National

Ominous forecasts about the impact of climate change serve as the backdrop for the world — led by U.S. lawmakers and companies — to debate big action on the problem, which could upend energy systems and our way of life.

Energy & Environment

The Department of Energy announced Tuesday it will invest up to $14.5 million in research and development to help reduce single-use plastic waste and the energy needed to recycle such materials.

Why it matters: Single-use plastics, like plastic bags and cling film, make up the largest source of plastic in U.S. landfills and are some of the most difficult types of plastics to recycle, the department said.

What they're saying: “For years, single-use plastics have had a detrimental impact on the environment—clogging landfills and polluting our neighborhoods, parks, and beaches,” Secretary of Energy Jennifer Granholm said in a statement.

"Innovation in plastics recycling technology is a triple win by cutting plastic waste we see in our everyday lives, reducing industrial energy use and resulting emissions, and creating clean manufacturing jobs for American workers," she added.

The big picture: Plastic production accounts for more than 3% of the country's total energy consumption annually, but less than 10% of plastics are recycled.

The department hopes to fund research that discovers ways to convert plastic films to more valuable materials and designs new plastics that are more recyclable and biodegradable.

Several cities have banned the use of types of single-use plastics, though the coronavirus pandemic also prevented some cities from fully implementing their bans last year.

Go deeper: A better way to recycle plastic

Energy Department to invest $14 million in plastics recycling research

Single-use plastics are some of the most difficult types of plastics to recycle.

A seagull amid garbage at a trash pit in San Francisco in April 2021.

A seagull amid garbage at a trash pit in San Francisco in April 2021. Photo: Justin Sullivan/Getty Images

Department of Energy (DOE)

Generate

Axios Generate

The Interior and Defense Departments have identified a region off the California coast that can support major offshore wind development that's consistent with military testing and training in the area, the White House said.

Why it matters: The Biden administration is looking to spur large-scale offshore wind development as part of its wider goal of decarbonizing U.S. power generation.

Planned Atlantic Coast projects are much further along, but there are also strong wind resources off the West Coast that could generate large amounts of electricity.

Where it stands: Interior, working with Defense and California officials, have identified a roughly 400 square-mile area off California's central coast, northwest of Morro Bay, a White House summary notes.

The region can support up to 3 gigawatts of wind generating capacity, the White House said. 

The administration is also looking to spur development in a separate coastal region in Northern California called the Humboldt Call Area.

"These initial areas for offshore wind development in the Pacific Ocean could bring up to 4.6 GW of clean energy to the grid, enough to power 1.6 million American homes," the White House said.

California Gov. Gavin Newsom, on a call with reporters, said the state is backing offshore wind steps like funding to upgrade ports and steps to enable needed infrastructure.

He touted offshore wind as a way to help replace generation from the looming retirement of the Diablo Canyon nuclear plant in several years.

Catch up fast: The idea of wind energy development off California's coast is not new.

Large energy companies have previously expressed interest in projects there in recent years to the Interior Department.

Earlier this month the Interior Department approved Vineyard Wind, a project off the Massachusetts Coast that's slated to be the nation's first large-scale offshore wind facility.

In late March administration officials set a target of 30 gigawatts of offshore wind generating capacity operating in U.S. waters by 2030.

What they're saying: "Today’s announcement reflects months of active engagement and dedication between partners who are committed to advancing a clean energy future," Interior Secretary Deb Haaland said in a statement.

Colin Kahl, the undersecretary of defense for policy, said the Pentagon is "committed to working across the U.S. government" to support renewable energy in a way compatible with military operations.

“The Defense Department is satisfied that there’s not a tradeoff between the clean energy goals of this endeavor and our military readiness,” Kahl said.

What we're watching: Getting projects from planning to construction and operation will be a multi-year endeavor.

Haaland, on a call with reporters, did not provide specifics on the timing of lease auctions. But she said: "This is a priority for us." 

