WHAT’S HAPPENING TODAY: Good afternoon and happy Monday, readers! In today’s Daily on Energy, Callie and Maydeen continue to monitor dropping oil prices amid the fallout of the Trump administration’s tariffs.
Meanwhile, climate groups are anticipating a preliminary injunction from a federal court as soon as this week on the Environmental Protection Agency’s efforts to cancel $20 billion in climate grants issued under the previous administration.
In other news, over 100 countries are meeting this week to discuss implementing a global carbon tax on shipping.
Welcome to Daily on Energy, written by Washington Examiner energy and environment writers Callie Patteson (@CalliePatteson) and Maydeen Merino (@MaydeenMerino). Email cpatteson@washingtonexaminer dot com or mmerino@washingtonexaminer dot com for tips, suggestions, calendar items, and anything else. If a friend sent this to you and you’d like to sign up, click here. If signing up doesn’t work, shoot us an email, and we’ll add you to our list.
OIL PRICES CONTINUE TO PLUNGE: In the wake of President Donald Trump’s sweeping tariffs, domestic oil prices continued to drop, hitting as low as $59 per barrel in early trading.
The details: While prices appeared to recover slightly by midmorning, both international and domestic benchmarks saw prices drop by over 2% around 11:30 a.m. EST. At the time, Brent Crude prices were down 2.09%, trading at $64.21 a barrel. West Texas Intermediate also dropped by 2.58% and was priced at $60.39 per barrel.
The oil sell-off extended the dramatic drop in prices seen Friday when prices fell by about 8% to the lowest levels since 2021, fueled by both the Trump tariffs and OPEC+’s decision to accelerate its planning output increase next month.
Financial institutions have since moved to lower their short-term oil forecasts for Brent Crude, with Citi cutting its three-month forecast to $60 per barrel. Goldman Sachs also lowered its 2026 forecasts today, with Brent at $58 a barrel and WTI at $55 per barrel.
The impact: Fears have grown among investors and energy analysts, who are worried the recent tariffs from the U.S. could send the market into a global trade war.
“If US trading partners heavily retaliate and that prompts further retaliatory measures from the US, global economic growth would be significantly affected, and ultimately, oil demand,” Jorge León, Head of Geopolitical Analysis at Rystad Energy, told Callie.
This is expected to continue to put downward pressure on prices, offering some relief to consumers. But, it could make it more difficult for oil and gas producers to carry out Trump’s “Drill, Baby, Drill” agenda. Rystad Energy has predicted that U.S. oil and gas operators, in the Permian Basin specifically, could be forced to slow production growth in the coming months.
Read more from Callie here.
GREENHOUSE GAS REDUCTION FUND AWARDEES ANTICIPATE JUDGE’S ORDER: Climate groups under the Greenhouse Gas Reduction Fund are anticipating a federal judge to order a preliminary injunction on the Environmental Protection Agency’s efforts terminate billions of dollars in granted funding.
Climate United, one of the nonprofits suing the EPA’s efforts to terminate $20 billion in granted funding, said they are expecting a federal court to order a preliminary injunction as soon as tomorrow.
Some background: Through the 2022 Inflation Reduction Act, passed by Democrats and signed by former President Joe Biden, it established the Greenhouse Gas Reduction Fund. The fund was given a total of $27 billion dollars to help fund clean energy projects in low-income communities.
EPA Administrator Lee Zeldin has claimed the fund was mismanaged and improperly distributed through Citibank by the previous administration. Zeldin has called the funds “gold bars” referring to an undercover video last year in which a former EPA employee said the Biden administration was trying to distribute the promised funds before the new administration.
“It truly feels like we’re on the Titanic, and we’re throwing like gold bars off the edge,” the former employee said in the video.
There are three parts of the fund including the National Clean Investment Fund which granted $14 billion to the Climate United Fund, Coalition for Green Capital, and Power Forward Communities. The three organizations are suing the EPA for freezing and attempting to cancel the funds.
The EPA is also seeking to terminate $6 billion granted to five organizations under the fund’s Clean Communities Investment Accelerator. The fund also granted $7 billion to its “Solar for All” program which has remained untouched by the EPA.
Legal battle: A federal judge in D.C. last week heard arguments by the three nonprofits claiming that the EPA’s attempts to terminate the funds are unlawful. The groups also noted that the delay in funding could cause irreparable harm to the awardees, leading to the organizations going out of business.
The organizations are seeking for the court to release the funds while it decides whether the EPA’s actions to cancel the funds are unlawful.
NATIONS WEIGH FIRST GLOBAL CARBON TAX ON SHIPS: More than 170 nations are meeting this week to discuss implementing what could be the first international carbon tax on the global shipping industry.
The details: Members of the International Maritime Organization met today in London, where the 83rd session of the Marine Environment Protection Committee will be held until Friday. The group – whose 176 members include major powers like the United States, United Kingdom, China, and Brazil – is weighing proposed regulations that would be imposed on the international shipping industry in an effort to curb emissions.
