Climate Policy Outlook: 4 stories to follow this week
Clean energy credit repeals make electricity more expensive, and Pennsylvania successfully wins it fight to reclaim its frozen IRA funds. The post Climate Policy Outlook: 4 stories to follow this week appeared first on Trellis.
Week of March 10, 2025
BlackRock conforms to Trump, ends DEI goals
Following his January inauguration, President Trump issued executive orders that targeted diversity, equity and inclusion (DEI) programs, leading to changes in both public and private sectors, including at financial firms. A federal judge recently blocked parts of those orders, but companies have continued to adjust their policies anyway. BlackRock’s leadership, for example, announced in a memo that hiring managers would no longer be required to interview a diverse slate of candidates. In addition, though emphasizing the importance of inclusivity to the firm’s success, and noting its continued support of diverse talent, Black Rock said it would be reviewing all of its DEI programs. BlackRock’s recent workforce data shows significant representation of women and minority groups, including 31 percent Asian, 16 percent Latinx and 11 percent Black hires in the U.S.
European countries’ wealth climbs; climate-based aid does not
European governments, including France, the Netherlands, and the U.K., have been announcing cuts to overseas aid, citing rising energy and food costs. However, there are some who argue that these actions reflect political choices rather than economic necessity. While rich European nations have never been wealthier, and even as the public is increasingly supportive of climate action, governments continue to undermine climate solutions by cutting aid and neglecting to invest in renewable energy. This shortsightedness not only harms the global energy transition but perpetuates global inequality.
States continue to step up as federal government guts climate policy
As the federal government rolls back climate policies, several states, particularly democratic ones, are countering by introducing bills aimed at climate disclosure and greenhouse gas emissions reporting. New York and Colorado, for instance, have reintroduced bills modeled on California’s 2023 climate disclosure rules that require companies to reveal operational and supply chain emissions. These state-led initiatives are seen by many as vital to filling the gap caused by the new federal stance, not least as evidenced by the SEC’s weakened climate disclosure rules. The state’s measures, which aim for transparency and align with global trends, are sure to face legal challenges, though.
Washington state maintains climate law despite suit
Washington State regulations promoting the use of electric over gas appliances in new construction have survived a legal challenge from the building industry and trade groups. U.S. District Judge Kymberly Evanson ruled that the 11th Amendment’s state sovereign immunity protects state officials from lawsuits brought by parties outside of the state. The building industry had argued that the state’s regulations, which set strict efficiency standards that unfairly restricted the use of gas appliances, were preempted by federal law. The ruling follows a broader legal view that permits state and local governments to promote clean energy in the face of conflicting federal law.
Week of March 3, 2025
Repealing clean energy credits will make electricity more expensive
Electricity demand is expected to rise by 50 percent over the next decade, in large part the result of data center growth, re-shored manufacturing and industry electrification. Solar, wind and batteries can help meet this demand, but the potential repeal of clean energy credits could drastically reduce such deployments, and that, in turn, will surely increase costs. By one calculation, the repeal could cause a 14 percent rise in power generation system costs by 2035, the consequences of which would disproportionately be felt by lower-income households.
One state reclaims its frozen funding
Gov. Josh Shapiro announced that federal funding to Pennsylvania, previously frozen by the Trump administration, will be restored as a result of a lawsuit filed by his state and 22 others. The funds, totaling $2.1 billion, included money for climate-related programs that remediated abandoned mines, reduced greenhouse gas emissions and lowered homeowners’ energy costs. However, while a federal judge called for the release of funds specifically mentioned in the lawsuit, other environmental programs remain at risk, so Shapiro’s administration will continue to pursue the lawsuit to a final resolution.
The USDA is sued over deleted data
Farmers and environmental groups have filed a lawsuit against the U.S. Department of Agriculture (USDA), for removing climate-related data and resources from its website without proper notice or public input, as required by law. The lawsuit, joined by organizations such as Earthjustice and the Knight First Amendment Institute, contends that the USDA unlawfully deleted critical datasets and vital tools that farmers and ranchers need to make informed decisions about their livelihood, including information on climate-smart agriculture, forest conservation and clean energy projects.
Federal overreach could stall electric vehicle momentum
The Trump administration and House Republicans are attempting to use the Congressional Review Act to overturn California’s ban on gasoline-powered car sales by 2035. Although they argue that the policy, based on a waiver granted by the Biden administration’s Clean Air Act, must be approved by Congress, environmental groups and California officials see the effort as illegal, as waivers have not previously been subject to such review. California’s influence on the nation’s auto market has made the state’s ban a target of Republican opponents of climate policy, but if the current move is allowed, it could set a precedent that permits rescinding other environmental regulations, including methane emissions limits.
Week of Feb. 24, 2025
Trump comes for NEPA
The Trump administration has proposed a rule change that eliminates key implementation regulations of the National Environmental Policy Act (NEPA), a law from 1969 that mandates environmental review of federal projects. The change, which would take away the authority of the Council on Environmental Quality (CEQ) to regulate the way federal agencies implement NEPA, will leave a chaotic legal landscape for developers as they await court decisions about the law’s future. While proponents argue the change would streamline the permitting process for infrastructure projects, especially clean energy ones, critics warn it could favor fossil fuel development. The Biden administration’s efforts to expedite environmental reviews have already been limited, and the Trump administration’s move could shift the balance further.
SEC gives up on climate accountability rules
The acting chair of the U.S. Securities and Exchange Commission (SEC), Mark Uyeda, has signaled that the agency may roll back a controversial rule requiring public companies to disclose climate-related risks to their business. Uyeda ordered SEC lawyers to request a delay of an appeal over the rule, in a case brought by business groups and Republican state attorneys general. Critics argue the rule, introduced under former SEC chair Gary Gensler, is burdensome and unnecessary, while supporters believe it provides vital information to investors. The move has sparked criticism from SEC Commissioner Caroline Crenshaw and climate advocates, who view it as undermining investor protections.
Fossil fuels push back against Trump for green hydrogen
Oil-and-gas companies and renewable energy groups are joining forces to advocate for the preservation of the 45V tax credit, a key Biden-era incentive that supports the production of green hydrogen in the U.S. This tax credit, which allows up to $3 per kilogram of hydrogen produced, is seen as vital for advancing the clean fuel source. Industry leaders, including Exxon Mobil, Chevron, Airbus and General Motors, argue that the U.S. risks losing its competitive edge in the rapidly growing global hydrogen market without continued policy support. The credit, introduced under the Inflation Reduction Act, also has broad bipartisan support. Yet, concerns are rising that the Trump administration may seek to dismantle such green energy subsidies as the 45V credit. And some fossil-fuel companies are pushing for changes to the tax credit’s tier system to allow more fossil-fuel-based hydrogen production.
Market forces are pushing through Trump’s anti-climate agenda
Despite political shifts, the transition from fossil fuels to renewable energy continues, driven not just by climate change imperatives but by powerful market forces. Climate investing has become a robust movement, with state, local and international policies offering crucial support. States such as California, Maryland and Massachusetts have set ambitious climate goals, which, along with international frameworks such as the Paris Agreement, have helped to focus companies on sustainability trends. Clean energy investments, boosted by the declining cost of technologies such as solar panels and battery storage, are creating economic opportunities in red and blue states alike. All of which adds up to the fact that market forces seem strong enough to be able to weather short-term policy changes. Sustainability still makes good business sense.
Week of Feb. 17, 2025
Some IRA money will survive Trump’s funding freeze
Donald Trump has approved a $782 million loan guarantee for Montana Renewables, a biofuels company, which had been delayed since the beginning of his presidency due to his freeze on clean energy projects. This loan, part of a larger $1.67 billion deal, will help the company expand its plant in Montana, where it produces sustainable aviation fuel from waste fats.
Montana Renewables, already the largest North American producer of sustainable aviation fuel, aims to increase its jet fuel production tenfold by 2028 — at a time when other clean energy projects face delays or reductions under Trump amid a broader shift in DOE loan priorities.
Despite SEC abandoned climate disclosure mandate, businesses will still comply
The SEC’s proposed climate disclosure rule, which would have required companies to report climate risks and greenhouse gas emissions, will be eliminated under new leadership following acting SEC Chair Mark Uyeda’s decision not to defend it. Originally proposed in 2022 by former SEC Chair Gary Gensler, the rule faced significant opposition, leading to lawsuits from both environmental advocates and businesses.
Despite the impending repeal, a survey by Workiva shows that the majority of global business leaders (85 percent) plan to proceed with climate risk disclosures, driven by European regulations, state-level requirements in the U.S., and the business benefits of sustainability reporting.
Democrats push back against Republican cuts to IRA funding
Twenty-five Democratic lawmakers, led by Rep. Sean Casten of Illinois, urged Energy Secretary Chris Wright to reconsider canceling loans issued by the Energy Department’s Loan Program Office (LPO), citing concerns that such actions would be illegal and damaging to the economy.
The letter, spurred by reports of potential loan cancellations, questions the legal authority for such decisions and the costs involved. It highlights key projects funded by LPO loans, such as Tesla’s $465 million loan and Michigan’s Holtec Palisades Nuclear Plant, stressing the importance of the LPO in bolstering national security, advancing energy technologies and supporting U.S. manufacturing.
Pennsylvania’s governor sues the Trump admin over frozen federal funds
Gov. Josh Shapiro of Pennsylvania filed a lawsuit against the Trump administration, challenging a wide-ranging funding freeze that has blocked hundreds of millions of federal dollars for the state’s environmental and climate programs. The lawsuit argues that the U.S. Environmental Protection Agency and other federal agencies lack the legal authority to withhold funds already appropriated by Congress, particularly for initiatives such as clean water infrastructure, greenhouse gas reduction and abandoned mine remediation.
