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On liquified natural gas exports, BYD vs. Tesla, and heat protections
Current conditions: Raging wildfires are forcing evacuations on several Greek islands • More rain is forecast for China’s sodden rice growing regions • Temperatures in Death Valley could reach 130 degrees Fahrenheit early next week.
A federal court last night blocked President Biden’s pause on permits for new liquefied natural gas export terminals. The administration issued a temporary moratorium on new LNG approvals in January, allowing the Energy Department to study what effect terminals have on the climate, a move seen as a big win for climate activists. But it was quickly followed by a lawsuit from 16 states accusing the administration of violating federal law. A Trump-appointed judge in Louisiana agreed that the pause was hurting states, and said it was “completely without reason or logic and is perhaps the epiphany of ideocracy [sic].” The Energy Department disagreed with the ruling and is considering its next steps. Some early reaction and analysis to the news:
Hurricane Beryl has strengthened into a monster category 5 storm, the earliest storm of that magnitude ever to form in the Atlantic in recorded history. The system slammed into Grenada’s Carriacou Island, St. Vincent, and the Grenadines, leaving catastrophic damage in its wake. “In half an hour, Carriacou was flattened,” Grenada’s Prime Minister Dickon Mitchell said. The National Hurricane Center said the storm had maximum sustained winds of 165 miles per hour and was “still intensifying” this morning as it headed toward Jamaica. “Hurricane Beryl could never have formed where and when it did were it not for the unprecedented heat in the Atlantic Ocean,” wrote Jake Bittle at Grist, noting that surface temperatures are as much as 3 or 4 degrees Fahrenheit above average.
Tesla is expected to report Q2 deliveries today. Analysts think the EV maker will show a 6% drop in deliveries compared to the same period last year, marking the second declining quarter in a row. The company has “few excuses for its sales slowdown,” wrote Dana Hull and Kara Carlson at Bloomberg. The problem is straightforward, they added: “Tesla’s older lineup of vehicles is having a harder time keeping up with fresher offerings from rival EV manufacturers.”
Meanwhile, Chinese EV powerhouse BYD just reported its highest ever monthly sales of new energy vehicles, and a 21% rise in EV sales for the second quarter. The total number of vehicles sold (426,039) is about 12,000 short of what is expected from Tesla, but the gap is closing.
The Biden administration today put forward a proposal to “establish the nation’s first-ever federal safety standard addressing excessive heat in the workplace.” The rules would require employers to identify heat hazards, have response plans for heat illness and heat emergencies, and provide access to shade, water, and rest breaks. New workers would also need to be acclimatized to higher temperatures. A White House official toldThe Associated Press that we’d see more penalties for heat-related violations in workplaces. If finalized, the rule would apply to about 36 million workers and reduce heat-related health problems in the workplace significantly. The plan is “likely to face legal challenges from businesses and lobbying groups that have staunchly opposed such a measure,” The Guardianreported.
Also today, the EPA will publish a new report outlining how climate change continues to affect the U.S., so be on the lookout for that.
An international fusion mega-project long in the making has received a delivery of 19 massive, 56-foot-tall magnets that are essential for controlling and confining the reactions that will take place inside its tokamak. Here is a rendering of the magnets surrounding the tokamak (human for scale!):
ITER
The International Thermonuclear Experimental Reactor (ITER) project, which is under construction in southern France, will be the world's largest experimental fusion facility once completed. It is designed to demonstrate the feasibility of fusion power, which is the process by which stars produce energy and, if harnessed on Earth, could provide abundant clean energy. While the delivery of the magnets is a big step, the ITER project is struggling with delays and mounting costs. Its first fusion reaction was slated to happen next year but that timeline was recently pushed back by 10 years to 2035. Another large fusion reactor called JT-60SA fired up last October in Japan.
A new bill set to be signed into law in Michigan will prohibit the state’s homeowners’ associations from banning projects that improve a home’s energy efficiency, like rooftop solar or EV chargers.
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Current conditions: Colorado’s major snow storm will continue well into the weekend • More than 900 people in Pakistan were hospitalized in a single day due to extreme air pollution • Devastating flooding continues in Spain.
The world continues to underestimate climate risks, and irreversible tipping points are near, UN Secretary General António Guterres toldThe Guardian. “It is absolutely essential to act now,” he said. “It’s absolutely essential to reduce emissions drastically now.” His warning comes before the COP29 summit kicks off Monday in Azerbaijan, where negotiators are set to agree on a new global finance target to help developing countries with climate adaptation. Guterres said that if the U.S. leaves the Paris Agreement again under a Trump presidency, the landmark goal to limit global warming to 1.5 degrees Celsius would be “crippled.” Experts say 2024 is now expected to be the first full calendar year in which global temperatures exceed the 1.5 degrees target.
