Japan approves trial sales of over-the-counter emergency contraceptives

Justin McCurry in Tokyo
Updated Tue, 27 June 2023 

Photograph: Philippe Huguen/AFP/Getty Images

Japan is to permit the sale of emergency contraceptives without prescription on a trial basis, weeks after it approved the abortion pill.

The move, reported by media on Tuesday, will bring Japan into line with dozens of other countries where the morning-after pill is already available over the counter.

Current rules require women, including those who have been sexually assaulted, to attend a clinic or hospital for an emergency contraceptive prescription.

The drugs are said to be most effective if they are taken within 72 hours after unprotected sex.

Related: Anger in Japan as report reveals children were forcibly sterilised

A health ministry panel approved the sale through March next year at chemists staffed by qualified pharmacists who are able to coordinate with nearby obstetrics and gynaecology clinics, according to the Kyodo news agency.

The decision to allow over-the-counter sales marks a major policy shift, and comes soon after its approved the abortion pill in April. Previously, only surgical abortions were available, in the first nine weeks of pregnancy.

Campaigners say the long wait for Japan to approve the abortion pill, which had long been available in more than 70 other countries, reflects the low priority the country’s male-dominated parliament and medical community give to women’s sexual health.

Japan took 40 years to approve oral contraceptives, in 1999, but only six months to approve the erectile dysfunction drug Viagra.

Emergency contraceptives, which have an efficacy rate of about 80%, are available without a prescription in about 90 other countries, according to the ministry.

Related: Japan raises age of consent from 13 to 16 in reform of sex crimes law

The trial sale enjoys strong public support. When a health ministry panel invited the public to submit comments last year, more than 90% of the 46,312 responses were in favour of pharmacy sales, the public broadcaster NHK said.

In 2017, the panel stopped short of approving over-the-counter sales amid fears that the drugs’ easy availability could encourage “irresponsible” behaviour.

But medical professionals have called for the drugs to be made more accessible, saying they would increase options for rape survivors and potentially reduce the number of expensive surgical abortions.

OPINION - I am so tired of the careless West failing the global south on climate

Nimco Ali

EVENING STANDARD
Tue, 27 June 2023

 
(Daniel Hambury/@stellapicsltd)

At a drinks event before President Macron’s recent climate summit in Paris, the new Barbadian High Commissioner to London told me a startling fact: his country’s entire GDP could be wiped out by a single hurricane in just four hours.

Milton Innis’s words were ringing in my ears from the moment the opening ceremony began. His Prime Minister, Mai Mottley, was a co-chair of the summit for a New Global Financing Pact. Her island nation and others like it are on a knife edge, at the brutal front line of our climate crisis — as her High Commissioner’s words had brutally illustrated.

Such destructive hurricanes are now coming to the Caribbean more and more frequently. So fair play at least to Macron for taking the lead and convening an impressive line-up of people to talk about it in Paris.

The summit, though, was a failure. And it’s one that should shame the West. Yes, there were successes on positive reforms, progress on debt and Prime Minister Mottley’s natural disaster ‘pause’ clauses (whereby loan repayments can be temporarily halted following natural disasters). But people in the global south — and our planet — need much more than that.

Private-sector leaders — who I suppose at least bothered to turn up unlike many of the G7 leaders — chose to read off statements and ask pointless questions. I wish I could say I was surprised but sadly I was not.

Rich countries are reluctant to engage with the global south’s demands despite saying they care about those issues and convening summits on them.

At this latest summit, where developing nations called for a “transformation” of the world’s financial system, western countries offered tweaks. One world leader told me in the breakout room “what they are offering and what we are asking for does not match”.

But turbocharging reform to lock in the trillions of dollars required to tackle climate change has to be priority number one for our age. The relationship between developing countries and developed countries has to change.

What is needed is true partnership. The UK under Theresa May tried that with the African investment summit, a commitment which has since been derailed by Covid and the war in Ukraine.

Macron tried with this summit, but the elephant in the room was the US and its inability under either the Democratic or Republican Party to step up and deliver real change. That failure impacted how many of the private-sector companies in the room behaved.

The next moment for real change will be the G20 in September where the UK and US, who were missing in action at this critical summit, can redeem themselves.

