Good morning, fellow climate leaders!

Here’s what’s happening in climate today:

• Everyone is following Tesla’s EV charging standard.

• Farmers Insurance joins others in scaling back offering in high climate-risk states.

• Biden admin allocating $650m to plug oil & gas wells.

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BIG DEAL

Mercedes joins the Tesla EV network

Mercedes-Benz has decided to adopt Tesla's EV charging connectors, signaling a significant step toward Tesla's dominance in EV charging.

Why it matters: By offering adapters to its customers starting in 2024 and manufacturing EVs with Tesla's charging port from 2025, Mercedes joins other major automakers in adopting Tesla's North American Charging Standard (NACS) plug and outlet.

Why it's happening: Tesla's connector has become the standard for charging in North America and Europe. Other car manufacturers such as Ford, GM, Volvo, Polestar, and Rivian have also adopted it.

• Tesla's Supercharger network, with 45,000 Superchargers worldwide and exceptional reliability, has a major competitive advantage over third-party charging stations.

• Tesla's decision to offer access to non-Tesla EVs in Europe and the US aligns with the Biden administration's push for greater EV charging infrastructure investment.

• As Tesla's charging standard gains traction and more automakers adopt it, the EV charging landscape is likely to be dominated by Tesla's technology.

But it’s not perfect: EV charging stations face challenges like broken cables, software glitches, and inaccurate information on station availability.

• ABB has released key benchmarks for reliable EV charging, emphasizing the importance of factors beyond the charging port.

• These include round-the-clock connectivity, preventive maintenance, trained technicians, and spare parts availability.

What's next: Mercedes-Benz's adoption puts pressure on Volkswagen and BMW to follow suit.

• Mercedes plans to expand its network of EV charging stations in North America to 400 hubs with over 2,500 high-power chargers, which will also support Tesla's NACS connector.

Bottom line: Tesla has made significant progress in dominating the transition to electric vehicles. However, widespread adoption of EVs will stagnate until reliable public charging stations are available.

HOT TOPICS

News that matters

😳 Farmers Insurance will cease home, auto, and umbrella coverage in Florida and reduce coverage offerings in California due to increasing risks from environmental disasters. The decision is driven by the need to manage risk exposure effectively and the impact of inflation, severe weather events, and reconstruction costs. The move follows similar actions by other insurers in response to catastrophe costs and unique risks in each state. Approximately 30% of policyholders in Florida are projected to be affected, which also faces high insurance rates due to fraud and lawsuits. (The Hill)

🇨🇳 John Kerry will visit China to resume climate negotiations, marking the first talks between the two countries since August. China and the United States, as the top investors in clean energy, hold significant influence over global efforts to mitigate the effects of global warming. (NY Times)

☀️ The White House released a report on solar geoengineering exploring methods to reflect sunlight and cool the earth. While no formal study is currently planned, the report highlights the potential benefits and risks, emphasizing the need for research in this field. (CNBC)

🏛 The Biden administration is allocating over $650 million to plug abandoned oil and gas wells. This funding aims to address the safety hazards and methane emissions associated with orphan wells, which contribute to climate change. (The Hill)

❌ Major U.S. truck manufacturers have agreed to California's plan to ban new diesel big rigs by 2036. The deal aims to prevent potential litigation and establish a single national standard for truck pollution rules. It paves the way for a transition to electric commercial trucks, reducing particulate and other pollution. (Washington Post)

🔌 The DOE will distribute a total of $207.6 million to nine states and three tribal nations for grid resilience projects. California plans to allocate $67.5 million of federal infrastructure funds to enhance energy storage, improve efficiency, and strengthen its electric grid through the Community Energy Resilience Investment program. The program aims to boost grid resilience in disadvantaged communities. (Utility Dive)

♻️ New York City has passed a law making residential organics recycling mandatory, with enforcement starting in 2024. The Zero Waste Act aims to overhaul waste collection and increase sustainability by diverting recyclables and organic waste from landfills and incinerators. (Smart Cities Dive)

☢️ Advanced nuclear fission startup Oklo will go public through a merger with a SPAC co-founded by OpenAI CEO Sam Altman. The merger is expected to raise up to $500 million for Oklo to scale up its development and manufacturing facilities. (CNBC)

🔥 Record-breaking heatwaves are highlighting the long-term risks to companies and their assets, but few are actively assessing vulnerabilities. Asset managers struggle to gauge the impact of physical climate risks on investment portfolios, with a lack of asset-location data as a significant barrier. Research shows that over 90% of the world's largest companies will have financially-exposed assets at risk from climate-related hazards by the 2050s. (Bloomberg)

⚡️ The ongoing heat wave in Texas is causing electricity demand on the grid to reach record levels. The Electric Reliability Council of Texas (ERCOT) projects that demand will continue to surpass previous records throughout the week. The heat is also causing natural gas prices, which fuels a significant portion of the state's electric generation, to soar. (The Hill)

👮🏼‍♀️ Tesla has reached a settlement in a class action lawsuit concerning price increases for its Solar Roof. The settlement involves thousands of customers, with Tesla agreeing to pay over $6 million. The Solar Roof, introduced in 2016, was seen as an innovative alternative to traditional solar panels. (The Verge)

🌾 The US Agriculture Department plans to invest $300 million to measure greenhouse gas emissions and capture carbon using farming practices. The investment aims to support climate-smart agriculture and measure progress toward President Biden's emissions reduction goals. (NY Times)

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CLIMATE DATA

Solar generated 7% of U.S. electricity in April

Solar power in the U.S. increased by 16% compared to last year, contributing 5% of total electricity. The rise was moderate due to lower solar capacity deployed in 2022 than in 2021. Emission-free sources accounted for over 43% of all electricity generated. (PV Magazine)

ACCLIMATE RECS

Dive deeper

As emissions soar, cargo shipping faces a critical climate crossroads. A high-stakes meeting at the U.N.’s maritime agency could set aggressive emissions-reduction goals for the dirty ships that keep the economy humming. (Canary Media)

Sweden is building the world’s largest wooden city. Swedish developers are getting ready to build the world’s largest wooden city, setting the stage for a possible domino effect of similar projects across the globe. (Axios)

Vermont Floods Show Limits of America’s Efforts to Adapt to Climate Change. The lack of a comprehensive national rainfall database and current flood maps hampers the ability to prepare for storms intensified by climate change. (NY Times)

Study reveals 'explosion' in climate-related litigation since 2020. Report details increased diversity of climate litigation since the Paris Agreement, leading to indirect impacts on corporate decision-making regardless of courtroom success. (GreenBiz)

Why Acclimate? The global economy needs to acclimate to a new reality, like a hiker conquering a Colorado 14er.

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As always, thanks for reading, and see you next time.

—Rick Jarrell

“In any moment of decision, the best thing you can do is the right thing, the next best thing is the wrong thing, and the worst thing you can do is nothing.” - Teddy Roosevelt