The freeze, which affects over $1.2 billion in federal funding, has stalled ongoing projects, delaying critical environmental efforts and risking thousands of jobs.
Week of Feb. 10, 2025
EPA employees working on environmental justice face potential layoffs
The Trump administration is considering placing employees working on environmental justice initiatives in the U.S. Environmental Protection Agency (EPA) on administrative leave, sparking uncertainty and distress among staff. Around 100 workers may be directly affected by potential layoffs or reassignments, particularly those handling critical programs such as lead pipe replacement, hazardous waste cleanup and clean energy projects. This move follows broader efforts by the administration to cut back on environmental and diversity-focused initiatives, with significant impacts on communities, including low-income and predominantly white areas that had benefited from these programs. Many former EPA officials lament the loss of progress made on environmental justice, describing the actions as a setback for public health and economic opportunities in underserved regions. The situation has left EPA employees feeling demoralized and fearful of losing vital work aimed at improving communities’ well-being, workers say.
New Republican bill fast tracks power plant permitting
Legislation introduced in the U.S. House and Senate, known as the GRID Power Act, aims to prioritize dispatchable power plants in interconnection queues, expediting the process for essential projects that enhance grid reliability and meet growing energy demands. Dispatchable power plants would be able to adjust power generation on demand by grid operators to match the needed supply. The bill, sponsored by Rep. Troy Balderson (R-OH) and Sens. John Hoeven (R-N.D.) and Todd Young (R-IN), would grant grid operators authority to fast-track projects that bolster grid resilience. It requires the Federal Energy Regulatory Commission (FERC) to review proposals within 60 days and implement rules within 180 days. The bill has garnered support from various industry groups, including the Electric Power Supply Association and oil and gas organizations, who advocate for greater flexibility in addressing grid reliability concerns.
Trump admin halts $5 billion EV charger program
The Federal Highway Administration (FHA) announced the suspension of the Biden administration’s electric vehicle (EV) charging network under the National Electric Vehicle Infrastructure (NEVI) program, citing the need to align with current U.S. Department of Transportation policies. The NEVI program, funded by the Bipartisan Infrastructure Law, was designed to address gaps in the nation’s EV charging infrastructure, with over $3 billion already disbursed to states. The suspension, which halts further obligations under the program, is part of broader moves by the Trump administration to freeze previously approved funds, a decision criticized by environmental groups such as the Sierra Club for undermining bipartisan funding and innovation in clean energy.
Massachusetts AG holds utilities accountable for misleading EV charging plans
Massachusetts’ attorney general has criticized the state’s major utilities, Eversource and National Grid, for their proposed plans to lower the cost of charging electric vehicles (EVs) during off-peak hours, saying the savings for customers would be minimal. The utilities’ plans, which would require customers to install separate meters at a significant cost, are based on flawed calculations and overstate potential savings. The attorney general argues that the proposals would result in only small reductions in bills — around $21 per month — rather than the promised $146, and could even lead to higher costs for some customers. The attorney general’s office suggests alternative approaches, such as offering whole-home time-of-use rates or using vehicle data to apply rebates, to better incentivize off-peak charging and accelerate implementation.
Week of Feb. 3, 2025
Lee Zeldin confirmed as new head of EPA
Lee Zeldin has been confirmed as the new administrator of the U.S. EPA with a 56-42 Senate vote. A former U.S. House representative from Long Island, N.Y., Zeldin aims to prioritize both environmental protection and economic growth, echoing policies from the Trump administration, which he says will expand on efforts for clean air, water and land. His appointment comes at a time when the EPA faces shifting priorities, including potential reversals of climate-related policies from the previous administration, such as environmental justice initiatives and greenhouse gas regulations. Critics argue that Zeldin’s ties to the oil and gas industry may undermine efforts to combat climate change, while supporters expect him to bring a balanced, pro-growth approach. The EPA under Zeldin is also expected to reassess federal regulations, including those related to waste, recycling and greenhouse gas emissions, and to reappoint several Trump-era figures to key roles.
Virginia wades into the solar development debate
In Virginia, the debate over siting utility-scale solar projects on farms and forestland has intensified as the state faces decarbonization targets and growing local opposition to such developments. The Virginia Commission on Electric Utility Regulation (CEUR) recently endorsed a bill to establish an Energy Facility Review Board that would review proposed solar and battery storage projects, with a focus on helping localities align their decisions with the state’s clean energy goals. However, the bill’s revisions in response to local concerns would preserve local control while still incorporating clean energy targets. The bill comes amid increasing rejections of solar projects by local governments, raising concerns about the state’s ability to meet its clean energy targets. Tensions also revolve around land use, with some advocating for the preservation of agricultural and forested land, while others stress the need for large-scale solar to meet decarbonization goals. The political dynamics are complex, with both Democratic and Republican lawmakers weighing the balance among local autonomy, renewable energy development and economic impacts.
Minnesota rolls out state green bank despite federal funding freezes
The Minnesota Climate Innovation Finance Authority, established in 2023, is set to ramp up its lending efforts this year with a focus on clean energy and emissions reduction projects. Led by Executive Director Kari Groth Swan, the authority aims to lend at least $25 million annually to support projects that align with the state’s climate goals, such as solar energy, energy-efficient construction, and electric vehicle infrastructure. With a revolving fund model, the authority targets underserved markets, partnering with private lenders to provide financing for viable, job-creating initiatives. While the state green bank will not be the primary lender, its involvement helps projects gain traction, especially in light of uncertainty around federal clean energy funding. The authority has already received numerous applications and is focusing on projects that also meet environmental justice criteria, including those benefiting low-income communities with high non-white populations.
Trump’s tariffs will impact fossil fuels and renewable energy alike
President Donald Trump signed orders imposing significant tariffs, including a 25 percent tariff on all goods from Canada and Mexico, and a 10 percent tariff on Canadian energy products. Additionally, a 10 percent tariff was placed on imports from China. These tariffs are set to disrupt critical North American trade relationships, particularly in energy, where integrated pipelines and refineries have helped the U.S. become a major producer. The tariffs could harm industries such as oil refining, construction and automotive manufacturing, while raising consumer prices, particularly in regions dependent on Canadian oil and electricity. The potential economic impact includes a reduction in U.S. gross domestic product, increased household costs and retaliatory tariffs from affected countries. While the long-term effects are uncertain, these tariffs are widely viewed as harmful, particularly given their broad scope and the absence of exemptions for essential industries such as electronics or electric vehicle components. The move signals a shift toward a more unpredictable and confrontational trade policy under Trump, with far-reaching consequences for U.S. manufacturing and international relations.
Week of Jan. 27, 2025
Climate hacking defendant accuses Exxon of being complicit
An Israeli man charged with hacking in a case involving climate activists alleges in court filings that the stolen information from activists was allegedly taken at the behest of Exxon Mobil and the lobbying firm DCI Group. While neither company has been accused of wrongdoing, the hacking operation is linked to efforts to counter climate lawsuits targeting oil companies for their role in climate change. The hacking campaign, which spanned from 2012 to 2019, allegedly involved stealing information from activists who were part of lawsuits seeking billions in damages from companies such as Exxon. The defendant, Amit Forlit, is fighting extradition to the U.S. where he faces charges related to the hacking, and his defense argues the case is politically motivated, aimed at undermining Exxon. The U.S. government has dismissed this claim, emphasizing the criminal nature of Forlit’s actions, which included allegedly stealing sensitive information for financial gain. Both Exxon and DCI Group have denied any involvement in the hacking scheme.
Trump pauses all renewable energy projects on public lands, jeopardizing projects
The Trump administration paused approvals for new renewable energy projects on public lands and waters for 60 days, halting leases, rights of way and contracts for wind and solar energy development. The Interior Department’s order, signed by acting Secretary Walter Cruickshank, aims to review legal and policy questions related to renewable energy projects. This action aligns with Trump’s ongoing opposition to wind energy, although it extends to solar power as well. Critics, including the Sierra Club, argue that the move undermines efforts to address energy needs by stifling low-cost renewable energy while potentially benefiting fossil fuel interests. This pause comes amid broader discussions about energy policy and emergency declarations surrounding fossil fuel production.
To adjust for increased energy production, interconnection process must evolve
Utilities and grid operators are being advised to streamline the complicated flow of energy to create more efficiencies within the system. Improving distributed energy resource, so-called DER, interconnection processes will require increasing data access, streamlining study workflows and revising cost allocation approaches, according to a Jan. 16 report from the U.S. Department of Energy’s Interconnection Innovation e-Xchange, or i2X. The i2X roadmap outlines strategies to address delays, focusing on improving interconnection studies, streamlining processes, reducing costs and ensuring grid reliability. It also sets ambitious goals for 2030, including significantly shorter interconnection times, higher completion rates and better data availability, aiming for more efficient integration of DERs into the grid. From 2010 to 2023, the number of residential rooftop solar systems in the U.S. grew from 89,000 to 4.7 million, while community solar capacity expanded from 1 GW to 7 GW. However, the wait times for interconnecting DERs, including solar and energy storage systems increased, with California’s median wait time rising from 60 to 100 days between 2010 and 2022.