It will take a lot of effort — and serious diplomatic work behind the scenes — but the consequences of failure are not worth thinking about. Hurricanes that wipe out an entire nation’s GDP would be just the start.

The Rare Metal Keeping Xi and Biden Up At Night

Editor OilPrice.com
Mon, June 26, 2023 

The ground beneath Case Lake in northeastern Ontario houses a critical mineral that may form the heart of one of the most pressing North American security issues of the century.

The critical mineral is cesium (Cs), and its discovery and potential for development has become a battleground between Canada and the U.S. on one hand, and China on the other.

At stake is nothing less than potential global technological dominance. North America has no cesium of its own. Those known cesium deposits around the world have either been depleted or the mines have been rendered inoperable—and when they were operable, China maintained control of them all, one way or another.

Without cesium, the U.S. likely cannot win the 5G race—a race that may be the determining factor for technological superiority.

Without cesium, there might be no aircraft guidance systems. No global positioning satellites. No internet or cellular telephone transmissions. Everything from the IT industry and health care to the military-industrial complex is severely impacted, making this a critical national security issue. And China maintains its ambitions, with help from Huawei, to win the 5G race.

This makes Case Lake one of the most closely watched exploration venues in the world. Fully owned by Power Metals Corp (TSXV:PWM,OTC:PWRMF), the Case Lake property is the only new potential cesium play in existence, and its significance has recently led the Canadian government to kick Chinese investors out, replacing them with lower-risk Western faces from Australia. Now, with several discoveries that include intersections of three critical metals--cesium, lithium and tantalum—what lies ahead could end up being the development of the first North American critical metals mine of its kind. And it would mean a lot to the West.

Case Lake: A ‘Geologist’s Dream’?The Case Lake pegmatite swarm consists of six spodumene dykes: North, Main, South, East and Northeast Dykes on the Henry Dome and the West Joe Dyke on a new tonalite dome. The property has a 10-kilometer-long mineral trend consisting of 475 cell claims, 100% owned by Power Metals.


Power Metals’ Chairman, Johnathan More, describes the property as a “geologist’s dream” and the equivalent of “prime real estate on Park Avenue” for a number of reasons.

First, it’s accessible year-round by well-maintained roads, with all infrastructure in place. While this may sound like a necessary given to investors who are not well-versed in the mining sector, that is rarely the case. Nearly all discoveries in Canada’s critical metals market are made in extremely remote areas. But at Case Lake, not only is all the road and electrical infrastructure already in place, but it even boasts cell phone signals. That added benefit is often unheard of in mining venues. One such example is the James Bay region of Quebec, where Patriot Battery Metals (OTCMKTS: PMETF) and Australia’s Winsome Resources (OTCMKTS: WRSLF) (ASX: WR1), have made major lithium discoveries in the past year. These discoveries have created a mining boom that has led to an intense rush on land bigger than anything Quebec has ever seen. But the region is as remote as they come, requiring helicopter support for access, which means that drilling isn’t only challenging—it’s expensive.

That’s what could help make Case Lake a geologist’s dream. According to Power Metals (TSXV:PWM,OTC:PWRMF), it’s one of the most inexpensive properties to drill in Canada—not just because of its easy access, either. The cesium, lithium and tantalum intersections here are in pegmatite that is exposed on the surface and running so shallow that it is less than 50 meters deep in various areas.


Potential World-Class Discoveries

To date, Power Metals has drilled 80 drill holes over some 15,000 meters at Case Lake, making a significant world-class, high-grade (over 4%) lithium discovery at a very shallow, open depth. Just a preview of the highlights from this discovery include:

1.94% Lithium and 323.75pp Tantalum over 26 meters


2.07% Lithium and 213.96pp Tantalum over 18 meters


4.75 % Lithium and 396.00pp Tantalum over 2 meters


1.71 % Lithium and 240.77pp Tantalum over 12 meters


1.20 % Lithium and 218.68pp Tantalum over 19 meters

The lithium discoveries were exciting enough, but then the unexpected happened.

In the summer of 2018, Power Metals made a surprise discovery of rare cesium while drilling for lithium and tantalum at Case Lake’s West Joe Dyke.

