Rough seas hinder Indonesian rescuers from reaching a capsized ship.

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Sustainable Switch

Sustainable Switch

 

By Sharon Kimathi, Energy and ESG Editor, Reuters Digital

Hello,

I’m back from my travels in China! If only I could regale you with tales of my adventures in Shanghai, Chongqing, and Hainan, where I experienced some amazing culinary delights and vertigo. But perhaps I shall share that on LinkedIn – click here to follow.

But let’s get into what the latest environmental, social and governance stories are for the week.

Today’s newsletter kicks off with updates from the Group of 20 energy ministers meeting in Houston, Texas, where U.S. President Donald Trump’s administration announced more environmental regulatory rollbacks while accelerating approval for deep-sea mining despite scientists’ concerns over hotter sea temperatures.

Before we dive into it, here are some AI governance stories that are also on my radar today:

  • How China is preparing for the risk of AI escaping human control
  • Obama voices caution on AI, urges Democrats to tackle it
  • AI-linked stocks slump after top lab CEOs call for slowing technology's development
  • Microsoft drafts code of conduct to keep its AI under human control
 

U.S. Treasury Secretary Scott Bessent attends a plenary session as G20 finance and energy ministers meet in Asheville, North Carolina, U.S. REUTERS/Sam Wolfe

Cutting carbon pollution laws

The U.S. Environmental Protection Agency formally repealed carbon pollution standards for coal- and gas-fired power plants, which climate and public health advocates said would lead to billions in public health and environmental damages.

The agency also ‌proposed rescinding all remaining greenhouse gas emission requirements for power plants to prevent future climate regulations targeting the power sector.

Last year, the Trump administration proposed repealing rules passed under former President Joe Biden to curb emissions of carbon dioxide, mercury and other air pollutants from power plants.

Undersecretary of Energy Kyle Haustveit told reporters the new rules would add more coal-fired electricity, which had been declining steadily in the U.S. as cheaper natural gas and renewable energy became more available.

"President Trump ended the war on beautiful, clean coal," he ⁠said. "Coal is reliable, affordable, secure."

Maggie Coulter, an attorney at the Center for Biological ⁠Diversity’s Climate Law Institute, said removing the regulations would have grave health and environmental repercussions.

"Denying the existence of a quarter of the country’s climate pollution is utterly reckless. It will lead to more lost lives and suffering from intense heatwaves, drastic storms and destructive wildfires, just like those we’ve seen this summer." 

Biden's EPA estimated that its rule would deliver $370 billion in net benefits.

It’s worth noting that the latest rollbacks come against the backdrop of lawsuits against the Department of Energy over its termination of environmental projects worth billions of dollars because their recipients were in states that leaned Democratic.

Click here for the full story on the lawsuit filed in federal court in Boston, in which plaintiffs ranged from a ‌sustainable cement production company to a California-based non-profit. 

 

Deep-sea mining amid hotter temperatures

Meanwhile, Interior Secretary Doug Burgum told G20 energy ministers in Houston that deep-sea mining permits could come within months as the administration pursues a strategy of "energy addition" for the country and allies.

Since returning to office last year, Trump has taken steps to bolster the nascent deep-sea mining industry, although he has yet to issue ⁠operational permits for it to proceed.

The spectre of seabed mining has alarmed many environmentalists fearing it could cause irreversible biodiversity loss.

On a related note, click here for a story on how hotter seas increase humidity and overnight temperatures in coastal areas and can help fuel intense storms later in the year.

Sea temperature spikes can cause mass deaths of species such as corals and disrupt food supplies for birds and mammals, with knock-on effects through food ⁠chains.

John Bruno, a marine ecologist at the University of North Carolina, said some species were moving north to seek cooler waters, but not all could adapt.

 

Talking Points

 

A passenger of the ferry that capsized in the Java Sea sits on a stretcher upon arrival at Trisakti port in Banjarmasin, South Kalimantan province, Indonesia. REUTERS/Stringer 

  • Indonesia missing ship: Rough weather is hindering Indonesian rescuers in their search for 129 people missing after a passenger ship capsized in the Java Sea three days ago, officials said. The Virgo Transport 8 ship with 243 people onboard went missing due to bad weather early on Sunday.
    • Indonesia wildfire pollution: Fires have been blazing across vast ‌stretches of forest and peatland throughout the Indonesian archipelago, causing a surge in hazardous emissions responsible for respiratory infections, particularly in the hardest-hit provinces of Sumatra and Borneo. Click here to read more.
    • Nepal flood recovery funds: Since the collapse of a Himalayan glacier in late August caused devastation in the valleys below, at least 1,300 people have been confirmed dead. Nepal is asking wealthier countries and global agencies for financial help, seeking $5 billion for initial rebuilding, arguing that the disaster ‌shows how climate change has hit poor countries that did little to cause it.
    • Nepal survivor stories: Click here for a moving story of a rare survivor who was trapped in a hydropower tunnel for nine days after the disaster. Around 900 power station workers remain missing. Families are still holding out hope to be reunited with their missing relatives. Click here to read the full Reuters report.
    • Himalayan glacier melt: A recent study found that its glaciers are approaching a tipping point, melting faster than a decade ago and threatening water security as the region approaches "peak water" by mid-century. As glaciers retreat, they are leaving behind unstable glacial lakes held back by little more than loose rock and ice, above valleys where millions of people live, the study found. 
    • Colorado River water watch: Click here for an in-depth Reuters graphic on the depletion of the Colorado River because rising water consumption is outpacing what the river can provide and the seven states around it cannot agree on how to share the resource.
 

In Conversation

 

Keeping with the topic of water scarcity along the Colorado River Basin, Kevin Gast, CEO of U.S.-based water treatment company VVater, shares his thoughts on the shrinking water supply:

“Lake Powell hitting a record low should end any illusion that we can manage our way around water scarcity. This is a permanent infrastructure challenge, and communities need to treat it like one.

“A shrinking water supply does not stay contained at the reservoir. The results show up on farms, in housing decisions, at factories and ultimately at people's taps.

“Communities have to decide what they can grow, what they can build, and their next gallon of water source.

“Conservation is part of the answer, but there is a limit to how much water you can save when supply keeps shrinking. We need to dramatically expand the amount of water we're willing and able to reuse by treating wastewater, recycling water within communities and industries, and building local sources before the next shortage forces our hand.

“The future of water security depends on making every gallon do more.”

 

ESG Spotlight