Welcome back, climate leaders.

In today’s edition:

• 🚗 GM announces a crazy expensive Cadillac EV

• 👷🏼 Oil companies struggle to attract fresh talent

• 😎 A look at solar market growth with and without the IRA

Read time: 5 minutes

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BIG STORY

A big and crazy expensive electric Cadillac

Driving the news: General Motors (GM) plans to build an all-electric version of the Cadillac Escalade priced at a whopping $130,000.

• This move is part of GM's strategy to revive its Cadillac unit by going all-electric by 2030.

• The EscaladeIQ aims to attract luxury shoppers who are increasingly opting for electric vehicles (EVs) and win back buyers who have turned to foreign competitors and Tesla.

What's happening: The EscaladeIQ, equipped with a 55-inch digital dashboard, will hit dealerships next year alongside the gasoline-powered version, which starts at around $81,000.

• To achieve this, GM needs to increase production of its Ultium battery packs, overcome manufacturing challenges, and address setbacks in software and production delays for other EV models.

Why it matters: The launch of the EscaladeIQ aligns with the growing demand for luxury EVs and the increasing emphasis on reducing greenhouse gas emissions, but also has another intriguing new feature.

• GM also announced plans to equip all its electric vehicles with two-way charging capability by 2026.

• This vehicle-to-home feature will allow these vehicles to power homes during blackouts, heat waves, and other high energy demand periods.

• Currently, only a few electric car models have this capability, making them a largely untapped power source for homes and buildings.

What's next: With the EscaladeIQ paving the way, GM plans to introduce eleven electric vehicles in the US market by next year, ranging from the Chevrolet Equinox ($30,000) to the Hummer ($110,000) and Escalade.

• The company aims to profitably sell the EscaladeIQ, demonstrating progress towards a profitable EV program by 2025.

• GM's full production at the Ultium Cells LLC plant in Ohio will enable scaling up EV volumes and further contribute to combating climate change.

🌶 Hot take: $130k is an insane amount to pay for a vehicle that isn’t a sports car. And it won’t even have Apple CarPlay or Android Auto. But there’s a lucrative market for luxury EVs and the ability to power your home during a power outage is pretty cool.

HOT TOPICS

1. 🚗 The next frontier for EVs: Early adopters drove the initial surge in electric vehicle (EV) sales, but the mainstream market, characterized by price sensitivity, is proving harder to capture. Automakers like Ford are adjusting their strategies, acknowledging the longer and bumpier transition to EVs.

2. 👷🏼 A different type of labor shortage: Energy companies now struggle to attract engineers, while petroleum-engineering programs see a sharp decline in new entrants due to the industry's role in climate change and the global shift towards alternative energy sources.

3. 😕 A new policy could prevent renewables: A proposal in Texas to upgrade grid technology is causing concern for wind and solar companies, who fear it could force them off the grid and increase future installation costs. The plan aims to prevent outages but might retire or disconnect over 50,000 MW of renewable energy.

4. 🏛 Anti-IRA areas benefit heavily from it: Biden's climate law has generated substantial clean energy investments nationwide, causing a divide among conservatives. GOP districts are benefiting significantly from the $370 billion federal incentives, reinvigorating their economies and potentially shaping voters' perception of Biden's presidency.

5. 💰Fresh funding: Persefoni secures $50M in Series C-1 funding, bringing their total investment to over $150M. They unveil PersefoniGPT, an AI co-pilot for carbon accounting and management, reinforcing their commitment to AI technologies and environmental sustainability.

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CHART OF THE DAY

The Inflation Reduction Act (IRA) has significantly impacted the U.S. solar industry, driving $100 billion in private sector investments and announcing 155 GW of new production capacity across the supply chain.

It is projected to increase solar deployment by 48%, resulting in 669 GW of total solar capacity by 2033, surpassing coal-fired power plants. The IRA will also generate $565 billion in investment, reduce annual CO2 emissions by 459 MMT, and create around 215,000 additional jobs.

ACCLIMATE RECS

• The high-stakes debate over green hydrogen 

• What cities need to establish to regulate transit, dining, delivery, and trash on America’s walkways.

• A list of the approved project sites for direct air capture.

• The clean energy future is roiling both friends and foes

• Three trends to watch in EV charging 

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- Rick Jarrell, Founder of Acclimate