This is some of the highest-grade cesium found in decades, with grades as high as 24% over good intervals. According to Power Metals, the venue houses high-grade cesium that is similar to Australia’s famous Sinclair Mine. Highlights from that discovery include:

24.07% Cesium over 1 meter


20.36% Cesium over 1 meter


22.22% Cesium over 2 meters


7.65% Cesium over 7.09 meters

When this cesium discovery came to light, China-based Sinomine Resource Group—one of the largest in the world—immediately contacted Power Metals and ended up acquiring a 5.7% stake through private placement funding. [if !supportLineBreakNewLine][endif]

Power Metals continued to drill in 2022 with the investment from Sinomine, announcing some high-grade lithium and cesium results. But by then, cesium (and lithium, too) had become a national security issue for the Canadian government. In November last year, the Canadian Federal Government took decisive action against Chinese companies with ownership in any of Canada’s lithium reserves. Not only that, but the government moved swiftly to root out any Chinese involvement in Canadian lithium companies globally.

Due to national security concerns, Ottawa demanded that Sinomine divest from Power Metals, establishing Case Lake as a venue of urgent importance to Canada’s future.

While some initial reactions to this were a concern for investors, for Power Metals, it was viewed as a major opportunity.

“While we are surprised by Canada’s stance towards Chinese investment into Canada’s critical minerals industry, it clearly shows that they see the opportunity and assets of Power Metals as too valuable for such foreign investment,” Power Metals’ Chairman More said in a statement.

“Power Metals has made a substantial discovery of cesium, lithium and tantalum and this political gamesmanship demonstrates the extreme value of Power Metals assets,” More continued.

It didn't take long for a well-established Australian-based lithium company, Winsome Resources Limited, to step in and acquire Sinomine’s shares.

Winsome’s interest is not without context. The Australian mining company had made another major lithium discovery in James Bay Quebec earlier last year. But Winsome didn’t just take over the Chinese stake …

Its Managing Director, Chris Evans, joined the board of Power Metals.

Opportunity gathered momentum from there.

After digging deeper into Power Metals lithium and cesium discoveries, Winsome doubled its stake to 10.13% at a premium to the current share price.. Things continued to snowball when one of Winsome’s biggest shareholders, Waratah Capital (one of the largest lithium funds in the world) moved to invest in Power Metals, too.

Following this litany of victories for Power Metals that came out of Canada’s eviction of the Chinese, Waratah sweetened the deal further, purchasing a 2% royalty on future Case Lake lithium production for $1.5 million through Lithium Royalty Corp.

The current situation is that Power Metals has approximately C$10 million in cash and cash equivalents. It’s fully funded for the next two years of exploration plans. Those plans include another 15,000 meters of drilling, which is set to begin this summer.

What we have now is a junior explorer that has some important players in the lithium game among its shareholders. For starters, Power Metals (TSXV:PWM,OTC:PWRMF) now has access to Winsome’s world-class geologists, keeping in mind that Australia holds specific expertise in cesium as the home of one of only three cesium mines that have ever operated in the world. Newly appointed Power Metals CEO Gerry Brockelsby, a Toronto-based international mining financier, and newly appointed VP of Exploration Amanuel Bein, with a string of exploration successes under his belt, will team up with Winsome’s geologists to move what could be one of North America’s most exciting critical metals plays forward faster. Canada’s mission to secure its critical metals supply chain has set in motion a series of events that may present high-level opportunities for investors. Now that the Chinese exit has de-risked Case Lake from a national security perspective and major new shareholders have jumped on board, this cesium-lithium opportunity is one of our most urgent to watch in the coming months. Other resource companies to keep an eye on:

FMC Corporation (NYSE: FMC), based in Philadelphia, Pennsylvania, is a global agricultural sciences company that delivers innovative solutions to growers around the world. While not a mining company in the traditional sense, FMC has a significant stake in lithium, a critical component in rechargeable batteries and other high-tech applications.

FMC's commitment to innovation and sustainability is noteworthy, and the company's agricultural products contribute to increased crop yield and quality, making it a significant player in addressing global food security issues. In recent years, FMC has benefited from robust demand for its crop protection products, driven by higher commodity prices and strong agricultural market fundamentals.

FMC spun off its lithium business into a separate publicly-traded company, Livent Corporation, in 2018. Still, FMC remains a robust and diversified company with strong growth prospects, though investors specifically seeking exposure to lithium would need to look at Livent or other lithium-focused companies.

