This week’s Current Climate, which every Monday brings you the latest news about the business of sustainability. Sign up to get it in your inbox every week.
The Securities and Exchange Commission voted to adopt new rules that would require public companies to disclose certain climate-related risks. Within hours, 10 red states–including West Virginia, Georgia and Alabama–had sued to challenge the regulatory body’s requirements. At issue were environmental disclosure rules first proposed in 2022 as part of President Joe Biden’s efforts to use the federal agency to address the threats of climate change, following similar disclosure requirements in Europe. The final rule that the SEC adopted was scaled back from an earlier version, dropping disclosures around what’s known as “scope 3 emissions,” which cover products that companies buy from third parties. That paring back angered some progressive Democrats (Senator Elizabeth Warren called the new rules “the bare minimum”) and climate groups, leading to speculation that the rule would be challenged from both sides, a highly unusual occurrence.
The Big Read
Steel production is horrible for the environment, accounting for some 8% of CO2 emissions globally each year. MIT spinout Boston Metal, which has raised more than $350 million from investors that include Bill Gates’s Breakthrough Energy Ventures and steel giant ArcelorMittal, thinks it has an answer: zapping iron ore with electricity instead of putting it through a blast furnace. In a major test of the ability of its technology — technically known as molten oxide electrolysis — to scale, the company is opening a plant in Brazil this week to make pricey, low-carbon iron alloys in a similar process. CEO Tadeu Carneiro told Forbes that he expects the Brazilian operation to reach $400 million in revenue, with operating profit of $100 million, by 2026, the same year the company expects to go commercial with its green steel.
Hot Topic
Your target is to slash CO2 in half by 2030 and be net zero by 2050. How will you do that?
The biggest levers for us are, first of all, investing in new aircraft. That has an impact of minus 20% [carbon emissions] per new aircraft coming into the fleet with new technology. The second one is SAF — sustainable aviation fuel. And the third one is new technology, like carbon capture. For us as an industry to go greener we will need a whole array of different types of technology and different methodologies going forward.
What about carbon offsets, which have grown more controversial over things like tree plantings and forests that aren’t necessarily there?
It’s a topic which gets a lot of discussion these days. I think we should not be too negative about all carbon offsetting because we will need also carbon offsetting, at least in the next couple of years, to reach the targets we have set. It will not just work with SAF because the production of SAF is not yet at the level that it’s enough to sustain the whole drive for sustainability.
Is there a role for hydrogen as a cleaner aviation fuel?
There are two possible new technologies when it comes to aircraft. Hydrogen is one, but I also would not underestimate battery power. Today we all know that the battery power available is not enough to power an aircraft for a long distance, but if you look at battery technology development in the last couple of years, it’s quite impressive. Batteries have become stronger and smaller at the same time. It’s not just a matter of power. It’s a matter of weight, as well. So I wouldn’t underestimate battery technology when it keeps developing at such a pace as it has in the last couple of years. I do expect in five-to-10 years some really interesting new technology on the battery side as well.
If you work with hydrogen aircraft you will need in all airports a hydrogen fueling facility. You will have to have a network of airports, across either the U.S. or for us in Europe, where no matter to which airport you fly you have hydrogen fueling facilities. So you have to have a huge infrastructure development.
What Else We’re Reading
The U.S. is struggling to keep up with booming power needs from AI and new cleantech manufacturing.
Airlines have purchased carbon offsets for years to position themselves as concerned about climate change. Now one is paying Climeworks to actually remove CO2.
Struggling EV maker Rivian got a big bounce after unveiling new small models and revising its production plans.
Over a dozen methane satellites are now circling the Earth, and more are on the way.
GM has a new application for its fuel cell tech: medium-duty pickups powered by green hydrogen.
After years of minimal rain in California, forecasters now think the Golden State can remain drought-free through 2025.
The absurd problem of New York City’s trash – and the trade-offs required to fix it.