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The culture wars are threatening one of the few bipartisan areas of climate policy.
Carbon capture has always been contentious, but its biggest critics have traditionally been climate activists on the left. Now, in an unexpected twist, it seems to be getting caught up in the same conservative climate culture war that has overwhelmed electric stoves and ESG investing.
Ron DeSantis, the governor of Florida, took to social media this week to castigate the Republican supermajority in his state’s legislature for hosting a hearing on a bill about carbon sequestration. “Carbon sequestration is a scam!” he said in a pre-recorded video. “It’s part of climate ideology, and it should not be in law in the state of Florida, certainly should not be the work of a Republican supermajority.”
The video was uncanny. DeSantis sounded like the ideological activists he thought he was attacking. The idea of capturing carbon from industrial plants and storing it underground has long held bipartisan appeal among policymakers — attractive to Republicans in oil and gas states that want to keep those industries in business, and to Democrats as a way to reach across the aisle on climate solutions
The Florida bill in question isn’t just about carbon capture technology. It would create a carbon sequestration task force to make recommendations for how the state can increase carbon uptake in the environment — in trees, soils, and the ocean — in addition to using equipment to capture it and store it underground. These kinds of initiatives have long been popular with Republican policymakers, as well, in no small part because they can be pursued without talking about fossil fuels at all. During Trump’s first term, he championed the then-popular idea of planting a trillion trees as a climate solution.
In the video, DeSantis mischaracterizes the bill as calling for “injecting carbon into our soil, aquifers, and even our ocean floor,” conflating nature-based and technological storage solutions and making the legislation sound all the more threatening.
The video is not the only recent example of a prominent Republican coming out against carbon capture and sequestration. In March, Scott Perry, a Republican Congressman from Pennsylvania, co-sponsored the “45Q Repeal Act” with Ro Khanna, a progressive Democrat from California. The bill proposes killing the 45Q tax credit, a subsidy that pays between $60 and $180 for every ton of carbon pumped underground. The amount depends on from where the carbon was captured and whether it is simply sequestered underground or used to pump oil out of aging wells, a process called enhanced oil recovery.
Khanna and other Democrats have introduced bills to kill 45Q each year for the past several years, arguing that it was primarily subsidizing more oil production to the tune of hundreds of billions of taxpayer dollars, fueling climate change rather than slowing it. But this is the first time a Republican has signed on as a co-sponsor. Perry painted the bill as a way to “reduce overregulation and fraud” and to help pay for the tax cuts that Trump has asked for. “The 45Q tax credit subsidizes technologies that serve no purpose beyond distorting energy markets,” states a press release from Perry’s office.
“It’s one of these, what we would call Baptist/Bootleggers type of coalitions,” David Reiner, a political scientist and professor of technology policy at the University of Cambridge, told me. “The people who hate climate change and the people who hate the idea that the way of solving climate change would be to engage the oil and gas industry.”
The environmental news outlet DeSmog has also reported on a growing conservative backlash to carbon capture in Canada, with a far-right group called Canada Proud running anti-carbon capture ads to its more than 500,000 followers on Facebook. “Carbon capture is billed as a green technology that stops carbon from entering the atmosphere,” the ads said. “But is it really good for the environment? As it turns out, not really.” Environmental groups like the Sierra Club, the Center for Biological Diversity, Greenpeace, and Food and Water Watch have been saying the same thing for years.
The rhetoric around carbon capture tends to oversimplify complex challenges into absolute statements. Critics say that carbon capture “doesn’t work” or is a “false solution.” Advocates say it’s “proven” technology that’s already avoided millions of tons of carbon from entering the atmosphere.
It’s true that to date, captured carbon has mostly been used to get more oil out of the ground. Oil and gas companies have thus far benefited more than people or the environment, despite their exaggerated advertisements saying otherwise. For many potential use cases, it’s far easier and cheaper to use renewable energy than capture and sequester carbon. The technology is expensive, and without heavy subsidies, it either isn’t economic or would increase energy costs. There are some cases, however, such as removing carbon from the atmosphere or decarbonizing cement production, where it could be one of the best solutions. The technology’s most progressive proponents often argue that the criticisms of carbon capture can be addressed with better policy. But there are no powerful political coalitions pushing for a different vision.