The White House noted that the deep Pacific Coast waters mean the efforts would bring deployment of floating offshore wind technology.

White House advances California offshore wind plans

The administration is looking to spur offshore wind development as part of its goal of decarbonizing U.S. power generation.

Morro Bay. Citizen of the Planet//Education Images/Universal Images Group via Getty Image

offshore wind

Climate change

Microsoft announced on Tuesday that it is teaming up with Github, Accenture and Thoughtworks to establish a nonprofit aimed at cutting emissions across the software industry. 

Why it matters: Software is an overlooked factor partly responsible for driving up carbon emissions from the tech sector. Companies that develop software used across the IT industry, including Microsoft, need to address this in order to fulfill their own ambitious climate goals. 

Microsoft, for example, is aiming to reach negative carbon emissions by 2030.

Driving the news: Microsoft announced the foundation Tuesday at its annual Build Developers Conference, noting that in coming years, data centers around the world are projected to account for 3% to 8% of global electricity demand. 

Software designed withs sustainability in mind could make data centers more efficient, Microsoft execs tell Axios.

The foundation, which is open for other companies to join, will aim to develop standards and best practices that teams can follow to make their software consume less energy. It will also look to create opportunities to collaborate across companies. 

The broader goal is for the foundation to help the technology sector meet a target of cutting its carbon emissions by 45% by 2030. 

What they're saying: "No one company can do this alone. No one individual can do this alone," Jeff Sandquist, corporate VP of developer relations at Microsoft, tells Axios. "We have to do this a community. so that's why we're really coming together. "

Asim Hussain, who is the green cloud advocacy lead at Microsoft and will chair the Green Software Foundation, said the goal is to get sustainability incorporated into the decision-making framework that software developers use each day. 

"The vision statement for for the foundation is to change the culture of software engineering," he told Axios. "So sustainability becomes a core priority to software teams, because right now when you're building software, you're making 100 trade offs in your mind. You're like, well, I can make it a bit faster but that might actually reduce the security. You're playing these trade offs constantly in your mind," he said. 

At the end of the day, reducing emissions will depend on achieving cultural change within the software industry, down to the level of each individual  engineer, Hussain said. 

Go deeper: Microsoft backs direct air capture player Climeworks

Microsoft sets up nonprofit to cut software-related carbon emissions

The nonprofit's goal is to make sustainability one of the core values for software developers.

Illustration of the Microsoft logo splitting the earth into four sections

Microsoft

From the Valley to D.C., Big Tech players like Facebook, Google and Amazon are under more scrutiny than ever as new technology develops and privacy and antitrust concerns grow in lockstep with companies’ ambitions.

Technology

Exxon is pledging more board additions ahead of a showdown with activist investors pressing for more aggressive moves on climate change and capital discipline on oil development.

Why it matters: The move comes just ahead of Wednesday's annual meeting, when shareholders will vote on whether to approve four board members nominated by the investment group Engine No. 1.

 Driving the news: The company said that over the next 12 months it would add two new members, "one with energy industry experience and one with climate experience."

The May 23 shareholder communication was disclosed in this filing Monday.

The letter, which also touts recent board additions, says the company's capital allocation strategies, cost cuts and expanded climate efforts mean it's "positioned for success." 

The other side: "If ExxonMobil’s Board is sincere in its desire to add more relevant experience, then it can wait to see what the outcome of this election is," Engine No. 1 said in a statement.

What they're saying: Andrew Logan, of the sustainable investment advocacy group Ceres, tells Reuters that Exxon's move is aimed at swaying major investors including BlackRock and Vanguard ahead of the vote.

Go deeper: The showdown over Exxon's climate future is here 

Exxon pledging to add directors ahead of showdown with activist investors

Investors are pressing for more aggressive moves on climate change.

Vehicles refueling at an Exxon Mobil Corp. gas station in Houston, Texas, in October 2020.

