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| Presented By ExxonMobil |
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| Generate |
| By Ben Geman ·Jan 19, 2021 |
| Good morning! Today's Smart Brevity count: 1,168 words, 4.4 minutes. 💰"Breakthrough Energy Ventures, the clean-tech venture capital fund led by Bill Gates, has raised $1 billion for a second round of investments after backing 45 startups with its first billion." (Bloomberg) 🎶And the band Devotchka released the album "Una Volta" this month in 2003, so it provides today's exquisite intro tune... |
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| 1 big thing: The beginning of the beginning for Biden's climate push |
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| Illustration: Annelise Capossela/Axios |
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| Joe Biden's inauguration and the days right after will bring a rat-tat-tat burst of climate policy moves, but keep this in mind amid the splashy pledges: pushing through most of his agenda will be a long, uncertain slog. Why it matters: Biden's climate plan is far more expansive than anything contemplated under President Obama. But for all the immediate pledges, it will take years to see how far Biden gets. What's next: Biden will issue a memo Wednesday saying the U.S. is rejoining the Paris climate deal (which is technically a 30-day process). - Another inauguration day move, per multiple news reports, will scrap the permit for the Keystone XL oil sands pipeline, a project he pledged to block during the campaign.
- Look for a bunch of other executive orders and directives on climate and energy this week and through Feb. 1, incoming White House chief of staff Ron Klain said in a weekend memo about the first 10 days.
- Reuters reports that early moves will include seeking to prevent oil-and-gas development in the Arctic National Wildlife Refuge.
Yes, but: It's true executive orders and memos can achieve some things fast. But often they're akin to firing a starting gun that directs agencies to begin what's a time-consuming bureaucratic process to make real and lasting policy changes. How it works: Crafting formal regulations on areas like tougher CO2 mandates for the auto sector — just one of the many areas where Biden is planning new rules — is often a yearslong process. - Other goals, like lots of new spending on low-carbon energy projects and climate-friendly infrastructure, will take careful negotiations with the narrowly divided Congress.
- And even returning to the pre-Trump status quo by rejoining Paris is simply a precursor to months and years of diplomacy aimed at a more aggressive global response to climate change.
* * * Speaking of Biden's plans, the Wall Street Journal has a good, somewhat bullish look at the prospects for moving energy-related infrastructure spending through Congress. Areas for potential agreement, it notes, include electric vehicle charging and funding to cap abandoned oil-and-gas wells and clean up abandoned mines. |
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| Bonus: More on the busy week ahead |
| There's a lot going on this week! Here are two things I'll have my eye on today... Supreme Court: They'll hear arguments today in an important battle stemming from the city of Baltimore's lawsuit against BP and other oil companies seeking climate-related damages. - Driving the news: The specific topic before the court is a procedural tussle around circumstances that allow the removal of cases from state courts to federal courts.
- Why it matters: It has implications for a suite of similar climate lawsuits that cities and states have filed in state courts. The oil industry wants the cases in the federal system, which is seen as a more favorable venue for the sector.
- Go deeper: Justices to consider procedural issue in major climate-change lawsuit (SCOTUSblog)
Congress: Today brings the first round of Senate confirmation hearings for Joe Biden's Cabinet nominees. - Driving the news: The lineup includes Treasury nominee Janet Yellen's appearance before the Finance Committee, while Antony Blinken, the pick for secretary of State, is before the Foreign Relations Committee.
- Why it matters: Biden's incoming administration is planning a whole-of-government approach to climate policy, so I'll be watching to see if these nominees are asked about — or raise — their plans on the topic.
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| 2. Clean-tech investments hit a new high — analysis |
 Reproduced from BloombergNEF; Chart: Axios Visuals Axios' Amy Harder reports...Investments into clean-energy technologies totaled more than $500 billion for the first time ever, according to a BloombergNEF report released Tuesday. Why it matters: Technologies making energy and other material cleaner needs to expand rapidly if the world is to adequately address climate change in the coming decades. Where it stands: If this sounds familiar, that's because it is. - This report follows another one we wrote about last week that showed another record broken, specifically looking at venture capital investments.
