WHAT’S HAPPENING TODAY: Good afternoon and Happy Wednesday readers! In today’s edition of Daily on Energy, Callie and Maydeen kick things off by taking a look at a recent lawsuit filed by Texas and several other states against investment firm giants over alleged pressure on producers to reduce coal output. Plus, as we continue to wait for the release of the Department of Energy’s LNG export report, we spoke with some experts on the impact the study may have on the incoming administration.
Just a reminder – after today, Daily on Energy will be suspended through the remainder of the week for the holiday and pick back up on Dec. 2. From all of us at the Washington Examiner, we would like to wish you all a very Happy Thanksgiving!
Welcome to Daily on Energy, written by Washington Examiner energy and environment writers Callie Patteson (@CalliePatteson) and Maydeen Merino (@MaydeenMerino). Email cpatteson@washingtonexaminer dot com or mmerino@washingtonexaminer dot com for tips, suggestions, calendar items, and anything else. If a friend sent this to you and you’d like to sign up, click here. If signing up doesn’t work, shoot us an email, and we’ll add you to our list.
STATES SUE BLACKROCK, STATE STREET AND VANGUARD OVER ANTITRUST VIOLATIONS AND ESG DECEPTIVE PRACTICES: Texas, along with 10 other states, is suing the three largest U.S. investment firms, Blackrock, State Street, and Vanguard, claiming the firms violated antitrust laws by increasing the cost of electricity through investments in coal production.
The details: Texas Attorney General Ken Paxton, who is leading the lawsuit, said in a press release that over several years, the firms obtained significant stockholdings in U.S. coal producers and used their influence to pressure coal companies to reduce their output.
“For the past four years, America’s coal producers have been responding not to the price signals of the free market, but to the commands of Larry Fink, BlackRock’s Chairman and CEO, and his fellow asset managers,” the lawsuit reads.
“As demand for the electricity Americans need to heat their homes and power their businesses has gone up, the supply of the coal used to generate that electricity has been artificially depressed—and the price has skyrocketed. Defendants have reaped the rewards of higher returns, higher fees, and higher profits, while American consumers have paid the price in higher utility bills and higher costs,” it added.
The lawsuit also alleges the firms deceived investors who wanted to invest in Non- Environmental, Social, and Governance (ESG) funds. The other states in the lawsuit include: Alabama, Arkansas, Indiana, Iowa, Kansas, Missouri, Montana, Nebraska, Wyoming and West Virginia.
What are the defendants saying? Blackrock told Maydeen its “holdings in energy companies are regularly reviewed by federal and state regulators. We make these investments on behalf of our clients, and our focus is on delivering them financial returns.”
“The suggestion that BlackRock has invested money in companies with the goal of harming those companies is baseless and defies common sense. This lawsuit undermines Texas' pro-business reputation and discourages investments in the companies consumers rely on,” the company said.
State Street and Vanguard did not immediately respond to comment on the lawsuit.
TRUMP ADMINISTRATION WON’T BE ABLE TO IGNORE DOE’S LNG REPORT: The Department of Energy is expected to release its highly anticipated report on the economic and environmental impacts of liquefied natural gas exports by the end of this week, months after it was launched in an effort to curb new LNG projects.
While the report, and LNG pause, have been lambasted by the Republican party, experts have suggested that the Trump administration will have to take it into account when ramping up its support for the oil and gas industry.
The details: “It’s going to be a very substantial study,” Ben Cahill, Senior Associate with the Energy Security and Climate Change Program at the Center for Strategic and International Studies told Callie on Wednesday. “I don’t think the Trump administration can ignore it. It may complicate the desire of the Trump administration to make big changes on day one and return full speed ahead permitting as many projects as possible.”
Cahill explained that if the DOE’s report finds “serious concerns” about the impact of LNG exports on climate change, or even suggested major changes to DOE or the Federal Energy Regulatory Commission, it may slow the president-elect’s immediate agenda as the administration may need to reassess to avoid legal challenges.
Though, others have suggested the findings may not have as significant of an impact. “I very much doubt so,” Anne-Sophie Corbeau, a Global Research Scholar with the Center on Global Energy Policy at Columbia University, told Callie via email, pointing to Trump’s promises to reverse the Biden administration LNG pause. She suggested the incoming administration will likely ask the DOE to still expedite approval for LNG projects, or even suggest foreign nations purchase U.S. produced LNG “in exchange of a better treatment in terms of tariffs.”
