You’re out of free articles.
Log in
To continue reading, log in to your account.
Create a Free Account
To unlock more free articles, please create a free account.
Sign In or Create an Account.
By continuing, you agree to the Terms of Service and acknowledge our Privacy Policy
Welcome to Heatmap
Thank you for registering with Heatmap. Climate change is one of the greatest challenges of our lives, a force reshaping our economy, our politics, and our culture. We hope to be your trusted, friendly, and insightful guide to that transformation. Please enjoy your free articles. You can check your profile here .
subscribe to get Unlimited access
Offer for a Heatmap News Unlimited Access subscription; please note that your subscription will renew automatically unless you cancel prior to renewal. Cancellation takes effect at the end of your current billing period. We will let you know in advance of any price changes. Taxes may apply. Offer terms are subject to change.
Subscribe to get unlimited Access
Hey, you are out of free articles but you are only a few clicks away from full access. Subscribe below and take advantage of our introductory offer.
subscribe to get Unlimited access
Offer for a Heatmap News Unlimited Access subscription; please note that your subscription will renew automatically unless you cancel prior to renewal. Cancellation takes effect at the end of your current billing period. We will let you know in advance of any price changes. Taxes may apply. Offer terms are subject to change.
Create Your Account
Please Enter Your Password
Forgot your password?
Please enter the email address you use for your account so we can send you a link to reset your password:
At COP28, Norway was consistently on the right side of climate. Why?

The annual COP 28 gathering is over, and it’s about time. As Robinson Meyer writes here at Heatmap, many important things came out of the conference, despite the utter joke of holding it in a notorious oil dictatorship — the United Arab Emirates — with the head of that country’s state oil company serving as president.
Yet another major oil-producing country at the conference was consistently on the right side of climate, namely Norway. The Norwegian delegation advocated for aggressive climate action, including a large energy transition fund to be focused on the poorest countries, announced millions in new investment to protect the rainforest in Brazil and for disaster insurance in Africa. Most importantly, it consistently pushed for a final agreement to phase out the use of fossil fuels. “It is not enough to say 1.5, we have to do 1.5. We have to deliver accordingly,” said Foreign Minister Espen Barth Eide. Saudi Arabia, Russia, and China opposed this language. Eventually the conference settled on an agreement to “transition away from” rather than “phase out,” which while disappointing is better than nothing.
Why didn’t Norway side with its fellow oil-producing nations? The reason is decades ago, it approached its oil reserves wisely, both economically and politically. This has allowed it to enjoy the benefits of oil without becoming an oil-addicted petrostate.
On the economics, Norway has taken a frankly socialist approach. When the North Sea oil deposits were discovered in the 1960s, it did not simply sell off the rights to a private company. Instead the government declared the deposits the collective property of the Norwegian citizenry and founded a state-owned company, Statoil (now Equinor). That in turned hired Mobil to teach it how to build an offshore drilling platform, built up its own expertise from there, and is now one of the biggest offshore drilling companies in the world. The company was formally sold into the stock market in 2001, but the government still owns more than two-thirds of the shares. It’s a perfect example of that typically Nordic combination of idealism and extreme technical expertise.
A corollary of its state-led oil development is what Norway does with the resulting revenue — it invests it in a social wealth fund. The primary point of this is to avoid “Dutch disease,” in which a country experiencing a resource boom sees a movement of labor into the resource sector, as well as an influx of foreign currency. The labor shift increases costs for other industries, while the foreign currency pushes up the value of the domestic currency, making exports less competitive. This effect is why big oil-producing nations tend to experience deindustrialization.
Norway was already quite wealthy when it discovered oil, and the government wanted to preserve its industrial base, and did not want to become dependent on the wildly gyrating global market price of oil. So instead of spending the revenues on subsidies for the citizenry, or on the government budget, it invested the proceeds in the Government Pension Fund Global. This fund has become truly colossal over the years, with some $1.4 trillion in it — representing about $255,000 for each Norwegian citizen.
As Matt Bruenig points out at The People’s Policy Project, if you impute Norway’s state-owned wealth to individual Norwegians (which makes sense given that Norway is a healthy democracy), then the share of wealth owned by the top 1 percent falls from 53 percent to 27 percent, making it arguably the most equal country in terms of wealth in the world.