Wall Street doesn’t see the profit in Trump’s ‘drill baby drill’
Despite President Donald Trump’s push for increased U.S. oil production during his second term, Wall Street’s reluctance to invest heavily in drilling and the current price pressures are expected to limit output growth. Shale executives, including Wil VanLoh, CEO of Quantum Energy Partners, argue that financial considerations, not political agendas, will dictate production levels, and Wall Street has little incentive to fund expansive drilling. While U.S. oil production reached a record high in 2024, analysts predict a modest increase of less than 1.3 million barrels per day in the coming years, far below the increases seen under Biden. The push for deregulation and drilling in areas such as Alaska may not significantly boost activity, as low oil prices, currently around $74 a barrel, hinder investment. Even Trump’s recent executive orders to open new drilling areas are unlikely to lead to a major production surge without higher prices, with some experts forecasting oil prices could fall further to $64 a barrel, stalling shale growth.
Week of Jan. 20, 2025
Calls for a global tax on shipping emissions grow louder
Support for a global levy on maritime emissions is growing, with more governments, including shipping-dependent nations such as Panama and Liberia, joining the push led by Pacific island states. The levy proposal would require ship owners to pay for every tonne of greenhouse gases emitted, encouraging the use of cleaner fuels, such as ammonia and hydrogen, over more polluting options such as bunker fuel. While some countries back this approach, others, particularly in South America, express concerns about the potential rise in shipping costs, which could affect food security and exports. Debates on whether to impose a levy, a fuel standard or both will continue through talks in February and April, with any final agreement expected by October. The levy could raise over $100 billion annually, with proposals suggesting that funds could support clean fuel development and help address the economic impacts on developing nations. However, disagreements remain over how funds should be distributed and whether they should be used solely for shipping or for broader climate goals.
Biden finalized $6.6 billion loan to Rivian before leaving office
The Biden administration finalized a $6.6 billion loan to electric vehicle maker Rivian to build a plant in Georgia that will produce mass-market SUVs and crossovers, with a focus on creating 7,500 jobs by 2030. The loan’s closure comes just days before President-elect Donald Trump takes office, amid expectations of a rollback on climate-related spending. Trump ally Vivek Ramaswamy criticized the loan, suggesting it could be a political move aimed at challenging Tesla and Elon Musk. Additionally, the administration also secured a $1.7 billion loan to fund six hydrogen energy production facilities. The Energy Department’s Loan Programs Office has announced a total of $60.6 billion in tentative loan commitments.
NREL calls for wind turbine tech
The U.S. Department of Energy’s National Renewable Energy Laboratory (NREL) issued a request for proposals (RFP) to support domestic manufacturers of small and medium-sized wind turbines, aiming to expand access to distributed wind energy technology. The RFP, part of the Competitiveness Improvement Project, offers up to $2.5 million in awards for turbine manufacturers with less than 1 MW capacity, with awards up to $800,000 for areas such as prototype development, testing, certification and manufacturing process innovation. This initiative seeks to lower the high costs of turbine manufacturing and certification for small businesses, encouraging domestic production, job creation and market competitiveness in distributed wind energy. Since its inception in 2012, the project has awarded $18.5 million, and submissions for the 2025 cycle are due by March 28.
North Carolina community struggles with impacts of wood pellets industry
Jane Thornton and her neighbors in Faison, North Carolina, have spent years battling the environmental impact of a nearby wood pellet plant, initially trying to stop its construction and now focusing on mitigating its dust pollution. The pellet industry, largely driven by a carbon accounting loophole, has been linked to increased carbon emissions, with pellets made from hardwood trees being shipped to Europe and burned for energy, often causing more pollution than coal. In addition to dust, the industry’s negative impacts on public health, particularly in low-income communities of color in the Southeast, include respiratory issues exacerbated by fine particulate matter. While Thornton and other activists have pushed for dust control regulations, progress has been slow. However, a recent success in requiring a dust management plan for a pellet facility in Wilmington has given them hope that more stringent measures could be applied to other mills, although broader concerns about the industry’s environmental harm remain unresolved.
Week of Jan. 13, 2025
What 2025 state renewable energy policy has in store
As the U.S. enters 2025, clean energy progress is increasingly shaped by states, with many having already passed major legislation and now focusing on the challenging task of implementation. Unlike in 2017, when Donald Trump’s election prompted states to pick up the slack from the federal government and lead in renewable energy, the political landscape has shifted, and most Democratic-controlled states have already enacted clean energy laws. Key developments to watch in 2025 include New Jersey’s push to codify a 100 percent clean electricity goal, California’s ongoing efforts to expand renewable energy and address permitting challenges, and Texas’s uncertain approach to balancing its renewable energy leadership with fossil fuel interests. Additionally, Massachusetts, New York and Illinois are focused on implementing or modernizing policies to support clean energy and grid reliability. With no major Democratic trifectas gained in the 2024 elections, clean energy advocates will likely focus on incremental advances in 2025, as federal progress remains uncertain.
Colorado orders gas and oil companies to cut midstream emissions
Colorado implemented rules to reduce greenhouse gas emissions from midstream oil and gas operations, such as natural gas compressor stations, marking a national first. The new regulations mandate the removal of combustion-fuel equipment in favor of clean, electrified systems, aiming for a 20.5 percent reduction in emissions by 2030. While state officials argue these changes align with previous legislation and help fulfill Colorado’s broader climate goals, environmental groups express concerns over delayed enforcement, the use of a credit trading system, and the potential for disproportionately affected communities to suffer. Despite these concerns, state officials emphasize the new rules’ potential to significantly reduce emissions and improve air quality, particularly by cutting nitrogen oxide pollutants that contribute to ozone violations in Colorado.
Energy Department awards Toyota $4.5 million for battery production
The Department of Energy’s Advanced Research Projects Agency-Energy (ARPA-E) awarded $4.5 million in funding to Toyota to help develop a circular domestic supply chain for electric vehicle (EV) batteries. Toyota is collaborating with Oak Ridge National Laboratory, the National Renewable Energy Laboratory, and Baker Hughes’ Waygate Technologies to create an automated robotic process for disassembling batteries, classifying them using data-driven methods, and addressing cell degradation. The initiative aims to address bottlenecks in the current battery recycling system, supporting the growing need for EV battery recycling as adoption of electric vehicles increases. The project will also focus on advanced diagnostic tools and refabrication methods to recycle battery cells into new energy systems, extending the lifespan of battery components and reducing emissions per mile.
Minnesota counties demonstrate how to make the most of local energy development
The Rural Minnesota Energy Board (RMEB), established in the 1990s, played a crucial role in fostering clean energy development in southwestern Minnesota by providing consistent support for wind and solar projects. The board, which represents 18 rural counties, facilitates community engagement, drafts energy-related ordinances and educates the public on energy benefits. It helped secure the wind energy production tax, which generates millions in local revenue, supporting economic development and reducing opposition to energy projects. This collaborative approach has created a stable environment for renewable energy, attracting both wind and solar developers and is considered a model for other regions. The board also lobbies for state policies to support clean energy, ensuring continued growth and minimizing controversies, particularly in rural areas with fewer local energy initiatives.
Week of Jan. 6, 2025
Biden’s new hydrogen climate rules have some wiggle room
The Biden administration finalized new climate rules Jan. 3 for the hydrogen energy industry, offering stricter guidelines than before but incorporating flexibilities to make them more industry-friendly. These regulations, issued by the Treasury Department, determine which hydrogen facilities qualify for tax credits designed to support the development of low-emission hydrogen as a cleaner energy source for hard-to-decarbonize industries such as aviation, steel and cement. While the final rules retain certain safeguards — such as requiring electrolytic hydrogen to be paired with additional clean power — new provisions allow existing nuclear plants to count as new energy sources and delay hourly power-matching requirements. The rules also offer exemptions for electrolytic projects in states such as California and Washington due to their stringent emission caps. Although some concerns remain about methane-based hydrogen and nuclear exemptions, industry groups have largely welcomed the changes, while future political shifts, particularly under a new administration, leave the long-term outlook uncertain.
Big oil spent $219 million to influence the 2024 US election
The oil and gas industry spent over $219 million to influence the 2024 U.S. elections, with about $67 million in direct contributions to candidates, $26 million to successful races, members of and $151 million in outside spending through PACs and other groups. The majority of this money, approximately 88 percent, went to Republican candidates. This level of financial influence, a result of the 2010 Citizens United Supreme Court ruling, marks a stark contrast to the 1990s, when fossil fuel donations were more evenly split between Democrats and Republicans. In addition to campaign contributions, the industry also spends over $100 million annually on lobbying to shape policies that favor its interests, including opposing climate regulations and promoting misinformation on climate change. This financial power has a profound impact on legislation and public perception, with the industry seeking to protect its profits despite the growing environmental damage caused by fossil fuels.
Climate leader Illinois vows to continue its agenda even with potential new federal barriers
Illinois environmental and clean energy advocates are gearing up to navigate a second Trump presidency, which may hinder federal climate progress and its aid to individual states. Despite potential challenges from a federal rollback of climate policies and funding — such as cuts to tax credits and grants under the Inflation Reduction Act (IRA — Illinois has already secured substantial federal funding, including over $430 million for clean energy projects, which advocates believe will continue to have lasting impacts. The state, which expanded its clean energy initiatives with the 2021 Climate & Equitable Jobs Act (CEJA), is also preparing for further legislation in 2025 to advance energy storage and decarbonization goals. Although federal action could weaken environmental protections, especially around coal ash, Illinois’ robust state and local policies, including Chicago’s environmental justice initiatives, are seen as vital in counteracting federal setbacks. Advocates remain focused on state-level action, confident that Illinois can still make significant strides in clean energy and environmental justice even in a less supportive federal environment.
