a lack of validation, and it’s a lack of hope. We need validation from conservative leaders that climate change is obviously real, and that we obviously need to do something about it. And we need to show conservatives that the free enterprise system can provide solutions once we get the true cost of carbon right.
If you keep telling people about all the terrible things happening and that we’re all hosed, it’s depressing. It makes people say, I don’t want to work with you. But if you can come to conservatives and say, we can light the world with new energy sources, and we can have more energy and more freedom and more manufacturing and more jobs — we can have a better world if we act on this. We can have true energy independence, so we don’t need to depend on energy from authoritarian regimes who chop journalists up into pieces. I’d like to be free of those people. I’d like to able to say to the Saudis, we don’t need your oil. Why don’t you see if you can drink that stuff?
The current Republican presidential field is not validating that climate change needs to be addressed.
In the first debate Nikki Haley did say climate change is real, but immediately pivoted to talking about how China and India have to lower their emissions, too. That’s a step forward, but it’s not enough. In 2018, when Republicans lost the House, it dawned on then-Majority Leader Kevin McCarthy and some other Republicans that you can’t win suburban swing districts with a retro position on climate change. So McCarthy convened a special Republican conference on climate, and the takeaway was, we need to get with it.
Polling data shows a majority of young conservatives and young evangelicals want action on climate change, and if you want to win in 2024, 2028, and 2032, you need to have a plan that you can talk about. But then Trump decided to run again, and he’s doubling down on climate disputation, and everyone in the party is afraid of the Death Angel. Trump can’t get anyone elected, but if he comes after you, he can get you killed in a primary.
But even if Trump wins, he will be a lame duck by 2026, and then the party is going to ask, where do we go next? My prediction at that point is that Republicans will be tired of reruns of the Trump show and will want a fresh approach that can win over young voters and suburban voters. And if he loses in 2024, that’s when you’ll have the reevaluation.
You’ve said of climate change, “We’re all in this together.’’ That sounds progressive — maybe even vaguely socialistic. Does that message resonate with conservatives who are suspicious of collective action?
[Laughs.] Maybe I should examine that statement more closely. But as a person of faith, I think it is just obvious we are literally in this fight together.
I think you can summon all Americans to a higher cause. I think if we can assure conservatives, I’m not trying to cancel you, and you have ideas to contribute to this discussion about the power of economic incentives, free enterprise, and innovation. You have to make conservatives feel that they have something important to contribute.
You have to make them feel they have something to gain from the solutions. If you the United States makes a bold move on carbon taxes and tells China and other nations, you have to pay a carbon tariff on the stuff you export to us, then it becomes an international effort to curtail emissions. Then conservatives start saying, we’re really talking about realistic and fair solutions. That’s when you can say, we need to take action because we do not want to lose this amazingly beautiful planet. That’s when you can say to them, we’re really all in this together.
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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.