Why the lifetime of nuclear plants is getting longer

This article is from The Spark, MIT Technology Review’s weekly climate newsletter. To receive it in your inbox every Wednesday, sign up here.

Aging can be scary. As you get older, you might not be able to do everything you used to, and it can be hard to keep up with the changing times. Just ask nuclear reactors.

The average age of reactors in nuclear power plants around the world is creeping up. In the US, which has more operating reactors than any other country, the average reactor is 42 years old, as of 2023. Nearly 90% of reactors in Europe have been around for 30 years or more

Older reactors, especially smaller ones, have been shut down in droves due to economic pressures, particularly in areas with other inexpensive sources of electricity, like cheap natural gas. But there could still be a lot of life left in older nuclear reactors. 

The new owner of a plant in Michigan that was shut down in 2022 is now working to reopen it, as I reported in my latest story. If the restart is successful, the plant could operate for a total of 80 years. Others are seeing 20-year extensions to their reactors’ licenses. Extending the lifetime of existing nuclear plants could help cut emissions and is generally cheaper than building new ones. So just how long can we expect nuclear power plants to last? 

In the US, the Nuclear Regulatory Commission (NRC) licenses nuclear reactors for 40-year operating lifespans. But plants can certainly operate longer than that, and many do. 

The 40-year timeline wasn’t designed to put an endpoint on a plant’s life, says Patrick White, research director at the Nuclear Innovation Alliance, a nonprofit think tank. Rather, it was meant to ensure that plants would be able to operate long enough to make back the money invested in building them, he says. 

The NRC has granted 20-year license extensions to much of the existing US nuclear fleet, allowing them to operate for 60 years. Now some operators are applying for an additional extension. A handful of reactors have already been approved to operate for a total of 80 years, including two units at Turkey Point in Florida. Getting those extensions has been bumpy, though. The NRC has since partially walked back some of its approvals and is requiring several of the previously approved sites to go through additional environmental reviews using more recent data. 

And while the oldest operating reactors in the world today are only 54, there’s already early research investigating extending lifetimes to 100 years, White says. 

The reality is that a nuclear power plant has very few truly life-limiting components. Equipment like pumps, valves, and heat exchangers in the water cooling system and support infrastructure can all be maintained, repaired, or replaced. They might even get upgraded as technology improves to help a plant generate electricity more efficiently. 

Two main components determine a plant’s lifetime: the reactor pressure vessel and the containment structure, says Jacopo Buongiorno, a professor of nuclear engineering at MIT. 

  • The reactor pressure vessel is the heart of a nuclear power plant, containing the reactor core as well as the associated cooling system. The structure must keep the reactor core at a high temperature and pressure without leaking. 
  • The containment structure is a shell around the nuclear reactor. It is designed to be airtight and to keep any radioactive material contained in an emergency. 

Both components are crucial to the safe operation of a nuclear power plant and are generally too expensive or too difficult to replace. So as regulators examine applications for extending plant lifetimes, they are the most concerned about the condition and lifespan of those components, Buongiorno says. 

Researchers are searching for new ways to tackle issues that have threatened to take some plants offline, like the corrosion that chewed through reactor components in one Ohio plant, causing it to be closed for two years. New ways of monitoring the materials inside nuclear power plants, as well as new materials that resist degradation, could help reactors operate more safely, for longer. 

Extending the lifetime of nuclear plants could help the world meet clean energy and climate goals. 

In some places, shutting down nuclear power plants can result in more carbon pollution as fossil fuels are brought in to fill the gap. When New York shut down its Indian Point nuclear plant in 2021, natural gas use spiked and greenhouse gas emissions rose

Germany shut down the last of its nuclear reactors in 2023, and the country’s emissions have fallen to a record low, though some experts say most of that drop has more to do with an economic slowdown than increasing use of renewables like wind and solar. 

Extending the global nuclear fleet’s lifetime by 10 years would add 26,000 terawatt-hours of low carbon electricity to the grid over the coming decades, according to a report from the International Atomic Energy Agency. That adds up to roughly a year’s worth of current global electricity demand. That could help cut emissions while the world expands low-carbon power capacity. 

So when it comes to cleaning up the power grid, there’s value in respecting your elders, including nuclear reactors. 


Now read the rest of The Spark

Related reading

A nuclear power plant in Michigan could be the first reactor in the US to reenter operation after shutting down, as I wrote in my latest story

Germany shut down the last of its nuclear reactors in 2023 after years of controversy in the country. Read more in our newsletter from last April.  

The next generation of nuclear reactors is getting more advanced. Kairos Power is working on cooling its reactors with salt instead of pressurized water, as I reported in January

Another thing

A total solar eclipse will sweep across the US on Monday, April 8. Yes, it will affect solar power, especially in states like Texas that have installed a lot of solar capacity since the 2017 eclipse. No, it probably won’t be a big issue for utilities, which are able to plan far in advance for the short dip in solar capacity. Read more in this story from Business Insider. 

Keeping up with climate  

Tesla’s EV sales slipped in the first quarter compared to last year. The automaker still outsold Chinese EV giant BYD, which briefly held the crown for EV sales in late 2023. (New York Times)

A startup is making cleaner steel in a commercial prototype. Electra wants to help tackle the 7% of global emissions that come from producing the material. (Bloomberg)

Burying plant waste can help remove carbon dioxide from the atmosphere. But there are problems with biomass burial, a growing trend in carbon removal. (Canary Media)

Shareholders are voting on whether recycling labels on Kraft Heinz products are deceptive. It’s part of a growing pushback against companies overselling the recyclability of their packaging. (Inside Climate News)

→ Think your plastic is being recycled? Think again. (MIT Technology Review)

Soil in Australia is shaping up to be a major climate problem. While soil is often pitched as a way to soak up carbon emissions, agriculture practices and changing weather conditions are turning things around. (The Guardian)

Two climate journalists attempted to ditch natural gas in their home. But electrification turned into quite the saga, illustrating some of the problems with efforts to decarbonize buildings. (Grist)

Solar panels are getting so cheap, some homes in Europe are sticking them on fences. With costs having more to do with installation than the cost of solar panels, we could see them going up in increasingly quirky places. (Financial Times)

The problem with plug-in hybrids? Their drivers.

Plug-in hybrids are supposed to be the best of both worlds—the convenience of a gas-powered car with the climate benefits of a battery electric vehicle. But new data suggests that some official figures severely underestimate the emissions they produce. 

According to new real-world driving data from the European Commission, plug-in hybrids produce roughly 3.5 times the emissions official estimates suggest. The difference is largely linked to driver habits: people tend to charge plug-in hybrids and drive them in electric mode less than expected.

“The environmental impact of these vehicles is much, much worse than what the official numbers would indicate,” says Jan Dornoff, a research lead at the International Council on Clean Transportation.

While conventional hybrid vehicles contain only a small battery to slightly improve fuel economy, plug-in hybrids allow fully electric driving for short distances. These plug-in vehicles typically have a range of roughly 30 to 50 miles (50 to 80 kilometers) in electric driving mode, with a longer additional range when using the secondary fuel, like gasoline or diesel. But drivers appear to be using much more fuel than was estimated.