Incidentally, Norway’s experience provides an important lesson for other countries that hit upon resource strikes, whether it’s oil in Guyana or lithium in Chile. A sudden surge of resource revenues sounds like a lucky break, but it can do serious damage to your economy if you aren’t careful. Just look at Venezuela, which was devastated when the price of oil collapsed in 2014 (though that wasn’t its only problem). You can spend the first few checks on needed infrastructure upgrades, of course, but over the long term you want to sock the money away into a diversified investment portfolio that doesn’t ruin the rest of your economy and can provide reasonably predictable returns over the long term.
But another point of the state investment model is political. Oil is quite profitable, and if private companies are getting the money, a nation will see a marked increase in inequality, and develop a class of ultra-rich people with concomitant distorting effects on politics. Oil billionaires (like Charles Koch or Tim Dunn) are notoriously reactionary even by billionaire standards, and that’s saying a lot. It may have something to do with the fact that, as a rule, oil company owners neither create, nor discover, nor work to produce the oil that makes them so fabulously rich (that would be nature, scientists, and workers respectively), and so cultivate a snarling hatred of taxation and government regulation to compensate for so plainly not deserving their wealth.
Whatever the case, oil magnates have vast funds for lobbying, which they use to attempt to capture the state for their own purposes — again, just look at America, or Canada. An extreme case of oil capture can be seen in Saudi Arabia or the U.A.E., which have wealth funds formally similar to Norway, but being dictatorships, ended up with governments actually constituted of oil billionaires, as if North Dakota was a hereditary monarchy.
The relative lack of oil influence also helps explain why Norway has set up one of the more aggressive decarbonization programs in the world. Now, its electricity sector has long been mostly decarbonized already thanks to tremendous hydropower resources, but that has made its crash transition away from oil-powered transportation all the more effective. Using a combination of subsidies and hefty, increasing taxes on gas- and oil-powered vehicles, the government has ensured that fully 80 percent of cars and trucks sold in Norway today are EVs, and that figure will continue to increase. Much work remains to be done (and EVs, while an improvement, are no magic bullet) but Norwegian carbon dioxide emissions per person plateaued in the late 90s and have since fallen by about a quarter, to 7.5 metric tons (or about half the American figure).
And this has been done with full knowledge that moving away from oil will mean substantial economic pain. A plan the government first adopted in 2019 faced the fact squarely: “Growth will have to take place in sectors where there is no economic resource rent. This means that tax revenues will be lower and companies cannot expect as high a return on their capital as in the petroleum sector.”
Saudi Arabia and the U.A.E., of course, depend heavily on oil and gas for energy, and produce truly eye-popping emissions.
Now, I shouldn’t exaggerate the greatness of Norway here. Equinor has had its share of spills and scandals. And of course, it would have been better if humanity had never used oil in the first place. But for the time being, humanity needs oil to function, and Norway has provided that oil in about the least-damaging way imaginable — not least because now that the world must wean itself off fossil fuels, Norway is both able and willing to turn off the taps.
Log in
To continue reading, log in to your account.
Create a Free Account
To unlock more free articles, please create a free account.
Much of the world is once again asking whether fossil fuels are as reliable as they thought — not because power plants are tripping off or wellheads are freezing up, but because terawatts’ worth of energy are currently stuck outside the Strait of Hormuz in oil tankers and liquified natural gas carriers.
The current crisis in many ways echoes the 2022 energy cataclysm, kicked off when Russia invaded Ukraine. Then, oil, gas, and commodity prices immediately spiked across the globe, forcing Europe to reorient its energy supplies away from Russian gas and leaving developing countries in a state of energy poverty as they could not afford to import suddenly dear fuels.
“It just shows once again the risk of being dependent on imported fossil fuels, whether it’s oil, gas, LNG, or coal. It’s an incredibly fragile system that most of the world depends on,” Nick Hedley, an energy transition research analyst at Zero Carbon Analytics, told me. “Most people are at risk from these shocks.”
