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The Worst Natural Disaster in Every State’s History

Source: Chris Graythen / Getty Images

The island of Maui in Hawaii is experiencing truly catastrophic wildfires, which have left at least 36 people dead, as of the time of this writing. Locals and tourists alike have been trapped by the rapidly-advancing fires, which have have reportedly spread to the neighboring islands of Hawaii and Oahu. The fires have spread so quickly due to the strong winds from Hurricane Dora, a Category 4 storm moving through the Pacific, south of Hawaii. These fires have quickly become one of the worst disasters in Hawaii in recent memory, but are still far from the most catastrophic in the state’s history, at least based on death counts.

As one of the biggest countries in the world, the United States is also one of the most geographically diverse — from deserts to forests to miles of coast line. While this comes with many advantages, this unfortunately leaves the country vulnerable to all kinds of natural disasters.

Different parts of the United States face different types of natural disasters. The West Coast is at risk of wildfires, earthquakes, and even volcanic eruptions. The Southern part of the country is frequently hit with tornadoes, and the East Coast faces the threat of devastating hurricanes every year. These natural disasters not only destroy property and present serious problems to the economy, but also claim hundreds of lives every year. Midwestern areas near rivers are often inundated with massive floods — these are the worst floods in American history.

24/7 Wall St. reviewed government sources on the weather event in each state’s history that caused the highest number of fatalities to determine the worst natural disaster in every state.

Thanks to their geography and location, some states have not faced any mass-casualty weather events. Many other parts of the country have been less fortunate, experiencing massive storms and floods that have claimed the lives of hundreds or even thousands of Americans. Many such events, like the 1900 hurricane that hit Galveston, Texas killed so many people that getting an accurate final death toll was virtually impossible, especially during that era.

American weather continues to become more volatile. In 2022, there were 18 weather events that each caused over $1 billion in damage. And in many parts of the country, these weather events could become even more destructive because of global warming — here are the deadliest billion-dollar disasters in US history.

Click here to see the worst natural disaster in every state
Click here to see our methodology

Lessons from Maui as global warming finds a new way to wreak havoc

Source: Stuart_Shaw / iStock via Getty Images

Hawaii is no stranger to natural disasters. Its history is fraught with hurricanes, tsunamis, volcano eruptions, even some wildfires. But this week’s wildfire fueled by winds from a passing hurricane was unique. The resulting destruction of historic Lahaina on Maui marks another sad notch on the belt of new ways that global warming has found to attack humanity.

Because of these frequent disasters, Hawaii is also adept at rebuilding. Some of the greatest family and business fortunes on the islands over the past few centuries have come from investment, mostly land, in the wake of natural disasters. While tourists are fleeing Maui this week, there is no doubt they will be back. It’s that special.

Sadly, it was changing business conditions that also helped fan the flames. The historic pineapple plantations that made Hawaii an agricultural center decades ago have been closed in recent years as it became cheaper to plant elsewhere, resulting in thousands of acres of empty grasslands, susceptible to fire.

For those looking for investment lessons from this deadly tragedy, it’s that the pace of natural disasters is picking up dramatically. More than a dozen in the U.S. alone so far this year that will cost more than $1 billion. Last year there were 18. Soaring insurance premiums and the continued loss of coverage in high-risk areas are the inevitable result. How this translates to financial sector risk — and pending risk disclosure regulations — are the key questions heading into the autumn.

For our part, we’ll be donating to the humanitarian funds on Maui, and hopefully visiting there again soon to lend support where we can. Hawaii may be down, but it’s not out.

Zeus: Political plan emerges that could end the climate culture debate – for good

. . . . Anti-ESG disruption by some Republicans has largely failed to persuade investors and business leaders from considering climate change in their strategies, as they prefer to believe the impact of global warming they can see right before their eyes, writes David Callaway. But a new strategy by those planning for a right-wing win in the presidential election next year, dubbed Project 2025, would essentially eliminate the progress the Biden Administration has made on the environment to date. Plans to roll back all renewable energy incentives and double-down on drilling, while not unexpected, would come at a time when it might actually be too late to wait for another election in four years. This election, for all its other importance, is make or break for efforts to fight climate change. . . .

Read the full column

Thursday’s subscriber insights

Rivian, other EV shares caught up in market correction

. . . . When Callaway Climate Insights went to press (uh, send) earlier this week, Rivian $RIVN had just posted better than expected earnings and improved production numbers of its popular new trucks, with shares initially higher. But what a difference a couple of days make.

