Good morning and happy Monday. Here’s what’s happening in climate today:

• Car dealers not super excited for EVs

• EU adopts nature restoration law

• Florida governor rejects $377 million in clean energy funds

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BIG DEAL

Car dealers are not as pumped for EVs as the rest of us

Consumer interest in EVs is on the rise, but skeptical auto dealers could be a surprising barrier to adoption.

Driving the news: EVs accounted for 6.5% of new car purchases in the first half of 2023, a significant increase from previous years. But auto dealers have shown less interest in selling EVs, with only 31% believing in their future compared to 53% of consumers.

Why it's happening: The availability of electric models, government support, and increasingly standardized charging technology have increased customer confidence in purchasing EVs.

• But dealers are easily stuck in their ways and want EVs to prove their value.

• A similar situation exists with heat pumps, where installers may resist new technology due to unfamiliarity, existing relationships, and fear of negative reviews.

Why it matters: This lack of enthusiasm from dealers gives an edge to brands like Tesla that bypass traditional dealership relationships, while also creating a major supply/demand mismatch between the automakers and the dealers.

• Cox Automotive forecasts that EV sales will surpass one million units for the first time in 2023.

• However, inventory levels of EVs have surged by nearly 350% this year, resulting in a 92-day supply—almost double the industry average.

• Luxury models like Genesis, Audi, and GMC are particularly affected due to high price tags and ineligibility for tax credits.

What's next: As challenges with EVs are addressed, consumer demand will continue to increase.

• Expansion of charging infrastructure will alleviate concerns regarding limited charging options, making EVs more viable for consumers.

• The price of EVs is expected to achieve parity with gasoline vehicles by 2025, which should alleviate affordability concerns.

• New business opportunities, like specialized dealerships focusing on EVs, could emerge if incumbents don’t get on board.

Bottom line: While direct-to-consumer models used Tesla and Carvana bypass the traditional dealer model, overcoming the misalignment between buyers and sellers is critical to large-scale EV deployment.

HOT TOPICS

News that matters

👍 U.S. carbon emissions experienced their first decline in the Biden era, with a 5% drop attributed to a mild winter. However, this reduction was more influenced by weather conditions than President Biden's carbon-cutting policies. U.S. residential emissions were down 20%, and emissions from power plants decreased by 4.5%, thanks to the shift away from coal towards natural gas and renewables. (E&E News)

🌱 EU adopts crucial Nature Restoration Law as part of Green Deal, despite opposition. In a close vote, the parliament approved the law, which requires member states to commit to restoring 20% of the bloc's degraded ecosystems by 2030. Conservative members, including the European People's Party, raised concerns about the law's impact on renewable energy and farming. (Power Technology)

✌🏼 Rising temperatures, extreme weather, and a lawsuit-friendly legal environment have led to insurance companies exiting the Florida market. Farmers recently announced its departure, leaving around 100,000 customers unable to renew their policies. This move follows other major carriers like Allstate and State Farm leaving disaster-prone states such as California. The increasing risks caused by hurricanes and high premium costs have made Florida's insurance industry challenging. (Heatmap)

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CLIMATE DATA

Which states have the most solar and wind power jobs?

Clean energy technologies, such as solar and wind, dominated the U.S. job market for new electric power generation last year, accounting for almost 87% of the total.

According to the Department of Energy's 2023 U.S. Energy and Employment Report, solar created the most jobs, adding 12,256 workers, while wind added 5,416 jobs.

Solar power, which employs over 340,000 people nationwide, heavily relies on solar jobs, with California leading the way. Wind, with around 125,000 workers, experienced significant growth, particularly in offshore wind jobs, which saw a 20% increase from the previous year. (Canary Media)

DEBRIEF

• Florida Governor Ron DeSantis rejects $377 million in US energy funds, including money for energy-efficiency rebates. (Bloomberg)

• Centrus Energy has cleared a major regulatory hurdle in its efforts to produce high-assay low-enriched uranium (HALEU), a fuel crucial for next-generation nuclear plants. (Canary Media)

• San Diego broke ground on the first of eight solar-powered microgrids at public buildings. (Smart Cities Dive)

• Minnesota secures a $3M federal grant to enhance its climate action plan. (Energy News)

• Solar power cells achieve "revolutionary" milestone with over 30% energy efficiency, surpassing current limits. (The Guardian)

• Deforestation in Colombia decreased by 29% in 2022, primarily in the Amazon region. (Reuters)

• Republicans are intensifying their attacks on clean energy and climate spending, proposing amendments that block funding for green initiatives and hinder efforts to reduce greenhouse gas emissions. (Inside Climate News)

• Texas' inefficient grid is unable to handle the full load of renewable energy during a heat wave, resulting in wasted power. (Inside Climate News)

ACCLIMATE RECS

Dive deeper

The Wealthiest Oilman in Houston Can Thank Climate Activism. Jeffery Hildebrand has made billions buying castoff wells from big companies under ESG pressure (WSJ)

Canceled Elections Leave Georgia’s Utility Commission in Anti-Democratic Limbo. A years-long fight by Black voters for equal representation on the body regulating Georgia utilities has put a harsh spotlight on an often overlooked corner of government. (Bolts)

What’s a Georgia Summer Without Peaches? Not So Sweet. With their state’s signature crop hobbled by inclement weather, Georgians are stretching the fruit they have or turning to California’s. (NYT)

Anxious about climate change? You’re not alone. Help your mind — and the earth — manage the uncertainty of climate change. (Vox)

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, Founder of Acclimate