“That still does not solve the methane emission problem...but I don't think this administration cares, and whatever issue it may create for future LNG exports to Europe will be felt after their time (2030+),” Corbeau said.
The timing: In January, the Biden administration issued a pause on new LNG export approvals to non-free-trade-agreement countries in order to conduct a study on the climate effects of the projects before giving the green-light. The administration promised to publish a draft version of the report before the end of the year, however, the timing of its release may prevent a complete comment period from occurring. Traditionally, similar draft reports are subject to a 60-day comment period, allowing for feedback from within the industry, foreign gas buyers, exporters, and more. With just over 50 days remaining before Trump takes office, that 60-day window has passed. However, DOE could open a comment period for 30 days once the report is released.
A reminder: Natural gas is considered to be a much cleaner fuel source than coal, as it is primarily composed of methane. However, methane emissions have a greater impact on atmosphere warming as it is considered to be 80 times more potent than CO2 and can leak into the atmosphere at any stage of the production, export, and operation processes.
TRUMP’S EPA PICK FACES BOMB THREAT: Former Congressman Lee Zeldin, Trump’s pick to head up the Environmental Protection Agency, revealed today that he and his family were targeted in a pipe bomb threat.
The details: Zeldin revealed details about the threat in a post to X saying it was sent to his home “with a pro-Palestinian themed message” attached.
“My family and I were not home at the time and are safe. We are working with law enforcement to learn more as this situation develops,” Zeldin said. “We are thankful for the swift actions taken by local officers to keep our family, neighbors, and local community secure.”
Trump’s response: Zeldin wasn’t the only prospective member of Trump’s incoming administration allegedly targeted in bomb threats and swatting on Tuesday and Wednesday. In a statement, transition spokeswoman Karoline Leavitt said several cabinet nominees and Administration appointees faced “violent, unAmerican threats to their lives and those who live with them.”
“These attacks ranged from bomb threats to 'swatting.' In response, law enforcement and other authorities acted quickly to ensure the safety of those who were targeted. President Trump and the entire Transition team are grateful for their swift action,” Leavitt said.
DELEGATES DIVIDED ON UNITED NATIONS PLASTIC POLLUTION TREATY TALKS: More than 170 delegates began talks on Monday to reach a global agreement on curbing plastic pollution, but at the halfway point of the meeting, delegates say there has been little progress on a deal, Reuters reports.
South Korea is hosting the fifth United Nations Intergovernmental Negotiating Committee on Plastic Pollution (INC-5). The final session is expected to go through Saturday.
However, delegates said they have yet to agree on the deal’s text, and negotiations on how developing countries will implement the agreement have still not been completed, Reuters said. There have also been disagreements on plastic production caps and waste management.
"It's very, very clear that countries want this deal," said Inger Andersen, UN Environment Programme executive director. "We need to see text on the table tomorrow."
Reuters reports that a delegate from Columbia said during a session that the discussions have taken them back to “situations of prior meetings,” in areas where it should be easier to find agreements on issues like plastic waste management.
Plastic lobbying groups among those in attendance: Meanwhile, the Center for International Environmental Law (CIEL) found that fossil fuel and chemical industry lobbyists are the largest group in attendance at the UN’s final meeting in South Korea. CIEL analysis said 220 fossil fuel and chemical industry lobbyists registered for the final INC-5 session.
“Fossil fuel and chemical industry lobbyists taken together would be the largest single delegation at INC-5, significantly outnumbering the host Republic of Korea’s 140 representatives,” the CIEL analysis stated.
ICYMI: MAINE SUES BIG OIL OVER CLIMATE IMPACTS: Maine has joined several other states in suing oil and gas companies over the impacts fossil fuels have on climate change, targeting giants like ExxonMobil and Shell.
The details: Maine Attorney General Aaron Frey filed the suit in Maine state court on Tuesday, accusing the companies of deceiving the public about the long-term effects fossil fuels have on the environment, particularly in their contribution to extreme weather. Companies like ExxonMobil, Shell, BP, Chevron, Sunoco, and the American Petroleum Institute were named as defendants.