Shares of Rivian and most of the other EV makers fell in the last few days, dragged down by a pessimism that was more just a risk-off theme about the entire market rather than their individual survival stories. While challenged, Rivian appears to have the best chances of its class of 2020, which includes Nikola $NKLA , Fisker $FSR , Lucid $LCID , and Canoo $GOEV . It’s on pace to make 52,000 vehicles this year, which while not Tesla $TSLA (2 million) is certainly showing signs of scale, as well as demand. That shares had climbed more than 35% year to date before this week’s earnings probably put it in the category as a good candidate for profit-taking in this week’s carnage.

We aren’t convinced it’s out of the woods yet, but it likely has the best chance of being around to report second quarter earnings next year. . . .

Marvel Fusion deal with Colorado State pushes laser research

. . . . It was apparently just coincidence that the day after Lawrence Livermore Labs in California announced a second breakthrough in nuclear fusion research this week that German fusion company Marvel Fusion announced a $150 million joint venture with Colorado State University to expand short-pulse laser technology research.

At least, that’s according to Moritz von der Linden, who said Marvel knows the California group and supports their success. For Marvel’s part, von der Linden said the CSU deal to build a new laser lab will allow the company to expand its research and ultimately, with the help of Germany’s Siemens Energy, to gain a major customer and “built the first power plant of this type in the next decade.”

CSU said Marvel is one of the top three leading laser fusion companies in the world and that it has worked with them for years leading to this expanded partnership.

Meanwhile, one astute Callaway Climate Insights reader chimed in on our item earlier this week about the search for public fusion plays that the noise about fusion — which is nowhere near proven as a scalable, efficient energy source – distracts investors from the gains in mainstream nuclear fission (the splitting of atoms as opposed to the smashing together) companies.

The reader said NuScale Power $SMR , which is an early startup in the equally nascent, small module nuclear reactor business, is a bargain after it lost more than half its value in the last year. The shares were up on Thursday, proving that the nuclear theme continues to attract interest, even with this summer’s Oppenheimer movie out there. . . .

Who wants renewables? Raise one hand. Then the other

. . . . A tale of two Americas: On the one hand, there’s the 48% of Americans who say they are not even moderately concerned about the environment. That’s according to research from Numerator, which Mark Hulbert wrote about in a column headlined Has anti-ESG backlash made corporate America less green? And on the other hand, or maybe the same hand, there’s also the two-thirds of American adults who say they want the government to encourage production of solar and wind power, according to the Pew Research Center.

So, if the research is to be believed (and it is good research), half of Americans aren’t worried about environmental issues, but a majority still think the government should get behind renewables. Canary Media notes political divides somewhat align with peoples’ opinions on the environment and green energy: “Nine in 10 Democratic-leaning folks support the U.S. taking steps to become carbon neutral by 2050, but only 44% of Republican-leaning folks support this goal.” The Pew data also show an age gap, with younger Americans more likely to support phasing out fossil fuels.

It’s worth noting that in the Pew Research data, 66% of U.S. adults say the feds should encourage production of wind and solar power, while at the other end of the spectrum, 39% think the government should discourage coal mining. In the middle, there’s a pretty wide cushion of people who think the government should neither encourage nor discourage production of wind and solar power, the use of electric vehicles, production of nuclear power, oil and gas drilling, or coal mining. Maybe the respondents are hedging their bets. Like the Big Oil companies are. . . .

Editor’s picks: Record temps drive food prices higher

High temps driving global food prices higher

Record high temperatures are helping drive food prices higher around the world, says the World Economic Forum. A new report from the WEF calls on the financial sector to direct more resources into helping the food and agriculture sector to become more sustainable. “Over recent years food prices have been inflated by the pandemic and war in Ukraine — this summer’s extreme temperatures are exacerbating the problem. Soybeans, olive oil and rice are just three of the products being affected by shortages and price hikes,” the report says. The group says that while it’s normal for food prices to fluctuate alongside the seasons, the exceptionally hot and dry summer being experienced from Europe, to the US, to Asia and beyond has caused poor harvests and many crops to fail. Some crops are more susceptible to climate change than others.

Swiss Re: Thunderstorms top catastrophe losses

Swiss Re Institute says in new research that severe thunderstorms account for up to 70% of all insured natural catastrophe losses in the first half of 2023. The Zurich-based organization said in a statement that global insured losses from natural catastrophes are estimated at $50 billion, the second highest since 2011. In the U.S., thunderstorms were the main driver of global insured losses from natural catastrophes, well above 10-year average. Swiss Re Institute also said February’s earthquake in Turkey and Syria was the single costliest disaster both in terms of economic and insured losses. It said the quake resulted in insured losses estimated at $5.3 billion, whereas the preliminary economic losses are at $34 billion, estimates the World Bank.

