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In the latest edition, a look at Milton’s economic consequences, human-rights complaints ahead of CO͏‌  ͏‌  ͏‌  ͏‌  ͏‌  ͏‌ 
 
thunderstorms Baku
cloudy Stockholm
sunny New York City
rotating globe
October 11, 2024
semafor

Net Zero

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Hotspots
  1. Milton slams insurers
  2. COP29 rights complaints
  3. The climate comms boom
  4. Biggest carbon storage site
  5. Chaos at Northvolt

Conservatives target hurricane forecasting, and Shell employees target their boss.

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1

Milton’s economic fallout

A photo of the devastation left in the wake of Hurricane Milton.
Marco Bello/Reuters

Hurricane Milton is lashing Florida’s already-battered home insurance market. The Category 3 storm, which made landfall Thursday, is one of the biggest to slam the state in a decade, and comes just days after Hurricane Helene, with both fueled in intensity by climate change. At least 10 people have been killed by Hurricane Milton, and 340 more rescued from raging flood waters. Experts expect the storm to leave behind $60-100 billion in insured damages.

Dozens of insurers have collapsed in Florida or fled the state in the last decade, unable to collect sufficient premiums to cover the escalating risk of flood and hurricane damages. A state-backed nonprofit insurer, Citizens, remains an option of last resort for many homeowners, but could see its coffers drained by payouts from Milton, analysts warned. State law prevents Citizens from collapsing entirely — but allows it to close budget gaps by raising premiums on everyone in the state, including clients of other insurers. In Florida and everywhere else, living in climate-vulnerable places is about to get a lot more expensive.

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2

COP29 rights concerns

A chart showing the freedom scores of several low-ranked countries, including Azerbaijan.

Azerbaijan is carrying out a crackdown on dissent just weeks before it plays host to the COP29 global climate summit, rights groups said. Criticism of Baku has grown in recent weeks, with US lawmakers accusing the country of holding political prisoners and carrying out ethnic cleansing in its recent conflict with Armenia. This week, Human Rights Watch and Freedom Now said at least 30 people — journalists, human-rights and environmental activists, union leaders, and lawyers — have been detained in a campaign of intensifying repression. The controversy threatens to cast a shadow over the climate talks, which begin on Nov. 11, and are set to focus on efforts to increase the amount of finance available for the energy transition globally.

This item was originally published in Flagship, Semafor’s global news briefing. Subscribe to get it in your inbox daily. →

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3

The rise of the climate flack

 
Tim McDonnell
Tim McDonnell
 
A photo of climate protestors in New York.
Bing Guan/File Photo/Reuters

PR shops that specialize in climate have more work than ever — but it’s also getting a lot harder.

At Climate Week NYC last month, the conference rooms, bars, and hotel lobbies of midtown Manhattan were filled with climate-focused corporate executives, political leaders, and the journalists chasing after them. But in between them all were countless third-party communications consultants — many more than I’ve seen in previous Climate Weeks — working overtime to get their clients into the right meetings and onto — or out of — the front pages of the global press. Companies are touting climate solutions, jostling for a seat at the table for important policy decisions, and trying to respond to or, better yet, avoid controversies. There are also more journalists on the climate beat. PR firms are an inevitable link between those trends. For those who focus on sustainability, these days they’re both busier than ever and having to manage a much more technically complicated — and potentially fraught — docket: Climate action, once an afterthought in corporate comms, is now an indispensable element of corporate public messaging.

“Huge brands are rewiring their communications strategy to weave in a climate story that advances broader market leadership — and that’s when they could be talking about their product or simply keeping quiet,” said Matt Stewart, West Coast general manager for Method Communications. “Many corporations talked about climate somewhere before, but today it’s much more pervasive.”

Journalists rely on comms firms perhaps more than we would like to admit, as the gatekeepers to newsmaking corporate executives. But in climate, as in other fields, there’s a natural conflict between journalists’ core interest — breaking accurate news — and the comms folks’, which is to serve clients. That conflict can easily lead down the slippery slope to greenwashing if journalists are inattentive. That dynamic is nothing new, and hasn’t changed; greenwashing still happens every day. But I find that compared to a few years ago, there are not only more comms consultants working in climate, but they’re getting more specialized and sophisticated on the issues, and more willing to push back against initiatives that aren’t scientifically up to snuff — in the interest of protecting their and their clients’ reputations, if nothing else.

Read on for more on the elephant in the climate spin room. →

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4

Exxon’s carbon ‘management’ bet

271,000

Acres of seafloor off the coast of Texas that were leased to ExxonMobil this week for underground carbon storage, making it the largest such site in the US. Exxon, like most of its oil major peers, is investing heavily in carbon “management” — capturing, transporting, and burying or recycling CO2 emissions — as a side hustle to buttress uncertain future revenue from oil, and fend off climate criticism. Tax credits in the Inflation Reduction Act make it a lucrative opportunity. But some climate advocates see carbon capture as a distraction, and view the proliferation of underground storage sites as a potential threat to public health and ecosystems.

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5

Northvolt’s survival scramble

A photo from inside a Northvolt facility.
Helena Soderpalm/Reuters

Swedish battery maker Northvolt, which has raised $10 billion from investors as one of the world’s most-watched climate tech startups, is scrambling to stay afloat. One unit of the company filed for bankruptcy protection this week, citing a shortfall in revenue as the slowdown of global EV adoption collides with an ambitious scale-up already underway at the company. The head of its main plant stepped down on Wednesday, following the firing of about one-quarter of its staff. And executives are now scrambling to raise about $219 million in emergency funds, especially as it faces the due date of a $28 million tax bill on Monday (which the CEO said it still expects to meet).

Northvolt’s cash woes are rippling across Sweden, with some construction firms complaining of going unpaid by the company and new doubts arising about other decarbonization projects backed by the same investor group. In a sign of how desperate the company has become, Reuters reports it is selling off spare battery materials for cash.

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Live Journalism

What’s in store for the advanced manufacturing workforce in the US? Join Colorado Governor Jared Polis, Neera Tanden, Domestic Policy Advisor to President Biden, and other industry leaders in Washington, DC, on Oct. 21 to discuss how the United States looks to maintain a competitive edge.

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Power Plays

Fossil Fuels

A chart showing the BP stock price performance and the price of oil for the last 12 months.

Minerals & Mining

  • The Democratic Republic of the Congo is courting new international investors for its mining sector in an effort to reduce its reliance on China, the country’s top mining official said.

EVs

COP29

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One Good Text

Allison Fisher, climate and energy program director at Media Matters.

Tim: What would be the biggest consequence of "downsizing" the National Oceanic and Atmospheric Administration as prescribed by Project 2025? Allison: Project 2025 is an extreme right-wing agenda that wants NOAA to be “broken up and downsized,” but in reality, NOAA has improved the forecasting of deadly weather events and is critical to providing life-saving information to those in harm’s way. We are seeing the real world impact of climate change right now with rapid intensification of Hurricanes Helene and Milton, but Project 2025 would jeopardize access to free, accurate, and timely forecasting of extreme weather events. For decades, we have seen how right-wing media and climate deniers have tried to undermine science and decouple it from the realities of the climate crisis, and downsizing NOAA would do just that.
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