Energy Exchange

The twin crises of energy supply and climate have the same solution

Today’s energy system has become a liability we can no longer afford. As dependence on oil and gas restrains the response to Vladimir Putin’s war on Ukraine, scientists on the Intergovernmental Panel on Climate Change this week issued yet another urgent warning that society is running out of time to avoid dangerous climate change caused by fossil fuel emissions.

Politicians and pundits say we must choose which problem to solve — protect the economy or protect the planet. But the twin crises of energy and climate have the same solution: the fastest possible transformation of our global energy system.

To those who want to prioritize the energy crisis, they must contend with the reality that there are no big spigots likely to be opened. Pre-Covid, oil and gas production were near record highs. Recent company announcements offer only marginal bumps in production, not enough to replace Russian oil or change prices at the pump.

And despite their rhetoric, neither producers nor their financiers show any interest in making the massive investments necessary to change these fundamentals.

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Posted in Methane, Renewable Energy / Comments are closed

Climate scientists agree: methane cuts are essential to limit global warming

By Ilissa Ocko and Tianyi Sun

A new report out this week from the Intergovernmental Panel on Climate Change is once again shedding more light on the climate crisis. According to the latest research, we’re on a dangerous trajectory that will result in significantly more warming than what policymakers aimed for.

As part of the Paris Climate Agreement — countries across the globe committed to try and limit future temperature rise to no more than 1.5 degrees Celsius. This new report not only predicts that we are not on track to meet that goal, it also suggests that even limiting warming to 2 degrees C is highly unlikely based on our current emissions and policies.

A previous IPCC assessment released earlier this year brought into focus the unfortunate reality that we are already experiencing increasingly destructive extreme weather events, rising seas, melting sea ice, habitat loss and other severe impacts of a changing climate at a much faster rate than communities can adapt. The fact that we are not acting fast enough to avert much worse impacts is disappointing news.

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Posted in Methane / Comments are closed

Hydrogen is booming: 3 things investors need to know to reduce their risk

By Jake Hiller

The U.S. Infrastructure Investment and Jobs Act has set off a flurry of competition among states for a piece of the $8 billion in direct funding and tax credits the law provides for four “hydrogen hubs.” Last week, Louisiana, Oklahoma and Arkansas announced a joint bid, and New Mexico said it will also join the fray.

The role proposed for hydrogen in the EU’s climate transition plan lays the groundwork for a surge of investment there as well. China is in the race, too, with $20 billion in public funding already made available to projects.

A parallel rush to hydrogen is underway in the private sector. According to the Hydrogen Council and McKinsey, more than 350 large-scale projects worth $500 billion have already been announced, with hydrogen investments growing by roughly $1 billion per week. As Goldman Sachs recently wrote, “Policy, affordability and scalability seem to be converging to create unprecedented momentum for the clean hydrogen economy.”

How can investors boost the potential of their hydrogen stakes?

Hydrogen has a number of strengths as an energy carrier and decarbonization pathway. Its ability to generate both heat and electricity, its high energy content relative to its weight and its potential for storage either as a liquid or a gas make it particularly attractive for hard-to-abate sectors such as steel, cement, shipping and aviation. Read More »

Posted in General / Comments are closed

Quickly reducing methane along with CO2 could help save Earth’s sea ice

By Kelsey Robinson

New EDF-led research is bringing new hope to the prospect of preserving the Arctic’s summer sea ice, which has been declining rapidly due to rising temperatures.

Sea ice levels today are at their lowest point since record-keeping first began and at this current loss rate, summer sea ice could practically vanish by the time today’s toddlers become adults. This new research suggests that if we take swift action to reduce emissions of CO2 and the potent greenhouse gas methane – we could preserve summer sea ice well into the next century. 

Methane is the second most important greenhouse gas after CO2 and is responsible for more than 25% of current global warming. Over the following two decades, the methane we emit today will capture over 80 times more heat than an equal amount of CO2. This is why cutting methane now is so important to slow down warming and lower the risk of losing Arctic summer sea ice.


This study is one of the first to look at how practical methane mitigation affects critical parts of the climate system beyond temperature rise. According to the study, if we reach net zero CO2 emissions by 2050 (as motivated by the goals of the Paris Climate Agreement) and quickly enact methane reductions using all currently available solutions, the chances of saving our summer sea ice this century could increase from nearly zero without action to more than 80%. 

Why preserving summer sea ice is so important. 

A seasonally ice-free Arctic has significant implications for the global climate. According to recent research, if the Arctic Ocean is free of sea ice during the sunlit part of the year, it could  generate the same heat as 25 years’ worth of human-caused CO2 emissions at today’s level. 

Preserving sea ice maintains habitat for walruses, polar bears and other Arctic wildlife and it serves as a vital source for hunting and fishing among Indigenous Arctic communities. It can also help deter geopolitical complications that can arise from open access to Arctic waterways. 


This study makes it clear that methane-cutting tools and technologies that are available today can make significant progress toward preserving Arctic summer sea ice and slowing the rate of global warming if we deploy them now.

Posted in Methane / Comments are closed

The truth about Russia’s war: Our addiction to oil gives Putin power

Russia’s invasion of Ukraine is alarming and wrong — recognized by governments across the political spectrum as a dangerous assault on peace and stability.

How sad, then, that some columnists here in the United States are using it as an opportunity to spin up a partisan attack on the Biden administration’s energy policy.

Instead of recognizing the reality that the world’s addiction to fossil fuels empowers Putin, these columnists are making the bizarre claim that more clean energy is somehow to blame for Russian aggression.

But facts are stubborn things. The truth is, U.S. oil production is near record levels — which did nothing to stop Putin. For better or worse, the Biden administration has issued new permits for drilling on federal lands at a faster clip than the notoriously pro-oil Trump administration.

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Posted in Natural Gas / Comments are closed

Round one of EPA methane comment period draws record engagement; Here’s how companies and investors can step up in round two

The public comment period for the Environmental Protection Agency’s proposed oil and gas methane rules generated more than 400,000 individual submissions, including many from energy and financial companies that support Biden administration efforts to reduce emissions of this powerful greenhouse gas.

However, our analysis of comments from energy and investment companies shows a troubling divide between those that support strong rules and others trying actively to weaken them before they even take effect. When EPA’s next comment period opens this spring, it will be critical for supporters to weigh in on the overall goal, as well as on specific provisions — including elimination of routine flaring, transitioning away from polluting pneumatic equipment, and ensuring comprehensive leak detection, including at smaller wells.

A broad collection of investors representing trillions of dollars in capital has urged oil and gas companies to demonstrate genuine effort to reduce their emissions. Yet despite increasing numbers of targets from industry in recent years, U.S. methane emissions remain sky high — suggesting voluntary efforts will not be enough to meet this challenge.

If responsible operators already taking action do not take advantage of this unique policy opportunity, the worst actors will continue to bring down the reputation of the industry as a whole for years to come.

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Posted in Methane, Methane regulatons, Natural Gas / Comments are closed