Upcoming DOGE could slash fossil fuel subsidies along with climate subsidies
President-elect Donald Trump’s plans to overhaul the federal government with the newly created Department of Government Efficiency (DOGE) could significantly affect U.S. environmental policy. Led by Elon Musk and Vivek Ramaswamy, DOGE aims to cut $2 trillion from the budget and reduce the federal workforce by 75 percent. While the department’s aggressive cost-cutting strategy might threaten the Biden administration’s climate agenda, particularly the Inflation Reduction Act, it could also eliminate fossil fuel subsidies, which amount to billions in government handouts. Advocates for environmental reform hope DOGE might target subsidies such as tax breaks for drilling and fossil fuel extraction, which cost taxpayers billions annually. However, experts caution that powerful lobbying from the oil and gas industry may prevent substantial changes, leaving hidden subsidies, such as pollution allowances, largely untouched. Environmentalists are watching closely to see if DOGE’s actions will align with their hopes for reducing harmful federal support for fossil fuels and inefficient biofuels such as corn ethanol.
Week of Dec. 23, 2024
Local governments in Washington state sue to block pro natural gas law
A 2023 ballot initiative, I-2066, passed by a narrow margin, prohibits state and local governments from restricting access to natural gas and requires utilities to provide it to any customer, even where other energy sources are available. Opponents – composed of local governments and climate advocacy groups and – of I-2066 filed a lawsuit Dec. 11 arguing that it oversteps by blocking future regulatory efforts to reduce gas use. Meanwhile supporters, including the Building Industry Association of Washington, emphasize the initiative’s protection of consumer choice in energy sources. In recent years, local and state efforts to reduce natural gas use in buildings have faced strong opposition, especially from gas and building industry groups. In 2023, a federal appeals court struck down Berkeley, California’s landmark ban on gas hookups in new construction. Similarly, Washington state has passed regulations aimed at reducing gas use, including requiring new buildings with gas appliances to meet energy savings comparable to electric alternatives.
By 2035, IRA projects will grow US economy by $1.9 trillion, according to new study
A study commissioned by the American Clean Power Association (ACP) and conducted by global advisory firm ICF projects that the Inflation Reduction Act (IRA) will boost the US GDP by $1.9 trillion over the next decade. The IRA is expected to generate a fourfold return on taxpayer investment, delivering $740 billion in tax credits and over $1 trillion in emissions benefits. The law will stimulate $3.8 trillion in net spending, create 13.7 million jobs and increase household income by $846 billion. Despite concerns about potential changes under future administrations, analysts believe a full repeal is unlikely. Supporters, including the ACP and the U.S. Chamber of Commerce, argue that the IRA strengthens national security, enhances economic competitiveness, and drives significant investment in clean energy infrastructure, fostering long-term growth and emissions reductions.
EU Green Deal’s success delivers a boosted economy and stronger climate policies
As the world enters the “decisive decade” for climate action, the U.S. and European Union are facing distinct challenges in their efforts to combat climate change. While U.S. policymakers work to defend and build upon clean energy legislation passed under the Biden administration, the EU is advancing its climate agenda with the European Green Deal and its Fit for 55 policy package, aimed at reducing emissions by 55 percent by 2030. These policies have already achieved a 49 percent emissions reduction, driven by an expanded Emissions Trading System (ETS) and stricter CO2 vehicle standards. This transition is expected to create nearly 2 million jobs and boost the EU’s GDP by over 300 billion euros by the end of the decade. However, significant work remains, including closing a 300-million-ton emissions gap and crafting policies to ensure the competitiveness of European industry while meeting future emissions targets. The EU is now focused on achieving a 90 percent emissions reduction by 2040 through strategies such as industrial electrification, clean hydrogen and scaling clean power, while managing potential trade-offs in areas such as electricity demand and biomass use. Policymakers must make informed decisions to maximize economic benefits and protect public health as they navigate the path to meeting ambitious climate goals.
Department of Energy warns US natural gas expansion will raise costs and emissions
The U.S. Department of Energy released a long-awaited analysis on the impact of liquefied natural gas (LNG) exports, warning that further expansion would increase greenhouse gas emissions and drive up energy costs for U.S. consumers. The study, which follows a temporary pause in LNG export permits, concludes that expanding fossil fuel exports would harm the economy, exacerbate climate change and delay the global shift to clean energy. Environmental groups welcomed the findings, which align with concerns about the negative environmental and public health effects of LNG, such as air pollution and the climate impact of fracking. Critics, including climate advocates and legal experts, argue that LNG exports benefit the oil and gas industry at the expense of public well-being, and call for a reevaluation of existing and proposed export projects. In contrast, the oil and gas industry continues to push for the expansion of LNG export capacity, despite growing calls for climate action.
Week of Dec. 16, 2024
California rolls out $1.4 billion plan to deploy 17,000 EV chargers
The California Energy Commission (CEC) approved a $1.4 billion plan Dec. 11 to expand the state’s emissions-free transportation infrastructure, including the installation of nearly 17,000 new electric vehicle (EV) charging stations and hydrogen refueling sites. Over the next four years, funds will be allocated through competitive grants, aiming to increase California’s total EV chargers from 152,000 to 250,000, the most in the country. The plan focuses on supporting low-income and disadvantaged communities, ensuring equitable access to clean transportation options. This investment is part of California’s broader $48 billion climate budget and is backed by federal funding from the Biden administration. Gov. Gavin Newsom emphasized the importance of making EV infrastructure accessible in underserved areas, while also responding to potential challenges to federal EV incentives under a future Trump administration.
Biden administration continues to spend IRA funds as the clock runs out
The Biden administration is urgently working to finalize and disburse funds from key climate-related laws, such as the Inflation Reduction Act (IRA), before the end of Biden’s term. With 98 percent of the funds legally allowed to be dispensed in October already allocated, White House Chief of Staff Jeff Zients emphasized the need to expedite the process to ensure as much funding as possible is committed before the potential rollback of these policies under a future Trump administration. Democrats, including Sen. Ed Markey and Rep. Alexandria Ocasio-Cortez, have urged the administration to accelerate the release of climate and clean energy funds to prevent their politicization or redirection by Republicans. While most of the funds are already disbursed, there is a focus on securing the final portion to solidify progress on climate initiatives before a potential shift in leadership.
Asset owners are still not prioritizing climate policies in any manner
With the impact of 2024 elections, climate-conscious investors are closely watching potential changes in climate policies, especially in the U.S., which could challenge institutional investors with ambitious net-zero targets, particularly those holding significant government debt. A new study by InfluenceMap, assessing the climate policy stewardship of the world’s largest asset owners, highlights mixed results. While U.S. pension funds and U.K. insurers such as Phoenix Group excelled in climate lobbying stewardship, with some scoring as high as B-plus, the majority of asset owners scored poorly, with three-quarters receiving D-plus or below. Despite positive performances by some, the report found that no asset owner fully leveraged all available tools to influence government policy for net-zero by 2050. Key areas of improvement include better direct and indirect lobbying, with only a few asset owners, such as CalPERS and NYCRS, aligning with science-based climate goals. Experts emphasize the need for clearer, more consistent policy signals and greater engagement with asset managers to advocate effectively for climate policy.
Houston City Council member calls out hypocrisy of ExxonMobil promoting plastic recycling
A new report by Houston City Council member Letitia Plummer criticizes the city’s support for pyrolysis, a form of chemical recycling promoted by ExxonMobil and other industry players as a solution to plastic waste. Pyrolysis involves using heat and pressure to break down plastics into oil and gases, but environmental groups argue it is akin to incineration and does little to reduce plastic pollution. Plummer’s report raises concerns that pyrolysis perpetuates fossil fuel extraction, generates hazardous emissions and results in minimal reusable plastic, with most output being burned as fuel. The report also recommends that Houston focus on reducing single-use plastics and expanding traditional recycling methods instead of relying on chemical processes. This criticism follows ongoing concerns about the city’s partnership with ExxonMobil and other stakeholders in the Houston Recycling Collaboration, which has faced scrutiny over its effectiveness and lack of transparency. Environmental advocates, including Air Alliance Houston, support Plummer’s call for more accountability and stronger local policies to address plastic waste.
Week of Dec. 9, 2024
FERC data shows exponential growth in electricity demand forecasts
Data from the Federal Energy Regulatory Commission shows a significant increase in U.S. electricity demand forecasts, with peak load growth expectations rising sharply from 39 GW in 2023 to 67 GW in 2024. Nationwide electric demand is projected to increase by 15.8 percent by 2029, with notable regional growth in Texas, PJM (13 states), Georgia, and the Pacific Northwest. A key driver of this demand surge is the rapid expansion of data centers, particularly in areas such as Dallas, Northern Virginia, and Atlanta. While data centers are a major factor, the report also acknowledges uncertainty around load forecasts, especially in sectors such as electrification and hydrogen adoption, which may influence demand in the 2030s. The report raises concerns that the current data center boom, fueled by AI demand, could lead to grid overcapacity, echoing the overbuilding seen during the internet boom of the 1990s.
Democrats push Biden to spend remaining IRA climate funds
Sen. Ed Markey, Rep. Alexandria Ocasio-Cortez and other Democratic lawmakers Dec. 4 called on President Joe Biden to expedite the disbursement of climate-related funds from the Inflation Reduction Act (IRA) and Bipartisan Infrastructure Law (BIL) before his term ends in January. In a letter signed by prominent Democrats including Sen. Bernie Sanders and Rep. Raúl Grijalva, they urged the administration to quickly release funds for key climate programs across various federal agencies, including the Department of Energy, EPA and the Department of Transportation, to prevent future politicization of these initiatives. The letter also advocates for the release of guidance for tax credits, particularly for hydrogen power and electric vehicle chargers, which have yet to be published. While the letter does not directly reference President-elect Donald Trump, it comes in the context of concerns that a potential Republican administration might alter or limit the disbursement of these funds.
