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Welcome to Zeroing In by Speed & Scale, where we cut through the noise to deliver a data-driven update on progress toward net zero.

NEW OUTLOOK ON ENERGY: Governments and companies must invest an additional $34 trillion in the clean energy transition by 2050 to achieve net-zero emissions, according to BNEF’s New Energy Outlook report. Despite a 20% growth in green investment last year, it falls short of the required $1.5 trillion annually for this decade. The report emphasizes the urgency for accelerated spending to reduce emissions, especially as climate policies face political challenges. Two scenarios are outlined: the economic transition scenario, which puts the world on course to warm 2.6 degrees, and the net-zero scenario in which we reach net zero by 2050. To achieve net zero, emissions have to peak this year across all industries—that means investing in global low-carbon energy three times as much as we invest in fossil fuels moving forward.

OKRs in the News

🚗 1.0 – Electrify Transportation

• Good News on EV Industry Growth: Although Tesla sales declined, the EV market is still chugging along. Sales for six of the top 10 electric vehicle manufacturers in the U.S. increased compared to the previous year (Bloomberg).

• Chinese EV Woes: Chinese automakers are facing barriers to entry in both the U.S. and EU, with both regions announcing heightened tariffs (Reuters).

• The Road Has Been 10 Years Long: President Xi Jinping gave a speech 10 years ago that set China on the course to EV domination, betting on fuel efficient and alternative fuel vehicles before the U.S. or Europe. Now, the rest of the world is working to catch up (Bloomberg).

• BYD’s The Shark: BYD has launched The Shark, a hybrid truck with a video ad that’s American West-themed (BYD).

• BYD’s Train, Too: BYD has also introduced a new hybrid powertrain that can travel more than 2,000 kilometers (about 1,250 miles) without needing to recharge or refuel (Bloomberg).

💡 2.0 – Decarbonize the Grid

• IRA Energy Impact: While the Inflation Reduction Act (IRA) led to a monumental surge in clean energy investment, it’s becoming apparent that we need to address the outdated electricity market structures as well to increase the transmission capacity of the grid, argues Brian Deese (Atlantic).

• Battery Powered: China has put the first large-scale, sodium-ion battery into operation—a monumental step for achieving low-cost, scalable energy storage. This is the first phase in a 100-MWh project in southwestern China that will meet the electricity needs of 35,000 residential customers using clean power once completed (CNEV Post).

• Promise of Nuclear Power: Interest and investment in nuclear power is rising around the world, but the World Bank is reluctant to get in on the action, which may create market barriers and slow down this development (Cipher).

• Offshore Wind Boost: Homecoming Capital pledges $50 million to Clean Energy Terminals to develop U.S. port infrastructure for offshore wind projects, aiming to close the gap with Europe and China (Wall Street Journal).

• Modernize the Grid: The White House unveiled a landmark initiative to modernize America’s aging electrical infrastructure in collaboration with 21 states It aims to enhance grid resilience, reduce power outages, and facilitate the integration of clean energy sources amidst rising weather-related disruptions and increasing energy demands (CNN).

• Shifts in Energy Use: Today, per capita, Americans burn about 55% less fossil fuel in their homes than 50 years ago, while simultaneously using almost 90% more electricity (Clean Technica).

🐄 3.0 – Fix Food

• Responding to Rising Cocoa Prices: Ivory Coast cocoa farmers embrace smartphone technology to map farms, meeting EU regulations aimed at protecting rainforests and ensuring cocoa sustainability amidst looming challenges and potential chocolate price increases (Wall Street Journal).

• Bacon Taste Test: Fake meat needs to stack up against the real thing on price, texture, and taste. The Washington Post explores the world of bacon alternatives (Washington Post).

  Domestic Fertilizer Projects: USDA announced it is investing $83 million across 12 states for domestic fertilizer projects that will strengthen competition for U.S. farmers, ranchers, and agricultural producers (USDA).

🌳 4.0 – Protect Nature

• Orange Rivers: Climate change is turning numerous rivers in Alaska orange, with potentially disastrous effects on the region’s ecology and rural communities, according to a recent study. Researchers identified over 75 rivers exhibiting changes in their chemistry (Washington Post).

• Melting Glacier: Satellite data indicates that warm seawater is penetrating farther beneath the Thwaites Glacier in Antarctica than anticipated, potentially accelerating its melting. Were it to fully melt, the glacier would raise global sea levels by up to two feet (Washington Post).

• Bleaching Coral Reefs: Global coral reefs face unprecedented heat stress, resulting in widespread bleaching affecting over 60 percent of reef areas globally (New York Times).

• But, Bison Bring Good News: A herd of 170 bison are contributing significantly to carbon capture and storage—leading to an additional 54,000 tons of carbon a year captured in 50 square kilometers of grasslands (The Guardian).