Countries suddenly competing once again for scarce gas and oil will have to make tough decisions about their energy systems, with consequences for both their economies and the global climate. In the short run, it is likely that many countries will make a dash for energy security and seek to keep their existing systems running, either paying a premium for LNG or turning to coal. In the long run, however, this moment of energy scarcity could provide yet another reason to turn towards renewables and electrification using solar panels and batteries.
The immediate economic risks may be most intense to Iran’s east.
About 90% of LNG from Qatar goes to Asia, with Qatar serving as essentially the sole supplier of LNG to some countries. Even if there’s more LNG available from non-Qatari sources, many poorer Asian countries are likely to lose out to richer countries in Europe or East Asia that can outbid them for the cargoes.
For countries like Pakistan and Bangladesh, “The result is demand destruction, not aggressive spot purchasing,” according to Kpler, the trade analytics service.
LNG supply is “critical” for Asia — roughly a fifth of Asia’s power can be traced back to LNG from the Middle East, Morgan Stanley analysts wrote in a note to clients Thursday.
In its absence, coal usage will likely tick up in the power sector, leading to declining air quality locally and higher emissions of greenhouse gases globally. “For uninterrupted power, coal remains the key alternative to LNG and there is flex capacity available in South Asia, which has seen new coal plants open,” the Morgan Stanley analysts wrote.
In India, the government is considering implementing an emergency directive to coal-fired power plants to “boost generation and to plan fuel procurement to meet peak summer demand,” sources told Argus Media.
Anne-Sophie Corbeau, global research scholar at the Columbia University Center on Global Energy Policy, told me that she does “expect to see some coal switching,” and that she has “already seen an increase in coal prices.” Benchmarks have already risen to their highest level in at least two years, according to the Financial Times.
This likely coal surge comes as two of the world’s most coal-hungry economies — namely India and China — saw their electricity generation from coal power drop in 2025, the first time that’s happened in both countries at once in around 50 years, according to an analysis by Lauri Myllyvirta of the Centre for Research on Energy and Clean Air. In much of the rich world, by contrast, coal consumption has been falling for decades.
At the same time energy insecurity may tempt countries to stoke their coal fleet, the past few years have also offered examples of huge deployments of solar in some of the countries most affected by high fossil fuel prices, leading some energy analysts to be guardedly optimistic about how the world could respond to the latest energy crisis.
In the developing world especially, the need to import oil for gasoline and natural gas for electricity generation weighs on the terms of trade. Countries become desperate to export goods in exchange for hard currency to pay for essential fuel imports, which are then often subsidized for consumers, weighing on government budgets. But at least for electricity and transportation, there are increasingly alternatives to expensive, imported fossil fuels.
“This is the first oil and gas crisis-slash-pricing scare in which clean alternatives to oil and gas are fully price-competitive,” Isaac Levi, an analyst at CREA, told me. “Looking at the solar booms, we can expect this to boost clean energy deployment in a major way, and that will be the more significant and durable impact.”
The most cited example for this kind of rapid emergency solar uptake is Pakistan, which has experienced one of the fastest solar conversions in history and expects this year to see a fifth of its electricity come from solar, according to the World Resources Institute.
The country was already under pressure from the rising price of energy following the Russian invasion of Ukraine in 2022, when it was forced to hike fuel and power prices and cut subsidies as part of a deal with the International Monetary Fund. From 2021 to 2024, Pakistan’s share of generation from solar more than tripled thanks to the growing glut of inexpensive Chinese solar panels that were locked out of the rich world — especially the United States — by tariffs.
“Countries which are heavily dependent on fossil fuel imports are once more feeling very nervous,” Kingsmill Bond, an energy strategist at the clean energy think tank Ember, told me. “The interesting thing is we have two answers: renewables and electrification. If you want quick results, you put solar panels up quickly.”
Other examples of fast transitions have been in transportation, particularly electric cars.
Ethiopia banned the import of internal combustion vehicles due to worries about the high costs of oil imports and fuel subsidies. EVs make up some 8% of the cars on the road in the East African country, up from virtually zero a few years ago. In Asia, Nepal executed a similar push-pull as part of a government effort to reduce both imports and smog; about five years later, over three-quarters of new car sales in the country were electric.
