Welcome back, climate leaders.

In today’s edition:

• 💰 The financial sector is hugely underestimating climate risk

• 🚙 GM surprisingly announces that the Chevy Bolt is back

• 🇧🇴 Bolivia becomes the largest source of lithium on the planet

Read time: 5 minutes

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HOT TOPIC

💰 The financial sector is failing to estimate climate risk

Climate risk is being underestimated by the financial sector, endangering investments and the global economy.

The Institute and Faculty of Actuaries in the UK released a report titled "The Emperor’s New Climate Scenarios," highlighting the reliance on economic models that downplay the cost of climate change.

The urgency to bridge the gap between climate science and finance is crucial.

Organizations like the West Midlands Pension Fund in the UK have used models that underestimate climate risk, with a 4-degree Celsius temperature increase projected to reduce the fund's value by an average of 1% annually by 2040.

That scenario exceeds the widely agreed upon maximum global temperature of 2 degrees Celsius by 100%, which is considered crucial to maintain the current state of life on the planet.

The failure to account for climate risks puts customers and shareholders at risk of significant losses, including the devaluation of retirement funds.

POLL TIME

DEBRIEF

📈 Business & Markets

• Bolts are back! GM will release a new version of the Chevrolet Bolt, despite stopping production on the current model due to outdated battery technology and factory refurbishment.

• Investor interest in energy storage rebounds after a sluggish start due to soaring lithium prices and changes in IRA regulations.

• Xcel Energy proposes new EV charging network in Colorado due to uncertainty around U.S. standard fast charger connector type after Tesla's recent news.

• COVID-19 no longer impacts the solar market as average solar PPA prices dropped 1% in Q2 2023.

• Despite breaking the 40-degree Celsius mark, solar output remained as predicted in Europe because rising temps reduce solar efficiency.

🏛 Policy & Politics

• Congress is heading for a fierce debate on withholding federal funds from energy tech firms collaborating with Chinese businesses.

• The US government plans to invest $1.55 billion to address methane emissions from the oil and gas industry, aiming to reduce their impact on climate change.

• Schumer wants the Federal Energy Regulatory Commission to strengthen power line rules and grant more authority for approving new lines instead of waiting for permitting reform.

• The DOE's proposed residential water heater standards aim to save consumers $11.4B annually on energy and water bills. The standards would require electric water heaters to adopt heat pump technology for efficiency gains.

• Bolivia possesses the world's largest lithium reserves, with estimates soaring from 2 to 23 million tons, establishing the country as a major player in the energy transition.

🚀 Startups & Tech

• Lyft, the biggest bike share operator in North America, wants to either receive financial assistance or exit the business entirely.

• An up-close experience with Verdagy, an electrolyzer manufacturer leading the green hydrogen revolution and vying for profits from generous subsidies favoring fossil-free hydrogen.

• AI-powered systems are being tested in some states to detect wildfires faster. From 2017 to 2021, wildfires caused $81.6 billion in damage, over 10 times the damage from 2012 to 2016.

• Leap, a platform for energy market access, secures $12M in equity financing.

• Arrive Recommerce, a Santa Monica-based resale tech company, has secured $16M in Series A funding to support its mission of enabling "Returns to Recommerce” for brands and retailers.

🌎 Society & Impact

• Florida's ocean temperatures reach record highs of 90-100F, posing a threat to marine life and ecosystems already at risk due to warming waters.

• The scorching heat wave is straining the U.S. power grid, but it's managing to cope so far thanks to a mix of fortunate circumstances and the addition of renewable energy, hydropower, and batteries.

• Around 41 million people in urban areas face hotter temperatures due to the 'heat island effect' caused by concrete and lack of trees.

• A look back at Australia's devastating wildfire season and its long-lasting health effects on children, causing serious respiratory issues as the fires continue to affect future generations.

• National parks and recreational spaces are becoming more accessible by prioritizing transit options.

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KEY DATA

27%

Bike share popularity is still booming post-pandemic, with major US cities seeing a 27% increase and 45 million annual trips since 2019.

ACCLIMATE RECS

• EVs and battery storage rely on lithium supply. Without rare earth metals, we're screwed. Dig deeper into what the energy transition means for the mining industry.*

• Listen: What’s the next big trend in clean energy?

• Renewables are coming. But until then, do we have enough investment to handle peak oil?

• A lack of mining could put Europe’s energy transition at risk.

• 15-minute cities offer a solution for loneliness.

• Why Florida’s insurance crisis is here to stay.

• Cherish your latest adventure with a custom travel map.*

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