Vehicles refueling at an Exxon Mobil Corp. gas station in Houston, Texas, in October 2020.  Photo: Callaghan O'Hare/Bloomberg via Getty Images

ExxonMobil

Oil companies

The world's growing efforts to limit climate change will have far-reaching impacts for financial markets, and the groundwork for that push is being laid right now.

Why it matters: As more governments implement climate change regulations, trillions of dollars are going to flow towards clean energy and climate-friendly technologies, affecting significant portions of the global financial industry.

Related trend: Governments and the private sector are increasingly crafting policies to force better disclosure of how climate change creates risks for the financial sector.

What's happening: A White House executive order issued last week is aimed at launching or expanding efforts to stitch climate-related financial risks into regulation and supervision.

That was followed by an announcement from the Bank of England signaling that it would shift purchases it makes in financial markets toward companies doing the most to fight climate change. 

The BOE's move is expected to be the start of a global effort by central banks to influence the financial services industry.

By the numbers: Major banks and asset managers are stepping up climate finance in response to both investor pressure and expanding market opportunities to commercialize increasingly competitive low-carbon products.

For instance last month JPMorgan Chase pledged to "finance and facilitate" $1 trillion worth of climate efforts over the next decade and Bank of America similarly set a target of $1 trillion in climate finance through 2030.

An International Energy Agency analysis last week suggests that to radically re-orient global energy systems on a pathway to net-zero emissions by 2050 annual energy sector investment would have to "surge" to $5 trillion annually by 2030.

What we're hearing: "One of the things that we’re seeing is that the financial industry is organizing itself for net-zero [carbon emissions by 2050]," former Bank of England and Bank of Canada leader Mark Carney told Axios.

The big picture: Carney is a leading figure overseeing the transition from the financial industry's largely agnostic-about-climate past to its climate-priority future.

He's a United Nations special envoy on climate finance and an adviser on these topics to the government of the United Kingdom, which hosts a critical UN climate summit late this year in Glasgow, Scotland.

Carney's a key organizer of the recently launched Glasgow Financial Alliance for Net Zero, a wide-ranging network of banks, asset managers, investors and insurers with 160-plus members that organizers say are responsible for over $70 trillion in assets.

And Carney told Axios there remain "a number of major institutions and geographies" he's hoping sign on ahead of the UN summit.

What it means: "What we are looking to do is make sure that the plumbing of the financial system is ready and supportive of this transition," said Carney, who is also head of ESG at Brookfield Asset Management.

That means both growing investment in clean technology, but also financial sector policies that urge polluting companies they finance and invest in to take tangible steps to get cleaner.

"We want a system where it makes sense to invest in or lend to a company that has high emissions today but is investing in order to get those emissions down," Carney added.

"We don’t want binary system where it’s pure green or nothing."

The bottom line: "When society values a certain outcome — in this case addressing climate change, getting to net-zero, focusing on that, public policy is oriented in that way, consumers start to consume in a certain direction — that flips a risk into a huge opportunity," Carney said.

Fighting global warming means reshaping finance

The world's growing efforts to limit climate change will have far-reaching impacts for financial markets.

Illustration of a golden coin with an emboss of the Earth on it.  

Finance

After a record economic expansion, the coronavirus pandemic sent the U.S. economy into a recession as unemployment soared to staggering heights. The country now faces urgent questions about how much stimulus is needed for reeling consumers and businesses, and what a recovery might look like.

Economy & Business

The White House is providing fresh details of a major satellite program that administration officials call poised to reveal vital information about climate change and extreme weather events. 

Why it matters: Known as the "Earth System Observatory," the program consists of at least five satellites to be launched through 2029 that will enhance, or in some cases revolutionize, the capabilities of the space agency's existing fleet of Earth-observing satellites.

Details: In an interview with Axios on Monday, NASA Administrator Bill Nelson said the upcoming satellite constellation will look at everything from aerosols — tiny particles in the atmosphere that are a major source of uncertainty in climate models — to sea level rise. 