According to the new European Commission report, drivers in plug-in hybrid vehicles produce about 139.4 grams of carbon dioxide for every kilometer driven, based on measurements of how much fuel vehicles use over time. On the other hand, official estimates from manufacturers, which are determined using laboratory tests, put emissions at 39.6 grams per kilometer driven.

Some of this gap can be explained by differences between the controlled conditions in a lab and real-world driving. Even conventional combustion-engine vehicles tend to have higher real-world emissions than official estimates suggest, though the gap is roughly 20%, not 200% or more as it is for plug-in hybrids.

The major difference comes down to how drivers tend to use plug-in hybrids. Researchers have noticed the problem in previous studies, some of them using crowdsourced data. 

In one study from the ICCT published in 2022, researchers examined real-world driving habits of people in plug-in hybrids. While the method used to determine official emissions values estimated that drivers use electricity to power vehicles 70% to 85% of the time, the real-world driving data suggested that vehicle owners actually used electric mode for 45% to 49% of their driving. And if vehicles were company-provided cars, the average was only 11% to 15%.

The difference between reality and estimates can be a problem for drivers, who may buy plug-in hybrids expecting climate benefits and gas savings. But if drivers are charging less than expected, the benefits might not be as drastic as promised. Trips taken in a plug-in hybrid cut emissions by only 23% relative to trips in a conventional vehicle, rather than the nearly three-quarters reduction predicted by official estimates, according to the new analysis.

“People need to be realistic about what they face,” Dornoff says. Driving the vehicles in electric mode as much as possible can help maximize the financial and environmental benefits, he adds.

It’s important to close the gap between expectations and reality not only for individuals’ sake, but also to ensure that policies aimed at cutting emissions have the intended effects. 

The European Union passed a law last year that will end sales of gas-powered cars in 2035. This is aimed at cutting emissions from transportation, a sector that makes up around one-fifth of global emissions. In the EU, manufacturers are required to have a certain average emissions value for all their vehicles sold. If plug-in hybrids are performing much worse in the real world than expected, it could mean the transportation sector is actually making less progress toward climate goals than it’s getting credit for.

Plug-in hybrids’ failure to meet expectations is also a problem in the US, says Aaron Isenstadt, a senior researcher at the ICCT based in San Francisco. Real-world fuel consumption was about 50% higher than EPA estimates in one ICCT study, for example. The gap between expectations and reality is smaller in the US partly because official emissions estimates are calculated differently, and partly because US drivers have different driving habits and may have better access to charging at home, Isenstadt says.

The Biden administration recently finalized new tailpipe emissions rules, which set guidelines for manufacturers about the emissions their vehicles can produce. The rules aim at ramping down emissions from new vehicles sold, so by 2032, roughly half of new cars sold in the US will need to produce zero emissions in order to meet the standards.

Both the EU and the US have plans to update estimates about how drivers are using plug-in hybrids, which should help policies in both markets better reflect reality. The EU will make an adjustment to estimates about driver behavior beginning in 2025, while the US will do so later, in 2027.

What to expect if you’re expecting a plug-in hybrid

This article is from The Spark, MIT Technology Review’s weekly climate newsletter. To receive it in your inbox every Wednesday, sign up here.

If you’ve ever eaten at a fusion restaurant or seen an episode of Glee, you know a mashup can be a wonderful thing. 

Plug-in hybrid vehicles should be the mashup that the auto industry needs right now. They can run a short distance on a small battery in electric mode or take on longer drives with a secondary fuel, cutting emissions without asking people to commit to a fully electric vehicle.

But all that freedom can come with a bit of a complication: plug-in hybrids are what drivers make them. That can wind up being a bad thing because people tend to use electric mode less than expected, meaning emissions from the vehicles are higher than anticipated, as I covered in my latest story.

So are you a good match for a plug-in hybrid? Here’s what you should know about the vehicles.

Electric range is limited, and conditions matter

Plug-in hybrids have a very modest battery, and that’s reflected in their range. Models for sale today can generally get somewhere between 25 and 40 miles of electric driving (that’s 40 to 65 kilometers), with a few options getting up to around the 50-mile (80 km) mark.

But winter conditions can cut into that range. Even gas-powered vehicles see fuel economy drop in cold weather, but electric vehicles tend to take a harder hit. Battery-powered vehicles can see a 25% reduction in range in freezing temperatures, or even more depending on how hard the heaters need to work and what sort of driving you’re doing.

In the case of a plug-in hybrid with a small battery, these range cuts can be noticeable even for modest commutes. I spoke with one researcher for a story in 2022 who told me that he uses his plug-in hybrid in electric mode constantly for about nine months out of the year. Charging once overnight gets him to and from his job most of the time, but in the winter, his range shrinks enough to require gas for part of the trip.

It might not be a problem for you lucky folks in California or the south of Spain, but if you’re in a colder climate, you might want to take these range limitations into account. Parking in a warmer place like a garage can help, and you can even preheat your vehicle while it’s plugged in to extend your range.

Charging is a key consideration

Realistically, if you don’t have the ability to charge consistently at home, a plug-in hybrid may not be the best choice for you.

EV drivers who don’t live in single-family homes with attached garages can get creative with charging. Some New York City drivers I’ve spoken with rely entirely on public fast chargers, stopping for half an hour or so to juice up their vehicles as needed.

But plug-in hybrids generally aren’t equipped to handle fast charging speeds, so forget about plugging in at a Supercharger. The vehicles are probably best for people who have access to a charger at home, in a parking garage, or at work. Depending on battery capacity, charging a plug-in hybrid can take about eight hours on a level 1 charger, and two to three hours on a level 2 charger. 

Most drivers with plug-in hybrids wind up charging them less than what official estimates suggest. That means on average, drivers are producing more emissions than they might expect and probably spending more on fuel, too. For more on setting expectations around plug-in hybrids, read more in my latest story here.

We could see better plug-in models soon (in some places, at least)

For US drivers, state regulations could mean that plug-in offerings could expand soon.  

California recently adopted rules that require manufacturers to sell a higher proportion of low-emissions vehicles. Beginning in 2026, automakers will need clean vehicles to represent 35% of sales, ramping up to 100% in 2035. Several other states have hopped on board with the regulations, including New York, Massachusetts, and Washington.

Plug-in hybrids can qualify under the California rules, but only if they have at least 50 miles (80 km) of electric driving range. That means that we could be seeing more long-range plug-in options very soon, says Aaron Isenstadt, a senior researcher at the International Council on Clean Transportation.

Some other governments aren’t supporting plug-in hybrids, or are actively pushing drivers away from the vehicles and toward fully electric options. The European Union will end sales of gas-powered cars in 2035, including all types of hybrids.

Ultimately, plug-in hybrid vehicles can help reduce emissions from road transportation in the near term, especially for drivers who aren’t ready or willing to make the jump to fully electric cars just yet. But eventually, we’ll need to move on from compromises to fully zero-emissions options.  