Explain that: Great. Now we have a rock made of plastic

. . . . It’s sometimes referred to as “a new type of rock,” but in truth plastiglomerate is really a new incarnation of plastic. Rocks, as scientists note in Nature.com, “are formed naturally, whereas plastiglomerate is composed of anthropogenic products (plastic) shaped by anthropogenic processes or actions (burning).” Plastiglomerate was first documented in 2014 and continues to proliferate across the surface of the planet. It was described as a type of rock cobbled together from plastic, volcanic rock, beach sand, seashells, and corals that had begun forming along the shores in Hawaii. Geologist Patricia Corcoran of the University of Western Ontario in London, Canada, and Charles Moore, captain of the oceanographic research vessel Alguita, found the “rocks” on a beach on the Big Island of Hawaii. In a paper in the Geological Society of America, they wrote, “Our results indicate that this anthropogenically influenced material has great potential to form a marker horizon of human pollution, signaling the occurrence of the informal Anthropocene epoch.” Plastiglomerates not only are long-lasting signs of human impact, they also signal the urgency of dealing with the global plastic pollution problem, especially in our oceans. . . .

Words to live by . . . .

“While the path forward to a cleaner and more sustainable energy future for planet Earth will not be easy, and mistakes will certainly be made, the choice we face is pretty clear. Either we maintain the status quo and continue to see more heat waves, drought, floods and extreme weather disturbances or we move away from fossil fuels and do our best to make sure that the planet we leave our kids and future generations is healthy and habitable.” — U.S. Sen. Bernie Sanders.

Callaway Climate Insights

The 16 Most Important Issues to Americans, Ranked

Source: Everett Atlas / iStock Editorial via Getty Images

Though the 2024 presidential election is over a year away, campaign season is heating up. Already, candidates on both sides of the aisle are honing their messaging in an attempt to connect with voters. While much of the political discourse has so far focused on former President Donald Trump and his legal troubles, the most important issues to the public at large are much broader in scope. A successful bid for the White House will, in all likelihood, go to the candidate who can most effectively speak to those issues. 

According to a June 2023 survey conducted by the Pew Research Center, 16 major problems facing the country are top of mind for large swaths of the general public. These problems fall under several policy categories, including public health, the economy, national security, and more. 

Using Pew survey data, 24/7 Wall St. identified the most important issues to Americans in the coming election. The 16 respective issues on this list are ranked by the share of surveyed adults who see them as a “very big problem.” We also assessed the partisan divide for each issue, by comparing the share of Democrats and Democratic-leaning adults who see it as a “very big problem” with the share of Republicans and Republican-leaning adults who do. 

The share of American adults who perceive each of the issues on this list as a very big problem ranges from 24% to 65%. Issues like unemployment, infrastructure, and domestic and international terrorism rank near the bottom of the list, while inflation, health care affordability, and drug addiction rank near the top. (Here is a look at the U.S. counties where opioid prescriptions outnumber people.)

Notably, the divide between Republican and Democratic voters in how these issues are perceived is often striking. For example, among Democrats and Democratic-leaning independents, climate change is seen as one of the most serious problems, with 64% of the cohort agreeing it is a “very big problem” – more than four times the 14% share of Republicans and Republican-leaning independents who do. (Here is a look at the states where carbon emissions are rising fastest.)

For Republicans, few issues are more important than illegal immigration, as 70% of party members and conservative voters surveyed agree it is a very big problem. Meanwhile, only 25% of Democratic voters do. 

Click here to see the most important issues to Americans.

Zeus: Political plan emerges that could end the climate culture debate – for good

Source: Maxiphoto / iStock via Getty Images

(David Callaway is founder and Editor-in-Chief of Callaway Climate Insights. He is the former president of the World Editors Forum, Editor-in-Chief of USA Today and MarketWatch, and CEO of TheStreet Inc. His climate columns have appeared in USA Today, The Independent, and New Thinking magazine).

SAN FRANCISCO (Callaway Climate Insights) — The Republican backlash against climate change investment and regulation in the past year has largely failed to convince most investors, business leaders, or even voters that it is a defining political and cultural issue. Now strategists are taking out the big guns.