He said these missions will observe the changes in the planet's forests and ice sheets, as well as shifts in water resources and geological phenomena. 

“All of these will create a 3D view of our Earth from the atmosphere to the bedrock," Nelson said. 

Yes, but: Some of these satellites, including a radar imaging mission known as NISAR, which can measure shifts in Earth’s surface down to a resolution of a half-inch, have been in the works for some time. 

That joint U.S.-India mission is set to launch next year. 

Others, however, are still on the drawing board, and NASA is taking inspiration from a 2017 report from the National Academies of Sciences. 

State of play: Nelson said the program's prominent inclusion in a White House's hurricane preparedness fact sheet on Monday, along with added funding for FEMA, indicates the administration’s support for it. 

"They are the ones that announced the Earth System Observatory," Nelson said when asked about White House buy-in for what would be an expensive, multi-year program. 

"Now it didn't start today, because you can't build a sophisticated spacecraft that you're gonna launch in a year and a half... that’s already underway and is being funded," he said of the NISAR spacecraft. 

The big picture: Nelson comes to the NASA job having served in both houses of Congress and, while a lawmaker, flying aboard the Space Shuttle Columbia in 1986. While orbiting the globe, he said he felt what astronauts call the "overview effect," a newly deepened appreciation for the uniqueness of Earth and its fragility. 

"For example, coming across Brazil I could see with the naked eye, the color differential in the upper Amazon region, which is where they were destroying the rainforest — and then I could look in the same window to the east, and see all of the additional silt that was coming out of the Amazon into the Atlantic," Nelson said. 

"I became more of an environmentalist when I flew in space."

What to watch: As NASA administrator, Nelson is in a science communication, rather than policy-making role. But he shares President Biden's sense of urgency on climate change. 

“Now I'm in a position to try to help my friend, who is the President, and what he is trying to do, is to shape the reality of what is happening to our planet into the focus of people's minds, that the Earth is in fact heating up, and we'd better get about the business of trying to do something about it," he said. 

"Otherwise, you will continue to have more ferocious storms, and, and they will be larger."

NASA chief touts new Earth-observing satellites for climate

"I became more of an environmentalist when I went into space," NASA's Bill Nelson said.

Satellite view of a powerful hurricane with the eye at its center.

NASA's Terra satellite captured this thermal imaging view of Hurricane Maria in 2017. Credit: NASA.

NASA

Space

A look at the scientific breakthroughs changing the world, explorations in space and in worlds beyond our own and the threats posed to us by our own planet, both out of our control and of our own making.

Science

Tropical Cyclone Yaas formed in the Bay of Bengal Sunday night eastern time, and is poised to intensify -- perhaps at a rapid rate, as it swirls toward landfall in the Indian coastal state of Odisha on May 26. 

The big picture: The storm, which may reach Category 2 or 3 intensity prior to landfall, threatens to cause more disruptions at the same time as India is reeling from a devastating surge in coronavirus cases. 

Threat level: Historically, individual Bay of Bengal cyclones have killed tens of thousands, as the coastlines of India and Bangladesh in particular are extremely vulnerable to storm surge flooding. 

However, gains have been made in storm preparation and evacuations in recent years, which has lowered the death toll from even the most powerful cyclones. 

The details: The storm is in a favorable environment for intensification, with the only inhibiting factor so far being some dry air at mid-to-upper levels of the atmosphere, 

The warm waters of the Bay of Bengal can help fuel explosive development of this type of storm, with the India Meteorological Department (IMD) warning that it is likely to make landfall Wednesday as a "Very Severe" cyclone. 

The IMD has issued wind and rainfall warnings for portions of Odisha and West Bengal. In addition to the hazards that high winds and heavy rainfall post, storm surge flooding -- which is the wind-driven increase in water above normally dry land at the coast will be a major threat along and to the north of the storm center. 