But getting all the ducks in a row for a green transition has proven difficult in both the rich world and the developing world. Few countries have been able to electrify their economies while also powering them cheaply and cleanly. Ethiopia and Nepal are two examples of electrifying demand for power, particularly transportation. But while the two countries are poor compared to much of the world, they are rich in water and elevation, giving them plentiful firm, non-carbon-emitting electricity generation.
Pakistan, on the other hand, is far from being able to, say, synthesize fertilizers at scale with renewable power. In addition to being a power source, natural gas is also a crucial input in industrial fertilizer manufacturing. Faced with spiking costs, fertilizer plants in Pakistan are shutting down, imperiling future food supplies. All the cheap Chinese solar panels and BYD cars in the world can’t feed a chemical plant.
What remains to be seen is whether this crisis will be severe and enduring enough to lead to a fundamental rethinking about the global energy supply — what kind of energy countries want and where they will get it.
“Energy security crises produce the same structural response: the search for sources that do not require crossing borders and global chokepoints,” Jeff Currie, a longtime commodities analyst, and James Stavridis, a retired admiral and NATO’s former Supreme Allied Commander, argued in an analysis for The Carlyle Group. “Solar, wind, and nuclear are children of the 1970s oil shocks — with growth driven by security, not environmentalism.”
While the United States is not unaffected by the unfolding energy crisis — gasoline prices have spiked over $0.25 per gallon in the past week, and diesel prices have spiked $0.40 — its resilience comes from both its domestic oil and gas production and its solar, wind, and nuclear fleets. Much of this electricity generation and power production can be traced back in some respect to those 1970s oil shocks.
In 2024, the United States imported 17% of its primary energy supply, according to the Energy Information Administration, compared to a peak of 34% in 2006 and the lowest since 1985. Today, Asia still imports 35%, and Europe 60%, Bond told me.
“That’s massive levels of dependency in a fragile world,” Bond said. “It’s a question of security.”
On Galvanize’s latest fund strategy and more of the week’s big money moves.
This week brings encouraging news for companies on land and offshore, from the Netherlands to East Africa. First up — and in spite of a federal administration that appears to be actively hostile toward residential and commercial electrification and energy efficiency measures — California gubernatorial candidate Tom Steyer’s investment firm Galvanize just closed a fund devoted to decarbonizing real estate. Elsewhere, we have a Dutch startup pursuing a novel approach to clean heat production, a former Tesla exec rolling out electric motorbikes in East Africa, and an offshore wind developer plans to pair its floating platform with underwater data centers.
With electricity costs on the rise and war in Iran pushing energy prices further upward, energy efficiency measures are looking more prudent — and more profitable — than ever. Amidst this backdrop, the asset manager and venture firm Galvanize announced the close of its first real estate fund, bringing in $370 million as the firm looks to make commercial buildings cleaner and better able to weather price fluctuations in global energy markets.
Galvanize, co-founded by the billionaire Tom Steyer, is already doling out this money, investing in 15 buildings across 11 cities so far. The firm targets real estate in cities where demand is outpacing supply, performing decarbonization upgrades such as installing on-site solar generation and undertaking energy efficiency retrofits such as improved insulation and weatherproof windows.
Galvanize is betting that fluctuations and increases in energy prices will grow faster than the cost of upgrading buildings to be more efficient and lower-emissions, making its strategy profitable in the long-term.
While I’ve long followed thermal battery companies like Rondo and Antora, which use renewable energy to heat up hot rocks capable of delivering industrial heat, I was unaware of iron fuel’s potential to do much the same. That changed this week when the Dutch startup Rift announced it had raised $132 million to commercialize this technology.
The startup produces high-temperature heat by combusting iron powder with ambient air in a specialized boiler engineered to handle metal fuels. This process produces a flame that can reach 2,000 degrees Celsius without emitting any carbon dioxide. The resulting heat can then be delivered as steam, hot water, or hot air to industrial facilities, with the only byproduct being iron oxide (rust), which itself can then be collected and converted back into iron fuel by reacting it with hydrogen produced via low-carbon processes.
