Today’s ESG Updates
- Energy Secretary Threatens IEA Exit: U.S. Energy Secretary Chris Wright warned the U.S. may leave the IEA if it prioritizes renewables over fossil fuels.
- Alcoa Fined for Illegal Mining: Alcoa will pay A$55 million for clearing 2,100 hectares of native forest in Western Australia.
- GEAPP Raises $100 Million: The Global Energy Alliance aims to modernize India’s electricity grids, starting with Rajasthan and Delhi.
- U.S. and Japan Invest $36 Billion: Projects include a 9.2 GW Ohio plant and a $600 million diamond facility, strengthening energy and critical minerals supply chains.
Energy Secretary warns IEA: prioritize fossil fuels or risk U.S. exit
In Paris, U.S. Energy Secretary Chris Wright threatened to withdraw the United States from the International Energy Agency (IEA) if it continues focusing on renewable energy deployment and energy transition policies that conflict with the Trump administration’s pro-fossil fuel agenda. Wright accused the IEA of acting like a “climate advocacy organization” and criticized what he called “leftist fantasies.” He argued that the agency should prioritize energy security rather than net-zero or transition scenarios.
The IEA has come under pressure to scale back its energy transition work. In its November annual report, the organization reintroduced a scenario based on current policy trends and adjusted its outlook on peak oil demand. Its previous prediction for peak oil use was for the 2030s, but now the IEA expects oil demand to continue growing until the middle of the century.
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Further reading: US threatens to quit energy agency if it doesn’t drop green transition
Alcoa to pay A$55 million for illegal bauxite mining in Western Australia
Australia’s environment ministry said U.S. aluminium producer Alcoa will pay A$55 million (US$38.9 million) to remediate damage from illegal clearing of native forest to mine bauxite in Western Australia. The payment is for the land, approximately 2,100 hectares (5,190 acres), that was cleared without government approval between 2019 and 2025 in the Northern Jarrah Forest, south of Perth.
Alcoa has operated in the region since the 1960s, clearing roughly 28,000 hectares (69,000 acres) of jarrah forest for bauxite mining. The public has expressed strong opposition to further clearing, with 59,000 submissions to the state’s environment watchdog.
Alcoa would be allowed to continue limited clearing under the national interest exemption for 18 months.
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Further reading: Alcoa to pay $39 million after illegally clearing Australian native forest
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GEAPP to raise $100 million to digitise India’s electricity grids
The Global Energy Alliance for People and Planet (GEAPP) is aiming to raise about $100 million by 2028 to help digitise India’s electricity grids. GEAPP will approach development lenders, such as the World Bank and the Asian Development Bank, for financing. Major philanthropic organizations, including the Rockefeller Foundation, the IKEA Foundation, and the Bezos Earth Fund, back it.
An initial $25 million would be deployed to begin grid digitization work in Rajasthan and Delhi, with plans to expand the programme to cover at least 15 utilities nationwide by 2028.
This plan supports India’s climate goals, including a 45% cut in emissions intensity by 2030 and a net-zero target by 2070.
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Further reading: Global Energy Alliance seeking to raise $100 million by 2028 to digitise India’s electric grids, CEO says
U.S. and Japan unveil $36 billion energy and minerals investment plan
The United States and Japan announced a set of projects worth about $36 billion in the U.S. oil, gas, and critical minerals sector. This is part of a broader $550 billion trade and investment agreement between the two countries. The deal is a move to strengthen economic security, build supply chains, and curb reliance on China for critical minerals and energy resources.
Most of the first wave of investment will go towards the plant in Portsmouth, Ohio, which will generate 9.2 gigawatts of electricity each year. SoftBank’s SB Energy will operate it. The other major investments concern a new deepwater crude oil export facility in Texas and a $600 million synthetic industrial diamond plant in Georgia.
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Further reading: US and Japan unveil $36bn of oil, gas and critical minerals projects in challenge to China
Editor’s Note: The opinions expressed here by the authors are their own, not those of impakter.com — In the Cover Photo: Secretary of Energy Chris Wright visits NETL & Longview Power plant on June 25, 2025. Cover Photo Credit: Wikimedia Commons
