WHAT’S HAPPENING TODAY: Good afternoon and Happy Tuesday, readers. In today’s edition of Daily on Energy, with a little help from our editor Joe Lawler, we kick things off with the ongoing tech war between China and the United States. As the Biden administration sought to restrict Chinese access to certain American-made technology, China retaliated today with its own export ban.
We also dive into the world of electric vehicles as Jaguar has unveiled the concept car for its new EV, and Samsung and Stellantis are set to receive an over $7 billion loan from the U.S. government for multiple battery facilities. Plus, keep reading to learn if the administration plans to finalize tax credits for clean jet fuel by January.
Welcome to Daily on Energy, written by Washington Examiner energy and environment writers Callie Patteson (@CalliePatteson) and Maydeen Merino (@MaydeenMerino). Email cpatteson@washingtonexaminer dot com or mmerino@washingtonexaminer dot com for tips, suggestions, calendar items, and anything else. If a friend sent this to you and you’d like to sign up, click here. If signing up doesn’t work, shoot us an email, and we’ll add you to our list.
CHINA BANS CRITICAL MINERAL EXPORTS TO U.S.: China has announced it plans to prohibit the export of some critical minerals to the United States immediately, over their use for military purposes.
The details: China revealed details of the ban on Tuesday, in apparent retaliation to newly tightened export controls on U.S. technology.
China’s Ministry of Commerce said all sales of gallium, germanium, antimony, and other similar rare minerals are to be halted, according to the New York Times. While the sale of graphite has not been strictly banned, exports of the mineral are reportedly now subject to a more intense review. The minerals are used in a variety of products including satellites, night-vision goggles, batteries, nuclear weapons, and more.
The ban comes one day after President Joe Biden restricted Chinese access to certain American-made technology, further fueling the tech race between the two nations. Specifically, the administration banned the sale of certain chips and machinery. Additionally, the U.S. has now listed over 100 Chinese companies to a restricted-trade list.
China has blasted the new restrictions, with Lin Jian, a spokesman for China’s Ministry of Foreign Affairs accusing it of undermining “international economic and trade order.” He also claimed the U.S. ban disrupts the global supply chain.
CLEAN AVIATION FUEL TAX CREDIT GUIDANCE NOT TO BE FINALIZED BEFORE TRUMP: The Biden administration is poised to not finalize guidelines for new clean fuel tax credits for the aviation and biofuel industries before President-elect Donald Trump takes office next month.
The details: Three sources familiar with the matter confirmed to Reuters today that the administration is not expected to finalize the tax credits for sustainable aviation fuels (SAF). The administration previously said the program would allow qualifying fuels to receive a credit of up to $1.25 per gallon. The tax credit was projected to be a key part of the administration’s goal to produce around 3 billion gallons of SAF by 2030.
If finalized, the credit was set to go into effect on Jan. 1. However, the administration is still reportedly lacking detailed guidance from the Treasury Department that would help make the program active.
Supporters of the tax credit were hopeful the administration would finalize the credits before the end of the Biden administration, given threats from Trump. Trump has vowed to repeal portions of the Democratic-passed Inflation Reduction Act, which was a key driver behind the SAF program. As the administration is set to not finalize the guidelines, industry executives are reportedly seeking support from lawmakers to extend current tax credits set to expire this year, Reuters reported.
A reminder: The aviation industry is estimated to make up for around 2.5% of greenhouse gas emissions worldwide. In the U.S. alone, the Department of Energy has estimated the industry is responsible for 11% of transportation emissions and 3.3% of national emissions overall.
TREASURY TARGETS IRANIAN ‘SHADOW FLEET’: The Treasury announced new sanctions today aimed at Iran’s “shadow fleet” of tankers that it says are used to evade existing sanctions and funnel money into the regime’s nuclear program, as well as finance terrorism.
The sanctions apply to 35 vessels and entities that ship oil using “tactics such as false documentation, manipulation of vessel tracking systems, and constant changes to the names and flags of vessels,” the Treasury said.
“The United States remains committed to disrupting the shadow fleet of vessels and operators that facilitate these illicit activities, using the full range of our tools and authorities,” Acting Under Secretary for Terrorism and Financial Intelligence Bradley Smith said in a statement.
Oil prices rose about 3% following the news of the tightened sanctions, with Brent crude up to close to $74 a barrel.
JAGUAR UNVEILS NEW ELECTRIC VEHICLE AMID CONTROVERSIAL REBRAND: Jaguar has officially unveiled its new electric concept vehicle, as the luxury car maker has faced massive backlash over its enormous design and marketing change.
The details: Jaguar is looking to re-launch as an electric-only car maker in 2026, starting with its Type 00 vehicle to be revealed late next year. The British brand released images of the new concept car on Tuesday, saying it showcases the company’s “vibrant new identity.”
The vehicle is expected to have a driving range of up to 430 miles on a single charge, with only 15 minutes of rapid charging adding up to 200 more miles. Once on the market, the four-door EV will be available in “Miami Pink” and “London Blue.” It was not immediately clear how much the vehicle may cost, but is projected to be priced at well more than $100,000.