Rift’s latest funding comprises a $96.2 million Series B round involving several Netherlands-based investors, along with a $35.5 million grant from the EU Innovation Fund. Both pots of money will support the construction of the company’s first production facility for iron fuel boilers. Rift’s first customer is the building materials manufacturer Kingspan Unidek, with whom it’s developing a project that Rift says will result in over a million metric tons of avoided emissions over a 15-year period.
The electric vehicle transition looks pretty different in East Africa, where two-wheeled motorcycles dominate daily commuting and urban transit. These smaller, lighter vehicles are simple and cheap to electrify, and while their upfront cost is higher than gasoline-powered bikes, operating expenses can be 50% lower. This week, the market received a boost as e-motorbike startup Zeno announced a $25 million Series A round to scale production of its flagship bike.
The round was led by the climate tech VC Congruent Ventures, with support from other heavyweights such as Lowercarbon Capital. Zeno’s CEO Michael Spencer, who left Tesla in 2022 to start the company, sees a larger electrification opportunity in emerging economies than here in the U.S. As he told TechCrunch when Zeno emerged from stealth in fall 2024, “the Tesla master plan has more legs and more room to run with lower hurdles in emerging markets.”
Spencer saw particular potential to sell low-cost motorbikes with batteries that Zeno would own rather than the customer, meaning they can’t charge their bikes at home. Riders instead rely on swap stations where they can exchange depleted batteries for fully charged ones — much as the Chinese electric vehicle company Nio does with its cars.
Zeno designs and manufactures its own bikes and charging infrastructure, with 800 motorbikes sold and 150 charging and battery-swap stations installed across four cities across Kenya and Uganda. With this latest influx of cash, the company plans to fulfill its backlogged orderbook, which it says now has more than 25,000 retail and fleet customers.
Data centers developers are hitting bottlenecks securing energy, land, and social acceptance — so the startup Aikido wants to ship them out to sea, where it says “energy, cooling and space are abundant.” This week, the offshore wind developer revealed its novel floating turbine platform, designed to co-locate wind generation and battery storage with data centers submerged in compartments connected to the turbine itself.
The installation would still be grid-connected, but the idea is that the turbine and batteries will meet most of the data center’s energy needs, drawing on the grid mainly during the summer when the wind dies down. A 100-kilowatt proof of concept is already being developed in Norway, with the first commercial deployment slated for the U.K. sometime in 2028. Eventually, Aikido says it envisions building “gigawatt-scale” data centers at sea — an ambitious undertaking in a notoriously harsh environment.
But as CEO Sam Kanner reasoned in a press release, “before we go off-world, we should go offshore” — a likely jab at Elon Musk, who has repeatedly expressed his desire to launch data centers into space to rid himself of terrestrial concerns over real estate and energy.
A conversation with Center for Rural Innovation founder and Vermont hative Matt Dunne.
This week’s conversation is with Matt Dunne, founder of the nonprofit Center for Rural Innovation, which focuses on technology, social responsibility, and empowering small, economically depressed communities.
Dunne was born and raised in Vermont, where he still lives today. He was a state legislator in the Green Mountain State for many years. I first became familiar with his name when I was in college at the state’s public university, reporting on his candidacy for the Democratic gubernatorial nomination in 2016. Dunne ultimately lost a tight race to Sue Minter, who then lost to current governor Phil Scott, a Republican.
I can still remember how back in 2016, Dunne’s politics then presaged the kind of rural empathy and economic populism now en vogue and rising within the Democratic Party. Dunne endorsed Vermont Senator Bernie Sanders’ 2016 presidential bid and was backed by the state’s AFL-CIO; Minter, a more establishment Democrat, stayed out of the 2016 primary and underperformed in the general election. It doesn’t surprise me now to see Dunne emerging with novel, nuanced perspectives on how advanced technological infrastructure can succeed in rural America. So I decided to chat with him about the state of data center development today.
The following chat has been lightly edited for clarity.
So first of all, can you tell our readers about your organization in case they’re unfamiliar?
We founded this social enterprise back in 2017 because the economic gap between urban and rural turned into a chasm. We traced the core reasons and it was the winners and losers of the tech economy. There were millions and millions of jobs created from the great recession, but the problem was that it was almost exclusively in urban areas, in the services sectors like consulting, finance, and tech. At the end of the day, we believe in the age of the internet there should be no limit to where high-quality technology jobs should thrive.