Livent Corporation (NYSE: LTHM), a spin-off from FMC Corporation, is a global leader in lithium technology, powering the electric vehicle revolution. The Philadelphia-based company supplies lithium used in batteries for hybrid and electric vehicles, mobile devices, and other consumer electronics.

Livent's position in the high-growth lithium market, driven by increasing demand for electric vehicles, makes it a compelling option for investors seeking exposure to the green energy transition. The company's unique process technology also provides a competitive advantage, with a focus on high-purity lithium compounds.

Livent's business is largely dependent on the lithium market, which has been volatile in recent years due to fluctuations in supply and demand dynamics. Potential investors should also consider that while Livent operates globally, it has significant operations in Argentina, which presents certain geopolitical risks.

Freeport-McMoRan Inc. (NYSE: FCX), based in Phoenix, Arizona, is one of the world's leading mining companies, with significant reserves of copper, gold, and molybdenum. The company's sizeable asset base includes the Grasberg minerals district in Indonesia, one of the world's largest copper and gold deposits, and significant mining operations in the Americas.

With copper being a critical material in renewable energy and electric vehicle technologies, Freeport-McMoRan stands to benefit from the global push towards greener economies. The company's strong operational performance and commitment to debt reduction also add to its investment appeal.

Freeport-McMoRan's operations in certain regions have faced regulatory and political challenges. For example, the company's Indonesian operations have faced regulatory changes and environmental controversies. While Freeport-McMoRan has made efforts to manage these issues, they highlight the geopolitical risks associated with global mining operations.

Turquoise Hill Resources (NYSE: TRQ), headquartered in Vancouver, Canada, is an international mining company focused on the operation and further development of the Oyu Tolgoi copper-gold mine in southern Mongolia. The mine is one of the world's largest known copper and gold deposits, and Turquoise Hill holds a 66% interest in the project, with the remaining stake held by the Government of Mongolia.

The Oyu Tolgoi mine offers significant growth potential, with an anticipated ramp-up in production over the coming years. The company has also worked towards strengthening its balance sheet and advancing operational performance, which could support long-term value creation.

Turquoise Hill's reliance on its Mongolia mine presents a concentrated risk profile. Potential investors should consider the company's ongoing disputes with its largest shareholder, Rio Tinto, and the Mongolian government, as these could impact future performance.

Compass Minerals International (NYSE: CMP), based in Overland Park, Kansas, is a leading provider of essential minerals, including salt, sulfate of potash, and magnesium chloride. The company's diversified product mix serves a wide range of markets, including agriculture, consumer deicing, water conditioning, and various industrial applications.

Compass Minerals' balanced and diversified portfolio, strong market position, and steady cash flows make it an interesting consideration for potential investors. The company's commitment to sustainability and operational excellence further enhance its appeal.

The company's performance can be influenced by weather conditions and commodity price volatility. For instance, milder winters can impact the demand for its deicing products. These factors highlight the need for potential investors to consider broader market and environmental conditions when evaluating Compass Minerals.

Rio Tinto (NYSE: RIO), a global leader in the mining and metals sector, is known for its operational efficiency and commitment to sustainable development. The UK-Australian multinational corporation operates in around 35 countries worldwide and has significant assets across several commodities including aluminum, copper, diamonds, coal, iron ore, and uranium. Rio Tinto's robust portfolio of world-class assets is further reinforced by strong market fundamentals, especially in the copper and iron ore markets, making it an interesting proposition for potential investors.

In recent news, Rio Tinto has accelerated its push into the green energy sector. The company is investing heavily in technology to lower carbon emissions and is actively involved in producing materials essential for the renewable energy industry, like copper and lithium. Furthermore, the company’s strong financial performance, underscored by solid profit margins and an attractive dividend yield, could make Rio Tinto an appealing choice for income-focused investors.

The company has faced criticism over environmental and indigenous rights issues, most notably the destruction of the Juukan Gorge caves in Western Australia. These incidents underscore the importance of considering ESG (Environmental, Social, and Governance) factors alongside financial factors when evaluating investment opportunities.

Glencore (OTC: GLNCY), based in Switzerland, is one of the world's largest globally diversified natural resource companies, known for its integrated value chain that includes mining, processing, refining, transporting, financing, and marketing operations. Its extensive product portfolio spans metals, minerals, energy products, and agricultural products, making it a compelling choice for those seeking exposure to a broad swath of the commodity market.

