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It’s the Obama playbook, but different.

It was — against all odds — an energy debate.
Just look at the statistics. The word “fracking” was mentioned 10 times. “Oil” came up seven times. Even “climate change,” which Donald Trump was not very eager to talk about, was mentioned four times. And while that may not seem like a lot for such a vast and globe-spanning problem, climate change came up only three times in all of 2016’s debates combined.
Even more than when talking about trade or inflation, Vice President Kamala Harris and former President Donald Trump used energy to make their economic vision concrete and meaningful to Americans. For Harris, that meant recognizing the scale of the country’s fossil fuel resources today while gesturing toward a cleaner and lower-carbon future that will produce (in theory, at least) lots of high-wage manufacturing jobs for America’s middle class. For Trump, the energy industry — and, really, the fossil fuel industry — is central to his fleshy, authoritarian vision of American strength. Seemingly any attempt to replace hydrocarbons with something cleaner or less polluting arises from nothing less than an elite conspiracy to weaken the country and sell out its people.
For such a stark contrast — and for such an outlandish contrast, to be clear — it was a surprisingly substantive debate. Which isn’t to say we learned much, especially about Trump. The Republican nominee was the same man we’ve seen for the past nine years, the same politician who has defined the extreme GOP position on global warming. Over the past near-decade, Trump has called climate change a “hoax” and has seemed to revel in emissions-increasing policies. That isn’t changing. Asked directly what he would do about climate change on Tuesday night, he did not address the question at all. Instead, he talked about how car factories are getting built in Mexico, and he claimed in a difficult-to-follow rant that Joe Biden is getting paid off by China.
About Harris, we learned far more. Harris struck a careful, moderate tone during the debate between the need for climate action and the ongoing importance of fossil fuel extraction. She spoke about the Inflation Reduction Act, the Biden administration’s signature climate policy, but also discussed how it increased federal leasing for oil and gas. She spoke about climate change in terms of its higher everyday costs for Americans, and not — as Biden did — as an existential threat to the country.
“What we know is that [climate change] is very real,” she said. “You ask anyone who lives in a state who has experienced these extreme weather occurrences, who now is either being denied home insurance or [it] is being jacked up.”
She bragged about the Biden administration’s oil and gas record in the same breath as she discussed its enormous investments in clean energy. American oil and gas production is at an all-time high — it is higher, in fact, than Saudi Arabia’s — but I can’t remember hearing a Biden administration official bragging about that.
“I am proud that as vice president over the last four years, we have invested a trillion dollars in a clean energy economy while we have also increased domestic gas production to historic levels,” she said.
In a way, Harris has essentially returned to Obama’s 2012 “all of the above” energy policy. That approach remains unpopular with climate activists, who think it did too much for the oil and gas industry; personally, I think it’s an open question whether Obama actually believed in the “all of the above” approach or was subtly trying to help renewables all along. But more importantly, the underlying policy context is totally different now than it was 12 years ago: With the Inflation Reduction Act in place, the government can more easily bless all forms of energy development because it is, in fact, helping clean energy take root.
What’s most important, though — and what I hope climate advocates do not overlook — is that Harris’s tack here reflects the broad state of American public opinion. While most Americans want to reduce greenhouse gas emissions, they do not seem to want an energy revolution: More than two-thirds of Americans believe the country should use a mix of renewables and fossil fuels, according to the Pew Research Center, and less than a third believe the country should rely “entirely” on renewables. In the same poll, most Americans said they oppose federal rules that would aim to make electric vehicles half of all new cars sold by 2032.
This is not to say that Americans are big oil lovers. Most Americans think the country should prioritize various forms of zero-carbon energy development over fossil fuels. And while Republican support for renewables has dropped over the past few years — and has fallen further over the past few months, as my colleague Matthew Zeitlin wrote recently — a generation gap has emerged wherein younger Republicans are much more likely to champion solar and wind than older party members.
Even among seemingly environmental-aligned demographics, greater support exists for fossil fuels than one might expect. Most Democrats say they would not “favor” expanding fracking or offshore drilling — but about a quarter of Democrats would favor more fossil fuel drilling. So would roughly 45% of independents and, of course, a large majority of Republicans, according to Pew.
Of course, these facts of public opinion sit uneasily with what we know about climate change, which is that greenhouse gas emissions — and fossil fuel development with it — should plan to scale down soon. The International Energy Association has said that the most likely pathway for keeping global warming to 1.5 degrees Celsius requires the development of “no new long lead-time upstream oil or gas projects.” This observation provides less guidance for American policy makers than it might initially seem, because it is really focused on the opening of new, massive oil fields like Guyana’s. (The IEA also says, in almost the same breath, that “continued investment is required in some existing oil and gas projects,” which could possibly justify ongoing extraction from Texas’s well-established oil and gas fields.)