🧱 5.0 – Clean Up Industry

• New Cement Production Method: Researchers developed a groundbreaking method to recycle cement using electric furnaces from the steel industry, potentially revolutionizing cement production and significantly reducing carbon emissions (Wall Street Journal).

• Not Cleaning Up Industry, Yet: A recent report from the Rhodium Group points out that the U.S. industrial sector is on track to become the country’s largest source of emissions. Despite increased federal support and investments, industrial emissions are projected to decrease by only 5 to 10 percent by 2040 under current policies (Canary Media).

🧹 6.0 – Remove Carbon

• Big Tech Teams Up to Remove Carbon: Tech giants Google, Meta, Microsoft, and Salesforce launched the Symbiosis Coalition to support the development of a nature-based carbon removal market. The coalition aims to contract up to 20 million tons of carbon removal credits (ESG Today).

• Microsoft Carbon Removal Deal: Ørsted inked a landmark deal with Microsoft to sell an additional one million tons of carbon removal over a decade from its Avedøre Power Station, building on Microsoft’s previous commitment to buy 2.67 million tons of carbon from another power station (Ørsted).

• Biden Advances Carbon Removal: The Biden Administration published a joint statement on voluntary carbon markets, an effort to advance the responsible development of these markets in the U.S. (The White House).

🏛️ 7.0 – Win Politics and Policy

• Extreme Heat: Heat-related deaths have tripled since 2004, with 2,300 deaths reported in 2023 alone. OSHA is expected to propose a new rule to protect an estimated 50 million workers exposed to high temperatures, including farm laborers, construction workers, warehouse staff, and kitchen workers (New York Times).

• A Climate Election: Former President Trump allegedly offered to reverse President Biden’s climate rules and regulations in exchange for a billion dollars in campaign funds during a dinner with oil-and-gas executives (The New Yorker).

• IRA Subsidies Shine: Subsidies for solar power, a result of the Inflation Reduction Act, are changing the game for farmers, with $466 million flowing in 2023 through the Rural Energy for America Program (Wall Street Journal).

• Bipartisan Momentum on Climate: Bipartisan support for a border adjustment mechanism signals potential progress in climate policy despite partisan divides (Heatmap News).

• Farm Bill: House Agriculture Chair Glenn Thompson proposed a five-year farm bill. Clashes over climate-related funding and the USDA’s nutrition assistance programs are expected (E&E News).

🏃 8.0 – Turn Movements into Action

• Value in Sustainability: A survey by Morgan Stanley found that more than 80% of companies anticipate financial benefits from sustainability strategies over the next five years, including higher profitability and revenue, improved cash generation, and better access to capital (ESG Today).

• International Inequity in Climate Financing: Wealthy nations reap economic gains from a climate finance program meant for developing countries, channeling funds back into their own economies through loans and grants, undermining the program’s intended support for vulnerable nations (Reuters).

• Climate Action Collaboration: Kenya plans to collaborate with the U.S. to establish a green manufacturing hub, aiming to boost clean energy production, battery and EV supply chains, and attract U.S. investments in renewable-powered factories (Washington Post).

⚡ 9.0 – Innovate!

• The Cleanest Hydrogen Yet: Hysata, an Australian startup, developed a groundbreaking technology to produce hydrogen fuel cleanly and cost-effectively. By mimicking capillary action found in trees, their process splits water into hydrogen and oxygen with 95% efficiency (Yahoo Finance).

• Solar Power is King: Solar power’s lowering costs is unlocking a wave of follow-on investment opportunities. From solar desalination to supersonic flight, the future is bright (Casey Handmer).

• Thermal Energy is Promising: Thermal batteries offer a promising solution to meet the growing demand for industrial heat while reducing reliance on fossil fuels. Companies are developing innovative systems that store electricity as heat, providing a consistent power source for industries (MIT).

💰 10.0 – Invest!

• Financial Risk of Climate Change: As climate change leads to increasingly severe weather events, insurance companies are facing financial losses, even in regions traditionally considered low-risk for hurricanes and wildfires (New York Times).

• South East Asia Off Track: Southeast Asia falls short on green investments to cut emissions, requiring new policies and financial mechanisms, according to Bain & Company. Although green investment saw a 20% increase last year, it remains significantly below the $1.5 trillion target needed for this decade (Reuters).

OKR Highlight

OKR Highlight: 10.0 Invest!

According to the BNEF report, achieving net-zero emissions by 2050 would require an additional 19% in total costs compared to scenarios where net zero is not reached. However, failing to mitigate climate change will result in significant economic damages from extreme weather events. A recent study by the Potsdam Institute for Climate Impact Research projected annual global economic costs between $19 trillion and $59 trillion by 2050, regardless of emissions reduction efforts.

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