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There are two kinds of people who work on climate solutions: Those who still believe in the promise of carbon markets, and those who think the whole concept is fundamentally flawed.
In the first category, you have people like McGee Young, the CEO of a company called WattCarbon. Young is aware of the ways carbon markets can be a race to the bottom — enabling companies to buy cheap certificates that say they used clean energy or reduced their carbon footprint, when in reality their purchase had little effect on the environment or the energy system.
And yet, there’s all this money out there for the taking! Companies want to green their image! Tackling climate change is expensive! There must be a way to funnel corporate sustainability budgets to where they can make a real impact!
To Young, the solution is a matter of better data and greater transparency. “We need a record-keeping system that allows us to raise the bar,” he told me.
Young launched his vision for that record-keeping system on Wednesday — the WattCarbon Energy Attribute Tracking System, or WEATS. It functions similarly to other environmental credit registries: Owners of clean energy assets can sign up to generate credits known as Environmental Attribute Certificates, or EACs, which buyers can then purchase to count toward their own clean energy or carbon goals.
WEATS has two main features that differentiate it. First, it will include credits from small-scale distributed energy resources like residential solar panels, batteries, and heat pumps — clean energy solutions that haven’t really been able to participate in carbon markets until now. Second, each EAC will include granular information about where and when the power was generated, in the case of solar, or the carbon savings incurred, in the case of heat pumps, down to the hour.
The first feature is part of what motivated Young to start WattCarbon. “The clean energy transition is more than just wind and solar, it’s more than just generation,” he told me. But it’s the second that Young said is key to improving the credibility of claims that companies are “using 100% clean energy,” or “achieving net-zero.”
Today, many companies simply buy enough clean energy credits to match their annual energy use, regardless of where or when the energy was generated. But researchers have shown that this strategy can have little to no impact on emissions. For example, if a company is only buying solar credits, but it is using energy at night, its carbon footprint from that nighttime energy could surpass any environmental benefits of the solar it bought.
To solve this, some energy buyers have embraced a concept called “24/7 carbon-free energy,” which means that “every kilowatt-hour of electricity consumption is met with carbon-free electricity sources, every hour of every day, everywhere,” in the words of a United Nations-led initiative to promote the concept. “It is both the end state of a fully decarbonized electricity system,” according to the UN, “and a transformative approach to energy procurement, supply, and policy design that is critical to accelerating its arrival.”
If you’ve followed the recent debate about the green hydrogen tax credit, you might be familiar with the idea. In December, the Treasury Department proposed that hydrogen producers will have to match their electricity consumption with the purchase of local clean electricity generation on an hourly basis to prove their hydrogen is clean enough to qualify for the full value of the tax credit. That means producers can either hook up directly to a solar farm or wind farm or geothermal power plant and operate only when it is generating power, or, it can buy renewable energy credits or EACs that correspond to the hours that it operates.
WattCarbon’s marketplace is one of the first to enable this by requiring sellers to include data about exactly where and when each EAC was produced. It also include the carbon intensity of the grid in the place and time when that unit of power was produced. For example, 1 megawatt-hour of solar power in West Virginia, where the grid is supplied by a lot of coal-fired power plants, would likely reduce emissions far more than 1 megawatt-hour of solar power in California, where the main fossil fuel burned for power is natural gas. Similarly, 1 megawatt-hour of solar generated in the afternoon in California will not do as much to reduce emissions as if that unit of power were stored in a battery and then dispatched at night. On other markets, all of these credits might simply be advertised as 1 megawatt-hour of solar power, and the buyer would be none the wiser.
So what does this new carbon trading marketplace look like in practice? There are a lot of possibilities, but here’s one scenario. WattCarbon partners with a company that helps homeowners electrify their heating or install and manage their solar and battery systems. That third party company can then say to their customers, “As an extra incentive to do this, we can help you sell the environmental benefits it provides to third parties through the WattCarbon marketplace,” and those extra payments are what convinces the homeowner to go for it.
Independent experts I spoke with were cautiously optimistic about what this new marketplace could do. “We need to deploy on the order of a billion machines, in the U.S. alone — and not over a century, but on the order of a decade,” said Kevin Kircher, an assistant professor of mechanical engineering at Purdue University, whose research focuses on heat pumps and other distributed energy resources. “So there’s a lot that needs to be done, and just connecting people to money to do the work is really important.”
