This week, we're looking at initiatives across America to embrace renewable energy, advance electric vehicles, and advance climate action. We're also highlighting Fin-Erth's new list of 101 women leaders in business and climate and our new explainer on methane emissions.
We'll be taking a short break from our Weekly Briefs for the next two weeks. We hope you and your loved ones have a wonderful, restful holiday break. We look forward to sharing more innovators and innovations moving climate ambition into action when we return in the new year.
Red states investing in green transition: A report by the clean-energy think tank RMI highlights that some states and countries are switching to renewables much faster than others, showing that the transition doesn't have to be expensive or constrained by politics. Iowa is a global leader in the renewable-energy transition, generating roughly 61% of its electricity from wind and solar photovoltaic power, with wind being the primary source. Red state South Dakota is a close runner-up, with almost 56% of its electricity generated by wind turbines. Texas generates the most renewable power, with nearly 120 million megawatt-hours of electricity from wind alone, but only 28% of its power comes from wind and solar, leaving it shy of the leaders. Despite some politicians opposing renewables, red states are among the leaders in rolling out clean energy and are also the biggest recipients of the Inflation Reduction Act's financial incentives for renewable projects.
California utility company secures $15 billion loan: The US Energy Department has offered a record $15 billion loan guarantee to Pacific Gas & Electric (PG&E), California's largest utility, to improve its electrical grid and fund climate resiliency projects. The loan guarantee, which is the biggest commitment to date from the Energy Department's Loan Programs Office, will help PG&E invest in hydroelectric power generation, batteries, and power lines to meet the surge in demand for electricity. The demand for electricity has increased due to the shift to electric vehicles, the expansion of data centers, and efforts to phase out fossil fuels. The Energy Department stated that the infrastructure investments will help PG&E meet forecasted load growth, increase electric reliability, and reduce costs for its consumers across California.
California wins waiver on ban of sales of gas-powered cars: The Biden Administration has granted California and 11 other states permission to ban the sale of new gasoline-powered cars by 2035, through a waiver from the Environmental Protection Agency. This move is part of the state's ambitious climate policies and is expected to be revoked by President-elect Donald J. Trump, who has pledged to scrap Biden-era climate policies. The waiver, granted under the 1970 Clean Air Act, allows California to enact tougher pollution limits than those set by the federal government, including curbing greenhouse gases like carbon dioxide. The new waiver would require any new car sold by 2035 to be a zero-emissions vehicle but would not apply to the used car market.
Fusion start-up plans Virginia project: Commonwealth Fusion Systems, a start-up founded by scientists at the Massachusetts Institute of Technology, plans to build its first fusion power plant in Virginia, aiming to generate zero-emissions electricity in early 2030. The proposed facility would provide electricity to paying customers, with a peak capacity of 400 megawatts, enough energy to power about 150,000 homes. Commonwealth Fusion Systems is first building a pilot machine in Massachusetts, which it says will demonstrate the feasibility of its technology in 2027, before moving forward with the Virginia plant. The company has raised over $2 billion from investors, including Bill Gates, Google, and Eni, the Italian oil and gas giant.
Green fuel facility to open in Illinois: Avina Clean Hydrogen Inc. is set to build an $820 million sustainable aviation fuel facility in southern Illinois, marking a significant investment in the state's clean energy sector. The facility will create at least 150 new jobs and is expected to produce up to 120 million gallons of sustainable aviation fuel annually, primarily for use at nearby airports, including O'Hare International Airport. Avina will receive approximately $38.2 million in incentives from the state's Reimagining Energy and Vehicles incentive program.
Youth climate activists score victory in Montana: The Montana Supreme Court has upheld a landmark victory for youth climate activists in the case Held v. Montana, affirming that the state's energy policies violated their constitutional right to a clean environment. The case was brought by 16 young people, including Rikki Held, who testified about the extreme weather they had witnessed in Montana, a major player in oil, gas, and coal, and argued that a state law barring consideration of climate in setting energy policy was unconstitutional. Patrick Parenteau, a professor of law emeritus, said that Montana's environmental provisions in its constitution are among the strongest in the country, and that he expected to see similar lawsuits filed in other states. Parenteau noted that the decision is a landmark because it is the first court in the U.S. to recognize a constitutional right to a stable climate, but that it may face challenges due to the strong support the fossil fuel industry receives from state officials.
Fin-Erth Women in Climate Awards: Our friends at Fin-Erth launched their international awards featuring 101 of the world's leading business and climate women. The nominees span 45 countries across 10 categories and shine a spotlight on the innovative contributions of women who advance climate action behind the scenes. View the full list here.