Project 2025, first reported over the weekend by The New York Times, is a blueprint for the next Republican president to essentially dismantle President Joe Biden’s climate law and any new regulations tied to it, and simply call for more drilling. The 1,000-page plan is part of a strategy to place more authority over any laws in the hands of the executive branch.

While not unexpected, its threat vaults climate change to the front of 2024 presidential campaign issues. …

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ESG risks start filtering into merger deals as disaster costs soar

Source: CHUYN / Getty Images

In today’s edition:

— ESG risks, still not thoroughly disclosed, start to filter into mergers due diligence
— Jockeying for nuclear fusion plays to surge after second breakthrough
— As offshore wind projects gear up on East Coast, a profit warning from Europe
— Lucid shares rise as steady production and shipping news offsets losses; Rivian also higher
— Paris halts Olympic swim warmup in the Seine a year before Opening Ceremonies
— Rare earths aren’t as rare as you might think; they’re just in China

Despite the controversy over climate risk disclosure in public companies in the U.S., more and more environmental, social and governance (ESG) factors are seeping into merger deals and debt sales, according to a new survey by KPMC.

The soaring costs of climate disasters — more than a dozen in the U.S. over $1 billion so far this year — means that bankers and debt providers increasingly want to know whether risks other than normal restructurings are in play, such as global warming. More than half the respondents to the survey said they’ve seen deals canceled over concerns about climate red flags in the due diligence process.

Almost half said they’ve seen purchase price cuts result from the exposure of climate risks. The findings illustrate that no matter how much some politicians argue ESG strategies are harmful to investment returns, large investors, bankers and lawyers are still going to search for them in the course of their business.

It will be interesting to see if this will be reflected in the Securities and Exchange Corporation’s new climate disclosure rules when they are unveiled this fall, perhaps as early as October. After all, if bankers and mergers experts are combing through corporate balance sheets looking for climate risk, and pricing it, why shouldn’t the same data be available to small investors looking to buy and sell securities?

Standard & Poor’s said this week it will drop ESG scores from its debt ratings, presumably in reaction to the backlash from companies that scored low, and states and localities where politicians are hostile to ESG. While ESG ratings certainly need an overhaul — and a rebranding — the loss of any existing data points are worrying.

Lack of data is the biggest problem investors have with identifying and managing climate risk today. As long as there is no national standard, the playing field will remain uneven.

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Sizzling pavements a new climate threat; plus Barbie’s English guesthouse visit

Source: Hollydc / iStock via Getty Images

(A native of England, veteran journalist Matthew Diebel has worked at NBC News, Time, USA Today and News Corp., among other organizations. Having spent much of his childhood next to one of the world’s fastest bodies of water, he is particularly interested in tidal energy.)

Hot news: The real Barbie dropped by my house!

What’s hotter than the weather this summer? The new “Barbie” movie. And what’s something crazy that I just learned about the real Barbie? That she visited my childhood home!

OK, so this is not a usual column item where I discuss some aspect of climate change or how to fix it. Instead, this is news that I just learned from my sister that I could not resist sharing.

The story — the first part of which I knew — goes like this: My mother grew up in an East London suburb called Ilford which had a large Jewish population. Next door to her was the Myers family. My mother was very much a fan of Mrs. Myers, first name Fay, who was very warm and talkative. I don’t have any information on Mr. Myers, who I believe died fairly young.

And there were two sons, a bit younger than my mother, Howard and Stuart, who were bright young men. Both became successful architects and both moved to California.

And that’s where Barbie comes into the picture. Somewhere along the way, Howard met Barbara Segal, the daughter of Ruth Handler, the woman who invented the Barbie doll, which was launched in 1959 and was named after her daughter. (Meanwhile, Barbie’s boyfriend, Ken, was named after Handler’s son.)

My sister is unsure whether Howard and Barbara got married or were, in the modern fashion, partnered (she kept her last name, Segal, from a short-lived first marriage). But they were definitely together.

How do we know that? Here’s the lowdown: As I mentioned, my mother adored the boys’ mother, Fay, and visited her often in London. The boys, probably feeling guilty because they were so far away, were very grateful and asked my parents (and my sister) to California and to their Barbara and Howard’s home in a swanky gated community. “I couldn’t believe how posh it was,” reported my sister.

And now — drum roll, please — the shocking news: Some time after the California visit, Howard and Barbara visited England to see his mother — and they came to my parents’ house (I was in the U.S. by this time), which was a small farm southeast of London.

And thus Barbie visited my childhood home!

My sister, meanwhile, hated Barbie dolls with a vengeance.