Brand backlash: Last month, Jaguar released a teaser trailer for the new vehicle, featuring a new logo, brightly colored clothing, but not the actual car. The company was lambasted over the rebrand, with many dubbing the advert as “woke.” The concept car itself is also facing backlash, with racing drivers and auto experts calling the vehicle “too big,” according to BBC News.
Unbothered: Despite the criticism, Jaguar executives have remained confident about the new rebrand. Managing director Rawdon Glover told Sky News that the company wanted to be “bold and disruptive” with the new EV launch.
“We’re clearly in the conversation,” Glover said, adding, “More people have been talking about Jaguar for the last two weeks than – goodness, for so much longer. Car companies unveil new cars all the time and go completely unnoticed.”
ICYMI: BIDEN ADMINISTRATION TO GIVE $7 BILLION LOAN FOR BATTERY FACTORIES: The Department of Energy has announced its plans to issue a loan of up to $7.54 billion for automaker Stellantis and Samsung to build two lithium-ion battery facilities in Indiana.
The details: The manufacturing plants financed by the loan are expected to build battery cells and modules for electric vehicle models sold in the U.S., in an effort to boost domestic production of the clean vehicles. The facilities are expected to produce around 67 gigawatt hours of batteries, enough to be used in around 670,000 vehicles every year, according to DOE. The department has estimated this will help reduce the use of roughly 260.3 million gallons of petroleum annually.
Trump hurdles: Whether Stellantis and Samsung actually receive the funding is yet to be seen. Trump has vowed to roll back a number of Biden administration policies and rules that promote EV adoption and production. Additionally, Trump has vowed to pull back unspent funding for green projects, primarily authorized by the Democratic-passed Inflation Reduction Act. If Stellantis and Samsung are unable to sign final contracts for the loan before Trump takes office, the $7 billion loan could be at risk.
Vivek Ramaswamy, tapped by Trump to be one of the co-leaders of the extragovernmental Department of Government Efficiency or DOGE, criticized the loan on X. “DOGE will carefully scrutinize every one of these questionable 11th-hour transactions, starting on Jan 20,” he said.
Though there is some hope for the funds, as the facilities are expected to be built in Republican-controlled districts, bringing in thousands of construction and long-term operation jobs.
FASHION PACT FAILING TO SET AND MEET CLIMATE TARGETS: More than a dozen members of French-led Fashion Pact, which has sought to make the fashion industry more aware of its environmental footprint, have failed to make good on their promise to set basic climate targets.
The details: Approximately 14 members of the 52-member Pact have yet to set climate targets after agreeing to do so when the Pact was first launched by French President Emmanuel Macron at the 2019 G7 summit, according to the Financial Times.
Members of the pact include the major fashion brands H&M, Inditex, Kering, Nike, and more. When the pact was first made, these brands and companies were asked to set critical climate targets in line with the Paris Agreement to help cut greenhouse gas emissions by 2030. However, over a quarter have failed to do so or even commit to setting those goals. This includes apparel group MF Brands, shoe company Geox, and the Italian fashion group Calzedonia. At the same time, the group has seen several groups quietly leave the pact in recent years, including Nordstrom, Stella McCartney, and Hermes.
Key quote: “We are conscious of the progress that needs to happen,” Fashion pact secretary general Eva von Alvensleben told the outlet, adding, “The industry needs to move faster and go further.”
In an attempt to secure such climate targets moving forward, the secretary general said that from November 2023, all members are required to commit to setting climate goals in line with the Paris Agreement by the end of 2025.
FROM OCEAN TO FARM TO TABLE: Reducing livestock emissions may be as easy as changing out traditional cattle feed for seaweed, a new study has suggested.
The details: A study published in the Proceedings of the National Academy of Sciences journal on Monday has revealed that feeding cattle seaweed in the form of pellets could reduce methane emissions from the animals by nearly 40%.
The researchers sought to expand on past studies that have found giving seaweed to feedlot cattle and dairy cows can reduce methane emissions. However, they turned their focus to pasture-raised cattle that traditionally graze in large fields, making it more difficult to control their daily diet. As farmers typically supplement feed during winter months for these cows, the researchers examined what happened if some received a supplement of seaweed pellets. After a 10-week period, the study found emissions dropped by around 37.7%.
“Beef cattle spend only about three months in feedlots and spend most of their lives grazing on pasture and producing methane,” study author Ermias Kebreab said in a statement publicized by the University of California, Davis. “We need to make this seaweed additive or any feed additive more accessible to grazing cattle to make cattle farming more sustainable while meeting the global demand for meat.”
A reminder: Livestock are responsible for around 14.5% of human-induced greenhouse gas emissions worldwide, with around 37% of methane emissions in the U.S. stemming directly from livestock and agricultural practices. Methane is typically released in the form of burps and farts, as food digested by the animals is processed through fermentation, producing methane.
Methane is considered to be one of the most potent greenhouse gases, around 80% more so than carbon dioxide. While it has a shorter life-cycle than CO2, methane is widely considered to be more damaging in warming the atmosphere.
RUNDOWN
Inside Climate News Can Recycled Oilfield Water Quench the Thirst of Drought-Stricken West Texas?
The Guardian ‘It’s nonstop’: how noise pollution threatens the return of Norway’s whales
Washington Post I’m a dad worried about climate change. Here’s why I have hope.