Wilson Ricks, a PhD candidate at Princeton University whose research informed the Treasury’s proposal for the hydrogen tax credit, said that having a platform where hydrogen companies can procure clean energy from a variety of projects, and with time and location data, would be very useful. He was also intrigued by WattCarbon’s attempt to create EACs tied to batteries because energy storage systems are one of the few resources that can produce clean power when the wind isn’t blowing and the sun isn’t shining.
But both Ricks and Kircher warned there are a number of ways this system of credits could fall into the same traps that ensnare many carbon offset projects and reduce their credibility. For one, it’s really hard to get the math right. That’s especially true for a project like a heat pump, where the carbon savings are based on a counterfactual situation where the homeowner would have kept their gas heater. You have to basically estimate how often they would have run it, which opens the door to sloppiness at best and fraud at worst.
Another key criterion — a concept called additionality — is very hard to assess. Would the household that switches to a heat pump have done so regardless of whether they were getting extra revenue from selling EACs? If the answer is unequivocally yes, the credits are meaningless and serve to give corporate emitters an excuse to keep emitting.
Young acknowledged to me that this was likely going to be true in some cases, but still felt that heat pump owners deserved to be paid for the environmental benefits they were providing. “We provide environmental subsidies for large-scale wind and solar, and we don't do that for the things that we're putting into our buildings and our communities. And to me, there’s an inherent inequality in the way that we treat and value clean energy that needs to be addressed.”
That didn’t quite make sense to me — the government provides subsidies for all kinds of clean energy resources, including distributed energy resources, I countered. The Treasury will give you $2,000 for a heat pump and a 30% discount on rooftop solar.
“That’s true,” Young said. “But we don’t have enough money in all of our government programs to truly scale those.”
I couldn’t argue with that. But the real challenge is helping low-income homeowners with the upfront capital to install these devices — after-the-fact payments are not enough. Young said he had plans to create a way for companies to procure EACs in advance from groups of homeowners. The deals would be similar to the power purchase agreements that big electricity consumers like Google and Walmart make with large-scale renewable energy developers, helping to finance those projects by reducing the risk.
“This is a necessary but not sufficient step,” Young said of the version of the marketplace that launched Wednesday. “Without this, we can’t do that. But this by itself would be inadequate for the market to be able to reach its fullest potential.”
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The Trump administration has asked a court to re-examine a key permit for Revolution Wind in Rhode Island.
This is Heatmap Daily, an evening news digest written by our executive editor. Subscribe here.
Updated, 11:05 p.m. ET
At the end of the day, the biggest threat to the bipartisan permitting deal probably isn’t green groups, the fossil fuel industry, or monopoly utilities. It’s President Trump himself.
The legislative proposal is meant to constrain the president from tampering with clean energy projects — and if it passes, then some of its provisions seem like they could do so. But in order for it to pass, Trump must adhere to the deal that he brokered with the bill’s Senate Democratic negotiators, Sheldon Whitehouse of Rhode Island and Martin Heinrich of New Mexico.
Under that deal, the Trump administration must allow the 30 wind farms held up by what is normally a Department of Defense box-checking exercise to proceed. (Trump himself agreed to allow these projects to move forward, according to Politico reporting from last month.) More broadly, the administration has to make a show of good faith that it will return to what Whitehouse has called “regular order” on wind and solar permits. That could include approving a longer list of more than 200 onshore wind projects held up in the queue.
That somewhat informal deal is now facing its biggest test yet. On Friday, the Department of Justice filed a motion in court to re-examine a key permit granted to Revolution Wind, a nearly complete offshore wind farm being built off the coast of Rhode Island. The filing was first reported by Bloomberg.
Revolution Wind is one of six Biden-era offshore projects that is now operating or at least still moving forward. It could eventually produce as much as 700 megawatts of electricity. (Other offshore wind projects have accepted Trump’s $4 billion payouts.)
This isn’t the first time that the Trump administration has gone after this particular offshore project: The White House fought, and then resoundingly lost, an effort to stop work on Revolution Wind last year. But the timing of the filing — and the fact that it’s happening in Senator Whitehouse’s backyard — could make this filing far more significant.
In a post on X, the White House energy official Jarrod Agen seemed to play down the legal move without fully disowning it.