Treasury finalizes another IRA tax credit under the wire
As the Biden administration nears its end, the Treasury Department finalized rules for the Section 48 Investment Tax Credit, a key provision of the Inflation Reduction Act (IRA), which offers a 30 percent tax credit to project owners investing in clean energy production. This tax credit, along with the production tax credit, expands on long-standing policies that have supported solar and wind energy. While the newly released rules focus on the legacy credits, which include standalone energy storage and remain available for projects that begin construction this year, future projects can opt for either the legacy or the technology-neutral credits, which take effect next year. The final regulations clarify what qualifies for these credits, such as the equipment used to purify biogas. However, with Republicans set to take control in Washington, the fate of the IRA’s clean energy tax credits is uncertain, as GOP lawmakers may seek to revise or dismantle parts of the legislation.
North Carolina town sues Duke Energy for climate ‘deception’
The town of Carrboro, North Carolina, filed the first climate “deception” lawsuit against an electric utility, accusing Duke Energy of a decades-long campaign of denialism and misinformation about the dangers of fossil fuel emissions. The lawsuit claims that Duke Energy intentionally spread false information to stall the transition to clean energy, despite knowing since the 1960s about the harmful effects of carbon dioxide. The town argues that Duke’s actions, which included funding climate skepticism, hindered public action on climate change and protected the company’s fossil fuel-based business model. Located in the middle of North Carolina, Carrboro is seeking compensation for the costs incurred from climate-related damage, estimated at $60 million, including road repairs and stormwater system upgrades. This case marks a shift in climate litigation, targeting utilities for their role in burning fossil fuels, although experts caution that such lawsuits rarely succeed.
Week of Nov. 25, 2024
Trump’s proposed EV credit rollbacks threatens Tennessee’s economic transition
Tennessee’s burgeoning electric vehicle (EV) and clean energy industries, which have attracted over $12 billion in investments since the Inflation Reduction Act (IRA) was passed in 2022, could face significant setbacks due to uncertainty surrounding potential policy changes under President-elect Donald Trump. The IRA, which incentivizes both EV manufacturing and consumer purchases, has been a key driver of these investments, through projects such as Ford’s BlueOval City and battery plants by BlueOval SK. Trump’s transition team has suggested rolling back EV tax credits, raising concerns that the removal of consumer incentives could destabilize the industry. Despite bipartisan support for these incentives in Tennessee, including from Republican lawmakers, analysts warn that such policy shifts could disrupt ongoing investments and hinder long-term economic growth, especially in rural areas that have benefited from clean energy projects.
How repealing the IRA will harm the US economy
Repealing the Inflation Reduction Act (IRA) would harm the economy, potentially costing the U.S. billions in lost investment, exports and jobs, while ceding valuable clean energy opportunities to global competitors such as China and South Korea, according to Energy Innovation, a non-partisan climate and energy policy think tank. The IRA has driven a significant surge in U.S. manufacturing, attracting over $500 billion in private investment and creating more than 334,000 jobs between 2022 and 2024. Republican-led districts have received the majority of this investment, sparking bipartisan support for the IRA, even from Republican lawmakers and business groups. Analysis suggests that maintaining the IRA could create up to 1.3 million jobs and boost GDP, making it a critical tool for energy security, economic competitiveness and environmental goals.
Ann Arbor, MI residents vote in a clean energy utility
Voters in Ann Arbor, Michigan overwhelmingly decided to create a “sustainable energy utility” (SEU) that will complement the existing grid by providing residents with cleaner, more reliable energy. The SEU will focus on installing solar panels, batteries and energy efficiency upgrades, aiming to improve resilience and reduce dependence on Detroit-based utility DTE Energy, which has struggled with power outages. This initiative is part of Ann Arbor’s broader climate goal of achieving carbon neutrality by 2030. Unlike traditional utilities, the SEU is a nonprofit entity that will offer clean energy at cost and allow neighbors to share excess solar power. The project plans to avoid major legal battles or infrastructure buyouts, instead relying on voluntary customer participation and leveraging the city’s strong credit rating for affordable financing.
SEC Chair Gary Gensler to step down on Inauguration Day
SEC Chair Gary Gensler announced his decision to step down from the SEC on Jan. 20, the day of President-elect Donald Trump’s inauguration. In his tenure, Gensler implemented several significant regulatory changes, most notably requiring companies to disclose the financial impacts of climate change on their operations, rules that have been stalled by litigation. The SEC also introduced rules to increase transparency in the $28 trillion U.S. Treasury market by promoting central clearinghouses for Treasury securities and tightening broker-dealer registration requirements. Additionally, Gensler’s SEC sharpened cybersecurity disclosure rules and expanded oversight of auditors, particularly in China-related companies. Gensler was also vocal about addressing risks in the crypto market, which led to significant attention on the need for investor protections.
Week of Nov. 18, 2024
Exxon Mobil CEO publicly calls for Trump to keep IRA
Exxon Mobil CEO Darren Woods urged the incoming Trump administration to avoid drastic climate policy changes and reject carbon border taxes favored by some Republicans. In a recent interview with Politico, Woods emphasized the importance of maintaining a consistent long-term approach to addressing global emissions, warning that policy swings would make the climate challenge harder to manage. Trump has pledged to roll back Biden-era climate policies and re-exit the Paris Agreement, but Woods suggested a more measured approach, stressing the need for a regulatory system focused on carbon intensity rather than punitive tariffs on imports.
Woods also expressed support for the Inflation Reduction Act (IRA), which has delivered both environmental and economic benefits, and expressed hope that the Trump administration would maintain some consistency in policy to avoid economic disruptions.
Despite the Biden administration’s focus on clean energy, the U.S. has remained the world’s top oil and gas producer and is off track to meet its climate goals. Woods called for a rational, global framework to reduce emissions while balancing the needs of industry and the environment.
A DC Circuit Court comes for NEPA
A ruling by the D.C. Circuit Court of Appeals cast doubt on the legal authority of the National Environmental Policy Act (NEPA), one of the U.S.’s oldest and most important environmental laws. The court ruled that the Council on Environmental Quality (CEQ), which has issued guidelines for NEPA compliance since 1970, does not have the authority to create binding regulations with the force of law. This decision could significantly alter the way NEPA is applied, undermining decades of legal precedents and potentially slowing or accelerating federal infrastructure projects.
NEPA requires the federal government to assess the environmental impacts of major projects, and its permitting process has become controversial due to lengthy and complex studies. The decision could disrupt the federal permitting system, as NEPA studies might become more inconsistent, with judges having more power to interpret the law in the absence of clear guidelines.
Trump picks fossil fuel executive as energy secretary
Donald Trump announced Chris Wright, CEO of Denver-based Liberty Energy, to serve as his new energy secretary. Wright is a staunch advocate for increased oil and gas development, including fracking, and is critical of climate change efforts. He has voiced opposition to what he calls a “top-down” approach to climate action and argues that more fossil fuel production is needed globally to combat poverty. Wright’s nomination to head the U.S. Department of Energy has garnered support from influential conservatives, including oil tycoon Harold Hamm and Mike Sommers of the American Petroleum Institute, who are keen to lift the Biden administration’s pause on natural gas export permits.
Wright is a “champion of dirty fossil fuels,” said Jackie Wong of the Natural Resources Defense Council. His background includes founding Pinnacle Technologies, which helped pioneer commercial shale gas production through fracking. If confirmed, Wright would join North Dakota Gov. Doug Burgum in shaping U.S. energy policy during Trump’s second term, with a focus on expanding fossil fuel production and reinforcing energy security.
Massachusetts bill prioritizes clean energy expansion
Massachusetts lawmakers passed a landmark climate bill aimed at reducing greenhouse gas emissions and accelerating the state’s transition to clean energy. The bill, which Gov. Maura Healey is expected to sign into law, introduces key measures to limit gas pipeline expansion, streamline renewable energy project approvals, and incorporate geothermal energy for heating and cooling in homes.
A major component of the bill is the simplification of the permitting process for clean energy projects. The Energy Facilities Siting Board will oversee approvals, reducing delays and obstacles that have historically hindered progress.
The legislation includes ambitious energy storage goals and extends contracts for offshore wind and battery storage to 30 years. It also facilitates energy cooperation with neighboring Connecticut, allowing Massachusetts to import nuclear power in exchange for wind energy from its Vineyard Wind project.
Week of Nov. 11, 2024
Here are the climate policy developments we are following this week:
COP 29 opens under a big cloud
The UN’s COP29 climate summit began in Baku with a focus on setting a new finance target for helping developing countries address climate change. Conflicts over the size and management of this funding, which could reach trillions of dollars, are to be expected. The summit also aims to finalize Article 6 of the Paris Agreement, which includes establishing a global carbon credit market, and to push nations to finalize their emissions reduction plans.
- Notable absentees from COP29: Several key leaders, including President Joe Biden, French President Emmanuel Macron, and German Chancellor Olaf Scholz, will not attend COP29. However, key figures such as U.S. climate envoy John Podesta, U.K. Prime Minister Keir Starmer and Barbadian Prime Minister Mia Mottley will represent their countries. The Taliban is attending for the first time due to climate impacts in Afghanistan.
- Trump’s energy czar consideration: President-elect Donald Trump is reportedly considering North Dakota Gov. Doug Burgum for the role of “energy czar,” focusing on deregulating energy policies across multiple federal agencies. Burgum is a strong ally of the oil industry.
- Climate-related economic losses: A report from the International Chamber of Commerce reveals that climate-related extreme weather has cost the global economy over $2 trillion in the last decade. The U.S. has suffered the largest losses, and the economic impact is accelerating, with $451 billion in damages in just 2022 and 2023 alone. The report emphasizes the need for enhanced climate action to prevent further economic burdens.