With climate-skeptic Donald Trump set to retake the White House in January, many are wondering what his policies will mean for U.S. greenhouse gas emissions. He’s likely to walk back pollution rules on cars and power plants, repeal some parts of the Inflation Reduction Act, boost oil and gas drilling, and pull out of the Paris Agreement. Jesse Jenkins, who leads the Princeton ZERO Lab and is co-host of Heatmap’s Shift Key podcast, said projected emissions will indeed be higher than they would under current policies, but “since Trump cannot repeal grants already awarded or tax credits already provided to date, and it is unlikely that every provision in IRA will be repealed,” they probably will remain lower than Jenkins’ so-called Frozen Policies scenario, which assumes no new climate policies since January 2021.
Jesse Jenkins/REPEAT Project
Varun Sivaram, senior fellow for energy and climate at the Council on Foreign Relations, added some global context: “Even with sharp Trump domestic climate policy rollbacks, the change in U.S. emissions is trivial on a global scale and far less meaningful than expected emerging economy emissions growth,” he said.
In case you missed it (we did!): Oil giant BP said in its most recent earnings report that it has abandoned 18 early-stage hydrogen projects. It still plans to back between five and 10 projects, but that’s down from the “more than 10” it had planned for. The move will save BP some $200 million, and “could have a chilling effect on the nascent hydrogen industry,” wrote Tim De Chant at TechCrunch.
Rivian reported Q3 earnings yesterday. Here are some key takeaways:
A new study published in the journal Communications Earth & Environment found that carbon dioxide emissions from private jets have risen by 50% over the last four years. The research analyzed data from about 19 million private flights (half of which were shorter than 300 miles) made by more than 25,000 private aircraft between 2019 and 2023. In 2023 alone, private flights resulted in about 15.6 million metric tons of CO2 emissions. Most private flights are taking place in the United States: The researchers say that while the U.S. is home to 4% of the global population, nearly 70% of all private aircraft are registered there. The 2022 FIFA World Cup was one of the most carbon-intensive events for private aircraft. Also on the list? The Davos conference and – uh oh – COP28.
Most private flights occur in the U.S. Communications Earth & Environment
Donald Trump’s election victory this week resulted in a $1.2 billion windfall for investors who bet against renewable energy stocks.
It was a curious alliance from the start. On the one hand, Donald Trump, who made antipathy toward electric vehicles a core part of his meandering rants. On the other hand, Elon Musk, the man behind the world’s largest EV company, who nonetheless put all his weight, his millions of dollars, and the power of his social network behind the Trump campaign.
With Musk standing by his side on Election Day, Trump has once again secured the presidency. His reascendance sent shock waves through the automotive world, where companies that had been lurching toward electrification with varying levels of enthusiasm were left to wonder what happens now — and what benefits Tesla may reap from having hitched itself to the winning horse.
Certainly the federal government’s stated target of 50% of U.S. new car sales being electric by 2030 is toast, and many of the actions it took in pursuit of that goal are endangered. Although Trump has softened his rhetoric against EVs since becoming buddies with Musk, it’s hard to imagine a Trump administration with any kind of ambitious electrification goal.
During his first go-round as president, Trump attacked the state of California’s ability to set its own ambitious climate-focused rules for cars. No surprise there: Because of the size of the California car market, its regulations helped to drag the entire industry toward lower-emitting vehicles and, almost inevitably, EVs. If Trump changes course and doesn’t do the same thing this time, it’ll be because his new friend at Tesla supports those rules.
The biggest question hanging over electric vehicles, however, is the fate of the Biden administration’s signature achievements in climate and EV policy, particularly the Inflation Reduction Act’s $7,500 federal consumer tax credit for electric vehicles. A Trump administration looks poised to tear down whatever it can of its predecessor’s policy. Some analysts predict it’s unlikely the entire IRA will disappear, but concede Trump would try to kill off the incentives for electric vehicles however he can.
There’s no sugar-coating it: Without the federal incentives, the state of EVs looks somewhat bleak. Knocking $7,500 off the starting price is essential to negate the cost of manufacturing expensive lithium-ion batteries and making EVs cost-competitive with ordinary combustion cars. Consider a crucial model like the new Chevy Equinox EV: Counting the federal incentive, the most basic $35,000 model could come in under the starting price of a gasoline crossover like the Toyota RAV4. Without that benefit, buyers who want to go electric will have to pay a premium to do so — the thing that’s been holding back mass electrification all along.
Musk, during his honeymoon with Trump, boasted that Tesla doesn’t need the tax credits, as if daring the president-elect to kill off the incentives. On the one hand, this is obviously false. Visit Tesla’s website and you’ll see the simplest Model 3 listed for $29,990, but this is a mirage. Take away the $7,500 in incentives and $5,000 in claimed savings versus buying gasoline, and the car actually starts at about $43,000, much further out of reach for non-wealthy buyers.