- Investments are accelerating for several reasons, such as falling costs and increasing political goals, including here in the U.S. under President-elect Joe Biden.
By the numbers: Global investment in the low-carbon energy transition was $501.3 billion in 2020, up 9% from 2019 despite the pandemic driving the world into a recession. - This tally includes investments in renewables, energy storage, electric vehicle charging stations, hydrogen production, carbon capture projects and more.
- The largest areas of investment are renewable energy and electrified transportation.
Yes, but: The report reflects another broader trend, which is that investment often lags in technologies beyond renewable electricity and electric cars. This includes carbon capture and most industrial processes like cement, according to the International Energy Agency. |
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| A message from ExxonMobil |
| ExxonMobil sets emission reduction plans for 2025 |
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| As part of our ongoing commitment to help mitigate the risks of climate change, we're announcing plans to further reduce emissions in our operations by 2025. It's something we're working on every day. Learn more about our plan to reduce our emissions. |
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| 3. SUV emissions rose during the pandemic — IEA |
 Data: IEA; Chart: Axios Visuals A remarkable new finding from the International Energy Agency: While energy-related carbon emissions fell steeply last year, emissions from SUVs actually rose slightly (by an estimated 0.5%). Why it matters: The analysis underscores the rising prominence of SUVs in the global vehicle market. It's a trend that makes cutting emissions from transportation harder because bigger vehicles generally consume more fuel. The big picture: "Despite the effects of the pandemic on overall car use, SUVs consumed more oil last year than they did in 2019," IEA said, noting that SUVs used 5.5 million barrels of oil per day last year. "Remarkably, we estimate that the increase in the overall SUV fleet in 2020 cancelled out the declines in oil consumption by SUVs that resulted from Covid-related lockdown measures," the analysis adds. |
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| 4. Following up: Big Oil's lobbying divergence |
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| Illustration: Aïda Amer/Axios |
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| Here's a big question now that Total is bailing on the American Petroleum Institute: Will any other big companies also leave? Catch up fast: Total, the French multinational, said Friday that differences over climate policy prompted the decision to end its membership. What we're watching: Other European-based majors that have generally been more active on climate than the U.S. sector. They haven't signaled plans to follow Total. Where it stands: BP said it's continuing to monitor memberships in groups it views as only "partially aligned" on the topic — including API. - But it also said, "We remain committed to trying to influence those associations from within."
- Shell's statement in response to Total's move notes: "API is moving closer to Shell's own stated views. As a result, we feel it's beneficial to remain a member so we can continue to advocate for change from within."
The intrigue: API's posture is evolving. The Washington Examiner last week noticed a subtle shift in the group's climate policy stance. Why it matters: API is the industry's most powerful lobbying group Total's decision is a sign of tensions within the sector over climate. BP, Shell, Equinor and Total have previously left some other trade groups. * * * Speaking of Total, yesterday it announced a $2.5 billion (!) deal to gain a 20% stake in Indian solar giant Adani Green Energy Limited and a 50% share of solar assets it operates. Greentech Media has more. |
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| 5. Catch up fast: Crude, Tesla, banking |
| Oil demand: "The International Energy Agency on Tuesday cut its 2021 global oil demand forecast, citing soaring Covid-19 cases and renewed lockdown measures that will further limit mobility." (CNBC) Electric vehicles: "Tesla has begun rolling out locally made Model Y crossover vehicles in China, reaching an important milestone in the world's largest auto market." (CNN) Finance: "The French central bank said on Monday it would exit from coal and limit exposure to gas and oil in its investment portfolio by 2024 as part of a shift towards more environmentally friendly assets." (Reuters) |
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| A message from ExxonMobil |
| ExxonMobil sets emission reduction plans for 2025 |
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| As part of our ongoing commitment to help mitigate the risks of climate change, we're announcing plans to further reduce emissions in our operations by 2025. It's something we're working on every day. Learn more about our plan to reduce our emissions. |
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