This Week's Climate Policy Update (July 18, 2024)

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Akin Gump Strauss Hauer & Feld LLP

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On Monday, July 15, at the opening day of the Republican National Convention, former President Donald Trump announced his selection of Sen. J.D. Vance...
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On Monday, July 15, at the opening day of the Republican National Convention, former President Donald Trump announced his selection of Sen. J.D. Vance (R-OH) as his vice-presidential candidate, signaling a firm commitment to fossil fuel advocacy and opposition to renewable energy. Vance is vocal against President Biden's clean energy policies, which he critiqued openly at the Convention. While the selection aligns with the broader Republican agenda of championing fossil fuels and criticizing current administration's energy strategies, the ticket has drawn its own share of industry concern. The oil and gas industry has expressed uneasiness over Trump's protectionist trade policies, fearing inflation and trade retaliation. The American Petroleum Institute, advocating for free markets and free trade, stresses the necessity of reducing trade barriers and maintaining certain tax incentives, including those for carbon capture and clean energy, to mitigate potential adverse effects on domestic energy production.

While the future of federal support for climate initiatives is uncertain, individual states continue to draw on federal resources and act on their own accord. The Department of Energy's $12.6 billion agreement with California's ARCHES hydrogen hub marks a significant step towards clean hydrogen production and transportation, in line with the bipartisan infrastructure law's goals of enhancing renewable energy and improving air quality in underserved communities. Simultaneously, environmental and consumer advocacy groups are challenging pilot projects to blend hydrogen into existing natural gas pipelines in California, arguing that these initiatives pose environmental and health risks and could undermine the state's climate objectives. Additionally, a labor dispute has emerged in California regarding the installation and maintenance of electric vehicle charging stations, with unions and industry at odds over the availability of certified electricians. The California Energy Commission is considering a $3 million investment in training to alleviate these workforce challenges. Together, these events highlight the need to balance environmental concerns and workforce needs when advancing clean energy initiatives in California.

On Thursday, July 18, the European Parliament voted to confirm Ursula von der Leyen's second term as European Commission President. Her agenda appealed to a diverse political spectrum in some ways mirroring tactics used by President Joe Biden, by framing climate action and environmental laws as an economic imperative beneficial to regional security. Concurrently, the European Union is preparing to advocate at the upcoming Conference of the Parties (COP29) climate summit for the implementation of commitments to reduce fossil fuel dependence and increase climate funding. The European Union's (EU) efforts aim to solidify commitments and targets set out at the previous COP28 summit and bring greater detail to a global agreement on climate finance. Together, these events underscore the EU's cohesive strategy of leveraging economic arguments to advance its climate agenda on both domestic and international fronts.

To read Akin's most recent climate policy update, please click here.

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