EPA announces funding to help Great Lakes ports transition away from fossil fuels
The U.S. Environmental Protection Agency (EPA) is set to finalize over $200 million in grants to help accelerate the clean energy transition at three major Great Lakes shipping ports: Cleveland, Detroit and Illinois. The grants are part of the Biden administration’s Clean Ports Program, which aims to reduce emissions in the shipping industry, which contributes about 3 percent of global greenhouse gas emissions.
These projects will help reduce greenhouse gases and local pollutants such as ozone and particulate matter, benefiting nearby communities. The grants are especially significant for Ohio, which has been slow to adopt decarbonization strategies. The funding aims to overcome the higher initial costs of zero-emissions equipment and support the growth of cleaner technologies in the shipping industry. Grants are expected to be finalized by the end of 2024, with projects rolling out over the next few years. Read more at Energy News Network.
Under Trump, EPA faces a shaky future
Under Biden, the Environmental Protection Agency (EPA) significantly expanded its workforce, increasing staff by nearly 5,200 employees since 2021 to 16,056 employees, aided by funding from Biden’s climate and infrastructure laws. However, the agency will face challenges when Trump takes office again, as he has previously pledged to downsize federal agencies, including the EPA.
During Trump’s first term, the EPA’s budget was cut, and staffing was capped at 11,611, with a proposal to reduce its workforce by over 1,200 positions. Trump’s return could revive this effort, possibly through buyouts or by reclassifying career staff under “Schedule F,” which makes employees easier to fire.
Washington state voters uphold carbon market
On Nov. 5, voters in Washington state upheld the 2021 Climate Commitment Act, a landmark climate law that established a cap-and-invest carbon market. The law aims to reduce the state’s greenhouse gas emissions by nearly 50 percent by 2030 and achieve net-zero emissions by 2050. It has raised over $2 billion in revenue for clean energy and electrification projects, such as electric school buses and public transit. The cap-and-invest system requires large businesses to buy permits for their emissions, with a declining cap on overall emissions each year.
Voters rejected the repeal, with about 62 percent voting against the ballot initiative.
Week of Oct. 28, 2024
New York City flips the script on anti-ESG divestment
The Bureau of Asset Management at the New York City Comptroller’s office is set to develop policy language for exclusions related to fossil fuel investments, which will be presented to pension fund trustees in early 2025. This initiative is part of the funds’ Net Zero Implementation Plans, aimed at reducing systemic risks from climate change to both the global economy and New York City’s public pension funds.
Comptroller Brad Lander announced Oct. 22 that the connection between climate risk and financial risk, highlighting the increasing frequency of climate-related disasters. The funds were previously divested from fossil fuel reserves in their public equity portfolio by 2022 and excluded upstream fossil fuel investments in private markets in 2023. The net-zero plans include annual emissions disclosures, increased investments in renewables, and engagement with companies to reduce emissions, with current holdings in energy and climate solutions reaching $11 billion since 2021.
Lander’s announcement received praise from various climate-focused nonprofits, with advocates stressing the need to end financing for industries driving climate change. Observers noted that these exclusions could set a precedent for other institutional investors, emphasizing the importance of shifting investments toward sustainable energy sources to mitigate financial and legal risks. Read more at UtilityDive.
Up-and-coming nonprofit promotes local clean energy projects
A new nonprofit called Greenlight America aims to bolster local support for renewable energy projects, addressing the disconnect between widespread public support and the often vocal opposition these initiatives face at local government meetings. Since its founding, Greenlight has raised $5 million and employs about 20 staff members across the country.
The organization seeks to organize and mobilize supporters by providing them with information and training to effectively participate in local discussions. Recognizing that many potential supporters are unaware of local proceedings, Greenlight aims to empower them to voice their opinions and counter misinformation spread by opposition groups.
The nonprofit emphasizes its nonpartisan nature and collaborates with local and national groups to create coalitions in support of renewable energy. For example, in Erie County, Pennsylvania, Greenlight helped rally support against a proposal that hindered solar project permits, leading to a successful outcome in favor of renewable energy.
Overall, Greenlight America hopes to shift the dynamics of local debates by encouraging greater civic engagement among renewable energy advocates, thereby enhancing the chances of project approval. Read more at InsideClimate News.
Nevada lithium mine moves forward and places endangered flower in peril
The Biden administration has approved a federal permit for a new lithium-boron mine in Nevada, a crucial step for the president’s clean energy agenda. The approval was despite opposition from conservationists who plan to sue over concerns that the project could endanger the Tiehm’s buckwheat, an endangered wildflower.
The Rhyolite Ridge mine, developed by Ioneer Ltd., is expected to support battery production for electric vehicles, helping to reduce greenhouse gas emissions. Construction is set to begin next year, with production starting in 2028, with the mine aiming to supply lithium for up to 370,000 vehicles annually.
While the project promises to bolster domestic lithium production, environmentalists argue that it threatens the survival of the buckwheat, which is native to the area and has fewer than 30,000 remaining plants. Although the U.S. Fish and Wildlife Service concluded that the mine would not jeopardize the species’ survival, critics claim the approval violates multiple environmental laws. Supporters of the project, including government officials and Ioneer executives, assert that it will not directly harm the buckwheat and could create jobs in economically struggling Esmeralda County.
Despite the administration’s emphasis on balancing mineral production with environmental protection, opponents view this approval as indicative of a broader trend of prioritizing green energy development at the expense of wildlife and natural habitats. The Interior Department maintains that the urgency of climate change does not justify compromising endangered species protections. Read more at AP News.
Biden boosts value of clean energy tax credit
In its rush to ensure Biden’s climate legacy before his term ends, the administration announced an expansion of a federal tax credit aimed at boosting domestic production of components for solar and wind energy, as well as batteries. The U.S. Treasury Department released final guidance detailing the implementation of a renewables manufacturing credit established under the climate tax and health care law, which is now more favorable for the industry compared to previous proposals.
This credit applies to various components, including solar grade polysilicon and battery cells, and allows companies to claim credits for the costs of materials and mining, enhancing incentives for domestic manufacturing and mining. Deputy Treasury Secretary Wally Adeyemo emphasized the importance of onshoring critical minerals for secure clean energy supply chains. The announcement Oct. 24 follows the recent discovery of significant lithium reserves in Arkansas, indicating a push toward greater domestic resource production. Read more at The Hill.
Week of Oct. 21, 2024
Supreme Court supports the Biden administration’s power plant rule
The Supreme Court recently chose not to block a Biden administration rule that mandates climate standards for power plants, although it may revisit the case later. This decision came after requests from red states and industry groups to halt the rule pending further litigation were rejected. Justice Brett Kavanaugh noted that while challengers may have a strong case, they are unlikely to face irreparable harm before a lower court rules, as the rule’s implementation doesn’t start until June.
The rule requires existing coal plants and new gas plants to adopt technology to capture 90 percent of their emissions, potentially reducing carbon emissions by 1.38 billion metric tons by 2047. Critics argue the rule could lead to higher energy costs and is an indirect method to phase out coal plants, conflicting with a previous Supreme Court ruling that limited the EPA’s regulatory powers.
While the EPA expressed satisfaction with the ruling, the coal industry plans to continue its legal challenge, emphasizing concerns about immediate harm to industry and consumers. The Supreme Court has also recently declined to block other Biden regulations on toxic pollution and methane emissions. Read more at The Hill.
Tribal Energy Summit highlights critical mineral deposits on Native lands
The Tribal Energy Summit held last week emphasized the critical role of Native American lands in the energy transition, particularly concerning minerals essential for clean energy technologies. Daniel Cardenas, a representative of the Hammawi Band of the Pit River Tribe, highlighted that over 60 percent of cobalt and lithium and nearly 90 percent of nickel and copper needed for renewable energy are on or near tribal lands.
The summit featured discussions from various tribal leaders about legal, cultural and technical aspects of collaborating with energy companies. Emphasis was placed on building trust between tribes and government, with Wyoming Gov. Mark Gordon noting the intertwined destinies of state and tribal communities.
Key topics included carbon capture technology, which some view as a means to sustain fossil fuel industries while transitioning to renewable energy. While there is potential for tribes to benefit from carbon capture projects, concerns about the technology’s effectiveness and safety were raised. Panelists also discussed the importance of tribal sovereignty in energy resource development, reflecting on historical exploitation by energy companies.
Despite the challenges, many tribes have started to see benefits from the energy transition, receiving funding for clean energy projects through initiatives such as the Inflation Reduction Act. However, tensions remain between tribal and state interests, as exemplified by a recent bill regarding a hydropower plant that overlooked tribal input. Read more at InsideClimate News.
Minnesota cities charge utilities fees for clean energy fund
More Minnesota cities are tapping into utility customers to fund climate and sustainability initiatives through “franchise fees” collected from gas and electric companies. These fees, added as a small line item on utility bills, allow municipalities to use the revenue for climate-related projects. Eagan, for example, is dedicating expected annual franchise fee revenue of $1.5 million to hire a sustainability coordinator and draft a climate action plan.
The use of franchise fees for sustainability is becoming more common, with cities such as Minneapolis and St. Paul leading the way. While historically, these fees supported general city services, many communities are aligning them directly with sustainability projects, including energy efficiency, municipal fleet electrification and solar panel installations.
Experts highlight that while franchise fees provide a stable funding source, they are still insufficient to meet climate goals. Cities such as Minneapolis have seen success with their initiatives, saving residents significant energy costs, while St. Paul is proposing to implement fees specifically for climate efforts. Edina has committed about $950,000 annually from franchise fees to enhance city operations and support renewable energy projects.