But even then, the non-negotiable fact would remain: The world must move away from fossil fuels. And the American people are not generally ready to do that today. The country wants something closer to an “all of the above” strategy than it wants a Green New Deal.
That strategy brings climate policy out of the ideological realm and into the pragmatic. Americans, polling suggests, like renewables in part because they will let the United States reduce its dependence on foreign oil, a popular idea in and of itself and talking point of both parties going back decades.
When Heatmap polled more than 5,000 Americans last month, more than half said that a “strong benefit” of a given clean energy project would be its ability to reduce the country’s dependence on foreign oil and natural gas. Among respondents, those putative energy independence benefits were the No. 2 most popular reason to support clean energy; the only more popular rationale for backing a project was that it would cut utility bills.
Harris directly echoed that appeal on Tuesday. “My position is that we have got to invest in diverse sources of energy so we reduce our reliance on foreign oil,” she said. “We have had the largest increase in domestic oil production in history because of an approach that recognizes that we cannot over rely on foreign oil.”
I can’t remember Biden making an appeal like this. When he talks about clean energy or the IRA, he tends to focus on its potential to grow the economy. Harris did some of that on Tuesday, bragging about the 800,000 new manufacturing jobs created during her vice presidency. But her focus on the national interest — and on the Biden administration’s appreciation of the ongoing fossil boom — was new.
Such an approach is unlikely to help her appeal to climate activists and advocates, who want the government to affirmatively begin to shutter fossil capacity. The Sunrise Movement, a climate activist group, criticized Harris on Tuesday for spending “more time promoting fracking than laying out a bold vision for a clean energy future.”
What I’d advise those advocates to keep in mind is that their views are legitimately not very popular, and Harris is trying to win a very close election in a race that her team believes has potentially existential stakes for American democracy. She also remembers the 2020 primary, when she tacked left on virtually every issue — she promised to ban fracking, for instance — and still lost. (If that’s because many of the groups wound up backing Bernie Sanders in that primary, that only reinforces the view that she can’t win over those voters in the first place.)
Harris isn’t defying the left on every issue — she has resisted neoliberal dogma and pandered to the public’s views on price gouging, for instance, putting her more in line with the Democratic Party’s Elizabeth Warren wing. But unlike Biden, she refuses to pay an electoral price for backing left-wing policies. Indeed, she seems to believe that she cannot pay such a price and still win. If Harris is now bragging about her administration’s support for fossil fuels, if she is casting the Inflation Reduction Act as a law that helped fracking, that means climate activists have much more work to do to persuade the public on what they believe. The Democratic Party’s candidate will not do that persuasion for them. And in any case, activists are not going to convince the public to believe something in the next 54 days that they’ve failed to do in the past five years.
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My colleague Emily Pontecorvo has a fascinating story today about Net Power, an energy and power development company whose technology once seemed key to decarbonizing the country’s electricity grid.
When Net Power went public in 2023, it was working on a natural gas-burning power plant that would generate little to no emissions in part by using carbon capture and storage. Its invention seemed to have big implications, and not just for the company’s bottom line: Back then, the Environmental Protection Agency was drafting climate rules that would have required new natural gas plants built in the 2030s to capture their carbon dioxide emissions. Net Power’s technology seemed like one of the best available ways to meet that standard.
Cut to 2026, and the world looks different. Thanks to the artificial intelligence boom, electricity demand is surging. But Net Power hasn’t successfully commercialized its proprietary power plant technology. Even if it had, few companies are willing to pay the high premium required by Net Power’s technology, especially when cheaper options are available. And the government certainly isn’t going to require it. Emily’s story reveals what happened next.
When I helped start Heatmap more than three years ago, I never thought I would write this much about data centers. I believed that electricity demand growth was inevitable, sure, and I thought the U.S. power grid had to expand for the country to decarbonize. But I didn’t foresee such a staggering near-term surge in electricity demand. (To be fair, even long-time students of the computing industry’s energy use didn’t see the coming increase, either.)
What I didn’t anticipate — or understand — were two fast-moving trends. The first was that the AI models were responding to scale: the more text or images they consumed, or training they received, or (crucially) computational power they had access to, the better they got. The second was that Wall Street was happy to pay to continue that speedy scale-up. As long as models kept getting better, investors were willing to keep lending or investing more money to the companies making them. Through the power of those two scaling functions, the data center boom became one of the biggest infrastructure buildouts in American history.