We work with communities across the country that are rural and looking to add technology as a component to their economy. We help them with strategies – tech accelerators, tech accountability programs, co-working spaces, all the other stuff you need to create a vibrant place where those kinds of companies can emerge so people can come back, come home. We work with 43 regions across 25 states that are all on this journey together and help them secure the resources to execute on that journey.
One of the reasons I wanted to speak with you is your history in Vermont. I went to the University of Vermont, and I loved living there, but there aren’t jobs to keep kids there which is still a huge disappointment to young folks who love living in the state.
At the same time the state reflects many of the same signals we see in Heatmap Pro data around advanced industrial development. Large land owners bristle at new projects regardless of their political party, and Democratic voters are more inclined to side more with locavorism than a YIMBY growth-minded approach.
How do your Vermonter roots inform your work, and do they affect the ways you see the conflicts over new advanced tech infrastructure?
What we’ve seen in Vermont after the Great Recession is that there’s lots of available space and a population that’s aged significantly.
This all impacted my outlook as a community development person, and now as a leader of a social enterprise. We need to be thinking proactively about what an economically healthy community looks like and how we ensure we have places importing cash and exporting value in a way that doesn’t destroy what’s amazing about these rural places. You pretty quickly land on tech, as well as maybe some design-related manufacturing where the ideas are local.
To make it clear, we’re building infrastructure for technology communities which is different from building technology infrastructure itself. That’s an important distinction. It’s about giving them the tools to stand up a tech accelerator and have a co-working space that creates community. A good co-working space has good programming, allows for remote workers to go to a place, and you can have those virtuous collisions that lead to something else. A collaboration. A volunteer project. Whatever it is. Having hack-a-thons, lectures or demonstrations on the latest AI technology that can be used. Youth programming around robotics. If you can create a space where that happens, you create a lot of synergy, which is important in smaller markets – you have to be intentional with all of this.
Okay, so considering those practices, what do you think of the way data center development is going?
For the record, I spent six and a half years at Google and was hired at first because of data centers. At the time, I saw Google try to build a big data center in a community of less than 10,000 people in secret, and it didn’t go well because it just doesn’t work, and that’s how I got my job there.
There is a right way to come into a community with a data center or frankly any kind of global company infrastructure project, and there’s a wrong way to do it. The right way is being as transparent as possible, knowing full well that when a brand name is mentioned, the price goes through the roof for the land. There does have to be some level of confidentiality when you’re ready to go, but once you can, you have to be proactive with it.
You have to be a really good steward on the impacts, whether they’re electrical demand or water demand. It’s about being clear, it’s about figuring out how to mitigate it, and it’s about maintaining your commitment to 100% renewable energy even as you’re bringing online data centers. Oh, and it’s about having a real financial commitment to make sure the community can economically diversify away from being overly dependent on the data center, on that one industry. The data center developers know full well that they’ll create a lot of construction jobs but that’s not going to be a good, sustainable employer. Frankly, the history of rural places is littered with communities that are too dependent on one industry, one company, and that hasn’t
What does that look like from a policy perspective and a community relations perspective?
I think there are models emerging, including from Microsoft, Google, and others, about what good entry and strong commitments look like. It would be great if someone put a line in the sand about 2% of capex going to a community to diversify the economy. It would be great if companies put a reasonable time horizon out there to replace potable water through technology or other kinds of supports. It would be great to see commitments to ratepayers that say people won’t have to foot the bill for increased demand.
Here’s the part we focus on more because we’re not as focused on site selection: Rural America is likely to shoulder the burden of data center infrastructure just like they shouldered the burden of energy production infrastructure. The question at the end of the day is, how do we make sure those communities see the upside? How do we make sure they can leverage tech capacity inside these data centers to be able to have more agency and chart their own economic futures? That’s what we’re really focused on because if you do that, it doesn’t have to be a repeat of the extractive processes of the past, where rural places were used for cheap land and low-wage workers. They can instead be places with lots of land available and incredible innovation, new enterprises and solving the world’s problems.