Now read the rest of The Spark

Related reading

Real-world driving habits can get in the way of the theoretical benefits of plug-in hybrids. For more on why drivers might be the problem, give my latest story a read

Plug-in hybrids probably aren’t going away anytime soon, as I wrote in December 2022

Still have questions about hybrids and electric vehicles? I answered a few of them for a recent newsletter. Check it out here.

Another thing

China has emerged as a dominant force in climate technology, especially in the world of electric vehicles. If you want to dig into how that happened, and what it means for the future of addressing climate change, check out the latest in our Roundtables series here

For a sampling of what my colleagues got into in this conversation, check out this story from Zeyi Yang about how China came to lead the world in EVs, and this one about how EV giant BYD is getting into shipping

Keeping up with climate  

The US Department of Energy just awarded $6 billion to 33 projects aimed at decarbonizing industry, from cement and steel to paper and food. (Canary Media)

→ Among the winners: Sublime Systems and Brimstone, two startups working on alternative cement. Read more about climate’s hardest problem in my January feature story. (MIT Technology Review)

In the latest in concerning insurance news, State Farm announced it won’t be renewing policies for 72,000 property owners in California. As fire seasons get worse, insuring properties gets riskier. (Los Angeles Times)

Surprise! Big fossil-fuel companies aren’t aligned with goals to limit global warming. A think tank assessed the companies’ plans and found that despite splashy promises, none of the 25 largest oil and gas companies meet targets set by the Paris Agreement. (The Guardian)

An AI model can predict flooding five days in advance. This and other AI tools could help better forecast dangerous scenarios in remote places with fewer flood gauges. (Bloomberg)

Boeing’s 737 Max planes have been all over the news with incidents including a door flying off on a recent Alaska Airlines flight. Some experts say the problems can be traced back in part to the company’s corner-cutting on sustainability efforts. (Heated)

In Denver, e-bike vouchers get snapped up like Taylor Swift tickets. The city is aiming to lower the cost of the vehicles for residents in an effort to reduce the total number of car trips. It’s obviously a popular program, though some experts question whether the funding could be more effective elsewhere. (Grist)

A nuclear plant in New York was shut down in 2021—and predictably, emissions went up. It’s been a step back for clean energy in the state, as natural gas has stepped in to fill the gap. (The Guardian)

Germany used to be a solar superpower, but China has come to dominate the industry. Some domestic manufacturers aren’t giving up just yet, arguing that local production will be key to meeting ambitious clean-energy goals. (New York Times)

A company will pour 9,000 tons of sand into the sea in the name of carbon removal. Vesta’s pilot project just got a regulatory green light, and it’ll be a big step for efforts to boost the ocean’s ability to soak up carbon dioxide from the atmosphere. (Heatmap)

Why New York City is testing battery swapping for e-bikes

This article is from The Spark, MIT Technology Review’s weekly climate newsletter. To receive it in your inbox every Wednesday, sign up here.

Spend enough time in a city and you’ll get to know its unique soundscape. In New York City, it features the echoes of car stereos, the deep grumbles of garbage truck engines, and, increasingly, the high-pitched whirring of electric bikes.

E-bikes and scooters are becoming a staple across the city’s boroughs, and e-bikes in particular are especially popular among the tens of thousands of delivery workers who zip through the streets.

On a recent cloudy afternoon in Manhattan, I joined a few dozen of them at a sign-up event for a new city program that aims to connect delivery drivers with new charging technologies. Drivers who enroll in the pilot will have access to either fast chargers or battery swapping stations for six months.

It’s part of the city’s efforts to cut down on the risk of battery fires, some of which have been sparked by e-bike batteries charging inside apartment buildings, according to the fire department. For more on the program and how it might help address fires, check out my latest story. In the meantime, here’s what I heard from delivery drivers and the startups at the kickoff event.

On a windy late-February day, I wove my way through the lines of delivery workers who showed up to the event in Manhattan’s Cooper Square. Some of them straddled their bikes in line, while others propped up their bikes in clusters. Colorful bags sporting the logos of various delivery services sprouted from their cargo racks.

City officials worked at tables under tents, assigning riders to one of the three startups that are partnering with the city for the new program. One company, Swiftmile, is building fast-charging bike racks for drivers. The other two, Popwheels and Swobbee, are aiming to bring battery swapping to the city.

Battery swapping is a growing technology in some parts of the world, but it’s not common in the US, so I was especially intrigued by the two companies who had set up battery swap cabinets.

Swobbee runs a small network of swapping stations around the world, including at its base in Germany. It is retrofitting bikes to accommodate its battery, which attaches to the rear of the bike. Popwheels is taking a slightly different approach, providing batteries that are already compatible with the majority of e-bikes delivery drivers use today, with little modification required.

I watched a Popwheels employee demonstrate the company’s battery swapping station to several newly enrolled drivers. Each one would approach the Popwheels cabinet, which is roughly the size and shape of a bookcase and has 16 numbered metal doors on the front. After they made a few taps on their smartphone, a door would swing open. Inside, there was space to slide in a used battery and a cord to plug into it. Once the battery was in the cabinet and the door had been shut, another door would open, revealing a fully charged e-bike battery the rider could unplug and slide out. Presto!

The whole process took just a minute or two—much quicker than waiting for a battery to charge. It’s similar to picking up a package from an automated locker in an upscale apartment building.

The crowd seemed to grow during the two hours I spent at the event, and the line stretched and squeezed closer to the edge of the sidewalk. I made a comment about the turnout to Baruch Herzfeld, Popwheels’ CEO and co-founder. “This is nothing,” he said. “There’s demand for 100,000 batteries in New York tomorrow.”

Indeed, New York City has roughly 60,000 delivery workers, many of whom rely on e-bikes to get around. And commuters and tourists might be interested in small, electrified vehicles. Meeting anything close to that sort of demand will take a whole lot more battery cabinets, as one can service just up to 50 riders, according to Popwheels’ estimates.

After they’d signed up and seen the battery swap demo, drivers who were ready to take batteries with them wheeled their bikes over to a few more startup employees, who helped make a slight tweak to a rail under their seats for the company’s batteries to slide into. Some adjustments required a bit of elbow grease, but I watched as one rider slid his new, freshly charged battery into place. He hopped on his bike and darted off into the bike lane, integrating into the flow of traffic.


Now read the rest of The Spark

Related reading

For more on the city’s plans for battery swapping and how they might cut fire risk, give my latest story a read.

Gogoro, one of our 15 Climate Tech Companies to Watch in 2023, operates a huge network of battery swapping stations for electric scooters, largely in Asia.

Some companies think battery swapping is an option for larger electric vehicles, too. Here’s how one startup wants to use modular, swappable batteries to get more EVs on the road.

STEPHANIE ARNETT/MITTR | SCOPEX (BALLOON)

Another thing

Harvard researchers have given up on a long-running effort to conduct a solar geoengineering experiment. 