Hot outside? A burning reason to stay upright.

When I was in Arizona about 18 months ago for a short getaway with friends, I took a tumble. We were on a hike along a scenic stream near Sedona when I tried to cross the water via a series of boulders — and fell in. It was injurious because I felt stupid, got soaked and also busted a couple of ribs. Ouch!

So, given my predisposition to fall — I recently tumbled down some stairs — I’m glad I’m not back in Arizona now, particularly in Phoenix (which we also visited). Why? Because not only are you going to get breaks and bruises if you fall but you are also likely to get burned. Eeek!

That’s right — it’s so hot in Maricopa County, of which Phoenix is a part, that people are being brought into emergency rooms with significant, sometimes life-threatening burns.

With temperatures consistently in the 110-120F range, asphalt and concrete roadways and sidewalks are sometimes heating to 180 degrees. “I mean, it’s just a little below boiling, so it’s really something,” Dr. Kevin Foster, director of burn services at the Arizona Burn Center at Valleywise Health, told CNN, adding that every bed in the center is full.

It can take only a “fraction of a second” to get a “pretty deep burn,” Foster continued. For people who have been on the pavement for 10 to 20 minutes, “the skin is completely destroyed” and the damage often goes down deep, meaning it is a third-degree burn.

Another physician at the center, Dr. Frank LoVecchio, told of treating an elderly patient who fell out of her wheelchair and, despite being picked up immediately, received considerable injuries on her legs. “It only takes a few seconds for you to get a third-degree burn,” he added.

Pets are also at risk, with Rena Carlson, president of the American Veterinary Medical Association, telling the network that owners should keep cats inside and walk dogs early in the morning or late at night. Dog booties are also a good idea, she said.

Arizona’s a great place to visit, but only in the winter for me.

And no more boulder-hopping.

I’m in love with my ancient iPhone

In 2017 I bought an Apple $AAPL iPhone. It was the first-generation SE model, the same size as an iPhone 5 and with the guts of a 6.  And I still have it, seeing no reason to replace it. It sits nicely in my hand, enabling me to do my one-thumbed typing. And it still works perfectly (having had a couple of new batteries over the years). In addition, being a reasonably conscientious steward of the environment, I would hate to throw it away (no one is going to buy something so antiquated).

But I am pretty much alone — most people change their smartphones every two or three years, meaning that about 151 million of them are cast aside every year in the U.S., according to the WEEE (waste electrical and electronic equipment) Forum, with only about 17% of them being properly recycled.

And then there’s the matter of their manufacture. For instance, Gregory A. Keoleian, director of the Center for Sustainable Systems at the University of Michigan, told Popular Science that the current iPhone 14 Pro contributes 65 kg of carbon emissions throughout its lifecycle, about the same as driving 167 miles in an average gasoline-powered car. Of this, about 80% is a product of its manufacture, including the mining, refining and transportation of its components.

OK, I’ve been lucky in my phone’s longevity, but they get dropped and the innards can fail — and often cannot be repaired. Which brings us to the Murena Fairphone 4, the product of a Dutch company that is touted as being easily repairable (even by amateurs) and made with responsibly-sourced materials. It has all the usual features and pretty much looks like most phones from Apple, Samsung and others.

The repair aspect is important, with Joy Scrogum, assistant scientist of sustainability at the Illinois Sustainable Technology Center, telling Popular Science that allowing consumers to fix issues and upgrade features without having to replace the entire phone is much less wasteful. “In other words, plan for durability rather than obsolescence,” she said.

And there’s another thing: “Keep in mind that phones which are designed to be easier to take apart for repair are also easier to disassemble at their end-of-life so components and materials can be reused or recycled.”

I’m not wishing for its demise, but when my SE gives up the ghost, a Fairphone may be in my future.

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States With the Most Weather Disasters Over the Past Decade: All 50 States Ranked

Source: horkins / iStock via Getty Images

In the last 10 years, 9 out of every 10 counties in the United States have experienced a federally declared climate disaster, according to a report released late last year. Disasters including hurricanes, wildfires, blizzards, floodings, and other types of extreme weather events struck almost every part of the country.

This means most U.S. residents are potentially in the path of natural disasters, which are becoming more frequent and powerful amid global warming.

To find the states with the most weather disasters, 24/7 Wall St. reviewed the Atlas of Disaster report published by Rebuild by Design, a nonprofit that helps communities struck by natural disasters. We ranked states by the number of weather disasters from 2011 to 2021 as listed in the report. All data, including federal aid, came from the report. A disaster in a state can span several counties, and therefore the number of counties with five or more disasters can be larger than the number of disasters declared by the state.

