Will ailing firms deliver on carbon removal?

Presented by Chevron: Your guide to the political forces shaping the energy transformation

Nov 03, 2022 View in browser   By Corbin Hiar Presented by Chevron Newly redesigned $100 notes lay in stacks at the Bureau of Engraving and Printing on May 20, 2013, in Washington, D.C. | Getty Images Big tech's nearly $1 billion commitment to carbon dioxide removal over the next decade is looking a bit shaky right now. Four of the major corporations behind the Frontier climate initiative — Alphabet Inc., Meta Platforms Inc., Shopify Inc. and Stripe Inc. — saw their valuations drop by more than $1.5 trillion this year. Another backer, the consulting partnership McKinsey & Co., is under investigation in France and fighting charges in South Africa. That raises questions about whether the companies will deliver on their initiative, which aims to increase the supply and reduce the cost of sucking CO2 from the air and oceans. That would be a problem for the planet: Climate scientists now believe that widespread use of carbon removal technologies is necessary to avert catastrophic global warming . Even in the most ambitious emissions-cutting scenario envisioned by the United Nations, the world will still need to remove more than 5 billion tons of CO2 annually by midcentury. So, what happens if Frontier falters? In the short term, maybe not so much. The United States and European Union are pouring money into subsidies for direct air capture facilities, which use fans and filters to remove carbon from the atmosphere before pumping it underground. Policies like the new climate law "may help kind of counteract what might happen in the corporate sector," said Wil Burns, an environmental policy professor at Northwestern University who helps vet carbon removal proposals as a technical reviewer for Frontier. But corporate purchases of carbon removal will still be necessary to grow the emerging sector. "One of the realities right now is that there is way too much demand for way too little supply" of permanent carbon removals, Burns added. "It won't be that way forever." Shopify, Meta and Alphabet didn't respond to requests for comment. Stripe declined to provide a public response. "We remain committed to Frontier and all of our climate-related commitments," McKinsey spokesperson Neil Grace said in an email.   It's almost Friday — thank you for tuning in, and turning on, POLITICO's Power Switch. I'm your host today,  Corbin Hiar.  Arianna will be back soon! Power Switch is brought to you by the journalists behind E&E News and POLITICO Energy. Send your tips, comments, questions to chiar@eenews.net Today in POLITICO Energy's podcast: POLITICO's Ry Rivard breaks down how construction and green interests are colliding in New Jersey.   A message from Chevron: The fuels of the future can come from unexpected places. Find out how Chevron is working with partners to convert the methane from cow waste into renewable natural gas. Learn more.   tweets worth reading The International Energy Agency released a new analysis today that warns Europe could face a gap of as much as 30 billion cubic metres of natural gas next summer, a key period for refilling its gas storage sites. The agency emphasized the need for governments to reduce gas consumption now.   A message from Chevron:   Power Centers Senate Energy and Natural Resources Chair Joe Manchin (D-W.Va.) during a hearing Thursday. | Francis Chung/E&E News Defensive strategy Senate Energy and Natural Resources Chair Joe Manchin is working to get his stymied permitting reform into next year's must-pass Pentagon spending bill, Nico Portuondo reports . "I've tried to put it in the continuing resolution, and I'm working now on getting it in the National Defense Authorization," the West Virginia Democrat said Wednesday at Stanford University's Global Energy Forum. Cut the gas The federal government's real estate management agency is working on going fossil fuel-free, Kelsey Brugger reports . The General Services Administration announced Thursday that Inflation Reduction Act funding will not be used to install boilers, furnaces or other equipment that burns fossil fuels at any of its 1,500 buildings across the country. Albany reversal New York has been a national laboratory for aggressive climate policy. But all that could be reversed on election night, Benjamin Storrow and Scott Waldman report . The Empire State has banned fracking, blocked natural gas pipelines, committed to phasing out internal combustion engines for passenger vehicles and passed a climate law that would slash emissions 40 percent by the end of the decade. Rep. Lee Zeldin, the Republican gubernatorial candidate, wants to undo those policies. in other news Europe's temperatures rose more than twice the global average over the past three decades, according to a new report from the World Meteorological Organization and Copernicus. A buoylike device was able to capture energy from waves in a trial conducted in Scotland by AWS Ocean Energy.   NEW AND IMPROVED POLITICO APP: Stay up to speed with the newly updated POLITICO mobile app, featuring timely political news, insights and analysis from the best journalists in the business. With a fresh look and improved features, the sleek and navigable design offers a convenient way to access POLITICO's scoops and groundbreaking reporting. Don't miss out on the app you can rely on for the news you need, reimagined. Already a POLITICO app user? Upgrade today! DOWNLOAD FOR iOS – DOWNLOAD FOR ANDROID .     Subscriber Zone Clouds cast shadows near wind turbines at a wind farm along the Montana-Wyoming state line in June. | Emma H. Tobin/AP Photo A showcase of some of our best subscriber content. U.S. wind and energy installations have slowed down after two record-setting years as a combination of inflation, supply chain bottlenecks and trade uncertainties cast a pall over the renewable sector. Siemens Gamesa Renewable Energy told a federal court to reject General Electric's "back of the napkin" offshore wind designs , in the latest spat over whether the Haliade-X turbines can be used in the United States. Danish developer Ørsted is worried about making money on projects approved in New Jersey and other states. Thanks for reading. It's time to power down.   A message from Chevron: Energy demand is growing. Meeting that demand calls for innovation. That's why at Chevron, we're working with partners to convert the methane from cow waste into renewable natural gas. Through our partnerships, we expect to increase our RNG production 10x by 2025. Learn more.     DON'T MISS POLITICO'S 2nd ANNUAL DEFENSE SUMMIT ON 11/16: The United States is facing a defining moment in the future of its defense, national security and democratic ideals. The current conflicts and developments around the world are pushing Washington to reshape its defense strategy and how it cooperates with allies. Join POLITICO for our second annual defense summit, "At a Crossroads: America's Defense Strategy" on November 16 in person at the Schuyler DC or join online to hear keynote interviews and panels discussing the road ahead for America's national security. REGISTER HERE .       Follow us on Twitter Arianna Skibell @ariannaskibell   Follow us

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