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António Guterres has a way with words.
United Nations Secretary General António Guterres opened his welcome speech at COP28 in Dubai on Friday with a present-day image of a warming planet. Just days before, he told world leaders, he was standing on the melting ice of Antarctica.
“This is just one symptom of the sickness bringing our climate to its knees,” he said. “A sickness only you, global leaders, can cure.”
He was just winding up.
“We are miles from the goals of the Paris Agreement – and minutes to midnight for the 1.5-degree limit,” Guterres went on. “But it is not too late.”
He called for leadership, cooperation, and political will. Then he took his big swing.
“We cannot save a burning planet with a firehose of fossil fuels,” he said. Quoting Bob Dylan, he went on, “So allow me to have a message for fossil fuel company leaders: Your old road is rapidly aging. Do not double-down on an obsolete business model.”
For nearly six years, Guterres has been speaking to rooms full of the world’s most powerful people about the urgency of fighting climate change, and his sermons never seem to miss. The speeches tend to follow a certain formula. He enumerates the horrors that rising temperatures are already causing around the world. He pleads with leaders to be more ambitious. He issues spicy, no-holds-barred critiques of the fossil fuel industry.
But somehow he keeps them fresh, forceful, even poetic.
Rhetoric on climate change is often circular and stale. Especially at this time of year, you tend to hear the same clichés and platitudes like “It’s time to move from words to action” over and over. Greta Thunberg famously called the conference a bunch of “blah, blah, blah.”
So it’s especially striking to read or listen to Guterres’ poignant missives, full of metaphor and alliteration. He's constantly testing some new analogy or cultural reference to jar his audience out of complacency. And by the end, he’s usually provided at least one or two pithy one-liners perfectly engineered to make headlines.
Here’s a compilation of some of Guterres’s greatest recent hits.
Humanity has opened the gates of hell.
Horrendous heat is having horrendous effects.
Distraught farmers watching crops carried away by floods;
Sweltering temperatures spawning disease;
And thousands fleeing in fear as historic fires rage.
- September 2023, United Nations Climate Ambition Summit
The era of global warming has ended;
The era of global boiling has arrived.
The air is unbreathable.
The heat is unbearable.
And the level of fossil fuel profits and climate inaction is unacceptable.
- July 2023, press conference on historic heat
The climate time bomb is ticking.
But today’s IPCC report is a how-to guide to diffuse the climate time bomb.
It is a survival guide for humanity.
As it shows, 1.5 degrees is achievable
but it will take a quantum leap in climate action.
In short, our world needs climate action on all fronts –
Everything, everywhere, all at once
- March 2023, launch of the Synthesis Report of the Intergovernmental Panel on Climate Change (and, notably, about a week after the movie Everything Everywhere All at Once won the Academy Award for Best Picture)
I have a special message for fossil-fuel producers and their enablers,
scrambling to expand production and raking in monster profits:
If you cannot set a credible course for net-zero,
with 2025 and 2030 targets covering all your operations,
you should not be in business.
Your core product is our core problem.
We need a renewables revolution, not a self-destructive fossil fuel resurgence.
- February 2023, briefing to the General Assembly on priorities for 2023
Today, we are out of harmony with nature.
In fact, we are playing an entirely different song.
Around the world, for hundreds of years,
we have conducted a cacophony of chaos,
played with instruments of destruction.
With our bottomless appetite for unchecked and unequal economic growth,
humanity has become a weapon of mass extinction.
We are treating nature like a toilet.
And ultimately, we are committing suicide by proxy.
- December 2022, UN Biodiversity Conference
Greenhouse gas emissions keep growing.
Global temperatures keep rising.
And our planet is fast approaching tipping points that will make climate chaos irreversible.
We are on a highway to climate hell with our foot still on the accelerator.
A window of opportunity remains open,
but only a narrow shaft of light remains.
- November 2022, COP27
- March 2022, Economist Sustainability Summit
I have seen many scientific reports in my time, but nothing like this.
Today’s IPCC report is an atlas of human suffering
and a damning indictment of failed climate leadership.
- February 2022, launch of the Impacts, Adaptation, and Vulnerability Report of the Intergovernmental Panel on Climate Change
I am here to sound the alarm.
The world must wake up.
We are on the edge of an abyss —
and moving in the wrong direction.
COVID-19 and the climate crisis have exposed profound fragilities as societies and as a planet.