Federal aid to help states prepare for and clean up after weather-related events comes largely from the Federal Emergency Management Agency and the Department of Housing and Urban Development. According to the recent report, these agencies have dispersed $91 billion in disaster aid to states from 2011 to 2021, led by $26.3 billion to New York and $14.8 billion to Texas.

Superstorm Sandy in 2012 was the costliest natural disaster in New York and New Jersey in this period of time, while Hurricane Harvey in 2017 and a devastating winter storm in 2021 were the costliest weather disasters in the Lone Star state in that 10-year span. (Here are the most destructive storms in U.S. history.)

Seven other states have received more than a billion dollars in weather-related disaster aid from FEMA and HUD since 2011, including hurricane-prone Florida, Louisiana, and both Carolinas.

Louisiana, the country’s 25th most populous state, ranks at the top in weather disaster aid as measured on a per capita basis. In other words, Louisianans have received the highest amount of disaster aid when adjusting for its population size: $1,736 per resident. The only other state to have per capita FEMA and HUD aid for natural disasters above $1,000 per resident is New York, the country’s fourth most-populated state.

A string of massive seasonal wildfires from 2011 to 2021 helped put California as the sixth largest recipient of federal weather disaster aid. California is also the state with the highest number of climate disaster declarations. Five other states have issued 20 or more disaster declarations from 2011 to 2021: Tennessee, Iowa, Mississippi, and Oklahoma, in part due to powerful weather events like tornadoes and thunderstorm supercells.

California, the country’s largest state by population and gross domestic product, also has 1,966 polluted Superfund sites, the highest number in the nation. Other high-population states like New Jersey, Florida, and New York also have among the highest number of these polluted sites. (Here are the 13 most destructive wildfires in U.S. history.)

Here are the states with the most weather disasters.

Renewable deals rack up as oil firms fight for new markets

Source: LeoPatrizi / E+ via Getty Images

Renewables rule: A large share of the new generating capacity built in the U.S. over the past few years is powered by solar or wind. The U.S. electric power sector added an estimated 14.5 GW of solar generating capacity and about 8.0 GW of wind capacity during the 12 months ending May 31, 2023, according to the U.S. Energy Information Administration. The electric power sector has added an estimated 5.3 GW of battery capacity in the past 12 months, a nearly 90% increase. Above, Crescent Dunes solar project in Nevada.

LONDON (Callaway Climate Insights) — Behind the headlines about energy politics and saving the fossil fuel industry for security from Vladimir Putin in the U.S. and Europe, oil and gas leaders are quietly — and quickly — expanding their renewable portfolios.

As Callaway Climate Insights pointed out last year, the surge in available capital for oil and gas majors as prices soared and oil stocks rose has given them ample cash hoards to pursue acquisitions in the growing renewables industry. Now we’re starting to see deals coming through.

In the past few weeks, Norwegian energy giant Equinor said it will buy onshore wind and solar company Rio Energy of Brazil from its private equity owner, making it one of the largest renewable players in that country. TotalEnergies of France said it would pay $4.2 billion to buy out the remaining 70% of Total Eren, a renewables joint venture, it doesn’t own, shifting its asset mix more toward renewables.

And Exxon $XOM has started talking with EV makers Tesla $TSLA , Ford $F and Volkswagen about supplying them with lithium for their battery operations, as part of a larger foray into lithium mining by oil giant, according to Bloomberg. Lithium mining is a natural adjacent business for a company like Exxon.

Oil leaders realize the world is moving toward renewable energy, and they want to own those businesses. A period of consolidation is inevitable as oil cash meets renewable capital calls to build what TotalEnergies CEO Patrick Pouyanne calls a “profitable integrated power player.”

It may be that the Europeans will move first, but when the big U.S. oil giants start to get more serious, we should expect deals in America as well. Not for nothing are the likes of BlackStone $BX and JPMorgan Chase $JPM suddenly investing in carbon capture technologies.

For investors, this means the rotation back into renewable stocks after almost two years in the wilderness as oil and gas stocks rose, at some point becomes an interesting play. The question is whether it’s sooner or later.

Private equity’s ESG record reveals troubling trend

. . . . The never-ending battle over whether investors should engage with fossil fuel firms to make them more climate friendly or divest from them entirely has now spilled into the massive business of private equity, writes Mark Hulbert. Pushing his thesis that divesting from oil companies simply leaves them to do what they want or go private, Hulbert cites a new study that reveals the record of the biggest PE firms on environmental, social and governance standards is almost non-existent, and that the vast majority of their energy holdings are oil and gas companies. . . .