On the contrary, the most powerful proponents of carbon capture are pushing for more generous subsidies. In February, John Barasso, a Senator from Wyoming, introduced “The Enhancing Energy Recovery Act” with six Republican co-sponsors. The bill would expand 45Q so that all carbon sequestration projects, whether they increase oil production or not, qualify for the same amount of tax credit.
Reiner, the political scientist, mostly dismissed the significance of the DeSantis video to the broader policy debate around carbon capture. “Ron DeSantis doesn’t like carbon capture. Well, who cares?” he told me. There’s not much going on with carbon capture in Florida anyway. “The way the Senate works is it vastly over-represents the western, resource-rich states, all of whom have been very enthusiastic supporters of this,” Reiner said. “It’s very easy for Ron DeSantis to posture on this topic. It’s much harder to imagine that would gain a lot of traction in the Senate Republican leadership.”
At the same time, Reiner said the Florida governor’s comments reflect this broader upheaval happening in areas where there once appeared to be consensus. For example, after Trump was elected, there appeared to be relative agreement that the Inflation Reduction Act was safe because of how much money it was sending to Republican districts. But then the Trump administration came in and immediately began trying to shut down many of the law’s grant programs — a course of action few had predicted, mainly because it’s likely illegal for the president to end grant programs without permission from Congress.
Now, Republicans in Congress are considering axing some of the law’s most beneficial clean energy tax credits to pay for Trump’s tax cut package. Billion-dollar mega-projects to capture carbon directly from the air in Texas and Louisiana have shown up on lists floating around the Hill of programs to kill.
Perhaps more striking than the DeSantis video was a re-tweet of it by Wayne Christian, a Republican on the Texas Railroad Commission. The Commission is a state body that regulates the oil and gas industry in Texas, but whose elected members regularly receive the majority of their campaign donations from the companies they regulate. “You’re right [Governor DeSantis]!” Christian wrote. “Carbon Capture & Sequestration is no different than Wind/Solar subsidies. CCUS is Big Oil placating the Left & taking taxpayer dollars to do so. Energy policies should be meritorious & about consumers.”
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With the federal electric vehicle tax credit now gone, automakers like Ford and Hyundai have to find other ways to make their electric cars affordable.
We finally know what Tesla means by an “affordable” electric vehicle. On Tuesday, the electric automaker revealed the stripped-down, less-fancy “Standard” version of its best-selling Model Y crossover and Model 3 sedan. These EVs will sell for several thousand dollars less than the existing versions, which are now rebranded as “Premium.”
These slightly cheaper Ys and 3s aren’t exactly the $25,000 baby Tesla that many fans and investors have anticipated for years. But the announcement is an indication of where the electric vehicle market in the United States may be headed now that the $7,500 federal tax credit for purchasing an EV is dead and gone. Automakers have spent the past few months rejiggering their lineups and slashing prices as much as they can to make sure sales don’t crater without the federal incentive.
The impending end of the tax credit on September 30 helped propel Tesla to record sales numbers in the third quarter of 2025. It was a stark reversal from months of disappointing sales stemming from factors like increased competition and Elon Musk’s political antics that alienated potential buyers. Money talks, of course; Tesla sent me a blitz of emails to make sure I didn’t forget what a good deal I could get before September’s end. But now, with the deadline passed, Musk’s company needed a new shot in the arm to stop sales from falling off a cliff.
The budget Teslas are, indeed, lesser vehicles. They have simpler headlights, less power, and less range than the now-Premium versions. They even come in fewer colors. But the prices — $40,000 for a Model Y Standard and $37,000 for a Model 3 Standard — effectively mirror what those cars would have cost if the tax credit were still in place. In other words, you can still buy a Tesla in the $35,000 to $40,000 range. It just won’t be as good a Tesla as you used to be able to get for the money.