The idea behind the technique is a simple one: scatter particles in the upper atmosphere to scatter sunlight, counteracting global warming. But related research efforts have sparked controversy. Read more in my colleague James Temple’s latest story.

Keeping up with climate  

The Biden administration finalized strict new rules for vehicle tailpipe emissions. Under the regulations, EVs are expected to make up over half of new vehicle sales by 2030. (NPR)

The first utility-scale offshore wind farm in the US is officially up and running. It’s a bright spot that could signal a turning point for the industry. (Canary Media)

→ Here’s what’s next for offshore wind. (MIT Technology Review)

The UK has big plans for heat pumps, but installations aren’t moving nearly fast enough, according to a new report. Installations need to increase more than tenfold to keep pace with goals. (The Guardian)

States across the US are proposing legislation to ban lab-grown meat. It’s the latest escalation in an increasingly weird battle over a product that basically doesn’t exist yet. (Wired)

Low-cost EVs from Chinese automakers are pushing US-based companies to reconsider their electrification strategy. More affordable EV options? A girl can dream. (Bloomberg)

→ EV prices in the US are inching down, approaching parity with gas-powered vehicles. (Washington Post)

Goodbye greenwashing, hello “greenhushing”! Corporations are increasingly going radio silent on climate commitments. (Inside Climate News)

The Summer Olympics are fast approaching, and organizers in Paris are working to reduce the event’s climate impact. Think fewer new buildings, more bike lanes. (New York Times)

Early springs mean cherry blossoms are blooming earlier than ever. Warmer winters in the future could cause an even bigger problem. (Bloomberg)

New York City’s plan to stop e-bike battery fires

Walk just a few blocks in New York City and you’ll likely spot an electric bike zipping by.

The vehicles have become increasingly popular in recent years, especially among delivery drivers, tens of thousands of whom weave through New York streets. But the e-bike influx has caused a wave of fires sparked by their batteries, some of them deadly.

Now, the city wants to fight those fires with battery swapping. A pilot program will provide a small number of delivery drivers with alternative options to power up their e-bikes, including swapping stations that supply fully charged batteries on demand. 

Proponents say the program could lay the groundwork for a new mode of powering small electric vehicles in the city, one that’s convenient and could reduce the risk of fires. But the road to fire safety will likely be long and winding given the sheer number of batteries we’re integrating into our daily lives, in e-bikes and beyond.

A swapping solution

The number of fires caused by batteries in New York City increased nearly ninefold between 2019 and 2023, according to reporting from The City. Concern over fires has been steadily growing, and in March 2023 Mayor Eric Adams announced a plan to address the problem that included regulations for e-bikes and their batteries, crackdowns on unsafe charging practices, and outreach for delivery drivers.

While batteries can catch fire for a variety of reasons, many incidents appear to have been caused by e-bike drivers charging their batteries in apartment buildings, including a February blaze that killed one person and injured 22.

The city’s most recent effort, designed to address charging, is a pilot program for delivery drivers who use e-bikes. For six months, 100 drivers will be matched with one of three startups that will provide a charging solution that doesn’t involve plugging in batteries in apartment buildings.

One of the startups, Swiftmile, is building fast charging stations that look like bike racks and can charge an e-bike battery within two hours. The other two participating companies, Popwheels and Swobbee, are proposing a different, even quicker solution: battery swapping. Instead of plugging in a battery and waiting for it to power up, a rider can swap out a dead battery for a fresh one.

Battery swapping is already being used for some electric vehicles, largely across Asia. Chinese automaker Nio operates a network of battery swapping stations that can equip a car with a fresh battery in just under three minutes. Gogoro, one of MIT Technology Review’s 2023 Climate Tech Companies to Watch, has a network of battery swapping stations for electric scooters that can accommodate more than 400,000 swaps each day.

The concept will need to be adjusted for New York and for delivery drivers, says Baruch Herzfeld, co-founder and CEO of Popwheels. “But if we get it right,” he says, “we think everybody in New York will be able to use light electric vehicles.”

Existing battery swap networks like Nio’s have mostly included a single company’s equipment, giving the manufacturer control over the vehicle, battery, and swapping equipment. That’s because one of the keys to making battery swapping work is fleet commonality—a base of many vehicles that can all use the same system.

Fortunately, delivery drivers have formed something of a de facto fleet in New York City, says David Hammer, co-founder and president of Popwheels. Roughly half of the city’s 60,000-plus delivery workers rely on e-bikes, according to city estimates. Many of them use bikes from a brand called Arrow, which include removable batteries.

Convenience is key for delivery drivers working on tight schedules. “For a lot of people, battery charging, battery swapping, it’s just technology. But for [delivery workers], it’s their livelihood,” says Irene Figueroa-Ortiz, a policy advisor at the NYC Department of Transportation.

For the New York pilot, Popwheels is building battery cabinets in several locations throughout the city that will include 16 charging slots for e-bike batteries. Riders will open a cabinet door using a smartphone app, plug in the used battery and take a fresh one from another slot. Based on the company’s modeling, each cabinet should be able to support constant use by 40 to 50 riders, Hammer says.

“Maybe it leads to an even larger vision of battery swapping as a part of an urban future,” Hammer says. “But for now, it’s solving a very real and immediate problem that delivery workers have around how they can work a full day, and earn a reasonable living, and do it without having to put their lives at risk for battery fires.”

A growing problem

Lithium-ion batteries power products from laptops and cellphones to electric vehicles, including cars, trucks, and e-bikes. A major benefit of the battery chemistry is its energy density, or ability to pack a lot of energy into a small container. But all that stored energy can also be dangerous.

Batteries can catch fire during charging or use, and even while being stored. Generally, fires happen when temperatures around the battery rise to unsafe levels or if a physical problem in a battery causes a short circuit, allowing current to flow unchecked. These factors can set in motion a dangerous process called thermal runaway.

Most batteries include a battery management system to control charging, which prevents temperatures from spiking and sparking a fire. But if this system malfunctions or if a battery doesn’t include one, charging can lead to fires, says Ben Hoff, who leads fire safety engineering and hardware design at Popwheels.

Some of the delivery drivers who attended a sign-up event for New York’s charging pilot program in late February cited safety as a reason they were looking for alternative solutions for their batteries. “Of course, I worry about that,” Jose Sarmiento, a longtime delivery worker, said at the event. “Even when I’m sleeping, I’m thinking about the battery.”  

Battery swapping could also be a key to safer electric transit, Popwheels’ Hammer says. The company has tight control over the batteries it provides drivers, and its monitoring systems include temperature sensors installed in the charging cabinets. Charging can be shut down immediately if a battery starts to overheat, and an aerosol fire suppression system can slow a fire if one does happen to start inside a cabinet.

The batteries Popwheels provides are also UL-certified, meaning they’re required to pass third-party safety tests. New York City banned the sale of uncertified batteries and e-bikes last year, but many drivers still use them, Hammer says.

Low-quality batteries are more likely to cause fires, a problem that can often be traced to the manufacturing process, says Michael Pecht, a professor at the University of Maryland who studies the reliability and safety of electronic devices.