Read the full column

Thursday’s subscriber insights

Al-Jabar’s Occidental deal cements COP28’s carbon capture focus

. . . . Any doubts that this fall’s UN climate summit, COP28, would be a celebration of all things carbon capture and storage were dispelled this week when Occidental Petroleum $OXY and COP28 President Sultan Ahmed Al-Jabar’s UAE national oil company announced a deal to explore investment in what could be dozens of carbon capture and storage plants, including one in the UAE.

The agreement between Al-Jabar’s Abu Dhabi National Oil Company (ADNOC) and Occidental, which is a quarter owned by Warren Buffett’s Berkshire Hathaway (BRK.A), creates the groundwork to build financing for what Occidental hopes could be as many as 100 plants by 2035.

Carbon capture and storage is fast emerging as the preferred way for fossil fuel companies to comply with the push to fight climate change and mitigate emissions from their product development. By sucking vast amounts of carbon from the air while drilling, they can continue drilling in what is billed as a safe and productive manner. Trouble is, the technology is nascent, and there is no current path to scaling it to the level that would be needed to have a positive impact.

Still, the theory is being pushed, and invested in, by most of the world’s oil majors to some degree, and championed by Al-Jabar, who holds the dual role of president of a climate change event and CEO of the UAE’s national oil company.

While pushing oil companies to invest more in renewable energy is what most climate diplomats prefer, for the moment, carbon capture and storage has, um, captured the attention of both oil executives and Wall Street. For those looking to this year’s COP for progress in actually decarbonizing the world’s economy, it might be worth saving the money (and the flight emissions) on the trip to Dubai in November for next year’s summit. . . .

British car industry stirs China EV security fears

. . . . They don’t call this time of summer the silly season for nothing. Of all the reasons put forward not to buy an electric car — from range anxiety to flaming batteries to high prices — a British auto industry leader made headlines this week with concerns that they are a national security threat from China.

Ahead of what is expected to be a flood of cheap Chinese EVs in Europe and maybe America as gas-powered cars are phased out in coming years, Jim Saker of the Institute of the Motor Industry said that China could paralyze Britain by remotely turning off hundreds of thousands of vehicles at the same time with spyware. Comparing the threat to the 5G controversy over the tech firm Huawei, Saker and some right-wing politicians said the risk demands any Chinese EV products be scrubbed of any digital data that could carry the spyware.

This type of paranoia is a sign of what could be to come in the U.S. as the China threat grows, and certainly will be an obstacle for China automakers as they try to export the popular BYD models and others over the next few years to compete with Tesla.

But in train-strike plagued Britain this summer, where troubled public transportation has led to massive traffic jams, one wag dismissed the threat of motorways paralyzed with hundreds of thousands of stalled EVs with a simple “how would we know?” . . . .

Editor’s picks: Chevrolet kills (another) electric car; plus, a Rust Belt renaissance?

Entry level Chevrolet Blazer model 1LT is gone

The most affordable Blazer EV you can buy now costs $56,715. That’s because Chevrolet, owned by GM $GM , has killed off the more affordable Chevy Blazer 1LT. A Chevrolet spokesperson confirmed to Inside EVs this week that the 2LT FWD will be the entry-level option of the Blazer EV. Earlier this week, Chevy released details of the 2024 Blazer EV lineup, including finalized prices and EPA range ratings for the trim levels launching this calendar year. The report notes this is likely a disappointment for EV shoppers. The Blazer EV 1LT would have started at $44,995 — almost $12,000 less than the $56,715 Blazer EV 2LT AWD. But maybe Tesla doesn’t mind The Blazer 1LT would have been a legitimate competitor to the Tesla Model Y with a price almost $3,000 less. Chevrolet did not provide details on why it eliminated the 1LT.

Is the Rust Best becoming a climate refuge?

Some of America’s Rust Best cities and towns are experiencing a rebirth, reinventing themselves as “climate refuges” with less risk of extreme weather and more opportunities for growth in renewable energy and sustainability. In a report for Sierra Club MagazineJacqueline Kehoe outlines this Rust Belt renaissance, highlighting how legacy cities — with solid infrastructure — are transforming from de-populated, mostly defunct manufacturing hubs into incubators by attracting “artists, start-ups, creatives, lower-income or first-time buyers, and new residents — like so many climate refugees.” One example is Buffalo, N.Y., which calls itself a “climate refuge city” and is promoting solar, hydropower, and even porous, rain-absorbing pavement, the report says.