It's possible that some surge and heavy rainfall-related flooding will occur in Kolkata, which lies to the north of the storm's projected track. 

What we're watching: The storm has under two days to spin over the waters of the Bay of Bengal before it crosses the coast, and the wild card is just how strong the storm will get during this time. 

While some computer models are hinting that it may rapidly intensify into a much more dangerous weather system, it could hold at Category 1 intensity through landfall if it develops more slowly. 

Cyclone Yaas to intensify in Bay of Bengal, strike India

The storm is the second cyclone to strike India in less than two weeks as the country reels from a devastating coronavirus surge.

Satellite view of Cyclone Yaas in the Bay of Bengal.

Satellite view of Cyclone Yaas in the Bay of Bengal on May 24, 2021. (CIRA/RAMMB)

hurricanes

Extreme weather

The Biden administration plans to invest $1 billion helping states prepare for extreme weather ahead of the 2021 hurricane season, alongside an initiative to track natural disasters through a new NASA program.

Why it matters: The National Oceanic and Atmospheric Administration (NOAA) expects above-average storm activity during the next hurricane season, which would make this the sixth unusually active season in a row.

The administration's $1 billion pledge doubles the amount of money the government had previously spent helping communities brace for extreme weather through the Building Resilient Infrastructure and Communities program.

Floods, hurricanes, and wildfires are key areas of focus for preparing localities for disaster, the White House said. The administration plans to use NASA's Earth System Observatory to forecast and monitor natural disasters.

Our thought bubble, via Axios' Andrew Freedman: By increasing sea levels, climate change is making hurricanes more destructive and costly. There is also evidence showing that warming sea and air temperatures are causing nature's most powerful storms to become even stronger. 

More storm resilience funding, in addition to launching the NASA program, demonstrates the Biden administration's continued focus on the impacts of extreme weather events on the economy.

What to watch: The first named storm of the season, Subtropical Storm Ana, formed and dissipated over the weekend in the North Atlantic.

Go deeper: Get ready for another unusually active Atlantic hurricane season, NOAA says

Biden administration to invest $1 billion to prepare states for extreme weather

NOAA expects above average storm activity in the upcoming hurricane season.

Biden walks to Marine One on May 22. Photo: Chris Kleponis/CNP/Bloomberg via Getty Images

extreme weather

President Biden has made the COVID-19 crisis and a post-Trump return to national unity and traditional democratic ideals his top priorities. From vaccinations to stimulus to schools, Biden is seeking bipartisan compromise while showing a willingness to use executive authority and bare Democratic majorities in the U.S. House and Senate to implement his policies. Republican leaders are navigating deep party divisions over if and how to move beyond former President Trump.

Politics & Policy

A new nonprofit group called Climate Vault aims to offer reliable carbon offsets while providing fresh support for CO2 removal technologies and methods.

Driving the news: It's the brainchild of the University of Chicago team led by economist Michael Greenstone, who served in the Obama White House.

Why it matters: Offsets enable companies and people to help reduce emissions, but ensuring their integrity is notoriously tricky.

Climate Vault aims to solve this problem by tapping into regulated cap-and-trade markets — in essence fusing voluntary efforts with the certainty of formal permit systems.

The group calls its approach an "antidote to the frequent credibility problems and opacity of voluntary offset programs."

It then leverages this to support carbon removal methods that can complement fossil fuel emissions cuts to help reach ambitious climate goals.

How it works: Backers fund Climate Vault to buy emissions permits from cap-and-trade markets in North America, which operate in California, Quebec, and among northeast and mid-Atlantic states.

Climate Vault then takes those permits off the market to prevent industrial emitters from using them (that's the "vault" part).

The group then can provide those permits to providers of carbon removal services, which could then sell them back into the market to finance the efforts.

Where it stands: Supporters include the trading firm DRW, whose CEO is a co-founder, Vanderbilt University, investment firm TPG and others.

