- __[Spark](https://snacks.robinhood.com/newsletters/29d17uJyHleH663tK5KuJ1/articles/5gnyDPfIyTl29DPyVD3NrR/):__ E-truck maker __[Nikola](https://robinhood.com/stocks/NKLA/)__ agreed to buy battery biz __[Romeo Power](https://robinhood.com/stocks/RMO/)__. EV batteries are the new oil — both expensive and scarce. That’s why EV suppliers have invested $30B in the battery biz over the past two years.
- __[Vroom](https://snacks.robinhood.com/newsletters/2zh9ZuNrQGjZdXgKAstRqM/articles/1clzXSu7L3YCvgXXkv57b1/):__ Dodge is retiring its gas-guzzling Challenger and Charger cars, and launching a new electric car (dubbed: Hornet). Dodge is leaning on brand fans to help it transition into a more EV-forward biz. 
- __[Boom](https://snacks.robinhood.com/newsletters/5OQRdDSON3q7HH9Mc9MUP1/articles/uWHUubxsK4Wgwez1MUerB/):__ __[American Airlines](https://robinhood.com/stocks/AAL/)__ agreed to buy 20 ultrafast jets that fly at twice the speed of commercial flights. New supersonics are *super* expensive, but their planned use of sustainable fuel could help demand take off.


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__Build back greener…__ Last week President Biden [signed](https://www.washingtonpost.com/politics/2022/08/16/biden-inflation-reduction-act-signing/) a historic climate and social spending bill into law (confusingly dubbed: “the Inflation Reduction Act”). The $433B package is expected to help the US curb emissions by 40% by 2030, closer in line with the 50% goal Biden had set in the Paris Agreement.

- __Big deal:__ The landmark legislation [includes](https://www.wired.com/story/how-inflation-reduction-act-climate-bill-save-you-money/) nearly $400B in climate spending — less than Biden’s original agenda, but still the largest climate investment in US history. Included: $60B for clean sources and storage (think: wind turbines, EV factories) and tax credits to help consumers lower their emissions (think: home solar panels, used EVs).
- __Bigger problem:__ Despite the monumental law, scientists [warn](https://www.reuters.com/business/cop/world-scrambles-contain-damage-greenhouse-gas-emissions-hit-record-2021-10-25/) the world’s still "way off track" in capping rising temperatures, and the current energy crisis is making it harder for our gas-reliant globe to focus on green alternatives.

__From countries to companies…__ governments and corporations have made ambitious pledges to curb greenhouse-gas levels, which hit a [record](https://www.reuters.com/markets/commodities/eu-scientists-call-action-greenhouse-gas-levels-hit-high-2021-2022-01-10/) in 2021. G20 countries (notably the US, China, Germany, and India) account for more than 80% of the world's economic output *and* 80% of global emissions. Only 6% of the G20's $14T in postpandemic stimulus spending went toward projects to lower emissions. 

- __Companies aren’t doing so great either:__ [700+](https://hbr.org/2022/08/why-companies-arent-living-up-to-their-climate-pledges) of the largest 2K public companies have made net-zero commitments, and two-thirds of S&P 500 companies have set targets for emission reductions — but many are struggling to deliver.

A climate whirlwind (Andriy Onufriyenko/Getty Images)

Temp Check

__Climate problems are costly…__ hence: the Dems’ massive package. But the crisis might be even costlier to ignore. Climate-related adaptation and resettlement are expected to be multitrillion-dollar challenges: unchecked climate change could cost the global economy [$178T](https://www2.deloitte.com/global/en/pages/about-deloitte/press-releases/deloitte-research-reveals-inaction-on-climate-change-could-cost-the-world-economy-us-dollar-178-trillion-by-2070.html) over the next half century — not to mention the devastating human toll. Extreme weather has cost the US nearly [$2T](https://capitalmonitor.ai/institution/government/big-names-back-climate-disclosure-in-the-us/) since 1980, and nearly $100B last year alone.

The US is making its biggest climate investment ever, but the climate crisis could be much costlier

__Cloudy skies...__ literally. Cloud computing has enabled millions of Americans to work from home during the pandemic, but it’s come with a climate cost. There are nearly [3K](https://discover.cloudscene.com/market/data-centers-in-united-states/all) data centers in the US alone, which can each use enough energy to power 50K homes. As global temps rise, cloud companies are racing to keep servers cool while reducing emissions. The process could take a while: the cloud stores over 60% of all corporate data and has a bigger carbon footprint than the entire airline industry. 

__Crypto's climate conundrum...__ Many blockchains (think: __[bitcoin](https://robinhood.com/crypto/BTC/)__) use gobs [of energy](https://snacks.robinhood.com/newsletters/18QR0SyWNU2shCThYbl30f/articles/35CXk15pizW3Ju68UBK6WO/) to secure their networks. Bitcoin alone is estimated to guzzle more electricity than Argentina, and fossil fuels are key. A 2019 report said BTC mining emitted 23M metric tons of carbon dioxide a year (that # is likely greater now). But crypto's power situation is in flux. The planned September __[ethereum](https://robinhood.com/crypto/ETH/)__ merge ([PoW to PoS](https://mashable.com/article/ethereum-merge-explainer)) will make that chain a lot less energy-hungry. Meanwhile, US officials may put their fingers on the crypto-emission scales with industry reforms.

__Green investing…__ or green-washing? Investors hungry for climate-responsible capitalism are expected to park $50T in environmental, social, and governance (ESG) funds by 2025. Critics on the right say ESGs are too “woke” and critics on the left say ESGs are designed to prioritize profits over planet-saving progress. ESGs have [underperformed](https://www.reuters.com/business/sustainable-business/bear-market-puts-esg-investing-its-first-big-test-2022-07-13/) the market by nearly 2% during the first half of this year, thanks partly to slumping tech stocks. Now: new EU [regulations](https://www.bloomberg.com/news/articles/2022-08-02/esg-funds-face-new-rules-aimed-at-protecting-everyday-investors?utm_source=google&utm_medium=bd&cmpId=google) might tighten ESG marketing — or slow sustainable stocks.

__Carbon capture...__ is capturing corporate attention. The UN says limiting global warming will require taking tons of carbon out of the atmosphere (think: trees, carbon-sucking machines.) [In April](https://www.cnbc.com/2022/04/12/stripe-alphabet-meta-shopify-mckinsey-spur-carbon-capture-market.html), __Stripe__, __[Alphabet](https://robinhood.com/stocks/GOOGL/)__, __[Shopify](https://robinhood.com/stocks/SHOP/)__, __[Meta](https://robinhood.com/stocks/META/)__, __McKinsey__, and others created a $925M carbon-capture fund. __[Microsoft](https://robinhood.com/stocks/MSFT/)__ plans to spend $471M on the tech, and oil giants like __[Exxon](https://www.npr.org/2021/06/08/1002448099/big-oils-transition-3-takeaways-on-how-the-industry-is-and-isnt-going-green)__ say they’re investing billions in taking their emissions out of the air. But skeptics say it’s safer, cheaper, and more efficient to reduce carbon emissions now rather than try to clean them up later.

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