How green is your monetary policy?

This article examines the impact of monetary policy on firms’ stock prices across CO₂ emission levels. The authors of Is Monetary Policy Transmission Green? provide a theoretical model in which green firms are less sensitive to MP shocks than brown firms, because they are less exposed to transition risk and provide non-pecuniary utility to investors. They test this prediction by using a panel event-study regression approach on 857 U.S. firms between 2010 and 2019. From the abstract: The results show “robust evidence that firms with high carbon intensity are significantly more affected by policy rate surprises. The sensitivity premium of brown firms remains significant when controlling for classic sources of MP heterogeneity, is persistent, and increases with climate awareness. Our results suggest that the market neutrality principle guiding the implementation of monetary policy could induce a bias toward brown firms.” Authors: Louis Raffestin, University of Bordeaux; Aurélien Leroy, LAREFI, University of Bordeaux; Inessa Benchora, University of Orléans

Words to live by . . . .

“To plant a garden is to believe in tomorrow.” — Audrey Hepburn.

Private equity’s ESG record reveals troubling trend

Source: madsci / Getty Images

(Mark Hulbert, an author and longtime investment columnist, is the founder of the Hulbert Financial Digest; his Hulbert Ratings audits investment newsletter returns.)

CHAPEL HILL, N.C. (Callaway Climate Insights) — When it comes to persuading companies to become more climate friendly, engagement is a more effective long-term strategy than avoidance.

This has been a persistent theme of mine, and a new study provides yet more support for it. If investors make life too intolerable for a polluting publicly-traded company, either by refusing to invest in its shares or by outright selling it short, the company can respond by going private. At that point, of course, investors have even less ability to even get management’s attention.

In other words, if we keep polluting companies from playing on our playground, they may simply go play somewhere else that is off limits to us.

This isn’t a new worry. But what this new study documents is just how poor private equity (PE) firms’ ESG performance really is. If you thought publicly-traded firms come up woefully short in being climate friendly — and many do — then brace yourself for the even-worse performance of PE firms…

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States That Have Elected the Most Green Party Members

Source: R_Berthiaume / iStock via Getty Images

For decades, the share of Americans who identify politically as either Republican or Democrat has been eroding. Meanwhile, the ranks of self-described independent voters have swelled – and this trend shows few signs of slowing. A June 2023 Gallup poll found that 44% of Americans consider themselves independent, up from 38% a month earlier. Meanwhile, the share of Americans who fall into one of the two major political parties has not exceeded 30% since October 2022. 

While most independent voters tend to lean either Republican or Democrat in national elections, their refusal to identify with either of the parties is telling. As one Gallup analyst explained in an interview with Axios, the growing number of independents partially reflects public pessimism toward the two parties and their ability to effectively govern. Indeed, the share of Americans with unfavorable views of both parties surged from 6% in 1994 to 27% in 2022, according to the Pew Research Center.  

Not surprisingly, independents are the voting demographic most likely to be receptive to supporting a third party candidate. And one of the most prominent third parties operating in the United States today is the Green Party – a left-wing organization with a platform focused on environmental protection, universal access to health care, and both social and monetary justice. (Here is a look at the 15 cities raising the minimum wage this summer.)

Though the Green Party has fielded a candidate in each of the last four presidential elections, they have rarely garnered more than 1% of the popular vote. While third party candidates, like those in the Green Party, lack the mass appeal of their major party counterparts, at state and local levels, they have proven far more successful. 

Using data from GPUS Elections Database, a Green Party candidate tracker, 24/7 Wall St. identified the states with the most Green Party members serving in public office. States are ranked by the number of Green Party public officials in office, and in the case of a tie, states are listed in alphabetical order. Only Green Party members who were elected as party members were considered in this ranking. 

According to the database, there are currently 18 states where Green Party members have been elected by the public. The offices held by Green Party candidates range from school board members and county public works officials to town and city mayoral positions and even statewide circuit court justices. (Here is a look at the most and least popular governors in America.)

Supplementary data on the number of registered voters in each state as of 2022 and the share of registered voters who participated in the November 2022 national elections are from the U.S. Census Bureau. The states on this list tend to be home to a larger than typical number of registered voters. Of the 18 states where Green Party members hold offices, 15 rank in the top 50th percentile of states by number of registered voters. 

Click here to see 18 states where green party holds office. 

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