Supporters have already enabled reduction of more than 200,000 metric tons of carbon, "surpassing more than five percent of the total CO2 saved by all Tesla vehicles to date in the U.S.," the group said.

Advisers on the carbon removal side include former Energy Secretary Ernest Moniz.

Forms of carbon removal include carbon mineralization, ocean storage, direct air capture tech and others.

Go deeper: Nonprofit Seeks to Trap Carbon in the Financial Markets (WSJ)

Nonprofit launches with new approach to offset CO2

Offsets enable companies and people to help reduce emissions

Carbon emissions

G7 environment ministers have pledged to move toward the "absolute end" to financing international development of coal-fired power plants by the end of this year.

Why it matters: Their joint communique Friday is a stark statement about how they view the future of the world's most carbon-intensive fuel.

The big picture: Here are a few takeaways from the coal pledge...

It's most relevant to Japan, which per the climate think tank E3G and other advocates is the world's second-largest international funder of coal plants.

"Japan should start by funding clean energy projects in Bangladesh and Indonesia instead of the two coal power projects currently under consideration," said E3G's Chris Littlecott in emailed comments to reporters.

It could boost pressure on China, which is the top global financier of coal-fired facilities. 

"This would really isolate China as the global lender of last resort for coal, which is not exactly an envious place to be in the run up to the next COP in Glasgow," said Justin Guay of the Sunrise Project, referring to the big United Nations climate summit in November.

The statement keeps the door open to carbon capture tech. It applies to "unabated" coal plants, that is, plants not equipped with CO2 capture, which has seen very little commercial deployment in the power sector thus far.

Total energy supply in 2050 net-zero roadmap

The chart above comes from last week's International Energy Agency report that lays out a "narrow but still achievable" path to reaching net-zero global emissions by 2050.

What's next: "The strongly worded statement sets the stage for more climate pledges when G7 country leaders, including British Prime Minister Boris Johnson and US President Joe Biden, meet in Cornwall next month," the Financial Times reports.

The key takeaways from G7 nations' pledge to end state funding for coal

This could be the "absolute end" to financing international development of coal-fired power plants.

Photo: Julian Stratenschulte/picture alliance via Getty Images

Coal

Exxon's annual meeting Wednesday will bring the most closely watched shareholder votes on global warming in Big Oil's history.

Driving the news: Activist investors Engine No. 1 have nominated four board members who would seek to make Exxon more aggressive on climate.

Engine No. 1's backers include huge public pension funds in California and New York State, and the influential proxy advisory firm Institutional Shareholder Services recommends shareholders support it.

Engine No. 1 also says Exxon lacks "any serious diversification efforts" that will prepare it to thrive in a low-carbon world. The group says Exxon needs a more disciplined capital investment approach around oil and gas. 

Why it matters: It's the highest-profile effort by activist investors to force oil majors to diversify away from their dominant products more quickly.

It's also a fight over how Exxon, one of the world's most powerful corporations, should view the future after years of rocky financial performance.

The other side: Exxon management opposes the slate. The company says it's in step with the evolving energy mix, citing growing emphasis on carbon capture, hydrogen and biofuels.

Exxon also argues its adjusted capital strategy will deliver strong returns in oil and gas, which it notes will remain huge markets for decades despite low-carbon energy growth.

CEO Darren Woods tells the Washington Post that Engine No. 1 "have been very focused on what I would say is perceptions of the past." 

The intrigue: The rebound in Exxon's share price over the last six months could bolster management. But a new wildcard emerged last week.

An International Energy Agency analysis said a pathway to net-zero emissions in 2050 means no new oil and gas fields would be approved for development (investment in existing fields would continue).

 "It gives a fund manager extra cover to justify voting against management, cover that isn’t provided by some call to arms from Greenpeace or the Sierra Club," Bloomberg's Liam Denning writes.

The showdown over Exxon's climate future is here

Wednesday will bring the most closely watched shareholder votes on global warming in Big Oil's history.

Tuesday's energy & environment stories