In recent days, the second of those trends has started to falter. After a surprisingly hot inflation report last week, and a disclosure on Wednesday evening that Meta has gone free cash flow negative to finance its ongoing AI buildout, stocks with any proximity to AI or data centers stumbled on Wall Street today. The data center developers Coreweave and Vistra were each down about 10%, while Microsoft, Alphabet, and Nvidia all fell in daily trading. Meta’s stock lost almost 7% of its value; GE Vernova, which produces gas turbines, was down 10%.
These declines look more significant when you zoom out. Since late June, a good chunk of the AI portfolio has sagged into the red. Coreweave’s stock is down 54% over the past six months. Alphabet and GE Vernova have also posted declines since the summer. (The trend isn’t uniform: Nvidia and Microsoft are still very much in the green.)
None of this, to be sure, guarantees that the AI boom is ending or even slowing down. But this finance-applied friction is what such a slowdown could look like. Investors aren’t (yet) saying that AI is a business dud, to be clear, just that companies perhaps don’t need to go and construct all this stuff so fast. And given what the data center buildout has meant for energy construction — not to mention greenhouse gas emissions — that’s a trend nobody in climate or energy can ignore.
The zero-emission pioneer is doing the dirty work for the AI boom.
All kinds of companies have refashioned themselves to exploit the AI boom. A bitcoin miner became a data center developer, a shoemaker is building GPUs, and an electric vehicle company is integrating its powertrains into server racks.
Now, a company that once aspired to build one of the lowest-emitting power plants has pivoted to building one of the dirtiest in order to meet data centers’ requirement for speed to power above all. Net Power was founded to pioneer a new form of natural gas power plant with zero emissions, but it has given up on that technology and recently acquired 10 natural gas reciprocating engines that it plans to co-locate with a data center on the site intended for its first commercial plant.
“We believe the clean piece is important,” Net Power CEO Danny Rice said during an August earnings call when he announced the company’s pivot to building unabated natural gas plants. “But just as it’s always been, it will only come at scale once society’s basic energy pillars of reliable, affordable power are fully in place. Power demand is outstripping supply today.”
Net Power’s pivot is a sign not only that the AI boom has eroded market appetite for clean power, but that U.S. policies supporting carbon capture — primarily the 45Q tax credit that President Trump’s One Big Beautiful Bill Act recently expanded — are still not enough to support the technology’s deployment in the power sector.
“The long history of doing CCS in the United States is there isn’t enough public funding to get companies to deploy it at scale,” Jack Andreasen Cavanaugh, a senior research associate at Columbia University’s Center on Global Energy Policy, told me.
This is actually the second major pivot the company has made in less than a year. Last November, Net Power was still testing its proprietary oxy-combustion technology at its demonstration site in La Porte, Texas. The tech was designed to burn natural gas in a chamber with pure oxygen, producing a purer stream of CO2 than when natural gas is burned in regular air. Net Power’s system could recycle some of that CO2 for power generation and capture the rest more efficiently than a conventional gas plant could. The company had not yet demonstrated that the system could generate more energy than it used, however.
By that point, Net Power had determined that its oxy-combustion plants, if they ever even did generate net power, would not be economically competitive anytime soon. In its 2025 Q3 financial report, the company said it had “decided to broaden the scope of its business” and develop more conventional natural gas plants with carbon capture equipment tacked on. It signed a letter of intent with Entropy, a Canadian company building “post-combustion” carbon capture equipment, to bring the tech to the United States, and ordered two 30-megawatt Siemens natural gas turbines for 2028 delivery.
“For us and everyone else in the power and data center space these days, speed is everything,” Rice said at the time. “We believe gas turbines with [post-combustion capture] can and should be the fastest-to-market and most cost-competitive clean, firm solution for our prospective customers.”
He told investors that rising costs were one of the setbacks Net Power faced in building its first-of-a-kind oxy-combustion plant. It was highly unlikely the company could finance and build a $1.7 billion, 200-megawatt plant before completing all its testing, he said. The best-case scenario for the plant to come online was 2030 or 2031, and costs might keep rising with inflation. The company could either bet on that prospect and keep bleeding cash, or “slow down that spending in order to free up some of our resources for near-term accretive opportunities.” As a public company with shareholders to answer to, there was really only one choice.
By the end of 2025, Net Power decided to suspend its oxy-combustion development and testing activities altogether, according to its year-end SEC filing.