What Musk really means is that his company doesn’t need the incentives nearly as bad as other automakers do. Ford is hemorrhaging billions of dollars as it struggles to make EVs profitably. GM’s big plan to go entirely electric depended heavily on federal support. As InsideEVsnotes, the likely outcome of a Trump offensive against EVs is that the legacy car brands, faced with an unpredictable electrification roadmap as America oscillates between presidents, scale back their plans and lean back into the easy profitably of big, gas-guzzling SUVs and trucks. Such an about-face could hand Tesla the kind of EV market dominance it enjoyed four or five years ago when it sold around 75% of all electric vehicles in America.
That’s tough news for the climate-conscious Americans who want an electric vehicle built by someone not named Elon Musk. Hundreds of thousands of people, myself included, bought a Tesla during the past five or six years because it was the most practical EV for their lifestyle, only to see the company’s figurehead shift his public persona from goofy troll to Trump acolyte. It’s not uncommon now, as Democrats distance themselves from Tesla, to see Model 3s adorned with bumper stickers like the “Anti-Elon Tesla Club,” as one on a car I followed last month proclaimed. Musk’s newest vehicle, the Cybertruck, is a rolling embodiment of the man’s brand, a vehicle purpose-built to repel anyone not part of his cult of personality.
In a world where this version of Tesla retakes control of the electric car market, it becomes harder to ditch gasoline without indirectly supporting Donald Trump, by either buying a Tesla or topping off at its Superchargers. Blue voters will have some options outside of Tesla — the industry has come too far to simply evaporate because of one election. But it’s also easy to see dispirited progressives throwing up their hands and buying another carbon-spewing Subaru.
Republicans are taking over some of the most powerful institutions for crafting climate policy on Earth.
When Republicans flipped the Senate, they took the keys to three critical energy and climate-focused committees.
These are among the most powerful institutions for crafting climate policy on Earth. The Senate plays the role of gatekeeper for important legislation, as it requires a supermajority to overcome the filibuster. Hence, it’s both where many promising climate bills from the House go to die, as well as where key administrators such as the heads of the Department of Energy and the Environmental Protection Agency are vetted and confirmed.
We’ll have to wait a bit for the Senate’s new committee chairs to be officially confirmed. But Jeff Navin, co-founder at the climate change-focused government affairs firm Boundary Stone Partners, told me that since selections are usually based on seniority, in many cases it’s already clear which Republicans are poised to lead under Trump and which Democrats will assume second-in-command (known as the ranking member). Here’s what we know so far.
This committee has been famously led by Joe Manchin, the former Democrat, now Independent senator from West Virginia, who will retire at the end of this legislative session. Energy and Natural Resources has a history of bipartisan collaboration and was integral in developing many of the key provisions in the Inflation Reduction Act — and could thus play a key role in dismantling them. Overall, the committee oversees the DOE, the Department of the Interior, the U.S. Forest Service, and the Federal Energy Regulatory Commission, so it’s no small deal that its next chairman will likely be Mike Lee, the ultra-conservative Republican from Utah. That’s assuming that the committee's current ranking member, John Barrasso of Wyoming, wins his bid for Republican Senate whip, which seems very likely.
Lee opposes federal ownership of public lands, setting himself up to butt heads with Martin Heinrich, the Democrat from New Mexico and likely the committee’s next ranking member. Lee has also said that solving climate change is simply a matter of having more babies, as “problems of human imagination are not solved by more laws, they’re solved by more humans.” As Navin told me, “We've had this kind of safe space where so-called quiet climate policy could get done in the margins. And it’s not clear that that's going to continue to exist with the new leadership.”
This committee is currently chaired by Democrat Tom Carper of Delaware, who is retiring after this term. Poised to take over is the Republican’s current ranking member, Shelley Moore Capito of West Virginia. She’s been a strong advocate for continued reliance on coal and natural gas power plants, while also carving out areas of bipartisan consensus on issues such as nuclear energy, carbon capture, and infrastructure projects during her tenure on the committee. The job of the Environment and Public Works committee is in the name: It oversees the EPA, writes key pieces of environmental legislation such as the Clean Air Act and Clean Water Act, and supervises public infrastructure projects such as highways, bridges, and dams.
Navin told me that many believe the new Democratic ranking member will be Sheldon Whitehouse of Rhode Island, although to do so, he would have to step down from his perch at the Senate Budget Committee, where he is currently chair. A tireless advocate of the climate cause, Whitehouse has worked on the Environment and Public Works committee for over 15 years, and lately seems to have had a relatively productive working relationship with Capito.
This subcommittee falls under the broader Senate Appropriations Committee and is responsible for allocating funding for the DOE, various water development projects, and various other agencies such as the Nuclear Regulatory Commission.
California’s Dianne Feinstein used to chair this subcommittee until her death last year, when Democrat Patty Murray of Washington took over. Navin told me that the subcommittee’s next leader will depend on how the game of “musical chairs” in the larger Appropriations Committee shakes out. Depending on their subcommittee preferences, the chair could end up being John Kennedy of Louisiana, outgoing Senate Minority Leader Mitch McConnell of Kentucky, or Lisa Murkowski of Alaska. It’s likewise hard to say who the top Democrat will be.