“This is an old lawsuit brought by the local community—who had serious concerns about this project—against the Biden Administration!,” he wrote. (The lawsuit in question was filed by Green Oceans, an anti-wind-energy group. Its law firm has what The New York Times described as “close ties” to the conservative legal movement.)
The White House still supports permitting reform, Agen added, adding that “the media should stop their attempts to blow up a GREAT deal for the American people!”
Sorry, Jarrod — we’re just doing our job. After we initially published this story, Senators Whitehouse and Heinrich sent a joint statement: “Frankly, we need to get permitting certainty in law, and this proves it,” they said. “In the meantime, the administration needs to start showing good faith progress on wind permits.”
A bipartisan group of senators proposed major reforms to the country’s environmental laws last month in an effort to speed up the federal approval process for energy projects of all kinds. If it passes, one of the Bipartisan American Affordability and Jobs Act’s biggest changes would be transforming the U.S. court system’s role in federal environmental reviews.
The bill would constrain who can challenge federal environmental decisions in court, which courts can hear those challenges, what plaintiffs can argue in those cases, and what remedies are available when the plaintiffs win. In particular, it would become a lot more difficult — though not impossible — for outside groups to stop construction on a project or vacate a permit if they deemed it to be environmentally risky.
Part of the motivation for the bill, at least among Democrats, is the idea that the National Environmental Policy Act, or NEPA, has become a significant obstacle to building clean energy projects and the infrastructure required to connect them to the grid. The bill includes a number of changes to NEPA that would expedite environmental reviews and prevent legal challenges under NEPA from dragging out project timelines.
But the bill’s restrictions on judicial remedies may be the most significant change, several legal experts told me. “My perhaps overly simplistic view, perhaps a really cynical view, is that the remaining 100 pages of the bill devoted to NEPA are all going to be irrelevant in light of that remedy provision,” said Matthew Littleton, a lawyer who previously served as deputy assistant attorney general at the U.S. Department of Justice’s Environment and Natural Resources Division under the Biden administration.
NEPA is an information-gathering statute. It says that when the federal government makes certain decisions, such as issuing permits or regulatory rules, it must consult with all of the agencies with relevant expertise, invite public comment, and, if the decision could have significant effects on the environment, conduct a wide-ranging assessment of those effects that includes comparisons to alternative actions.
Depending on the decision at hand, the government may have to do some of this analysis under other environmental laws, such as the Clean Air Act and Clean Water Act, but those requirements are narrower. NEPA fills in the gaps. While a Clean Air Act analysis may look at whether a project complies with federal pollution limits, a NEPA analysis would assess the broader effects of the pollution on local communities and surrounding wildlife, and consider whether locating the project elsewhere could accomplish the same goals with reduced risk.
While NEPA can inform an agency’s decision, the law does not require the agency to act on that information. If a NEPA review of an oil leasing program turns up substantial risks, for example, the government can still move forward with it unchanged. If an environmental group sues the government for not considering all of the relevant impacts, or studying enough alternatives, or getting some aspect of the analysis wrong, however, the court can vacate the agency’s decision, or at least issue an injunction on the lease sale while the agency addresses the issue.
A Supreme Court decision last year already significantly narrowed NEPA, giving agencies more discretion to decide how much environmental analysis they need to do on a project’s upstream and downstream effects. Experts expected the ruling to make it much harder for outside groups to win an injunction on a project or vacate a permit.
The new bill would go much farther. If communities or other stakeholders sue the government for violating NEPA and win, the courts could no longer issue an injunction or vacate the government’s decision. The bill would leave the courts with a single remedy: forcing the agency to address whatever gap in its analysis the lawsuit revealed.
To Littleton, this change would make NEPA more or less irrelevant. Today, he explained, agencies and developers face the risk that if they do not do a thorough job complying with NEPA, the courts could suspend their decisions, vacate their permits, or pause construction on their projects. It’s hard to know how big of a role that risk plays in agency decision-making, but if it disappears, so too does the incentive for anyone to spend time on a NEPA analysis.
Agencies are under-resourced and have a lot on their plates, Littleton said. “If at the end of the day you know a court is not going to stop you, even if you completely ignore the statute, you’re going to take the action as quickly as you can, consistent with your other obligations.” In other words, the worst that could happen is that a federal court tells the relevant agency to go back and do some more paperwork while construction continues.
