Climate 411

What the SEC can do to protect investors, companies, and people from another Texas power crisis

By Gabriel Malek / Published: June 18, 2021

This post was co-authored by David G. Victor of the Brookings Institution and EDF’s Stephanie H. Jones and Michael Panfil. It is also posted here. 

 The Securities and Exchange Commission (SEC) is considering making important changes in disclosure requirements to reflect the growing recognition that climate change poses significant risks to the U.S. financial system. This week, hundreds of investors, companies, and concerned Americans, including EDF, responded to the SEC’s request for public input on climate change disclosure.

The Brookings Institution’s recent analysis on the intersection of climate change and financial markets has shown that a significant blind spot for financial institutions is how the physical impacts of a warming world affects assets. But, outside of insurance, relatively little has been said about financial vulnerabilities stemming from extreme weather.

The massive storm that hit Texas in February — known as Winter Storm Uri — highlights the dangers of ignoring the physical risks of climate change. Frigid temperatures and ensuing blackouts led to the deaths of more than 150 people and caused billions of dollars in damages. The blackouts also disrupted dozens of public companies, hundreds of small businesses, and millions of lives, raising a slew of questions for public officials.

EDF and Brookings have now released a new report, What Investors and the SEC Can Learn from the Texas Power Crises, in which we focus on one of those questions: what did the financial markets know about the odds and impacts of a storm like this before it happened?  Our report looks at SEC regulatory disclosures made by publicly-traded electric utilities and suppliers in Texas, and offers a clear answer: not much. Read More »

Also posted in Cities and states, Economics, Energy, Partners for Change, Policy / Comments are closed

The key to reaching Biden’s new climate goal: An enforceable clean electricity standard that slashes pollution

By Pam Kiely / Published: June 10, 2021

Editor’s note: This post was last updated June 29, 2021.

A female engineer standing beside the solar panel.

At the Leaders Summit on Climate in April, President Biden pledged to go all-in to beat the climate crisis, setting an ambitious and credible target to cut U.S. greenhouse gas emissions 50-52% below 2005 levels by 2030. Now the administration and federal law makers must roll up their sleeves and work to achieve this target. The question is: What policies will they adopt that can secure the necessary cuts in pollution in less than 10 years?

While there are multiple pathways to meeting the target, a wide range of analyses agree on one core theme: The power sector is a critical linchpin to success. We need to cut emissions from electricity generation by at least 80% below 2005 levels by 2030.

Read More »

Also posted in Greenhouse Gas Emissions, Jobs, Policy / Comments are closed

Western Climate Initiative recovering from COVID-19, and the new climate kid in town

By Katelyn Roedner Sutter / Published: May 27, 2021

The results of the latest Western Climate Initiative cap-and-trade auction were released today and all current and future allowances sold. This generates substantial revenue for California’s Greenhouse Gas Reduction Fund but could also indicate that greenhouse gas emissions are rebounding as the economy recovers from the impacts of the Covid-19 pandemic.

Auction quick takes:

  • All 71,647,138 current vintage allowances offered were sold; this is the third consecutive sold out auction. There were almost 17 million more allowances offered in May as in February, largely due to the return of previously unsold allowances.
  • Current vintage allowances cleared at $18.80, $1.09 above the floor price of $17.71. This is one dollar above the February 2021 settlement price of $17.80.
  • All of the 8,306,250 future vintage allowances offered for sale sold, just as 100% sold in the previous two auctions. These allowances may not be used for compliance until 2024.
  • Future vintage allowances sold at $19.04, $1.33 above the floor price of $17.71, and $1.03 cents above the $18.01 settlement price from February 2021.
  • California raised almost $ 916 million for the Greenhouse Gas Reduction Fund, which will continue to help support essential climate programs through the California Climate Investment
  • Quebec raised almost $210 million (just under $253 million CAD) to invest in their own climate priorities.

Read More »

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The introduction of Ford’s electric F-150 pickup truck is a big milestone in the race to zero-emission vehicles

By Peter Zalzal / Published: May 17, 2021

We’re about to get a glimpse of what Ford Motor Company envisions for the future.

Ford is planning to reveal its electric F-150 Lightning pickup truck tomorrow. President Biden will visit the Ford Rouge Electric Vehicle Center in Dearborn Michigan ahead of the announcement.

