Trump’s Cuts Increase U.S. Vulnerability to Extreme Heatwave

Today’s ESG Updates

• Trump Cuts Weaken U.S. Heat Response: Funding cuts hamper federal heat emergency prep.
• Ukraine Seeks Cheaper Gas Transit: Eyeing the Transbalkan pipeline amid gas shortage
• Japan Adjusts Offshore Wind Rules: Targets 45 GW by 2040 amid delays and developer exits.
• Oceans Darkening Threatens Marine Life: Climate change darkens oceans, shrinking key habitats.

Trump’s cuts reduce U.S. residents’ protections against extreme summer heat

Except for northern Alaska, almost all U.S. regions are expected to experience extreme heat during this summer. Record-breaking temperatures have already hit several parts of the U.S., resulting in wildfires. The National Oceanic and Atmospheric Administration (NOAA) predict that the significantly warmer and drier weather will increase the risks of even more wildfires and droughts. NOAA reports that excessive heat is the leading cause of weather-related deaths in the U.S., and another study states that heat-related deaths in the U.S. have increased by 117% since 1999.  Experts worry that Trump’s cuts to staff and funding will affect federal agencies’ abilities to prepare and respond to heat emergencies, putting the safety of U.S. residents at risk. This combination of political uncertainty and climate change highlights the growing need for effective risk management. ESG tools can help companies stay up to date, and manage these threats more effectively. 

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Further reading: US faces another summer of extreme heat as fears rise over Trump cuts

Ukraine looking to import gas via Transbalkan pipeline at lower fees

Ukraine’s gas production has significantly decreased following numerous Russian missile strikes this year, resulting in a serious gas shortage. The country currently imports gas via Slovakia and Hungary. Despite its unused capacity, Ukraine does not use the southern Transbalkan route through Greece, which passes through five countries, due to costly transit fees. The Kyiv government projects a minimum import of 4 billion cubic metres (bcm) of gas for the 2025/26 heating season, while experts estimate a required amount of 6.3 bcm. Ukraine is hopeful, and awaits positive decisions from the participating countries regarding the negotiation of tariffs for the Transbalkan gas route. Meanwhile, Ukrainian state firm Naftogaz has already acquired 300 million cubic metres (mcm) of gas from Poland’s Orlen, though the Polish interconnector’s limited volume of 7 mcm per day is lower than Ukraine’s demand of 25 mcm per day. Additionally, Ukraine awaits 20 mcm of gas imports from Slovakia, Poland, and Hungary. 

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Further reading: Ukraine hopes to import gas via Transbalkan pipeline at lower transit fee

Japan revises offshore wind policies to tackle developer uncertainties

To minimise carbon emissions, reduce dependence on imported fossil fuels, and boost national security, the Japanese government aims to possess 45 GW of offshore wind capacity by 2040. Currently, Japan has auctioned off a tenth of the capacity that it aims for. Surging costs have posed challenges  such as project delays and developer withdrawals. Mitsubishi has yet to start on its offshore wind projects,  resulting in losses of over $300 million, and companies like Orsted and Shell have also backed out from the Japanese market. To adapt to these circumstances, the Japanese government intends to clarify existing policies, consider potential changes,  and extend project durations, simultaneously attracting and retaining developers. Using ESG tools, companies can stay informed on the latest industry updates and regulations.

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Further Reading: Japan poised to sweeten offshore wind rules as players get cold feet

Marine life threatened by darkening oceans

More than a fifth of the global ocean has darkened between 2003 and 2022, resulting in a reduction of the photic zone, a band of water that supports marine life. Home to 90% of marine life, it is also the site of photosynthesis for phytoplanktons, which generate nearly 50% of the planet’s oxygen. Darkening of the photic zone is evident across approximately 75 million sq km. The zones have shrunk by 50m in 9% of the ocean and have become 100m shallower in 2.6% of the ocean. These numbers underscore alarming trends of climate change, which threaten biodiversity, ecological health and human wellbeing. 

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Further reading: Planet’s darkening oceans pose threat to marine life, scientists say

Editor’s Note: The opinions expressed here by the authors are their own, not those of impakter.com — In the cover photo: Fire burning in the forest, Oct. 26, 2024. Cover Photo Credit:  Emma Renly