The lawsuit claims the companies knew about “potentially catastrophic consequences” in increasing the use of fossil fuels as early as the 1960s, and failed to warn and inform the public.
“This conduct has resulted in enormous financial burdens, public health impacts, property damage and other harms across Maine as a result of extreme weather, sea-level rise, and warmer temperatures,” the attorney general said in a statement.
The state is pointing to violations of Maine law including failure to warn, negligence, nuisance, trespass, as well as violations under the state’s Unfair Trade Practices Act. Maine Governor Janet Mills has also voiced support for the lawsuit saying these companies have taken “billions out of the pockets of Maine people while deliberately deceiving them about the harmful impacts of fossil fuels.”
“Last winter’s devastating storms are just further proof that climate change is harming our lives, our health, and our economy – and it is time for the fossil fuel industry to be held responsible,” Mills said.
Some background: Maine is the ninth state to file such a lawsuit, which is seeking a jury trial as well as relief through damages, penalties, abatement and disgorgement of profits. Other lawsuits have been filed by New Jersey, California, Delaware, Minnesota, Vermont, Connecticut, Massachusetts, Rhode Island, and the District of Columbia.
CHINA’S EMISSIONS CLOSE TO PEAK: China’s carbon dioxide emissions may be on track to peak next year, if they haven’t already, according to a new study.
The details: Today, the Centre for Research on Energy and Clean Air released a report assessing China’s CO2 emissions and the Asian nation’s progress towards its climate targets. Nearly half of the experts surveyed by the climate think tank (around 44%) now say they believe the country’s emissions have already peaked or will by the end of next year at the latest. This is a significant increase from the 21% of experts that thought the same last year.
While the report indicates emissions may see a small increase of around 0.4% into 2025, experts were optimistic that some of China’s fossil fuel use has already reached its highest level. Specifically, around 36% of experts surveyed now believe that China’s coal consumption peaked this year.
Why this matters: Officially, China has said it is seeking to reach peak emissions by 2030 and hit net-zero by 2060. While many experts believe the nation has already hit its peak, the researchers estimate China is still off track on its broader emission goals, despite having seen rapid progress for electrification, solar, and wind energy. China remains the world’s largest polluter of greenhouse gasses, with coal driving its emissions.
"China will need to either speed up renewable energy deployment even further or guide economic development in a less energy-intensive direction," CREA lead analyst Lauri Myllyvirta told AFP.
SEOUL HIT BY THE LARGEST SNOWFALL IN 100 YEARS: South Korea’s capital, Seoul, was hit by a record 17.2 centimeters of snow for its first snowfall of the season, marking the highest single day snowfall recorded in November in more than 100 years. The snowfall caused delays in transportation by disrupting flights and causing road closures.
Youn Ki-han, director at Seoul's Meteorology Forecast Division, told AFP News the heavy snowfall was caused by the "significant temperature difference between the sea surface and the cold air.”
"Over the West Sea, moisture forms, and when cold air from the north moves down as it typically does, if the West Sea is also cold as in previous years, the temperature difference is smaller," said Youn.
FRANCE LOOKS TO FINANCE NEW NUCLEAR REACTORS: French state-owned power utility EDF is reportedly seeking to secure a zero-interest loan from the government in order to fund the construction of several new nuclear reactors.
The details: Two people familiar with the matter confirmed the plans to Reuters, saying the funds would support a large portion of the construction of six reactors. The size of the loan has not yet been released, however the projects have been estimated to cost more than 50 billion Euros (around $52.60 billion).
The loan comes over two years after French President Emmanuel Macron announced the plans to build the six reactors to provide 10 gigawatts of power for the country’s grid. At the time, Macron reportedly failed to reveal who would fund the project. Construction is reportedly expected to begin in 2027.
Some background: By securing the funds through the government, France re-emphasizes the wave of support for nuclear energy currently sweeping across the west, including in the U.S. Unlike other major European countries like the United Kingdom and Spain, France has long relied on nuclear power to support its grid. The nation currently derives around 70% of its power from nuclear energy.
RUNDOWN
Washington Post The world’s new climate era is better — and worse — for the planet
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