Yet instead of humility in the face of these epic challenges,
we see hubris.
Instead of the path of solidarity,
we are on a dead end to destruction.
- September 2021, address to the General Assembly
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We’re powering data centers every which way these days.
The energy giant ExxonMobil is planning a huge investment in natural gas-fired power plants that will power data centers directly, a.k.a. behind the meter, meaning they won’t have to connect to the electric grid. That will allow the fossil fuel giant to avoid making the expensive transmission upgrades that tend to slow down the buildout of new electricity generation. And it’ll add carbon capture to boot.
The company said in a corporate update that it plans to build facilities that “would use natural gas to generate a significant amount of high-reliability electricity for a data center,” then use carbon capture to “remove more than 90% of the associated CO2 emissions, then transport the captured CO2 to safe, permanent storage deep underground.” Going behind the meter means that this generation “can be installed at a pace that other alternatives, including U.S. nuclear power, cannot match,” the company said.
The move represents a first for Exxon, which is famous for its far-flung operations to extract and process oil and natural gas but has not historically been in the business of supplying electricity to customers. The company is looking to generate 1.5 gigawatts of power, about 50% more than a large nuclear reactor, The New York Timesreported.
Exxon’s announcement comes as thepower industry has reached an inflection point thanks to new demand from data centers to power artificial intelligence, electrification of transportation and heating, and new manufacturing investment. The demand for new power is immense, yet the industry’s ability to provide it quickly is limited both by the intermittent nature of cheap renewable power like solar and storage — plus the transmission capacity it requires — and by theregulatory barriers and market uncertainty around building new natural gas and nuclear power. While technology companies are starting to invest in bringing more nuclear power onto the grid,those projects won’t begin to bear fruit until the 2030s at the earliest.
Exxon is also not the only energy giant looking at behind-the-meter gas.
“This county is blessed with an abundance of natural gas,” Chevron chief executive Mike Wirthsaid at a recent event hosted by the Atlantic Council. “I think what we’re likely to see is that gas turbine generation is going to be a big part of the solution set, and a lot of it may be what’s called behind the meter … to support data centers.”
At the same time, the so-called hyperscalers are still making massive investments in renewables. Google, the investment firm TPG, and the energy developer Intersectannounced a $20 billion investment “to synchronize new clean power generation with data center growth in a novel way,” Google’s President and Chief Investment Officer Ruth Porat wrote in a company blog post on Tuesday.
While Google was a pioneer in developing new renewable power to offset emissions from its operations and recently formed a partnership with Microsoft and the steel company Nucor to foster energy technology that can deliver clean power 24/7, this new project will be focused on “co-locating grid-connected carbon-free energy and data center investments into closely-linked infrastructure projects.”
These projects — the data centers and the clean power generation — would be sited close to each other, however they would not be behind the meter, a Google executive told Canary Media. Instead, Intersect will build “new clean energy assets in regions and projects of interest,” according to the blog post, with Google then acting as an offtaker for the power “as an anchor tenant in the co-located industrial park that would support data center development.” The Google data center and the Intersect-built power “would come online alongside its own clean power, bringing new generation capacity to the grid to meet our load, reduce time to operation and improve grid reliability.”
“This partnership is an evolution of the way hyperscalers and power providers have previously worked together,” Sheldon Kimber, Intersect chief executive, said in a press release. “We can and are developing innovative solutions to rapidly expand clean power capacity at scale while reducing the strain on the grid.”
But ... how?
President-elect Donald Trump on Tuesday rocked the energy world when he promised “fully expedited approvals and permits, including, but in no way limited to, all Environmental approvals” for “Any person or company investing ONE BILLION DOLLARS, OR MORE, in the United States of America,” in a post on Truth Social Tuesday.
“GET READY TO ROCK!!!” he added.
Trump has frequently derided regulatory barriers to development, including in his announcements of various economic and policy roles in his upcoming administration. His designee for Secretary of the Interior, Doug Burgum, for instance, will also head a
National Energy Council that will “oversee the path to U.S. ENERGY DOMINANCE by cutting red tape … by focusing on INNOVATION over longstanding, but totally unnecessary, regulation.”
When Trump
announced his nomination of Lee Zeldin to head the Environmental Protection Agency, he said Zeldin would “ensure fair and swift deregulatory decisions that will be enacted in a way to unleash the power of American business.”
