WHAT’S HAPPENING TODAY: Good afternoon and happy Tuesday, readers! In today’s edition of Daily on Energy, Callie and Maydeen look at the new chair of the Senate Energy and Natural Resources Committee, Republican Mike Lee. The committee is expected to play a vital role in repealing several Biden administration climate regulations.
We also continue to watch news from the United Nations climate conference and the G20 summit in Brazil. When attending the G20 summit, President Joe Biden promoted aggressive climate goals despite the incoming Trump administration’s intent to scrap those plans.
Meanwhile, as many wonder about the future of the Inflation Reduction Act under the Trump administration, a new analysis warns that repealing the legislation would cost the U.S. at least $66 billion in investment opportunities, handing them over to other foreign entities.
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.
MIKE LEE TO CHAIR SENATE ENERGY & NATURAL RESOURCES COMMITTEE: Utah Republican Mike Lee is officially set to chair the Senate Energy and Natural Resources Committee in the next Congress.
Lee confirmed that he was selected for the post on Tuesday in a post to X, saying he was “Humbled and honored to take the gavel as the next Chairman of the Senate Energy and Natural Resources Committee.” Lee added, “Time to get to work and unleash American energy.”
The Utah senator’s ascent to the top of the committee comes as no surprise, as he had been the favorite for the seat. He will be taking over the gavel from Sen. Joe Manchin. The committee is expected to have a front-row seat in the GOP’s efforts to repeal a number of Biden administration climate rules and regulations. As the committee has long overseen the country’s public lands, its influence stretches across the Department of Energy, Federal Energy Regulatory Commission, U.S. Forest Service and Department of Interior.
Some background: Lee has repeatedly come out against the federal government owning public lands and has made controversial remarks on how to tackle climate change. “The solution to climate change is not this un-serious resolution that we’re considering this week in the Senate, but rather the serious business of human flourishing,” the staunch conservative said in 2019 on the Senate floor, while lambasting the Green New Deal. “The solution to so many of our problems, at all times and in all places, is to fall in love, get married and have some kids.”
BIDEN TOUTS CLIMATE GOALS IN BRAZIL AS TRUMP PREPARES TO TAKE OVER: At the G20 summit in Brazil, President Joe Biden is promoting climate change goals despite the incoming Trump administration’s intentions to drop those plans.
Biden said the U.S. and Brazil will work toward a clean energy transition while maintaining the Paris Agreement on climate.
“History is watching us,” Biden said. “I urge us to keep the faith and keep going. This is the single greatest existential threat to humanity.”
The White House released a fact sheet on the “Brazil-U.S. Partnership for the Energy Transition,” aiming to reduce emissions and limit the rise in temperatures to 1.5 degrees Celsius, as set by the Paris Agreement.
President-elect Donald Trump has vowed to bolster fossil fuel production and reverse Biden administration rules meant to facilitate a transition to clean energy sources. In his first term, Trump also pulled the U.S. out of the Paris Agreement, and he has signaled he will do it again.
Read more from the Examiner’s Haisten Willis here.
BRAZIL PRESIDENT CALLS ON G20 LEADERS TO QUICKLY MOVE ON NET-ZERO CLIMATE GOALS: Brazilian President Luiz Inacio Lula da Silva called on leaders at the G20 summit to reach net zero climate emissions five to 10 years ahead of schedule, Reuters reports.
During the G20 open session, Lula said countries should consider reaching climate neutrality by 2040 or 2045 instead of 2050. G20 leaders committed to achieving net zero emissions by 2050 in the Paris Agreement.
“The G20 is responsible for 80% of greenhouse effect emissions,” he said. “Even if we are not walking the same speed, we can all take one more step.”
Lula’s comment comes as global leaders at the G20 issued a joint statement calling on negotiators at COP29 to reach a climate finance deal and scale up funding. At this year’s climate conference, leaders are aiming to strike a deal to address climate risks to developing countries.
The joint statement said the leaders recognize the need for “rapidly and substantially scaling up climate finance from billions to trillions from all sources” to address climate change.
UN Climate Change Executive Secretary Simon Stiell said, “G20 Leaders have sent a clear message to their negotiators at COP29: do not leave Baku without a successful new finance goal. This is in every country’s clear interests.”
REDUCE, REUSE, RECYCLE FOR MINING…IT’S JUST NOT ENOUGH: As demand grows for key minerals like copper, nickel, lithium, and cobalt for electric vehicles, batteries, and other clean energy developments, recycling offers a way to reduce the need for mining — but it falls short of making a large dent in the industry.
The details: In a new report, the International Energy Agency has estimated that a successful scale-up of battery and metal recycling could help reduce new mining by 25-40% by 2050. However, in order to reach that, the agency estimated, $600 billion in mining investments will be needed through 2040. While it may initially appear counterintuitive, IEA estimates that number would be 30% higher without current and increased recycling efforts.
Much of this recycling expansion is expected to be driven by policy, IEA said, such as through financial incentives, permitting, and trade regulations. “Providing long-term visibility for policies and regulations is crucial for instilling confidence in investors and recycling companies,” the report reads.
Mining to stay: While increased recycling is expected to reduce the amount of new mining — lowering greenhouse gas emissions to meet climate targets — the agency admitted there is still a need for new mines given existing demand. “Investments in new mines remain essential as supply levels required by mid-century are still higher than today’s production and existing mines face natural declines in output,” the IEA wrote.