Overall, these developments reflect a shift toward localized funding solutions to address urgent climate priorities in Minnesota. Read more at Energy News Network.
Meta commits $35 million to DOE carbon removal program
Meta has become the second company to participate in the U.S. Department of Energy’s (DOE) carbon removal initiative, following Google’s commitment to match the DOE’s $35 million funding. Announced March 14, Google’s involvement marked the government’s first foray into the voluntary carbon purchase market.
Meta stated that reducing greenhouse gas emissions remains its primary strategy to achieve net-zero emissions. The company achieved net-zero status across its global operations in 2020, reducing emissions by 94 percent from a 2017 baseline. Meta has also expressed support for carbon removal projects, including nature-based solutions and innovative technologies.
Earlier this year, Meta joined Google, Microsoft and Salesforce in the Symbiosis Coalition, aiming to contract 20 million tons of nature-based carbon removal credits by 2030. The coalition emphasizes the importance of a high-integrity carbon market in addressing climate risks.
A McKinsey & Company report estimates that achieving net-zero emissions by 2050 will require between $6 trillion and $16 trillion in investments, highlighting a significant funding gap. Meta hopes its pledge will inspire others to contribute, thereby scaling the market and reducing the costs associated with carbon removal technologies. Read more at UtilityDive.
Week of Oct. 15, 2024
Biden administration rushes to finalize energy policy before term ends
The Biden administration is working to finalize key regulatory actions that will significantly affect U.S. decarbonization efforts in the coming years. Decisions are expected soon regarding oil and gas drilling on public lands, emissions regulation enforcement and greenhouse gas emissions from everyday appliances.
The upcoming November election could shift energy policies dramatically, with Democratic nominee Kamala Harris likely to continue President Joe Biden’s low-carbon initiatives, while former President Donald Trump may revert to fossil fuel-focused policies.
Key issues to monitor include:
- Interior Oil Sale: The Interior Department must hold an oil auction in the Arctic National Wildlife Refuge (ANWR) by year-end, a contentious move that could draw criticism from environmentalists. Concerns linger over the administration’s commitment to following legal obligations amidst calls for greater wildlife protections.
- EPA and CO2 Leak: The EPA is addressing a carbon dioxide leak from Archer-Daniels-Midland (ADM) in Illinois, which has raised safety concerns. The agency is proposing enforcement actions to ensure compliance and gather public input on the issue.
- DOE Efficiency Rules: The Department of Energy is set to finalize regulations for industrial and household appliances aimed at reducing greenhouse gas emissions. Proposed rules for various appliances could lead to significant carbon dioxide savings over the next three decades.
With the looming election, the direction of these policies could pivot dramatically depending on the outcome, highlighting the stark differences in energy approaches between the candidates. Read more at E&ENews.
Oregon officials sue the state’s largest natural gas utility
Oregon officials have added NW Natural, the state’s largest natural gas utility, to their $50 billion lawsuit against fossil fuel companies for climate-related deception. This lawsuit, initiated by Multnomah County, alleges that NW Natural and other major companies such as Exxon and Shell misled customers about the impact of burning natural gas on climate change. The suit claims these companies knowingly concealed the dangers of fossil fuels since the 1950s and seeks significant damages for adaptation projects to address climate-related harms.
Allegations Against NW Natural: The lawsuit claims NW Natural misled customers about the environmental impacts of natural gas, despite knowing its contribution to global warming.
The lawsuit follows a trend of similar legal actions against fossil fuel companies, with claims of covering up the risks of climate change. NW Natural has stated it plans to contest the allegations, calling them an attempt to distract from flaws in the case. Meanwhile, Exxon has disputed the claims and emphasized its investments in lower-emission initiatives.
The amended complaint also includes the Oregon Institute of Science and Medicine for its alleged misinformation campaign. The case aligns with other lawsuits against oil companies, drawing comparisons to past legal battles against the tobacco industry. While no climate-related lawsuit has yet gone to trial, one in Massachusetts may proceed first. The legal landscape is complicated by opposition from Republican-led states against these lawsuits, which argue that they threaten the energy industry and should be governed by federal law. Read more at The New York Times.
Canada’s major cities take lead in the country on climate mitigation policies
Canada’s major cities are making more progress on climate change than smaller municipalities, according to the sixth annual National Climate League (NCL) report by Climate Reality Project Canada. The report evaluates 53 municipalities on 23 climate policy indicators, highlighting that while larger cities have established general climate policies and active transportation plans, many lack adaptation strategies, methane reduction efforts and routine progress reporting.
The report shows that Calgary and Toronto top the list, meeting 80 percent of the indicators. Overall, 39 municipalities have climate plans, but many do not have detailed implementation strategies or progress reports.
Active transportation initiatives are common, with 39 municipalities having some plans, but only 12 have comprehensive “complete streets” policies. In transit, just 14 out of 44 municipalities offer low-income passes, with Calgary noted for its affordable fare structure.
On emissions reduction, 19 municipalities have fossil fuel phaseout targets, but only four are implementing regulations. While 23 municipalities have green building standards, only 14 offer stand-alone energy retrofit programs. Waste management plans and composting programs are present in about half of the municipalities, but there is significant room for improvement in reducing methane emissions. Read more at The Energy Mix.
NRC streamlines proposal for new nuclear reactor environmental review
The Nuclear Regulatory Commission (NRC) voted in April to formalize a framework for advanced nuclear reactor applications, expecting it to lower application costs by 20 to 45 percent. This new rule expands the scope to include all new nuclear reactor applications that meet specific criteria, although it does not cover fusion reactors. It’s open to comments through Dec. 18 before it is finalized.
The proposed rule aims to streamline the environmental review process, potentially reducing costs for both applicants and the NRC by up to $2 million per application. It seeks to enhance regulatory predictability and clarity, which is vital as the NRC anticipates around 20 new reactor applications in the coming decades. Recent reports from the U.S. Department of Energy outline plans for significant growth in U.S. nuclear capacity by 2050, primarily through new reactors at existing nuclear and retired coal power sites. Read more at UtilityDive.
Week of Oct. 7, 2024
Supreme Court allows the continuation of Biden’s climate rules to decrease toxic emissions
The Supreme Court upheld the Biden administration’s regulations aimed at reducing methane emissions from oil and gas facilities, which are crucial for tackling climate change. The regulations, finalized in March, are designed to cut methane emissions by up to 80 percent over the next 14 years. They faced challenges from Republican states and industry groups, who argue that the EPA overstepped its authority under the Clean Air Act.
The court also dismissed a request to block new mercury regulations for coal-fired power plants, which aim to further limit toxic emissions and have been shown to provide significant health benefits. Litigation on these matters will continue in lower courts, while a separate challenge regarding greenhouse gas emissions from coal and gas plants also remains pending. Read more at NBC.
Treasury Department promises hydrogen tax credits before 2025
The U.S. Treasury Department is set to finalize rules for the clean hydrogen tax credit and advanced manufacturing tax credits by the end of the year, according to Deputy Treasury Secretary Wally Adeyemo. While many rules from the Inflation Reduction Act (IRA) are completed, not all 18 tax credits will be finalized before President Joe Biden’s term ends.
A key concern is how hydrogen producers using electrolysis will manage indirect carbon emissions from electricity sourced from the grid. There are competing proposals on how to handle this, with industry advocates pushing for more flexible rules. The hydrogen credit has significant financial implications, potentially providing up to $3 per kilogram of hydrogen produced, which could subsidize emissions if not structured correctly.
Adeyemo believes the tax credit’s incentives will ensure compliance from companies. However, companies and environmental groups have threatened lawsuits if the rules do not meet their expectations.
In addition to hydrogen, there are still uncertainties regarding other tax credits, including those for low-carbon aviation fuel and electric vehicle charging equipment. Adeyemo noted that the Treasury has limited resources to address the numerous comments and rule-making tasks, which may lead to delays in finalizing other tax credits. Read more at Heatmap.
Europe moves closer to approving increased tariffs on Chinese EVs
European countries are poised to approve increased tariffs of up to 45 percent on electric cars imported from China, intended to protect local carmakers from cheaper, subsidized vehicles. The tariffs will range from 7.8 percent for Tesla cars to 35.3 percent for those from SAIC, in addition to the existing 10 percent tariff on all imported cars.
While countries such as France, Italy and Poland support the tariffs, Germany opposes them due to concerns about potential retaliation from China, given the heavy investments of German automakers there. Spain has also shifted its stance, calling for a compromise after a recent diplomatic visit to China.
The tariffs result from an EU investigation into Chinese government subsidies for electric vehicles. Although the EU is required to vote on the tariffs, officials are open to further negotiations with China that could lead to the tariffs being dropped if an agreement is reached.
The automotive sector is vital to the European economy, employing 13.8 million people and accounting for 7 percent of EU output, but is facing declining sales and increasing competition from China, which has seen a sevenfold increase in electric vehicle registrations over the past three years. Some analysts believe fears of a trade conflict are exaggerated, highlighting China’s reliance on the European market as the U.S. market tightens. Read more at The New York Times.
Duke Energy delays retiring coal plant in Indiana
Duke Energy proposed a three-year extension for the Gibson power plant in Indiana, allowing it to remain operational until 2038. This plan includes retrofitting the plant to run on natural gas or coal to meet projected electricity demand. While Duke argues that the extension provides necessary resources and flexibility, environmental advocates criticize it as an overreliance on fossil fuels, suggesting it undermines previous progress towards reducing emissions.