The tax credit deadline had looked like one that would demarcate two distinct EV eras, with October 1 acting as the beginning of new, less-affordable time. But it turns out things aren’t quite so black and white. Lots of automakers are experimenting with ways to soften the financial blow for those who still want to get into an EV. After all, there’s always a loophole.
For example, as the September tax credit deadline approached, Reuters reported on a scheme orchestrated by Ford and General Motors to allow the American car giants to keep the good times going by buying their own cars. It goes like this: Before the September 30 deadline, the financing arms of these big corporations began the process of purchasing a host of their own vehicles from their dealerships. By making the down payment before the end of September, Ford and GM qualified these vehicles for the federal tax benefit. (They even checked with the IRS to make sure this plot was legitimate, Reuters said.) They plan to pass on the savings by leasing those vehicles back to everyday Americans.
According to Car and Driver, a number of citizens did something similar to what the corporations devised — that is, some buyers made their first payments on EVs that won’t be delivered to them for weeks or months in order to qualify for the tax break. These shenanigans are for the short term, though. Ford and GM could pre-purchase only so many of their own vehicles, and Ford said this deal effectively extends the tax credit only another quarter, through the end of December.
The bigger question is whether the automakers can — or will — simply cut prices on their EVs to make the loss of federal incentives sting a little less.
That’s the plan at Hyundai. The Korean giant has announced an enormous price cut on its successful Ioniq 5, one that more than makes up for the vanishing federal incentive. The most basic version of that car will fall from $42,600 to $35,000, putting it on par with the Chevy Equinox EV that’s been a hit at that price. Fancier versions of the Ioniq 5 will fall by more than $9,000 for the 2026 model year. Hyundai and its partner Kia are offering some of the best October lease deals, too.
Other car companies have begun to follow suit. BMW will simply offer a $7,500 discount on its electric models for those who take delivery by the end of October. Stellantis, the parent company of Jeep, Chrysler, Dodge, Ram, and others, will do the same for electric sales through the end of the year. No word yet on what happens after these deals expire.
Incentives like the federal tax credit for EVs aren’t meant to last forever, of course. In theory, their purpose is to lift up a new technology until it can compete at scale with the tech that has been around forever.
Whether electric cars have reached that point is a contentious question. Ford has only just announced a roadmap to overhaul its entire EV production system in order to stop losing billions on electric vehicles. Hyundai’s EVs are profitable — or, at least they were before the Trump administration began monkeying with tax incentives and tariffs. A batch of more affordable EVs are on the way, though the ever-changing map of tariffs makes it unclear exactly how much they’ll cost when they finally arrive.
The short-term picture may well be that electric cars continue to be a loss leader for some automakers still trying to find their footing in the space. Whether their shareholders will tolerate this long enough for the margins to become sustainable — well, that’s the real question.
Current conditions: In the Atlantic, the tropical storm that could, as it develops, take the name Jerry is making its way westward toward the U.S. • In the Pacific, Hurricane Priscilla strengthened into a Category 2 storm en route to Arizona and the Southwest • China broke an October temperature record with thermometers surging near 104 degrees Fahrenheit in the southeastern province of Fujian.
The Department of Energy appears poised to revoke awards to two major Direct Air Capture Hubs funded by the Infrastructure Investment and Jobs Act in Louisiana and Texas, Heatmap’s Emily Pontecorvo reported Tuesday. She got her hands on an internal agency project list that designated nearly $24 billion worth of grants as “terminated,” including Occidental Petroleum’s South Texas DAC Hub and Louisiana's Project Cypress, a joint venture between the DAC startups Heirloom and Climeworks. An Energy Department spokesperson told Emily that he was “unable to verify” the list of canceled grants and said that “no further determinations have been made at this time other than those previously announced,”referring to the canceled grants the department announced last week. Christoph Gebald, the CEO of Climeworks, acknowledged “market rumors” in an email, but said that the company is “prepared for all scenarios.” Heirloom’s head of policy, Vikrum Aiyer, said the company wasn’t aware of any decision the Energy Department had yet made.