Six months later, the company’s thesis changed again. Gas turbines with post-combustion capture, it turned out, were not the “fastest-to-market and most cost-competitive” solutions that the company had hoped they’d be. Whereas once upon a time, electricity buyers considered a range of factors when shopping around for power, including carbon emissions, the reality was that they were now only looking for three qualities: speed, reliability, and scale. “Natural gas power generation, co-located with customer load, and deployable on a fast timeline, is how we expect to meet that demand today,” Rice told investors, adding that the company hoped to add carbon capture to its projects in the future.
To date, only one proposed U.S. natural gas plant with carbon capture has announced a deal to sell its prospective power. In October 2025, Google signed a power purchase agreement with the Broadwing Energy Center, an Illinois plant under development by a company called Low Carbon Infrastructure.
“There is a massive demand for unabated gas right now, and there is much less of a demand for carbon capture,” Cavanaugh said. He told me there are still lots of conversations happening between hyperscalers and carbon capture companies, but the physical realities and costs of capturing, transporting, and storing carbon from natural gas plants remain obstacles.
The Global CCS Institute published its annual Global Status of CCS report this week, which found more than 266 carbon capture, transport, or storage projects are under development in the U.S., but permitting delays and policy uncertainty are stalling their progress. “Inflation and rising capital costs have weakened project economics, reducing the effectiveness of existing policies, such as tax and investment credits,” the report said.
That doesn’t mean there aren’t still companies trying. Net Power may have given up on oxy-combustion power plants for now, but Arbor Energy, a startup founded by former SpaceX engineers, is just ramping up. Arbor announced a milestone in the development of its own oxy-combustion power generator last week, running a key piece of its system — a supercritical CO2 turbocompressor — for more than two hours at high speeds.
Arbor differentiates itself by using 3D-printed turbines and developing smaller, more modular plants. It’s scaling more incrementally than Net Power tried to, starting with a 1-megawatt demonstration plant in California that is “weeks away” from operating, the company’s Chief Operating Officer Alicia Harmon told me — although the project won’t include carbon storage. It plans to build a 25-megawatt demonstration plant by 2028, also sans storage, before manufacturing commercial-scale systems.
Arbor actually went through a pivot of its own due to the data center boom. The founders originally planned to focus on bioenergy with carbon removal, using the oxy-combustion technology to generate power from biomass and storing the resulting CO2 underground. Over time, though, it became clear that demand for power outpaced demand for carbon removal, and natural gas was more abundant than biomass.
I asked Harmon whether the company thought there was market demand for carbon-capture gas plants. Is anyone willing to pay that green premium right now? “Honestly, my answer is no,” she said, but the company sees a path to erasing the green premium by the early 2030s. She added that Arbor’s technology is already “very close” to parity with combined-cycle natural gas plants when the 45Q tax credit is taken into account.
Last month, Net Power announced it had acquired 123 megawatts’ worth of Wärtsilä reciprocating engines, in addition to the Siemens turbines it had already ordered. Reciprocating engines are among the dirtiest natural gas power-generation technologies. A recent report from Earthjustice estimated that a 1-gigawatt plant powered by reciprocating engines would emit 1.5 times as much CO2 per year as one powered by the “combined cycle” technology most modern plants use, and twice as much nitrogen oxides and fine particulate matter. It has not yet disclosed any data center partners to sell the power to.
Net Power declined to comment on this story.
Ben Allen wants to reform the existing market. Jane Kim wants a revolution.
From Crescent City to Coronado, California voters are facing decisions on a down-ballot strewn with over a dozen propositions and a series of statewide Democrat-versus-Republican races with mostly foregone conclusions.
And then there’s the insurance commissioner.
In the race to oversee California’s insurance market, a $452 billion-in-premium-volume monster imperiled by insurer defections and disaster risks, Democratic State Senator Ben Allen, whose district includes Pacific Palisades, is facing off against Jane Kim, a progressive former San Francisco supervisor.
Kim has the support of Vermont Senator Bernie Sanders — it’s the first thing you see about her when you Google her campaign. She previously served as his California political director during the 2020 presidential race, and she appeared earlier this month at an event with the senator in support of the state’s proposed billionaire wealth tax.
Allen, by contrast, won the endorsement of the state’s Democratic Party and its two incumbent senators.
There has been little public polling of the race, but one September survey showed Kim leading Allen 25% to 18%, with more than half the electorate undecided.
“My opponent and I are not even running for the same office,” Kim told me. “He’s running for what this office used to be, and I’m running for what this office could be.”
Allen wasn’t worried about Kim’s characterization in my interview with him, telling me, “I want to fix the market that we have and make it work. My opponent wants to build a new state insurer that nobody has priced.”