The bill would make the same changes to the National Historic Preservation Act, a similar procedural law that requires agencies to study a decision’s effects on properties of cultural or historic significance. “If Congress has decided that NEPA and the NHPA have outlived their usefulness or do more harm than good, people should be willing to own that and say it and explain why that’s so,” Littleton said. “And if it’s not so, then maybe they need to figure out how to have a far narrower NEPA or NHPA review, but something where it actually matters if you don't do it.”
To be clear, none of this means there will be no way to stop a project from being built or to vacate its permits. Outside groups can still challenge agency actions under the Administrative Procedure Act, Alex Mechanick, an assistant professor at Johns Hopkins and a former senior counselor in the Office of Management and Budget under the Biden administration, told me. The APA is a larger umbrella law that says agencies cannot violate the Constitution or federal regulations or act arbitrarily or capriciously.
“Arbitrary and capricious action is already unlawful under the APA and could lead to agency action being vacated or enjoined regardless of BAAJA,” Mechanick said. A court might find that an agency violated the APA if a decision had undeniably worse environmental costs than benefits, if a less damaging option offered the same benefits, or if the agency simply chose not to analyze a relevant aspect of the decision. If the Interior Department was considering a new oil and gas leasing plan and didn’t consider effects on local wildlife, a court might deem that arbitrary and capricious. If the agency studied those effects, found significant risks, and then ignored them entirely with no explanation, that could also constitute a violation of the APA.
Littleton didn’t disagree with Mechanick’s assessment. If the bill passes, he said, the NEPA process may become the mechanism agencies use to comply with the APA rather than an end in itself.
The bill makes a more far-reaching change to legal challenges under the Clean Water Act. That law requires developers to secure a Section 404 permit when their project involves placing dredged materials into a body of water or wetland. It asks the Army Corps of Engineers to collect public comments, analyze the environmental impacts, and evaluate alternatives — much like NEPA. In this case, however, the analysis is not just procedural. Depending on what it reveals, the Corps may be legally required to deny the permit.
As with NEPA and the NHPA, the Senate bill would remove a federal court’s ability to vacate a Section 404 permit if it finds a deficiency in the Army Corps’ analysis. But the bill also specifically prevents vacatur for challenges under the APA. In either case, there is an exception for if the court finds that the “activities authorized under the permit would present an imminent and substantial danger to human health or the environment.”
Mechanick called this a “timing rule,” since the court’s options will depend on how far along the project is. The agency either has enough time to act before harm is imminent, or it doesn’t. “I don’t understand why you should have to wait until the harm is imminent to enjoin the agency,” he said, “but I suppose the idea is that this is a lighter touch remedy until it’s really a do-or-die moment.”
On Korea’s Westinghouse wishes, a lithium deal, and British heat pumps
Current conditions: New York City’s temperature is set to rise as high as 80 degrees Fahrenheit this week before plunging as the coldest weather so far this season blows into the Northeast • Temperatures in Denver have been above 80 degrees for the past 11 days straight • Nearly 200,000 households, mostly in Florida, are still without electricity after Hurricane Isaias.
In theory, news of President Donald Trump’s deal with Russia to pump millions of tons of diesel into the global market should have eased oil prices. Instead, all three major crude benchmarks spiked Monday by nearly 1.5%. Only West Texas Intermediate, the U.S. metric that has largely evaded the worst knock-on effects of conflict in the Middle East, remained below $100 per barrel. The hike came as the Houthi attacks on Saudi Arabia over the weekend weighed heavily on investors’ minds, eclipsing whatever impact the diesel deal could have had.
Speaking at an industry summit in Riyadh, from which executives from Western oil majors bowed out at the last minute following missile strikes on the airport in the Saudi capital, the head of the country’s state oil company warned that not even Saudi Arabia had the capacity to protect all the supply routes off its coasts for getting hydrocarbons from the region to the world. “No nation, even one as capable and confident as ours, can safeguard them alone,” Aramco CEO Amin Nasser said, according to Arab News.