While the list floated last week showed the Trump administration’s plans to cancel the two regional hydrogen hubs on the West Coast, the new list indicated that the Energy Department planned to rescind grants for all seven hubs, Emily reported. “If the program is dismantled, it could undermine the development of the domestic hydrogen industry,” Rachel Starr, the senior U.S. policy manager for hydrogen and transportation at Clean Air Task Force told her. “The U.S. will risk its leadership position on the global stage, both in terms of exporting a variety of transportation fuels that rely on hydrogen as a feedstock and in terms of technological development as other countries continue to fund and make progress on a variety of hydrogen production pathways and end uses.”
Remember the Tesla announcement I teased in yesterday’s newsletter? The predictions proved half right: The electric automaker did, indeed, release a cheaper version of its midsize SUV, the Model Y, with a starting price just $10 shy of $40,000. Rather than a new Roadster or potential vacuum cleaner, as the cryptic videos the company posted on CEO Elon Musk’s social media site hinted, the second announcement was a cheaper version of the Model 3, already the lower-end sedan offering. Starting at $36,990, InsideEVs called it “one of the most affordable cars Tesla has ever sold, and the cheapest in 2025.” But it’s still a far cry from Musk’s erstwhile promise to roll out a Tesla for less than $30,000.
That may be part of why the company is losing market share. As Heatmap’s Matthew Zeitlin reported, Tesla’s slice of the U.S. electric vehicle sales sank to its lowest-ever level in August despite Americans’ record scramble to use the federal tax credits before the September 30 deadline President Donald Trump’s new tax law set. General Motors, which sold more electric vehicles in the third quarter of this year than in all of 2024, offers the cheapest battery-powered passenger vehicle on the market today, the Chevrolet Equinox, which starts at $35,100.
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Trump’s pledge to revive the United States’ declining coal industry was always a gamble — even though, as Matthew reported in July, global coal demand is rising. Three separate stories published Tuesday show just how stacked the odds are against a major resurgence:
As you may recall from two consecutive newsletters last month, Secretary of Energy Chris Wright said “permitting reform” was “the biggest remaining thing” in the administration’s agenda. Yet Republican leaders in Congress expressed skepticism about tacking energy policy into the next reconciliation bill. This week, however, Utah Senator Mike Lee, the chairman of the Senate Committee on Energy and Natural Resources, called for a legislative overhaul of the National Environmental Policy Act. On Monday, the pro-development social media account Yimbyland — short for Yes In My Back Yard — posted on X: “Reminder that we built the Golden Gate Bridge in 4.5 years. Today, we wouldn’t even be able to finish the environmental review in 4.5 years.” In response, Lee said: “It’s time for NEPA reform. And permitting reform more broadly.”
Last month, a bipartisan permitting reform bill got a hearing in the House of Representatives. But that was before the government shutdown. And sources familiar with Democrats’ thinking have in recent months suggested to me that the administration’s gutting of so many clean energy policies has left Republicans with little to bargain with ahead of next year’s midterm elections.
Soon-to-be Japanese prime minister Sanae Takaichi.Yuichi Yamazaki - Pool/Getty Images
On Saturday, Japan’s long-ruling Liberal Democratic Party elected its former economic minister, Sanae Takaichi, as its new leader, putting her one step away from becoming the country’s first woman prime minister. Under previous administrations, Japan was already on track to restart the reactors idled after the 2011 Fukushima disaster. But Takaichi, a hardline conservative and nationalist who also vowed to re-militarize the nation, has pushed to speed up deployment of new reactors and technologies such as fusion in hopes of making the country 100% self-sufficient on energy.
“She wants energy security over climate ambition, nuclear over renewables, and national industry over global corporations,” Mika Ohbayashi, director at the pro-clean-energy Renewable Energy Institute, told Bloomberg. Shares of nuclear reactor operators surged by nearly 7% on Monday on the Tokyo Stock Exchange, while renewable energy developers’ stock prices dropped by as much as 15%
Researchers at the United Arab Emirates’ University of Sharjah just outlined a new method to transform spent coffee grounds and a commonly used type of plastic used in packaging into a form of activated carbon that can be used for chemical engineering, food processing, and water and air treatments. By repurposing the waste, it avoids carbon emitting from landfills into the atmosphere and reduces the need for new sources of carbon for industrial processes. “What begins with a Starbucks coffee cup and a discarded plastic water bottle can become a powerful tool in the fight against climate change through the production of activated carbon,” Dr. Haif Aljomard, lead inventor of the newly patented technology, said in a press release.