Battery manufacturing facilities should be as clean as a medical operating room or a semiconductor facility, Pecht explains. Contamination from dust and dirt that wind up in batteries can create problems over time as charging and discharging a battery causes small physical changes. After enough charging cycles, even a tiny dust particle can lead to a short circuit that sparks a fire.

Low-quality manufacturing makes battery fires more likely, but it’s a daunting task to keep tight control over the huge number of cells being made each year. Large manufacturers can produce billions of batteries annually, making the solution to battery fires a complex one, Pecht says: “I think there’s a group who want an easy answer. To me, the answer is not that easy.”

New programs that provide well-manufactured batteries and tightly control charging could make a dent in safety concerns. But real progress will require quick and dramatic scale-up, alongside regulations and continual outreach to communities. 

Popwheels would need to install hundreds of its battery swapping cabinets to support a significant fraction of the city’s delivery drivers. The pilot will help determine whether riders are willing to use new methods of powering their livelihood. As Hammer says, “If they don’t use it, it doesn’t matter.”

Decarbonizing production of energy is a quick win 

Debate around the pace and nature of decarbonization continues to dominate the global news agenda, from the European Scientific Advisory Board on Climate Change warning that the EU must double annual emissions cuts, to forecasts that it could cost more than $1 trillion to decarbonize the global shipping industry. Despite differing opinions on the right path to net zero, all agree that every sector needs to reduce emissions to avoid the worst effects of climate change.

Oil and gas production accounts for 15% of the world’s emissions, according to the International Energy Agency. Some of the largest global companies have embarked on bold plans to cut to zero by 2050 the carbon and methane associated with their production. One player with an ambition to get there five years ahead of the rest is the UAE’s ADNOC, having announced in January 2024 it will lift spending on decarbonization projects to $23 billion from $15 billion.  

In an exclusive interview, Musabbeh Al Kaabi, ADNOC’s Executive Director for Low Carbon Solutions and International Growth, says he is hopeful the industry can make a meaningful contribution while supplying the secure and affordable energy needed to meet growing global demand.

Q: Mr. Al Kaabi, how do you plan to spend the extra $8 billion ADNOC has allocated to decarbonization?

Mr. Mussabeh Al Kaabi: Much of our investment focus is on the technologies and systems that will deliver tangible action in eliminating the emissions from our energy production. At 7 kilograms of CO2 per barrel of oil equivalent, the energy we provide is among the least carbon-intensive in our industry, yet we continue to explore every opportunity for further reductions. For example, we are using clean grid power—from renewable and nuclear sources—to meet the needs of our onshore operations. Meanwhile, we are investing almost $4 billion to electrify our offshore production in order to cut our carbon footprint from those operations by up to 50%.

We also see great potential in carbon capture utilization and sequestration (CCUS), especially where emissions are hard to abate. Last year, we doubled our capacity target to 10 million tonnes per annum by 2030. We currently have close to 4 million tonnes in capacity in development or operation and are working with key players in our industry to create a world-leading carbon management platform.

Additionally, we’re developing nature-based solutions to support our target for net zero by 2045. One of our initiatives is to plant 10 million mangroves, which serve as powerful carbon sinks, along our coastline by 2030. We used drone technology to plant 2.5 million mangrove seeds in 2023.

Q: What about renewables?

Mr. Mussabeh Al Kaabi: It’s in everyone’s interests that we invest in the growth of renewables and low-carbon fuels like hydrogen. Through our shareholding in Masdar and Masdar Green Hydrogen, we are tripling our renewable capacity by supporting a growth target of 100 gigawatts by 2030.

Q: We have been talking about hydrogen and carbon capture and storage (CCS) as the energies and solutions of tomorrow for decades. Why haven’t they broken through yet?

Mr. Mussabeh Al Kaabi: Hydrogen and CCS offer great promise, but, like any other transformative technology, they require R&D attention, investment, and scale-up opportunities.

Hydrogen is an abundant and portable fuel that could help reduce emissions from many sectors, including transport and power. Meanwhile, CCS could abate emissions from heavy, energy-intensive industries like steel and cement.

These technologies are proven, and we expect more improvements to allow wider consumer use. We will continue to develop and invest in them, while continuing to responsibly provide our traditional portfolio of low-carbon energy products that the world needs.

Q: Is there any evidence the costs can come down?

Mr. Mussabeh Al Kaabi: Yes, absolutely. The dramatic fall in the price of solar over recent years—an 89% reduction from 2010 to 2022 according to the International Renewable Energy Agency—just goes to show that clean technologies can become viable, mainstream sources of energy if the right policy and investment mechanisms are in place.

Q: Do you favor a particular decarbonization technology?

Mr. Mussabeh Al Kaabi: We don’t have the luxury of picking winners and losers. The scale of the challenge is too great. World economies consume the equivalent of around 250 million barrels of oil, gas, and coal every single day. We are going to need to invest in every viable clean energy and decarbonization technology. If CCS can do it, let’s do it. If renewables can do it, let’s invest in it.

That said, I am especially optimistic about the role artificial intelligence will play in our decarbonization drive. We’ve been implementing AI and machine learning tools across our value chain for many years; they’ve helped us eliminate around a million tonnes of CO2 emissions over the past two years. As AI technology grows at an exponential rate, we will continue to invest in the latest innovations to ensure we provide maximum energy with minimum emissions.

Q: Can traditional energy companies be part of the solution?

Mr. Mussabeh Al Kaabi: They can and they must be part of the solution. Energy companies have the technical capabilities, the project management experience and, crucially, the financial strength to advance solutions. For example, we’re investing in one of the largest integrated carbon capture projects in the Middle East and North Africa, at our gas processing facility in Habshan. Once complete, it will add 1.5 million tonnes of CCUS capacity. We’ve also just announced an investment into Storegga, the lead developer of the UK’s Acorn CCS project in Scotland, marking our first overseas investment of its kind.

Q: What’s your approach to decarbonization investment?

Mr. Mussabeh Al Kaabi: Our approach is to partner with successful developers of economic technologies and to incubate promising climate solutions so ADNOC and other players can use them to accelerate the path to net zero. There are numerous examples.

Last year, we launched the ADNOC Decarbonization Technology Challenge, a global competition that attracted 650 climate tech startups vying for a million-dollar piloting opportunity with us. The winner was Revterra, a Houston-based startup that will pilot its kinetic battery technology with us over the coming months.  

We’re also working to deploy another cutting-edge battery technology that involves taking used electric vehicle batteries and upcycling them into a battery energy storage system, which we’ll use to help decarbonize our remote production activity by up to 25%.

In the northern regions of the UAE, we’re working closely with another startup company to pilot carbon dioxide mineralization technology. It is a project we are all excited about because it presents opportunities for CO2 removal at a significant scale.

Additionally, we are working with leading industry service providers to explore new ways of producing graphene and low-carbon hydrogen.

Q: Finally, how confident are you that transformation will happen?