TotalEnergies took more than $1 billion from the Trump administration to kill off its offshore wind projects. But don’t take that as a sign the French energy behemoth is abandoning American renewables. The company’s joint venture with private equity giant KKR announced a deal to add 700 megawatts of solar to its portfolio of 1.4 gigawatts. The $1.2 billion acquisition includes three utility-scale solar farms in Texas and Ohio that are expected to reach commercial operation in the first quarter of next year.

South Korea is in a bind. The Korea Electric Power Corporation, through its subsidiary Korea Hydro & Nuclear Power, represents the most competent financier and builder of nuclear reactors anywhere in the democratic world, having constructed the United Arab Emirates’ debut atomic power stations relatively on time and on budget compared to U.S., French, and British projects. But the leading Korean reactor, the APR1400, allegedly borrowed from the American nuclear champion Westinghouse’s pressurized water reactor design. A yearslong legal feud ended last year with a settlement that bars the Koreans from bidding on projects in Europe or North America. In a deal this month with the Trump administration to stave off tariffs, Seoul has agreed to help finance and construct six Westinghouse AP1000s and two of its own APR1400s in the U.S., giving the Americans a leg up on nuclear construction and the Koreans a foothold in North America.
In South Korea, where the Westinghouse settlement has widely been considered unfair, the government is signaling other plans to gain more leverage. For starters, KEPCO’s chief executive Kim Dong-cheol said the claim that the settlement requires the company to pay Westinghouse $2 billion per nuclear plant to use its technology was misunderstood. “It is true that $2 billion is the ceiling, but it does not mean we will pay all of it,” he said. But the more eyebrow-raising detail in his interview with the financial newspaper Business Korea is that KEPCO is considering a plan to acquire an equity stake of between 5% and 10% in Westinghouse. Rumors of a potential deal to buy part of Westinghouse have been circulating in the Korean press for weeks now. Anything seems to be on the table these days, but when I have asked multiple sources on the U.S. side about it, all of them shrugged off the possibility to me.
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When The New York Times ran a glowing profile of the lithium startup EnergyX back in 2021, industry sources at the time mocked the coverage to me as too credulous — a sign of how unsophisticated the popular American press was at writing about critical minerals at the time. The Wall Street Journal glazed the firm’s chief executive, Teague Egan, in its own profile three years later. So it was with light surprise and amusement that I read Reuters reporter Ernest Scheyder’s latest story about the company: EnergyX just signed a $2 billion binding offtake to supply the commodities giant Trafigura with the battery metal from Chile and the U.S. It’s one of the largest deals ever tied to direct lithium extraction, the technology EnergyX is trying to commercialize, which uses less water than standard methods of mining the metal. The 10-year contract comes amid growing demand from the stationary battery storage market as the grid and data centers eat what unsteady sales of electric vehicles has left on the plate.
The British government plans to cut hundreds of millions of dollars from the national program to upgrade boilers in England and Wales, providing £9,000, or nearly $12,000, to finance the switch to heat pumps. The cuts, which the Financial Times reported Monday had drawn a backlash against the ruling Labour Party, are part of a broader bid by Prime Minister Andy Burnham to slash £2 billion in the budget to make way for more military spending. The reductions began in June under former Prime Minister Keir Starmer with a study to identify potential cuts. Starmer singled out the Department of Energy Security and Net Zero, particularly after the agency received a 16% annual increase to fund projects such as the nuclear buildout at Sizewell C, carbon capture infrastructure, and insulation to make homes more energy efficient.
The move is sure to ripple across the climate policy world. Roughly a week ago, Daniel Aldana Cohen, an assistant professor at the University of California at Berkeley, was extolling the benefits of ramping up U.S. production of heat pumps in response to soaring heating prices this winter due to the fossil fuel supply crunch. “Every year that we don’t do a wartime mobilization on heat pumps, we’re ruining people’s lives,” the early advocate of a Green New Deal wrote in a post on X. “Heat pumps will always outperform heating oil, cut costs, add summer AC. And would be fantastic for labor, small businesses, worker co-ops.”
As quickly as a spark of atmospheric electricity strikes, the Ford F-150 Lightning disappeared, with the final model of the all-electric pickup truck rolling off the assembly line last year. Now, Bloomberg reports, “it has become one of the most coveted cars in America and a glowing ember in the red-hot market for used electric vehicles.” The price of a used Lightning is 50% to 60% of the sticker price, which one expert told the newswire “is really a sweet spot.”