Costs take center stage at New York's Climate Week
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Climate change is still melting ice and threatening polar bears, but the conversation at New York's upcoming Climate Week is centered on something much closer to home: the cost of energy.
Why it matters: With the Iran war pushing up energy costs, the AI boom driving power demand and the midterms looming, affordability is becoming a central test for climate action.
Driving the news: Two reports released Thursday show how affordability is reshaping the energy transition.
- S&P Global finds the world's most ambitious climate targets increasingly out of reach as energy demand soars in developing economies where affordability and security are cementing their place as top priorities.
- The U.S. Energy Storage Coalition framed its entire report around affordability: Scale batteries rapidly because they'll save money. Its analysis estimates broad storage deployment could save the U.S. power system at least $250 billion over the next decade.
"This climate week is also going to be energy security week and energy affordability week," said Dan Yergin, vice chairman at S&P Global.
State of play: Affordability isn't new to the Climate Week NYC, which begins Sunday.
- But it's especially prominent in this year's official agenda, with sessions focused on delivering power "reliably, affordably, at scale and pace," and another titled "Climate as growth: how to communicate opportunity, not cost."
By the numbers: Average U.S. residential electricity prices are expected to rise about 5% this year, according to the U.S. Energy Information Administration, though the increase varies by region and the role of AI-driven demand in the increase is hotly debated.
- Regular gasoline now averages $4.37 a gallon, up 37% from a year ago, while diesel has hit a record $6.31, up 70%, according to AAA, as oil-market disruptions deepen from the Iran war.
Between the lines: Americans continue to broadly support climate action, but their willingness to personally pay for it has reached a new low, according to AP-NORC/University of Chicago polling released Wednesday.
- The school's Energy Policy Institute calculates Americans' average willingness to pay at about $29 a month, the lowest inflation-adjusted amount since it began asking the question a decade ago.
What they're saying: "It is more apparent than ever that people care about economic growth and climate change, not just one or the other," said Michael Greenstone, an economics professor at the school and director of the institute. "The message is that any durable climate policy must balance emissions reductions with affordability."
The big picture: Climate Week overlaps with the U.N. General Assembly's annual gathering of world leaders, bringing a powerful mix of political, business and climate leaders to New York.
- President Trump is expected at the General Assembly, while U.N. Secretary-General António Guterres will convene a high-level climate event Wednesday.
Flashback: Trump used his UNGA address last year to rail against climate policies and especially wind power, arguing that renewables are too expensive and unreliable to meet countries' energy needs.
Reality check: Renewables remain the lowest-cost form of new U.S. generation on an unsubsidized basis, according to a 2026 analysis by Lazard, a financial advisory and asset-management firm, though wind and solar's variability creates additional grid costs that batteries and other resources can help address.
Friction point: "It is frustrating because here's someone who got elected on a promise of affordability of energy and is now turning quite aggressively against two forms of energy that would make electricity cheaper if done properly," said Helen Clarkson, CEO of the Climate Group, which is the lead convener of next week's gathering.
What we're watching: Impacts of a warming world are also pushing a separate set of costs onto people, further complicating the affordability debate.
- A third of Americans say extreme weather has increased their homeowners or renters insurance premiums or deductibles, according to the AP-NORC/University of Chicago poll.
What's next: Axios House will be hosting conversations Monday and Tuesday on these topics and more. Register your interest here!
Editor's note: Amy Harder is a fellow at the University of Chicago's Institute for Climate and Sustainable Growth, but was not involved in the polling and received no advance access beyond that provided to other journalists.