The unveiling of the F-150 Lightning is the latest in a steady drumbeat of announcements about investments in electric vehicle production and new model offerings – by Ford and nearly every other automaker.

Environmental Defense Fund has sponsored the development of an Electric Vehicles Market Report by MJ Bradley and Associates to track the dynamic landscape around vehicle electrification in the U.S. and globally. In the report’s April 2021 update, the authors found that the number of electric models available to U.S. consumers would increase from 64 to 81 between 2021 and 2023, and that globally, automakers had committed to spending $268 billion through 2030 to develop zero-emitting solutions. Announcements in the last month, since the report came out, have further increased those numbers. For instance, at the end of last week Hyundai announced plans to invest $7.4 billion in the U.S. in electric vehicle manufacturing by 2025.

But in this veritable sea of announcements, the electric F-150 Lightning stands out. Ford CEO Jim Farley has compared the significance of the vehicle to the Model T, the Mustang, the Prius and the Tesla Model 3. For good reason. The F-150 has been the best-selling vehicle in the United States for the last 40 years and it has generated more revenue than companies like Nike and Coca-Cola.

And it is a truck. Nothing could more completely shatter any remaining misconceptions about what electric vehicles were in the past, and make clear what they are today:

  • More capable – Ford has said the electric F-150 will be its most powerful in the series and able to power a home during an electrical outage
  • Less costly – EDF analysis shows that someone who purchases a new battery electric vehicle in 2027 will save $5,300 over its lifetime compared to a gasoline vehicle
  • Zero-polluting – These vehicles will eliminate harmful tailpipe emissions that destabilize the climate and harm public health

Ford’s announcement is also an important step toward a future where we have eliminated harmful pollution from cars and trucks. It comes at a pivotal moment when we urgently need ambitious action to protect our climate and public health, to save consumers money, and to safeguard and strengthen the American auto industry.

Read More »

Also posted in Cars and Pollution, Economics, Green Jobs, Greenhouse Gas Emissions, Jobs / Read 1 Response

California Accelerates Toward Zero-Emission Vehicle Standards That Will Save Lives, Save Money, Create Jobs

By Alice Henderson / Published: May 11, 2021

California just moved further down the road toward cleaner cars and vital air pollution reductions.

The state’s Air Resources Board hosted a public workshop on the development of its Advanced Clean Cars II (ACC II) program last week, where it announced that it intends to propose multipollutant standards that will ensure all new cars sold in California are zero-emitting vehicles by 2035.

At the workshop, the Air Resources Board for the first time laid out a proposed trajectory for the ACC II program, charting a course for ensuring 60% of new vehicles sold in 2030 are zero-emitting and 100% of new vehicles sold by 2035 are zero-emitting.

Slide from Air Resources Board workshop presentation, available here

The ACC II program will build from California’s long history of advancing vehicle pollution reductions under Clean Air Act authority. If adopted, the draft standards described at the workshop will reduce health-harming pollution and climate emissions from new passenger vehicles beyond the 2025 model year and increase the number of zero-emission vehicles for sale. They will also reduce climate pollution, deliver jobs, save Californians’ money, and – most important – save lives.

Read More »

Also posted in California, Cars and Pollution, Cities and states, Green Jobs, Greenhouse Gas Emissions, Health, Jobs, Policy / Comments are closed

Maximizing the historic job creation opportunity waiting in our nation’s old and leaking oil and gas wells

By EDF Blogs / Published: May 4, 2021

By Adam Peltz, Senior Attorney, Energy

After over 150 years of boom and bust oil and gas development, there are over a million inactive, unplugged oil and gas wells across the country. A new study published in the journal Elementa describes how, when not properly plugged, these wells can contaminate groundwater and emit methane as well as harmful chemicals into the atmosphere that endanger the economy and public health in communities where they are found. It also provides suggestions for how to maximize the environmental benefits of efforts to plug these wells.

There are 57,000 documented “orphan” wells across the country, meaning they have no owner of record, at least not one that’s still in business, and hundreds of thousands more orphan wells that are not documented. State, federal and tribal governments are left with the responsibility of plugging these wells – some of which have been abandoned for decades.

Read More »

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