Last week’s Energy Department grant cancellations included funding for a backup energy system at Valley Children’s Hospital in Madera, California
When the Department of Energy canceled more than 321 grants in an act of apparent retribution against Democrats over the government shutdown, Russ Vought, President Trump’s budget czar, declared that the money represented “Green New Scam funding to fuel the Left's climate agenda.”
At least one of the grants zeroed out last week, however, was supposed to help keep the lights on at a children’s hospital.
The $29 million grant was intended to build a 3.3-megawatt long-duration energy storage system at Valley Children’s Hospital, a large pediatric hospital in Madera, California. The system would “power critical hospital operations during outage events,” such as when the California grid shuts down to avoid starting wildfires, according to project documents.
“The U.S. Department of Energy’s cancellation of funding for [the] long-duration energy storage demonstration grant is disappointing,” Zara Arboleda, a spokesperson for the hospital, told me.
Valley Children’s Hospital is a 358-bed hospital that says it serves more than 1.3 million children across California’s Central Valley. It has 116 neonatal intensive care unit beds and nationally ranked specialties in pediatric neurology, orthopedics, and lung surgery, among others.
Energy Secretary Chris Wright has characterized the more than $7.5 billion in grants canceled last week as part of an ongoing review of financial awards made by the Biden administration. But the timing of the cancellations — and Vought’s gleeful tweets about them — suggests a more vindictive purpose. Republican lawmakers and President Trump himself threatened to unleash Vought as a kind of rogue budget cutter before the federal government shut down last week.
“We don’t control what he’s going to do,” Senator John Thune told Politico last week. “I have a meeting today with Russ Vought, he of PROJECT 2025 Fame, to determine which of the many Democrat Agencies, most of which are a political SCAM, he recommends to be cut,” Trump posted on the same day.
Up until this year, canceling funding that is already under contract with a private party would have been thought to be straightforwardly illegal under federal law. But the Supreme Court’s conservative majority has allowed the Trump administration to act with previously unimaginable freedom while it considers ruling on similar cases.
Faraday Microgrids, the contractor that was due to receive the funding, is already building a microgrid for the hospital. The proposed backup power system — which the grant stipulated should be “non-lithium-ion” — was supposed to be funded by the Energy Department’s Office of Clean Energy Demonstrations, with the goal of finding new ways of storing electricity without using lithium-ion batteries, and was meant to work in concert with that new microgrid and snap on in times of high stress.
That microgrid project is still moving forward, Arboleda, the hospital’s spokesperson, told me. “Valley Children’s Hospital continues to build and soon will operate its microgrid announced in 2023 to ensure our facilities have access to reliable and sustainable energy every minute of every day for our patients and our care providers,” she added. That grid will contain some storage, but not the long-term storage system discussed in the official plan.
Faraday Microgrids, formerly known as Charge Bliss, didn’t respond to a request for comment, but its website touts its ability to secure grants and other government funding for energy projects.
In a statement, a spokesman for the Energy Department said that the grant was canceled because the project wasn’t feasible. “Following an in-depth review of the financial award, it was determined, among other reasons, that the viability of the project was not adequate to warrant further disbursements,” Ben Dietderich, a spokesman for the Energy Department, told me.
The children’s hospital, at least, is in good company. On Tuesday, a Trump administration document obtained by Heatmap News suggested the Energy Department is moving to kill bipartisan-backed funding for two direct air capture hubs in Texas and Louisiana. And although California has lost the most grants of any state, the Energy Department has also sought to terminate funding for new factories and industrial facilities across Republican-governed states.
Editor’s note: This story initially misstated the number of neonatal intensive care unit beds at Valley Children’s Hospital. It has been corrected.