Nowhere are the stakes of insurance regulation higher than in California. On its own, the state’s insurance market would be the third largest in the world, according to the National Association of Insurance Commissioners. Homeowner insurance premiums have risen 84% from the end of 2020 to March 2026, according to research from Stanford’s Climate and Energy Policy Program. Several large insurers have either left the market entirely or stopped writing new policies.
California’s creaky and complex regulatory environment for insurers has combined with its famously flammable environment (all beset by a warming climate) to put regular policyholders at risk of losing their policies or bailing out those who can’t get covered. “Climate risks grow, and our mechanisms for dealing with it lag behind,” Matt Weiner, the chief executive of the wildfire policy group Megafire Action, told me. (Weiner said he was supporting Allen in his personal capacity).
Rates for homes insured by the FAIR Plan, the barebones insurer of last resort, have more than doubled from about 2% to 5% over that same period, with FAIR Plan coverage spreading from just high-risk areas to even areas with low and moderate wildfire risk. The plan required a $1 billion assessment from the state’s insurers in 2025 following major Southern California fires. “This trend is a symptom of many homeowners’ inability to secure insurance in the conventional market,” according to the Stanford researchers.
Allen seeks to make the insurance market work better, building on reforms implemented by current Insurance Commissioner Ricardo Lara. Allen described the reforms, which encourage insurers to write policies in high-risk areas and allow them to use forward-looking projections, as a “bit of a band-aid” that doesn’t “actually get to the core of the problem, which is making these communities less risky.”
Allen’s plan for the California insurance market involves both reviewing rate proposals more quickly, incorporating more data into those rates (which may push rates up, but also keep insurers in the market), and mobilizing the whole of government to invest in home hardening and resilience to lower risk and bring premiums down. Allen wants to, well, insure “that risk reduction is actually incentivized and rewarded by the insurance market,” he told me.
This would mean that “there will continue to be certain properties that are going to be so high risk that they really will and ought to be paying significantly more than everybody else,” he added.
When I asked him to elaborate on his vision for California’s insurance future, he told me, “My hope is that when a family and a neighborhood commit to hardening defensible space and community-scale mitigation, that should show up on the bill.”
Jane Kim, on the other hand, is interested in an insurance revolution, which would require — as her most famous supporter might put it — a political revolution as well. Her centerpiece proposal will be familiar from anyone who has followed Sanders’ career: a single-payer disaster insurer.
The plan, which she told me was a “concept and a proposal,” would be funded by a levy placed on insurers, and then a public insurer would invest in the market, buy reinsurance, and pay out claims. (Her opponents have criticized her for not being forthcoming enough with details). She says her plan would not be able to cover a Palisades- or Altadena-level fire in its first year, “but no insurance company can cover a catastrophe of that level.”
The nonprofit nature of the program, she adds, would let the state fund mitigation work directly. While such a program would require legislative action, “the great thing about campaigns is that this is trying to debate big ideas with voters,” Kim said.
In response, Allen cited a report from the California Earthquake Authority, which modeled a state disaster insurer (albeit not Kim’s plan specifically) could require $25 billion in capitalization. A more thinly capitalized insurer could mean $2,000 assessments on every policyholder in the state to cover an extreme wildfire disaster, the report said. “That’s the honest price of what she’s proposing,” Allen said.
“I also have a plan that’s actually grounded in reality and fixing the problems right now. It's not based on some pie-in-the-sky set of ideas that have no precedent, that have no real meat on the bones,” Allen told me.
One of Allen and Kim’s former opponents, Patrick Wolff, who fell short in the top-two primary election in June, told me that “the charitable interpretation of Kim’s platform is she does not think the current system can be made to work, and so she essentially wants to redesign and reimagine the entire system.” (Wolff has endorsed Allen). But, he added, “she’s coming at it from a set of solutions that were baked-in before she started, and then she's fitting [those] into her campaign.”
Moira Birss, a senior fellow at the Climate and Community Institute who said she had “provided input” to Kim’s campaign, but wasn’t speaking on its behalf, told me she “really recognizes that we are yet again in a situation where the private insurance market is not responding to a need that we as communities and as society have for this financial safety net of disaster insurance, and that we need a public approach.” She said the plan would build on lessons learned from New Zealand, which has public natural disaster insurance funded through a levy on fire insurance, and from the National Flood Insurance Program and the FAIR Plan.
Kim is happy to embrace the more ideologically charged vision of her campaign, telling me, “I am talking about transforming this office to be a place where we are leading on, and taking on, economic inequity, a wealth gap, and the climate crisis.
“I don’t even view my opponent as Ben Allen — I’m not running against Ben Allen,” she went on. “I’m running against the status quo.”