Current interpretations of existing laws dictate that any project constituting a major federal action (e.g. one that uses public lands) must be reviewed under the National Environmental Policy Act, the country’s signature permitting law. Federal courts are often asked in litigation to sign off on whether that review process — although not the outcome — was sufficient.
Regardless of any changes Trump may make to the federal regulatory system as president, that infrastructure is already in flux. The D.C. Circuit Court of Appeals recently issued a ruling that throws into doubt decades of NEPA enforcement. Also on Tuesday, the Supreme Court heard a separate case on the limits of NEPA as it relates to aproposed rail line expansion to transport oil from Utah’s Uinta Basin to refineries on the Gulf of Mexico. Although the court is unlikely to issue a decision until next year, its current membership has shown itself plenty willing to scrap longstanding precedent in the name of cutting the regulatory state down to size.
Trump did not support his announcement with any additional materials laying out the legal authorities he plans to exercise to exempt these projects from regulation or proposed legislation, but it already attracted criticism from environmentalists, with the Sierra Club describing it as a “plan to sell out communities and environment to the highest bidder.It’s also unclear whether Trump was referring to foreign direct investment in the United States, of which there was $177 billion in 2022,according to the Department of Commerce.
Trump’s appointed co-deregulator-in-chief, for one, approved of his message today. “This is awesome 🚀🇺🇸,” Elon Musk wrote on X in response.
Companies are racing to finish the paperwork on their Department of Energy loans.
Of the over $13 billion in loans and loan guarantees that the Energy Department’s Loan Programs Office has made under Biden, nearly a third of that funding has been doled out in the month since the presidential election. And of the $41 billion in conditional commitments — agreements to provide a loan once the borrower satisfies certain preconditions — that proportion rises to nearly half. That includes some of the largest funding announcements in the office’s history: more than $7.5 billion to StarPlus Energy for battery manufacturing, $4.9 billion to Grain Belt Express for a transmission project, and nearly $6.6 billion to the electric vehicle company Rivian to support its new manufacturing facility in Georgia.
The acceleration represents a clear push by the outgoing Biden administration to get money out the door before President-elect Donald Trump, who has threatened to hollow out much of the Department of Energy, takes office. Still, there’s a good chance these recent conditional commitments won’t become final before the new administration takes office, as that process involves checking a series of nontrivial boxes that include performing due diligence, addressing or mitigating various project risks, and negotiating financing terms. And if the deals aren’t finalized before Trump takes office, they’re at risk of being paused or cancelled altogether, something the DOE considers unwise, to put it lightly.
“It would be irresponsible for any government to turn its back on private sector partners, states, and communities that are benefiting from lower energy costs and new economic opportunities spurred by LPO’s investments,” a spokesperson wrote to me in an email.
The once nearly dormant LPO has had a renaissance under the Biden administration and the office’s current director, Jigar Shah. The Inflation Reduction Act supercharged its lending authority to $400 billion, from just $40 billion when Biden took office. Then a week after the election, the office announced that it had recalibrated its risk estimates for the loan guarantees that it makes under the Energy Infrastructure Reinvestment program, which works to modernize and repurpose existing energy infrastructure to make it cleaner and more energy efficient. As the office explained, these projects “may reflect a relatively moderate risk profile in comparison to typical projects LPO finances with higher project risk.” When there’s less risk involved, LPO doesn’t have to set aside as much money to cover a possible default, which in this case has allowed the office to more than quadruple its funding for qualifying projects.
It’s not just that LPO staffers are working fast, though that’s part of it — it’s also that loan beneficiaries have picked up their pace in responding to the LPO. As Shah emphasized today at the LPO’s second annual Demonstrate Deploy Decarbonize conference, finalizing conditional commitments largely depends on companies getting their ducks in a row as quickly as possible. “I do think that right now borrowers are sufficiently motivated to move more quickly than they have probably a year ago,” Shah said. “It's up to the borrowers. Our process hasn’t changed. Their ability to move through it faster is in their control.”
Shah noted that though timelines may be accelerating, the office’s due diligence procedures have remained the same. Thus far, the project that has moved the fastest from a conditional commitment to a finalized loan was for a clean hydrogen and energy storage facility in Utah. That took 43 days, and there are 46 left in Biden’s presidency. Let’s see what the LPO can do.