The regulations would place a tax on greenhouse gas emissions from maritime vessels, incentivizing ship owners to use alternate, cleaner fuels. The potential rules would be executing on agreements made between IMO member nations in 2023 to slash emissions by at least 40% by 20230 and achieve net zero by or around 2050.
IMO Secretary-General Arsenio Dominguez has pushed for the committee to move forward with agreeing on some form of the regulations, telling the Associated Press last week that “there is more than can be done” in decarbonizing the industry.
Where it stands: Many major shipping nations have voiced public support for the global carbon tax. In January, 47 governments, along with the International Chamber of Shipping, urged IMO to adopt the tax. The group included countries like Greece, Japan, Korea, and the U.K. Since Trump took office, the U.S. has remained relatively quiet on the issue.
While the carbon tax would help accelerate the transition to cleaner fuels, not everyone is convinced. Several member countries have criticized the existing proposals, saying a fixed levy would increase the prices of shipping products as well as the cost of alternative biofuels.
Some have suggested adopting regulations that would consist of offering green credits to shipping companies that stay under a certain emissions limit, while having those that exceed the limit pay.
“[It is] difficult to say what will happen next week,” Fanny Pointet, sustainable shipping manager with the European advocacy group, Transport and Environment, said to AFP.
EU CONSIDERS WEAKENING CO2-REDUCTION EFFORTS: The European Union is reportedly considering taking steps that would essentially soften the requirements for member nations to meet the bloc’s carbon emission reduction targets.
The details: Five sources familiar with the matter confirmed to Reuters this week that the European Commission, the EU’s executive arm, may allow member countries to purchase international carbon credits to meet 2040 emissions goals.
The commission has yet to release its 2040 CO2 emissions reduction target (after missing a crucial deadline last month) and has been expected to propose cutting emissions by 90%. As the EU has faced pressure to soften its climate targets for months, the bloc now appears ready to make some concessions.
The commission is specifically considering setting an emissions reduction target for 2040 that is less than 90%, while allowing member states to purchase carbon credits abroad to make up the difference, according to Reuters.
As the 2040 climate targets need to receive approval from EU members and the European Parliament, the workaround may make it easier for the bloc to pass goals close to the original 90% target. Though, the adjusted proposal may also face pushback as international carbon offsets have long been criticized for lack of transparency and, in some cases, fraud.
DEADLY FLOODS HIT ACROSS THE SOUTH AND MIDWEST: At least 21 people have died in connection to several days of severe weather events that hit parts of the country last week.
A series of extreme weather events from tornadoes to flash floods across Southern and Midwest states have led to at least 21 deaths. Last week, states such as Tennessee, Missouri, Kentucky, and Arkansas experienced powerful tornadoes that caused 19 deaths.
Now, some of the same areas are dealing with flash flood emergencies. NBC News said some of the communities that are dealing with extreme flooding include: Hardy, Arkansas; Columbus, Indiana; Dawson Springs, Kentucky; Mammoth Springs, Arkansas; and Frankfort, Kentucky.
NBC News said Marshall County in Kentucky recorded 15.59 inches in rain in the four-day period ending Saturday at midnight.
Today, the National Weather Service said a low pressure system will provide widespread showers and thunderstorms across the mid-atlantic to the Southeast region. The NWS also warned that dozens of flooding warnings remain in effect from the Gulf Coast to Ohio and Michigan.
AccuWeather said that major flooding and severe weather could cost about $80 to $90 billion in damages.
“It will take years for some of the hardest-hit communities to recover,” said AccuWeather Chief Meteorologist Jonathan Porter.
A LOOK AHEAD
April 7 – 11 The International Maritime Organization’s committee on Marine Environment Protection meets to discuss what could become the first global carbon tax on ships.
April 8 The House committee on Energy and Commerce is scheduled to hold a full committee markup on over two dozen pieces of legislation.
April 9 The Solar Energy Industries Association is hosting a Clean Energy Manufacturing and Supply Chain Expo on Capitol Hill.
April 9 The Environmental Law Institute is holding a webinar on the National Environmental Policy Act.
April 9 The House committee on Energy and Commerce is holding a full committee hearing on investments needed to meet demands from artificial intelligences, including more baseload electricity.
April 9 The U.S. Chamber of Commerce is holding a Critical Minerals Summit featuring Republican Minnesota Rep. Pete Stauber and Democratic Michigan Rep. Haley Stevens.
April 10 The Conservative Energy Network is holding a webinar grid modernization and how it can improve efforts to further integrate clean energy solutions into the grid.
April 10 The Senate Energy and Natural Resource committee is holding nominate hearings for Kathleen Sgamma to be the Director of Bureau of Land Management as well as Preston Griffith to be Under Secretary of the Department of Energy and Dario Gil to be Under Secretary of Science for the Department of Energy.
April 13 is Palm Sunday.
RUNDOWN
New York Times Should I Ditch My Gas Appliances?
Canary Media Wind and solar power opponents make headway in state legislatures
ProPublica Trump Said Cuts Wouldn’t Affect Public Safety. Then He Fired Hundreds of Workers Who Help Fight Wildfires.