WHAT’S HAPPENING TODAY: Good afternoon and Happy Thursday readers! We are one more day closer to the weekend and nearing the United Nations’ climate change conference in Azerbaijan. Stay tuned for our coverage of the conference next week.
As reactions to Tuesday’s results have begun to settle, Callie and Maydeen kick things off with a look at noteworthy comments from API president Mike Sommers about the possibility of sweeping rollbacks of the Inflation Reduction Act. Plus, we take a look at the effects of natural disasters on both coasts — causing hospitalizations and billions of dollars worth of damage.
Internationally, today’s edition of Daily on Energy offers updates on who won’t be attending COP29, as well as the European Union Space Programme’s declaration that 2024 will be the hottest year on record. Also, across the pond, Great Britain is weighing fast-tracking multiple cable projects, while Italy is asking the EU to revise its combustion engine ban.
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.
SOMMERS AND OTHERS SEE POSSIBILITY FOR IRA SURVIVAL: With the Democrats’ Inflation Reduction Act at risk under a likely Republican trifecta, some key players in the energy industry are now saying they are confident the GOP won’t push a full repeal of the 2022 law.
The details: Former Trump energy adviser George David Banks told Politico reporter — and former Daily on Energy writer — Josh Siegel that even if the GOP secures the majority in both the House and Senate, there will still be enough centrists within the party to block a complete rollback of the IRA. Since the law passed in 2022, many Republican districts have seen economic benefits from the Democratic-backed legislation, which is only expected to boost further manufacturing and jobs in both red and blue regions.
American Petroleum Institute president Mike Sommers also said he plans to press Republicans to keep parts of the IRA, such as carbon capture and hydrogen subsidies.
Key quote: “We’ll advocate for provisions that we support, and we’ll seek repeal of provisions that we think don’t line up with continued production in the States of oil and gas,” Sommers told the outlet.
GLOBAL SOLAR CAPACITY HITS NEW CAPACITY RECORD: Global solar capacity has reached 2 terawatts (TW), enough to power 92 million U.S. households, according to data by a global industry group, Reuters reports.
Exclusive data was shared to Reuters from the Global Solar Council, who said its data provides the full picture of global solar capacity because it includes small, rooftop installations which are often not included in government data.
Sonia Dunlop, CEO of the Global Solar Council, told Reuters, “Governments often don’t have the full picture in terms of solar because they’re often missing a lot of the small rooftop projects because they just never get registered anywhere in a lot of countries.”
Dunlop said the next challenge will be to meet 8 TW of installed solar power by 2030, which would amount to more than half of the 11 TW of renewable capacity needed to meet United Nations climate targets. The council is launching an International Solar Finance group at next week’s 29th Conference of the Parties (COP29) climate summit in Baku, Azerbaijan.
WILDFIRE RAPIDLY SPREADS IN SOUTHERN CALIFORNIA: A brush fire fueled by high winds and dry conditions quickly grew to 14,500 acres in Southern California.
The “Mountain Fire” started Wednesday but has rapidly grown in size, leading to more than 10,000 people under evacuation orders in Ventura County, north of Los Angeles. The fire threatens 3,500 homes and buildings.
At least two people have been hospitalized due to smoke inhalation. There are 800 firefighters assigned to the fire and as of this afternoon the fire is 0% contained.
California Governor Gavin Newsom said “This is a dangerous fire that’s spreading quickly and threatening lives. State resources have been mobilized to protect communities, and this federal support from the Biden-Harris Administration will give state and local firefighters the resources they need to save lives and property as they continue battling this aggressive fire.”
Earlier this week, the state was placed under red flag warnings as the region faces powerful winds throughout the week, increasing the risk of wildfires.
HURRICANES BROUGHT MULTIBILLION-DOLLAR PRICETAG: North Carolina and South Carolina have been left with damages that will cost up to $2.9 billion to repair after three hurricanes ravaged the region in recent months, a major utility company has said.
The details: Duke Energy, the largest utility company servicing the two states, revealed on Thursday it is estimating it will cost between $2.4 billion and $2.9 billion to fully repair and restore facilities in the areas it services, according to Reuters. Already, $750 million of that was recognized in Duke’s reported third quarter.