Mr. Mussabeh Al Kaabi: I am confident.It can be done. Transformation is happening. It won’t happen overnight, and it needs to be just and equitable for the poorest among us, but I am optimistic.We must focus on taking tangible action and not underestimate the power of human innovation. History has shown that, when we come together, we can innovate and act. I am positive that, over time, we will continue to see progress towards our common goal.

This content was produced by ADNOC. It was not written by MIT Technology Review’s editorial staff.


Why methane emissions are still a mystery

This article is from The Spark, MIT Technology Review’s weekly climate newsletter. To receive it in your inbox every Wednesday, sign up here.

If you follow papers in climate and energy for long enough, you’re bound to recognize some patterns. 

There are a few things I’ll basically always see when I’m sifting through the latest climate and energy research: one study finding that perovskite solar cells are getting even more efficient; another showing that climate change is damaging an ecosystem in some strange and unexpected way. And there’s always some new paper finding that we’re still underestimating methane emissions. 

That last one is what I’ve been thinking about this week, as I’ve been reporting on a new survey of methane leaks from oil and gas operations in the US. (Yes, there are more emissions than we thought there were—get the details in my story here.) But what I find even more interesting than the consistent underestimation of methane is why this gas is so tricky to track down. 

Methane is the second most abundant greenhouse gas in the atmosphere, and it’s responsible for around 30% of global warming so far. The good news is that methane breaks down quickly in the atmosphere. The bad news is that while it’s floating around, it’s a super-powerful greenhouse gas, way more potent than carbon dioxide. (Just how much more potent is a complicated question that depends on what time scale you’re talking about—read more in this Q&A.)

The problem is, it’s difficult to figure out where all this methane is coming from. We can measure the total concentration in the atmosphere, but there are methane emissions from human activities, there are natural methane sources, and there are ecosystems that soak up a portion of all those emissions (these are called methane sinks). 

Narrowing down specific sources can be a challenge, especially in the oil and gas industry, which is responsible for a huge range of methane leaks. Some are small and come from old equipment in remote areas. Other sources are larger, spewing huge amounts of the greenhouse gas into the atmosphere but only for short times. 

A lot of stories about tracking methane have been in the news recently, mostly because of a methane-hunting satellite launched earlier this month. It’s designed to track down methane using tools called spectrometers, which measure how light is reflected and absorbed. 

This is just one of a growing number of satellites that are keeping an eye on the planet for methane emissions. Some take a wide view, spotting which regions have high emissions. Other satellites are hunting for specific sources and can see within a few dozen meters where a leak is coming from. (If you want to read more about why there are so many methane satellites, I recommend this story from Emily Pontecorvo at Heatmap.)

But methane tracking isn’t just a space game. In a new study published in Nature, researchers used nearly a million measurements taken from airplanes flown over oil- and gas-producing regions to estimate total emissions. 

The results are pretty staggering: researchers found that, on average, roughly 3% of oil and gas production at the sites they examined winds up as methane emissions. That’s about three times the official government estimates used by the US Environmental Protection Agency. 

I spoke with one of the authors of the study, Evan Sherwin, who completed the research as a postdoc at Stanford. He compared the challenge of understanding methane leaks to the parable of the blind men and the elephant: there are many pieces of the puzzle (satellites, planes, ground-based detection), and getting the complete story requires fitting them all together. 

“I think we’re really starting to see an elephant,” Sherwin told me. 

That picture will continue to get clearer as MethaneSAT and other surveillance satellites come online and researchers get to sift through the data. And that understanding will be crucial as governments around the world race to keep promises about slashing methane emissions. 


Now read the rest of The Spark

Related reading

For more on how researchers are working to understand methane emissions, give my latest story a read

If you’ve missed the news on methane-hunting satellites, check out this story about MethaneSAT from last month

Pulling methane out of the atmosphere could be a major boost for climate action. Some startups hope that spraying iron particles above the ocean could help, as my colleague James Temple wrote in December

five planes flying out of white puffy clouds at different angles across a blue sky, leaving contrails behind

PHOTO ILLUSTRATION | GETTY IMAGES

Another thing

Making minor changes to airplane routes could put a significant dent in emissions, and a new study found that these changes could be cheap to implement. 

The key is contrails, thin clouds that planes produce when they fly. Minimizing contrails means less warming, and changing flight paths can reduce the amount of contrail formation. Read more about how in the latest from my colleague James Temple

Keeping up with climate  

New rules from the US Securities and Exchange Commission were watered down, cutting off the best chance we’ve had at forcing companies to reckon with the dangers of climate change, as Dara O’Rourke writes in a new opinion piece. (MIT Technology Review)

Yes, heat pumps slash emissions, even if they’re hooked up to a pretty dirty grid. Switching to a heat pump is better than heating with fossil fuels basically everywhere in the US. (Canary Media)

Rivian announced its new R2, a small SUV set to go on sale in 2026. The reveal signals a shift to focusing on mass-market vehicles for the brand. (Heatmap)

Toyota has focused on selling hybrid vehicles instead of fully electric ones, and it’s paying off financially. (New York Times)

→ Here’s why I wrote in December 2022 that EVs wouldn’t be fully replacing hybrids anytime soon. (MIT Technology Review)

Some scientists think we should all pay more attention to tiny aquatic plants called azolla. They can fix their own nitrogen and capture a lot of carbon, making them a good candidate for crops and even biofuels. (Wired)

New York is suing the world’s largest meat company. The company has said it’ll produce meat with no emissions by 2040, a claim that is false and misleading, according to the New York attorney general’s office. (Vox)

A massive fire in Texas has destroyed hundreds of homes. Climate change has fueled dry conditions, and power equipment sparked an intense fire that firefighters struggled to contain. (Grist)

→ Many of the homes destroyed in the blaze are uninsured, creating a tough path ahead for recovery. (Texas Tribune)

Methane leaks in the US are worse than we thought

Methane emissions in the US are worse than scientists previously estimated, a new study has found.

The study, published today in Nature, represents one of the most comprehensive surveys yet of methane emissions from US oil- and gas-producing regions. Using measurements taken from planes, the researchers found that emissions from many of the targeted areas were significantly higher than government estimates had found. The undercounting highlights the urgent need for new and better ways of tracking the powerful greenhouse gas.

Methane emissions are responsible for nearly a third of the total warming the planet has experienced so far. While there are natural sources of the greenhouse gas, including wetlands, human activities like agriculture and fossil-fuel production have dumped millions of metric tons of additional methane into the atmosphere. The concentration of methane has more than doubled over the past 200 years. But there are still large uncertainties about where, exactly, emissions are coming from.

Answering these questions is a challenging but crucial first step to cutting emissions and addressing climate change. To do so, researchers are using tools ranging from satellites like the recently launched MethaneSAT to ground and aerial surveys. 

The US Environmental Protection Agency estimates that roughly 1% of oil and gas produced winds up leaking into the atmosphere as methane pollution. But survey after survey has suggested that the official numbers underestimate the true extent of the methane problem.  

