Nipped in the Bud

Mar 04, 2022 View in browser   By Debra Kahn and Jordan Wolman THE WEEK THAT WAS Budweiser beer cans are on ice. | (Whitney Curtis/AP Photo) THIS BUD'S ON PUTIN: The King of Beers has a plan to make its cans more sustainable. But an aluminum manufacturer that was going to produce its low-carbon cans is in Russia — so that's a problem, as E&E News' Jael Holzman and Corbin Hiar report. En+ Group is one of the world's largest producers of low-carbon aluminum. The company uses hydropower and a pioneering aluminum extraction method to make its manufacturing process nearly emissions-free. That's what led Budweiser's UK and Ireland arm to announce a deal with En+ in September to produce 5 million "ultra-low carbon" cans. It touted the agreement in December as part of its push to achieve net-zero carbon emissions across its operations by 2040. Budweiser is now distancing itself from En+, less than six months after announcing the collaboration. The "pilot project to produce the low-carbon can has concluded and we have no ongoing contract with En+/Rusal," Budweiser parent Anheuser-Busch InBev SA/NV spokesperson Ana Zenatti said in an email, adding that the company was "focused on supporting our Ukrainian colleagues and the humanitarian efforts for those affected." The war could hamstring Russia's low-carbon industries and any companies looking to do business with them. Ball Corp., a can-making company that inked a similar deal with En+ last year, didn't respond to a request for comment on the status of that partnership. "[Russia] is such an important part of the green supply chain in aluminum, and I don't see a way out of that conundrum," said Uday Patel , a principal analyst at Wood Mackenzie. If the turmoil surrounding Russian resources is unresolved by "the middle of this year," Patel said, "there is the potential for a reversal of trying to lower carbon in our consumer products." PUT UP OR SHUT UP: Russia's invasion of Ukraine poses a textbook ESG question for all companies, according to Russia expert Fiona Hill, in case you missed Maura Reynolds' sobering, grounding interview with her earlier this week. "Ordinary companies should make a decision. This is the epitome of "ESG" that companies are saying is their priority right now — upholding standards of good Environmental, Social and Corporate Governance," Hill said. "Just like people didn't want their money invested in South Africa during apartheid, do you really want to have your money invested in Russia during Russia's brutal invasion and subjugation and carving up of Ukraine?" IMPORT BAN COLLECTING STEAM: Politicians are showing increasing appetite to cut off Russian oil imports despite the risk of raising energy prices further during the runup to midterm elections, Josh Siegel reports. Sen. Joe Manchin (D-W.Va.) and Sen. Lisa Murkowski (R-Alaska) introduced a bill Thursday with 16 other sponsors to block imports of Russian oil and said they would take the blame for a jump in gasoline prices that would likely follow. House Speaker Nancy Pelosi is also on board. The White House still is not, with press secretary Jen Psaki saying Thursday "we don't have a strategic interest in reducing the global supply of energy, and that would raise prices at the gas pump for the American people." SUSTAINABLE FINANCE Pipes at the landfall facilities of the 'Nord Stream 2' gas pipeline are pictured in Lubmin, northern Germany, Feb. 15, 2022. | (Michael Sohn/AP Photo, File) JPM IN THE CROSSHAIRS: As companies continue to flee Russia, environmentalists are highlighting JPMorgan Chase & Co.'s relationship with Gazprom, E&E News' Avery Ellfeldt reports. According to data from Rainforest Action Network, JPMorgan is the natural gas giant's largest global banker, providing roughly $3.5 billion in financing from 2016 through 2020. No other U.S. banks are in the top 10, RAN says. "[T]his just feels like a really big one that hasn't gotten much, if any, attention," said Jason Disterhoft , who leads Rainforest Action Network's fossil fuel financing campaign. JPMorgan, meanwhile, announced that effective Tuesday, new debt issued by sanctioned Russian entities will not be eligible for the firm's investment indices. The bank also said it is mulling the possibility of removing Russia from its ESG fund suite. Avery also notes: MSCI ESG Research LLC earlier this week downgraded Russia's environment, social and governance rating to the second-lowest level. WHAT WE'RE CLICKING — Russian oligarch Roman Abramovich is selling Chelsea FC and putting the proceeds into a foundation to benefit Ukraine war victims. He's already received several bids of around £3 billion, Sports Illustrated reports. — Hydrogen hopes: Colorado, Wyoming, Utah and New Mexico are working together on a bid for some of the $8 billion in federal infrastructure funding reserved for hydrogen fuel development, the Colorado Sun reports.   SUBSCRIBE TO NATIONAL SECURITY DAILY : Keep up with the latest critical developments from Ukraine and across Europe in our daily newsletter, National Security Daily. The Russian invasion of Ukraine could disrupt the established world order and result in a refugee crisis, increased cyberattacks, rising energy costs and additional disruption to global supply chains. Go inside the top national security and foreign-policymaking shops for insight on the global threats faced by the U.S. and its allies and what actions world leaders are taking to address them. Subscribe today.     YOU TELL US GAME ON – Welcome to the Long Game, where we're delivering the latest on efforts to shape our future. Tuesday through Friday, we'll have data-driven storytelling, compelling interviews with industry and political leaders, and more news to keep you in the loop on sustainability. Our team is sustainability editor Greg Mott, deputy editor Debra Kahn, reporters Lorraine Woellert and Catherine Boudreau and digital producer Jordan Wolman. Reach them at gmott@politico.com, dkahn@politico.com , lwoellert@politico.com, cboudreau@politico.com and jwolman@politico.com. Thanks to Jael Holzman, Corbin Hiar, Maura Reynolds, Josh Siegel and Avery Ellfeldt for contributing today. Want more? Sign up for the Long Game. Four days a week and still totally free! LOOK AHEAD Events are listed in Eastern Time March 7 — The American Bankers Association hosts its Washington summit through March 9 starting at 8:30 a.m. March 7 — The Institute of International Bankers hosts its Washington conference on March 7 and 8 starting at 9 a.m. March 7 — The Council of Institutional Investors hosts its spring conference in Washington through March 9 at 9 a.m. March 8 — The United States Energy Association holds an International Women's Day discussion at 10 a.m. March 8 — A House Agriculture subcommittee discusses the 2022 Farm Bill at 10 a.m. March 8 — A House Energy and Commerce subcommittee holds a hearing on American manufacturing and electric vehicles at 10:15 a.m. March 8 — The Pew Charitable Trusts holds an event to discuss flood resilience and adaptation planning at 3 p.m. March 9 — The House Select Committee on the Climate Crisis meets to discuss strategies for adaptation and resilience at 9:30 a.m. March 9 — Our Energy Policy will discuss the transportation sector and the state of electric vehicles at 12 p.m. March 9 — The American Council on Renewable Energy will discuss at 3 p.m. the implications of the West Virginia v. EPA Supreme Court case on renewable growth and the Clean Air Act. March 10 — Resources for the Future discusses the future of carbon pricing at 10 a.m.   DON'T MISS CONGRESS MINUTES: Need to follow the action on Capitol Hill blow-by-blow? Check out Minutes, POLITICO's new platform that delivers the latest exclusives, twists and much more in real time. Get it on your desktop or download the POLITICO mobile app for iOS or Android. CHECK OUT CONGRESS MINUTES HERE.       Follow us on Twitter Catherine Boudreau @ceboudreau Debra Kahn @debra_kahn Greg Mott @gwmott Lorraine Woellert @Woellert Jordan Wolman @jordanwolman   Follow us

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