Indiana’s historical dependence on coal — ranking fourth nationally in coal-generated electricity — complicates the transition to renewable energy. Despite past commitments from Indiana utilities to phase out coal, Duke’s new plan raises concerns about backtracking.
Duke’s proposal includes retrofitting some units at Gibson for dual fuel use and converting other coal plants to natural gas. Although it incorporates plans for new wind and solar energy, much of this is slated for later years, leading to skepticism about the company’s commitment to emissions reduction. Duke maintains that its carbon reduction goals remain intact but acknowledges that progress will not be linear as it transitions away from coal. Read more at InsideClimate News.
Commissioner races take the spotlight as climate exacerbates insurance rates
There is a growing urgency around climate-related issues this election season as natural disasters increasingly disrupt the insurance market, particularly in states such as California, Florida and Louisiana.
State insurance commissioners, traditionally low-profile officials, are under scrutiny as voters become more aware of the connection between climate change and insurance costs. The average home insurance premium surged by 33 percent from 2020 to 2023, with disaster-prone areas experiencing even steeper increases. This has prompted heightened voter interest in insurance commissioner races, particularly in states such as North Carolina, where significant rate hikes have sparked public outrage.
Candidates are increasingly pressured to address these issues transparently, balancing the need for affordable insurance with the reality of rising risks due to climate change.
Economists suggest that a combination of factors — including increased construction in disaster-prone areas and inflation — are driving up insurance costs. The reinsurance market, which protects insurers from catastrophic losses, has also seen a rise in premiums, contributing to higher costs for consumers.
As voters grapple with the implications of rising insurance rates, candidates such as Natasha Marcus in North Carolina advocate for more transparency in the insurance process and greater investment in resilience measures. This evolving political landscape highlights the urgent need for insurance regulation that acknowledges and addresses the realities of climate change. Read more at Grist.
Week of Sept. 30, 2024
California emboldens local government action against oil companies
California Gov. Gavin Newsom signed in three new laws aimed at holding oil companies accountable and protecting communities from the harmful effects of oil drilling. The new legislation, celebrated by community advocates, is the result of over a decade of organizing against fossil fuel pollution, particularly in areas heavily populated by Black and Latino residents.
Key provisions include:
- Granting local governments the authority to restrict oil drilling
- accelerating the plugging of idle wells
- penalizing low-producing wells in sensitive areas such as the Baldwin Hills Conservancy.
These laws were passed despite strong opposition from the oil industry.
At the signing event, advocates emphasized the importance of these measures for public health, especially for children living near active oil sites. While this is seen as a significant step forward, community leaders said they remain committed to monitoring the implementation of these laws to ensure they effectively protect public health and the environment. Read more at InsideClimate News.
Fourteen banks publicly endorse nuclear energy production at NYC Climate Week
During Climate Week in New York City, international corporations and policymakers gathered to announce significant climate initiatives. Key highlights included:
- Nuclear energy support: Fourteen financial institutions, including Citigroup and Goldman Sachs, backed a United Nations initiative to triple global nuclear energy capacity by 2050. John Podesta, a senior adviser to President Joe Biden, emphasized the role of nuclear energy in achieving a sustainable future.
- U.S. Green Banks Coalition: Over 40 U.S. green banks launched a national partnership to share strategies for accelerating the clean energy transition, leveraging funding from the Inflation Reduction Act. The coalition aims to enhance collaboration and support among green financial institutions.
- Innovative carbon removal projects:
- Frontier signed a groundbreaking deal with CarbonRun for river liming, committing $25.4 million to remove over 55,000 tons of CO2 by 2029.
- Climeworks partnered with British Airways to provide carbon removal services, marking a step toward integrating carbon removal into aviation’s climate strategy.
Harris unveils proposed ‘America Forward tax credit’ to renewable energy industry
Vice President Kamala Harris outlined her economic agenda, emphasizing the need for increased domestic mineral production and the creation of a mineral stockpile using wartime authority under the Defense Production Act to reduce reliance on China.
- Her plan includes an “America Forward tax credit” aimed at supporting industries that can help combat climate change, such as sustainable materials, clean energy manufacturing and semiconductors.
- The credits would also provide incentives for biotechnology, AI data centers and transportation sectors, with added benefits for investments in communities historically tied to fossil fuel production.
Harris called for permitting reform to expedite infrastructure approvals, sparking debate over potential weakening of environmental reviews. While the plan seeks to lower energy costs and boost production, it does not clarify the role of fossil fuels, despite Harris previously highlighting record oil production under the Biden administration. Read more at The Hill.
EU confronts the dominance of Chinese renewable energy tech with new hydrogen auction rules
The European Union has revised its hydrogen grant auction rules to reduce dependency on China for renewable energy components.
- The EU’s Hydrogen Bank will hold its second auction Dec. 3, offering up to $1.34 billion for new projects.
- New regulations will limit the use of Chinese-made parts to no more than 25 percent of a project’s production capacity, addressing concerns that previous grants favored cheaper Chinese components.
The move aligns with a report by former European Central Bank head Mario Draghi that cautioned against economic decline due to over-reliance on foreign industries. Draghi recommended focusing on sectors where the EU still has competitive advantages rather than heavily foreign-dominated areas such as solar panels. Read more at Reuters.
Week of Sept. 23, 2024
The IRA spurs $115 billion in clean energy manufacturing
The U.S. in August announced $2.4 billion in new clean energy manufacturing projects, including electric sports cars in Virginia and a facility in New Mexico, as part of a broader investment wave triggered by the Inflation Reduction Act (IRA). Enacted in August 2022, the IRA aims to establish a domestic clean-tech manufacturing base, reducing reliance on foreign imports, especially from China.
Since the IRA’s implementation, more than $115 billion has been pledged for U.S. manufacturing of solar, wind, battery and electric vehicle components, resulting in the creation of more than 42,000 jobs in 2023 alone. Experts highlight that while progress is being made, significant work remains to meet climate goals without imports.
Overall, the trend of new investments is positive, despite some challenges, with many projects set for completion in the coming years. Advocates believe these developments could lead to the U.S. emerging as a leader in the green transition on the New York Stock Exchange, now delayed amid opposition from various groups. This lawsuit serves as a cautionary tale for other companies about the importance of transparency in environmental claims, highlighting the potential business risks associated with misleading marketing. Read more at Canary Media.
Biden administration gives $3 billion to battery storage
U.S. Energy Secretary Jennifer Granholm announced Sept. 20 that new funding will support battery manufacturers in meeting the rising demand for U.S.-made electric vehicles. Since the Inflation Reduction Act was passed in August 2022, companies have pledged about $128 billion for clean energy projects, with $23.3 billion specifically for battery and storage initiatives. This funding is part of a strategy to reduce U.S. reliance on foreign imports, particularly critical minerals such as lithium, much of which is sourced from China.
The Five Factors That Drive Credit Price for Early-Stage Reforestation Projects
Granholm noted that due to these investments, the U.S. is on track to produce a quarter of the world’s lithium, significantly increasing its market share. The funding also aligns with the Biden administration’s goal of creating a domestic supply chain for batteries and critical minerals. Additionally, the U.S. is implementing trade measures, including increased tariffs on China-made EVs and related goods, to protect these investments.
This latest funding round is part of nearly $35 billion allocated for domestic critical mineral and battery supply chains, with a focus on supporting disadvantaged communities through the Justice40 Initiative, which aims to direct 40 percent of federal investments to marginalized areas. Read more at Utility Dive.
4 Ohio cities get $10 million from the IRA
Four major Ohio cities — Cincinnati, Cleveland, Columbus and Dayton — are collaborating on a new initiative funded by a $10 million grant from the Inflation Reduction Act to develop voluntary building performance standards and a resource hub. This project, the Ohio High Performance Building Hub, aims to assist commercial building owners in saving energy and reducing emissions, addressing the significant contribution of buildings to greenhouse gas emissions in the state.
The hub will provide technical guidance 421 million square feet of commercial space across these cities with financing solutions and training. With Ohio’s history of weakened energy efficiency measures, this initiative offers a fresh approach to improving existing buildings rather than focusing solely on new construction.
Unlike mandatory codes, the proposed standards are voluntary, designed to encourage participation through incentives rather than penalties. This approach aligns with local political dynamics, where imposing strict requirements has faced resistance.
The cities plan to adopt benchmarking policies to track energy use progress and expect to reduce energy consumption by 45 percent by 2050. Equity considerations are central to the initiative, ensuring that it supports historically underserved communities without adding further burdens. Outreach and education efforts will be key to the program’s success as the cities prepare to implement these new standards. Read more at Energy News Network.
SEC quietly disbands Climate & ESG Taskforce
The Securities and Exchange Commission (SEC) quietly disbanded within the last several months its Climate and ESG Task Force, a group formed in March 2021 to combat misleading environmental, social and governance (ESG) disclosures. Initially created under Acting SEC Chair Allison Lee and continued by Chair Gary Gensler, the task force was involved in several high-profile cases against companies such as Bank of New York Mellon and Goldman Sachs.
An SEC spokesperson stated that the group’s expertise has been integrated across the Enforcement Division, citing the effectiveness of their strategy. However, both the SEC and companies are increasingly distancing themselves from the term “ESG” amidst a backlash from conservative groups. The SEC also removed ESG from its examiners’ priorities and is unlikely to finalize pending ESG regulations before the next presidential administration begins in January.
While the task force’s last major enforcement action linked to ESG was a September 2023 settlement with Deutsche Bank for misleading investors, the agency’s commitment to addressing ESG-related fraud continues, as noted by Enforcement Division Director Gurbir Grewal. However, the task force’s work was downplayed, with related content removed from the SEC’s website in June, just before a major site revamp. Read more at Bloomberg Law.
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