For the sites examined in the new study, “methane emissions appear to be higher than government estimates, on average,” says Evan Sherwin, a research scientist at Lawrence Berkeley National Laboratory, who conducted the analysis as a postdoctoral fellow at Stanford University.  

The data Sherwin used comes from one of the largest surveys of US fossil-fuel production sites to date. Starting in 2018, Kairos Aerospace and the Carbon Mapper Project mapped six major oil- and gas-producing regions, which together account for about 50% of onshore oil production and about 30% of gas production. Planes flying overhead gathered nearly 1 million measurements of well sites using spectrometers, which can detect methane using specific wavelengths of light. 

Sherwin et al., Nature

Here’s where things get complicated. Methane sources in oil and gas production come in all shapes and sizes. Some small wells slowly leak the gas at a rate of roughly one kilogram of methane an hour. Other sources are significantly bigger, emitting hundreds or even thousands of kilograms per hour, but these leaks may last for only a short period.

The planes used in these surveys detect mostly the largest leaks, above roughly 100 kilograms per hour (though they catch smaller ones sometimes, down to around one-tenth that size, Sherwin says). Combining measurements of these large leak sites with modeling to estimate smaller sources, researchers estimated that the larger leaks account for an outsize proportion of emissions. In many cases, around 1% of well sites can make up over half the total methane emissions, Sherwin says.

But some scientists say that this and other studies are still limited by the measurement tools available. “This is an indication of the current technology limits,” says Ritesh Gautam, a lead senior scientist at the Environmental Defense Fund.

Because the researchers used aerial measurements to detect large methane leaks and modeled smaller sources, it’s possible that the study may be overestimating the importance of the larger leaks, Gautam says. He pointed to several other recent studies, which found that smaller wells contribute a larger fraction of methane emissions.

The problem is, it’s basically impossible to use just one instrument to measure all these different methane sources. We’ll need all the measurement technologies available to get a clearer picture, Gautam explains.

Ground-based tools attached to towers can keep constant watch over an area and detect small emissions sources, though they generally can’t survey large regions. Aerial surveys using planes can cover more ground but tend to detect only larger leaks. They also represent a snapshot in time, so they can miss sources that only leak methane for periods.

And then there are the satellites. Earlier this month, Google and EDF launched MethaneSAT, which joined the growing constellation of methane-detecting satellites orbiting the planet. Some of the existing satellites map huge areas, getting detail only on the order of kilometers. Others have much higher resolution, with the ability to pin methane emissions down to within a few dozen meters. 

Satellites will be especially helpful in finding out more about the many countries around the world that haven’t been as closely measured and mapped as the US has, Gautham says. 

Understanding methane emissions is one thing; actually addressing them is another matter. After identifying a leak, companies then need to take actions like patching faulty pipelines or other equipment, or closing up the vents and flares that routinely release methane into the atmosphere. Roughly 40% of methane emissions from oil and gas production have no net cost, since the money saved by not losing the methane is more than enough to cover the cost of the abatement, according to estimates from the International Energy Agency.

Over 100 countries joined the Global Methane Pledge in 2021, taking on a goal of cutting methane emissions 30% from 2020 levels by the end of the decade. New rules for oil and gas producers announced by the Biden administration could help the US meet those targets. Earlier this year, the EPA released details of a proposed methane fee for fossil-fuel companies, to be calculated on the basis of excess methane released into the atmosphere.

While researchers are slowly getting a better picture of methane emissions, addressing them will be a challenge, as Sherwin notes: “There’s a long way to go.”

Emissions hit a record high in 2023. Blame hydropower.

This article is from The Spark, MIT Technology Review’s weekly climate newsletter. To receive it in your inbox every Wednesday, sign up here.

Hydropower is a staple of clean energy—the modern version has been around for over a century, and it’s one of the world’s largest sources of renewable electricity.

But last year, weather conditions caused hydropower to fall short in a major way, with generation dropping by a record amount. In fact, the decrease was significant enough to have a measurable effect on global emissions. Total energy-related emissions rose by about 1.1% in 2023, and a shortfall of hydroelectric power accounts for 40% of that rise, according to a new report from the International Energy Agency.

Between year-to-year weather variability and climate change, there could be rocky times ahead for hydropower. Here’s what we can expect from the power source and what it might mean for climate goals. 

Drying up

Hydroelectric power plants use moving water to generate electricity. The majority of plants today use dams to hold back water, creating reservoirs. Operators can allow water to flow through the power plant as needed, creating an energy source that can be turned on and off on demand. 

This dispatchability is a godsend for the grid, especially because some renewables, like wind and solar, aren’t quite so easy to control. (If anyone figures out how to send more sunshine my way, please let me know—I could use more of it.) 

But while most hydroelectric plants do have some level of dispatchability, the power source is still reliant on the weather, since rain and snow are generally what fills up reservoirs. That’s been a problem for the past few years, when many regions around the world have faced major droughts. 

The world actually added about 20 gigawatts of hydropower capacity in 2023, but because of weather conditions, the amount of electricity generated from hydropower fell overall.

The shortfall was especially bad in China, with generation falling by 4.9% there. North America also faced droughts that contributed to hydro’s troubles, partly because El Niño brought warmer and drier conditions. Europe was one of the few places where conditions improved in 2023—mostly because 2022 was an even worse year for drought on the continent.

As hydroelectric plants fell short, fossil fuels like coal and natural gas stepped in to fill the gap, contributing to a rise in global emissions. In total, changes in hydropower output had more of an effect on global emissions than the post-pandemic aviation industry’s growth from 2022 to 2023. 

A trickle

Some of the changes in the weather that caused falling hydropower output last year can be chalked up to expected yearly variation. But in a changing climate, a question looms: Is hydropower in trouble?

The effects of climate change on rainfall patterns can be complicated and not entirely clear. But there are a few key mechanisms by which hydropower is likely to be affected, as one 2022 review paper outlined

  • Rising temperatures will mean more droughts, since warmer air sucks up more moisture, causing rivers, soil, and plants to dry out more quickly. 
  • Winters will generally be warmer, meaning less snowpack and ice, which often fills up reservoirs in the early spring in places like the western US. 
  • There’s going to be more variability in precipitation, with periods of more extreme rainfall that can cause flooding (meaning water isn’t stored neatly in reservoirs for later use in a power plant).

What all this will mean for electricity generation depends on the region of the world in question. One global study from 2021 found that around half of countries with hydropower capacity could expect to see a 20% reduction in generation once per decade. Another report focused on China found that in more extreme emissions scenarios, nearly a quarter of power plants in the country could see that level of reduced generation consistently. 

It’s not likely that hydropower will slow to a mere trickle, even during dry years. But the grid of the future will need to be prepared for variations in the weather. Having a wide range of electricity sources and tying them together with transmission infrastructure over wide geographic areas will help keep the grid robust and ready for our changing climate. 

Related reading

Droughts across the western US have been cutting into hydropower for years. Here’s how changing weather could affect climate goals in California.

