Make way for the electric…everything

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California has long been at the forefront of climate policy and regulation, setting emission standards that were later adopted by other states and eventually on a federal level. Now, the state is poised to take the lead again, this time in addressing emissions from heavy vehicles.

A waiver signed by the Biden administration will allow California to supersede federal regulations and require that half of all garbage trucks and heavy machinery like mixers and trailers be electric by 2035, sources told The New York Times.

The law is the second California has passed within the past year targeting transportation emissions, which is the leading emitter of greenhouse gas in the U.S. Previous legislation requires all passenger vehicles sold in the state to be electric by 2035.

Globally, electric trucks and other lower-emission machinery are taking off. As mentioned in last week’s newsletter, the first heavy machinery manufactured with low-emission steel was sold in North America. The machinery has been on the market and largely embraced in Europe.

Demand, meanwhile, has skyrocketed for consumer EVs after gas prices surged because of the war in Ukraine. The Inflation Reduction Act, which includes tax credits to help offset the price of electric cars, has generated further interest.

A new rule reducing the number of cars that will be eligible for the $7,500 tax credit, however, could help curb demand. While 21 vehicles are currently covered under the IRA, that number will be reduced starting April 18. Details on which models and manufacturers will be impacted have not yet been released.

The change is in part to reduce America’s dependence on materials and cars imported from China, which is the world’s largest battery producer and processes the bulk of raw materials required to build an electric car battery.

Other stories I’m watching

• A groundbreaking case has kicked off at the European Court of Human Rights, which could set climate policy for the European bloc. Three lawsuits alleging that governments have failed to protect their citizens from climate make up the case.
• A host of Republican legislatures have enacted laws that would limit pension funds and other state coffers from having investments in ESG funds or companies with ESG practices. Budget offices are working to reverse the change, saying it will cost states billions of dollars.
• Berlin voters said no to a referendum that would have made the German city net-zero by 2030 instead of the currently proposed 2045.
• Bangladesh residents have learned how to predict floods and communicate with one another on when precisely to evacuate. Their mix of technology and human connection could provide solutions for other communities.
• In Spain, meanwhile, residents are evacuating from a wildfire that is raging on the country’s eastern side, far earlier than the typical fire season.
• Boston Consulting Group has an interesting breakdown of where foreign direct investments into green technologies are going.

Conversations I’m interested in

• Indonesia is one of the world’s main palm oil producers, but the land upon which it grows is often owned by small farmers, who should benefit by leasing or giving up the land to major corporations. A nonprofit investigates why that isn’t happening.
• This agricultural specialist posted a tongue-in-cheek commentary on the difference between a farmer and a rancher, and the conversation is hilarious and illuminating.
• How should consumers be thinking about fire protection from a financial perspective? An expert breaks it down.