Tens of thousands of homes and businesses were left without power between August and October as Hurricanes Debby, Helene, and Milton tore down power and transmission lines, caused massive flooding, and ripped out trees from their roots.
The utility company has reportedly admitted that the cost to repair the damages caused by the storms is expected to lower its overall profits, with Q3 profits falling short of previous estimates. However, Duke Energy has insisted it will level out again next year, with CFO Brian Savoy saying, “Storm costs are going to temporarily impact our credit in 2024 and as we recover these costs through established mechanisms in 2025, that will be resolved.”
GERMAN CHANCELLOR SKIPS CLIMATE SUMMIT: German Chancellor Olaf Scholz will not attend next week’s COP29, Bloomberg reports.
According to a person familiar with the matter, Scholz will not attend next week’s meeting as he deals with a call to submit to a vote of confidence from German opposition leader Friedrich Merz.
The meeting was expected to host 198 countries to negotiate climate plans, but several European leaders will not attend. European Commission President Ursula von der Leyen is set to skip.
French President Emmanuel Macron, Canadian Prime Minister Justin Trudeau, President Joe Biden, Australian Prime Minister Anthony Albanese, and Brazilian President Luiz Inácio Lula da Silva are all reportedly expected to skip out on the conference as well.
EUROPEAN UNION SPACE PROGRAMME SAYS 2024 WILL BE HOTTEST ON RECORD: The European Union Space Programme found that 2024 will be the hottest year on record, the Guardian reports.
A report by the Copernicus Climate Change Service, a component of the EU’s Space Programme said 2024 is “virtually certain” to be the hottest year and the first year more than 1.5C (2.7F) above pre-industrial levels.
“This marks a new milestone in global temperature records and should serve as a catalyst to raise ambition for the upcoming climate change conference,” said Samantha Burgess, deputy director of the Copernicus Climate Change Service.
The report is published a week before COP29.
UK WEIGHING FAST-TRACKING CLEAN PROJECTS TO MEET 2030 GOALS: Officials with the United Kingdom’s National Grid are reportedly weighing speeding up plans for two controversial cable projects in an effort to reach 2030 clean electricity targets.
The details: The National Grid is looking for approval from the federal government by 2026 to fast track a 114-mile power line from Tilbury to Norwich that would carry electricity from offshore wind farms, as well as a 90-mile underwater cable stretching near Kent and Suffolk, according to The Guardian. Both projects are reportedly currently on track to deliver energy after 2030.
John Pettigrew, CEO of the National Grid, has called these power lines as “critical” to meet the nation’s goals to have a fully decarbonized electricity system by 2030. “Reassuringly, the report found that the projects we are working on are the right projects to progress,” Pettigrew told The Guardian. “We are now looking at our supply chains and contractors to see whether they can be delivered a year earlier.”
Mixed support: However, not everyone is in support of the projects. Members of the Green Party have called for a pause on expected construction over the Norwich-Tilbury power line, saying it poses a risk for agricultural land, local traffic, communities, and the overall landscape. Similarly, critics of the underwater cable have claimed it could cause damage to marine life and ecosystems.
ITALY REAFFIRMS CALLS TO ADJUST EUROPEAN UNION COMBUSTION ENGINE BAN: The European Union is facing renewed calls to revise its plans to block the sale of new combustion engine cars starting in 2035.
The details: Draft documents seen by Bloomberg reveal that both Italy and the Czech Republic plan to again ask EU officials to adjust their plans and review of the combustion engine ban. The European Commission is currently scheduled to review the ban in 2026. But Rome and Prague are calling for the review to be conducted as soon as next year. Within the review, the two countries are also reportedly asking the commission to include a “broader array” of vehicles allowed under the planned ban outside of just battery electric and hydrogen-powered vehicles.
The need to foster competitiveness within the automotive industry in Europe is reportedly driving the renewed calls, with Italy and the Czech Republic saying it “must remain a central focus of EU policy,” according to Bloomberg.
Some background: The EU approved the combustion engine ban in March 2023, which is expected to require all new vehicles to have zero carbon emissions starting in 2035. The law effectively bans any diesel and gas vehicles from the market – sparking concerns within the EU automotive industry, which has struggled to compete with Chinese dominance over electric vehicles. While the law was projected to speed up electrification of vehicles within the EU, the bloc has seen record lows for sales.
RUNDOWN
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