While adaptation can help people avoid the worst impacts of climate change, there’s a limit to how much adapting can really help, as I found when I traveled to El Paso, Texas, famously called the “drought-proof city.”

Drought is creating new challenges for herders, who have to handle a litany of threats to their animals and way of life. Access to data could be key in helping them navigate a changing world.

road closed blockade

STEPHANIE ARNETT/MITTR | ENVATO

Another thing

Chinese EVs have entered center stage in the ongoing tensions between the US and China. The vehicles could help address climate change, but the Biden administration is wary of allowing them into the market. There are two major motivations: security and the economy. Read more in my colleague Zeyi Yang’s latest newsletter here

Keeping up with climate  

A new satellite that launched this week will be keeping an eye on methane emissions. Tracking leaks of the powerful greenhouse gas could be key in addressing climate change. (New York Times)

→ This isn’t our first attempt at tracking greenhouse gases from space—but here’s how MethaneSAT is different from other methane-detecting satellites. (Heatmap)

Smarter charging of EVs could be essential to the grid of the future, and California is working on a new program to test it out. (Canary Media)

The magnets that power wind turbines nearly always wind up in a landfill. A new program aims to change that by supporting new methods of recycling. (Grist)

→ One company wants to do without the rare earth metals that are used in today’s powerful magnets. (MIT Technology Review)

Data centers burn through water to keep machinery cool. As more of the facilities pop up, in part to support AI tools like ChatGPT, they could stretch water supplies thin in some places. (The Atlantic)

No US state has been more enthusiastic about heat pumps than Maine. While it might seem an unlikely match—the appliances can lose some of their efficiency in the cold—the state is a success story for the technology. (New York Times)

New rules from the US Securities and Exchange Commission would require companies to report their emissions and expected climate risks. The final version is watered down from an earlier proposal, which would have included a wider variety of emissions. (Associated Press)

The SEC’s new climate rules were a missed opportunity to accelerate corporate action

This week, the US Securities and Exchange Commission enacted a set of long-awaited climate rules, requiring most publicly traded companies to disclose their greenhouse-gas emissions and the climate risks building up on their balance sheets. 

Unfortunately, the federal agency watered down the regulations amid intense lobbying from business interests, undermining their ultimate effectiveness—and missing the best shot the US may have for some time at forcing companies to reckon with the rising dangers of a warming world. 

These new regulations were driven by the growing realization that climate risks are financial risks. Global corporations now face climate-related supply chain disruptions. Their physical assets are vulnerable to storms, their workers will be exposed to extreme heat events, and some of their customers may be forced to relocate. There are fossil-fuel assets on their balance sheets that they may never be able to sell, and their business models will be challenged by a rapidly changing planet.

These are not just coal and oil companies. They are utilities, transportation companies, material producers, consumer product companies, even food companies. And investors—you, me, your aunt’s pension—are buying and holding these fossilized stocks, often unknowingly.

Investors, policymakers, and the general public all need clearer, better information on how businesses are accelerating climate change, what they are doing to address those impacts, and what the cascading effects could mean for their bottom line.

The new SEC rules formalize and mandate what has essentially been a voluntary system of corporate carbon governance, now requiring corporations to report how climate-related risks may affect their business.

They also must disclose their “direct emissions” from sources they own or control, as well as their indirect emissions from the generation of “purchased energy,” which generally means their use of electricity and heat. 

But crucially, companies will have to do so only when they determine that the information is financially “material,” providing companies considerable latitude over whether they do or don’t provide those details.

The original draft of the SEC rules would have also required corporations to report emissions from “upstream and downstream activities” in their value chains. That generally refers to the associated emissions from their suppliers and customers, which can often make up 80% of a company’s total climate pollution.  

The loss of that requirement and the addition of the “materiality” standard both seem attributable to intense pressure from business groups. 

To be sure, these rules should help make it clearer how some companies are grappling with climate change and their contributions to it. Out of legal caution, plenty of businesses are likely to determine that emissions are material.

And clearer information will help accelerate corporate climate action as firms concerned about their reputation increasingly feel pressure from customers, competitors, and some investors to reduce their emissions. 

But the SEC could and should have gone much further. 

After all, the EU’s similar policies are much more comprehensive and stringent. California’s emissions disclosure law, signed this past October, goes further still, requiring both public and private corporations with revenues over $1 billion to report every category of emissions, and then to have this data audited by a third party.

Unfortunately, the SEC rules merely move corporations to the starting line of the process required to decarbonize the economy, at a time when they should already be deep into the race. We know these rules don’t go far enough, because firms already following similar voluntary protocols have shown minimal progress in reducing their greenhouse-gas emissions. 

The disclosure system upon which the SEC rules are based faces two underlying problems that have limited how much and how effectively any carbon accounting and reporting can be put to use. 

First: problems with the data itself. The SEC rules grant firms significant latitude in carbon accounting, allowing them to set different boundaries for their “carbon footprint,” model and measure emissions differently, and even vary how they report their emissions. In aggregate, what we will end up with are corporate reports of the previous year’s partial emissions, without any way to know what a company actually did to reduce its carbon pollution.

Second: limitations in how stakeholders can use this data. As we’ve seen with voluntary corporate climate commitments, the wide variations in reporting make it impossible to compare firms accurately. Or as the New Climate Institute argues, “The rapid acceleration in the volume of corporate climate pledges, combined with the fragmentation of approaches and the general lack of regulation or oversight, means that it is more difficult than ever to distinguish between real climate leadership and unsubstantiated greenwashing.”

Investor efforts to evaluate carbon emissions, decarbonization plans, and climate risks through ESG (environmental, social, and governance) rating schemes have merely produced what some academics call “aggregate confusion.” And corporations have faced few penalties for failing to clearly disclose emissions or even meet their own standards. 

All of which is to say that a new set of SEC carbon accounting and reporting rules that largely replicate the problems with voluntary corporate action, by failing to require consistent and actionable disclosures, isn’t going to drive the changes we need, at the speed we need. 

Companies, investors, and the public require rules that drive changes inside companies and that can be properly assessed from outside them. 

This system needs to track the main sources of corporate emissions and incentivize companies to make real investments in efforts to achieve deep emissions cuts, both within the company and across its supply chain.

The good news is that even though the rules in place are limited and flawed, regulators, regions, and companies themselves can build upon them to move toward more meaningful climate action.

The smartest firms and investors are already going beyond the SEC regulations. They’re developing better systems to track the drivers and costs of carbon emissions, and taking concrete steps to address them: reducing fuel use, building energy-efficient infrastructure, and adopting lower-carbon materials, products, and processes. 

It is now just good business to look for carbon reductions that actually save money.

The SEC has taken an important, albeit flawed, first step in nudging our financial laws to recognize climate impacts and risks. But regulators and corporations need to pick up the pace from here, ensuring that they’re providing a clear picture of how quickly or slowly companies are moving as they take the steps and make the investments needed to thrive in a transitioning economy—and on an increasingly risky planet.

Dara O’Rourke is an associate professor and co-director of the master of climate solutions program at the University of California, Berkeley.