Climate risks impact home insurance: A growing number of homeowners in the United States are being dropped by their insurance companies due to increasing climate-related risks, with over 1.9 million home insurance contracts being nonrenewed since 2018. The nonrenewal rate has tripled or more in over 200 counties, according to a congressional investigation, with some of the highest rates found in states such as California, Colorado, and New Mexico. The consequences of being dropped by an insurance company can be severe, as homeowners may struggle to obtain a mortgage, leading to decreased property values and reduced tax revenue for local services.
Climate change hits ski resorts: The number of days at or below 32 degrees Fahrenheit in the Northern Hemisphere is decreasing, with over one-third of countries analyzed losing one week's worth of freezing days on average over the past decade, according to Climate Central. The trend of warmer winters is causing concerns for various industries, including sports, as ski resorts are struggling to maintain their operations due to the lack of cold weather, with some experiencing significant revenue losses. Brian Fairbank, chair of the company owning Jiminy Peak Mountain Resort in Massachusetts, reported a 73% revenue drop in March alone due to an abnormally warm and rainy month, making it one of his worst seasons in over five decades in the industry. To adapt to the changing climate, ski resorts are investing in high-powered snowmaking machines, such as Powder Ridge Mountain Park & Resort in Connecticut, which purchased a machine for over $1 million to ensure earlier openings.
Giant cargo ship cuts emissions with sails: The Sohar Max, a 400,000 deadweight ton iron ore carrier, has been fitted with five 35-meter high rotor sails at the COSCO Zhoushan shipyard in China to reduce fuel consumption and carbon emissions. The rotor sails are expected to cut the vessel's fuel consumption by up to 6% and carbon emissions by up to 3,000 tons per year. The adoption of wind propulsion technologies, including rotor sails, is increasing in the shipping industry due to regulatory pressure to cut emissions and potential cost savings.
China brings large solar plant online: China has connected a 4-gigawatt solar facility, one of the world's largest, to the grid in an effort to reduce coal consumption and curb emissions. The facility, located in the southeastern edge of the Taklamakan Desert, is nearly the size of Canada's entire solar capacity, according to BloombergNEF data. This project is part of the Chinese government's ambitious plan to build 455 gigawatts of renewable capacity across the country's deserts this decade, which is key to the government's goal of peaking emissions by 2030. Despite record-breaking additions in solar capacity, China remains largely dependent on coal, which powered about 60% of the grid last year.
Kenya considers IVF treatment to save rare white rhinos: Kenya is planning to use assisted reproduction techniques, including in-vitro fertilization (IVF) and stem-cell-associated techniques, to save the northern white rhino from extinction, with only two females remaining worldwide. The Kenya Wildlife Service has issued a notice calling for public comments on the planned procedures, stating that if no action is taken, the species will become extinct in the near future. The two remaining female northern white rhinos are 24 and 34 years old, with an average life expectancy of 35-40 years in the wild, and there are no males to support natural breeding.
Gates backs carbon-capture startup: Breakthrough Energy, founded by Bill Gates, has provided a $40 million grant to carbon-capture startup Deep Sky Corp. to support the construction of its first large-scale carbon removal facility. Deep Sky aims to remove millions of tons of CO2 from the atmosphere and store it underground, with the goal of providing a significant portion of the billions of tons of carbon dioxide removal needed by mid-century. The facility, to be built in Innisfail, Alberta, will test and identify the most promising carbon removal technologies and start scaling up from there. Deep Sky expects to start operations and deliver carbon removal credits in 2025, having already sold credits to Microsoft Corp. and Royal Bank of Canada and has raised over C$130 million in funding from various investors, including the Bank of Montreal and the Quebec government.
UBS banker behind debt-for-nature swaps sets up own fund: Ramzi Issa, a former senior banker at UBS Group AG, has established his own credit fund, Enosis Capital, to focus on debt-for-nature swaps and other impact-focused transactions. Issa, who pioneered debt-for-nature swaps during his time at Credit Suisse, left his position as UBS's head of global structured credit and sustainable credit products in October and launched Enosis Capital in November with a team of about three people. Enosis will focus on debt conversions and seek out deals to help arrange and advise on a broader range of impact-focused transactions globally, with Issa aiming to make the firm "a little bit more focused on the impact side."
BlackRock writes down renewable fund: BlackRock is writing down the value of its flagship renewable fund, Global Renewable Power Fund III, due to the collapse of two key investments, Northvolt and SolarZero, which has led to a significant markdown in the fund's value. The fund's net internal rate of return was negative 0.3% at the end of the third quarter, down from 11.5% in the second quarter, following a review of its assets and a broader look at its projected performance.