REPEALING THE IRA COULD COST U.S. TENS OF BILLIONS: New analyses are warning that repealing the Democratic-passed Inflation Reduction Act would cost the United States at least $66 billion in investment opportunities — handing them over to other foreign entities.
The details: Johns Hopkins University’s Net Zero Industrial Policy Lab recently estimated that a repeal of the IRA and its clean energy tax incentives could lead to a loss of $66 billion in new investments as well as $50 billion in lost exports. Meanwhile, climate think tank Energy Innovation has estimated that the economic losses only begin there, according to Forbes.
With electric vehicle, wind, and other renewable tax credits and backing under threat, the analyses estimate that an IRA repeal would stymy the U.S. ability to compete against China and other foreign entities in the green energy industry.
Additionally, John Hopkins University estimated that current IRA investments are expected to create 621,000 new jobs and nearly $170 billion in new income from workers — much of which could be at risk under a repeal.
“Without these investments and tax credits, U.S. industry will be hobbled just as it is getting going, ceding the ground to others,” the Net Zero Industrial Policy Lab wrote, per Forbes.
A reminder: Throughout his campaign, Trump and his allies vowed to roll back unspent funding from the IRA — threatening renewable energy investments in both Democratic-led and Republican-led regions. While Republican members of Congress have also promised to repeal parts of the legislation, the GOP may face some pushback within the party, given that much of the spending has flowed to red states. Earlier this fall, House Speaker Mike Johnson also said he would look to keep some of the green energy tax credits created by the IRA, adding that Republicans need to use a “scalpel and not a sledgehammer” to target the legislation.
RELATED…COLOMBIA SEEKING US GREEN FUNDING, BUT MAY BE FORCED TO TURN TO CHINA: Colombia’s environmental officials are reportedly rushing to secure climate funding from the U.S. as just over eight weeks remain before Trump takes office, threatening a number of climate funds and projects.
The details: The South American nation’s climate minister, Susana Muhamad, confirmed to Bloomberg that she plans to travel to Washington in the coming weeks to firm up a deal that would help Colombia move away from fossil fuels.
The country is reportedly seeking to secure around $10 billion from investors and developed countries to help with its transition towards renewable alternatives. The deal would be extremely similar to the Just Energy Transition Partnerships between wealthier nations and developing countries that seek to reduce reliance on fossil fuels, thereby lowering global emissions. If the nation is unable to secure any funds from the U.S., officials are prepared to turn to other nations, such as China.
Key quote: “If we’re not able to close a deal now for Colombia in the next six months, then the chances the plan survives depends on the next elections and then the uncertainty kicks in,” Muhamad told Bloomberg. “President [Gustavo] Petro has asked us to start talking to China. Colombia will be looking north, south, east and west.”
NEW LABELS FOR GREEN ENERGY UNDER TRUMP? With Trump expected to repeal and walk-back a host of renewable and green energy rules, tax credits, and funding, some in the industry are convinced the GOP won’t want to fully say goodbye to all the clean energy measures.
The details: During a post-elections roundtable covering the energy transition and tax implications with reporters on Monday, Hogan Lovell’s global regulatory senior counsel Mary Anne Sullivan said she believes many of the Democratic-pushed green measures will resurface in the upcoming Republican controlled Congress and White House – just under a different name.
Sullivan predicted Trump will make good on his campaign promises in rolling back numerous rules to bring emphasis to boosting domestic energy production and national security. “He wants the story to be changed so the terminology will change,” Sullivan said. “We will not be talking about a clean new deal. We will not be talking about climate change. We will be talking about Made in America energy. We will be talking about national security and energy security.”
This is likely going to lead to an extension for the lives of coal plants, as well as increased drilling. Yet as the new administration moves in this new direction, Sullivan said, repealed programs will creep back into legislation, given the fundamental need to boost transmission and embrace an all-of-the-above strategy.
“What I really believe is that there’s going to be a lot of repeal, change, direction, noise, and maybe action, and then it may reappear with a different name or different packaging,” she said, adding, “Make a package differently but in the long run, I think the basic needs are going to drive – no administration benefits from an unstable electric grid. That is a disaster for anybody.”
CHINA’S RISING EMISSIONS ARE HINDERING CLIMATE EFFORTS: Since the 19th century, the U.S. has emitted the most pollution of any nation into the atmosphere, but China is catching up, the New York Times reports.
The U.S. has released more emissions into the atmosphere since the 1900s due to the fact that it has been burning fossil fuels for a longer period of time. However, according to an analysis by the Carbon Brief, China for the first time last year passed Europe as the second-largest historical emitter.
China has built more than 1,000 coal-fired power plants over the past three decades. The country has promised its emissions would begin to decrease as it installs more wind turbines and solar panels. It does lead in the transition to clean energy, but the analysis found that the country’s historical emissions will reach U.S. levels.
The analysis comes as global leaders are meeting at the UN climate conference to negotiate climate goals and finance deals. But China’s responsibility has been a point of discussion, with leaders from the European Union and the U.S. calling on China to contribute to a climate finance deal.
“An expanded donor base has been long warranted,” John Podesta, President Biden’s international climate adviser, said last week. “This is not 1992 in terms of the economic structure of the world.”
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