In an interesting recent development, Glencore has been navigating its transition to a low-carbon economy with significant investments in cobalt and copper, two essential metals for electric vehicle batteries. The company is also engaging in ambitious carbon reduction efforts and plans to be carbon-neutral by 2050. However, potential investors should also consider that Glencore, like many large mining corporations, has faced controversies related to environmental impact and governance.

While Glencore's stock is traded over-the-counter in the U.S., it maintains primary listings on the London Stock Exchange and the Johannesburg Stock Exchange. Potential investors should understand the unique risks associated with over-the-counter trading, such as lower liquidity and less stringent reporting requirements.

ArcelorMittal (NYSE: MT), based in Luxembourg, is the world's leading steel and mining company, with a presence in 60 countries and an industrial footprint in 18 countries. It is a leading supplier of quality steel in major global markets including automotive, construction, household appliances, and packaging.

The company has shown strong recovery following the COVID-19 pandemic and has benefited from strong global steel demand and price recovery. In recent news, ArcelorMittal has made commitments to carbon-neutral steelmaking in Europe by 2050 and has launched XCarb™, an initiative to progress towards carbon-neutral steel. This innovative step to meet the growing demand for green steel positions ArcelorMittal attractively to potential investors seeking sustainability-focused holdings.

The cyclical nature of the steel industry and sensitivity to global economic conditions should be factored into any investment decision. While ArcelorMittal's growth plans and commitment to sustainability are positive indicators, the inherent volatility of the steel market necessitates careful consideration.

Vale S.A. (NYSE: VALE), a Brazil-based multinational corporation, is one of the world's leading producers of iron ore and nickel. The company's extensive operations also span manganese, ferroalloys, copper, bauxite, potash, kaolin, and cobalt. As the largest logistics operator in Brazil, Vale also has a strong infrastructure for the distribution of its products.

In the backdrop of surging global demand for iron ore, particularly from China, Vale's vast reserves and efficient production make it a compelling choice for investors interested in commodities. The company is also looking ahead with investments in renewable energy projects and a stated goal of becoming carbon neutral by 2050.

Potential investors should be mindful of the risks associated with investing in Vale. The company's stock has shown volatility in recent years due to disruptions in its mining operations, most notably the tragic dam collapse in Brumadinho, Brazil in 2019. While Vale has made significant efforts to address safety and improve dam management, these incidents underline the potential risks associated with mining operations.

Southern Copper Corporation (NYSE: SCCO), one of the largest integrated copper producers in the world, is based in Phoenix, Arizona, and is a subsidiary of Grupo Mexico. The company's assets include valuable reserves of copper, molybdenum, zinc, silver, lead, and gold, making it a strong choice for investors seeking to tap into the potential of the copper market.

Southern Copper's production growth and operational efficiency are impressive, and the company has demonstrated a consistent commitment to dividend payouts, making it an attractive choice for income investors. Additionally, with a robust project pipeline and increasing demand for copper in the renewable energy and electric vehicle sectors, Southern Copper's long-term outlook appears promising.

That said, like all mining companies, Southern Copper faces risks related to environmental impact, operational disruptions, and commodity price volatility. The company has faced criticism and legal challenges related to environmental concerns in the past, emphasizing the importance of considering these factors in investment decisions.By. Tom Kool [if !supportLineBreakNewLine][endif]

**IMPORTANT! BY READING OUR CONTENT YOU EXPLICITLY AGREE TO THE FOLLOWING. PLEASE READ CAREFULLY**

Forward-Looking Statements

This publication contains forward-looking information which is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ from those projected in the forward-looking statements. Forward looking statements in this publication include that the Canadian mining sector will continue to protect its supply of critical minerals without involvement of China; that cesium and other metals will remain as critical minerals will continue as a national security issue for Western countries; that access to rare metals, and in particular cesium, will be essential to gaining technical superiority, including the development of 5G networks; that cesium and other rare earth metals will continue to be critical for use in various technologies, including the 5G cellular and wireless technologies; that cesium will continue to be a critical mineral and considered as matter of national security for Western countries; that Power Metals Corp. (the “Company”) and its investors will be in control of the only cesium mine that China does not own; that the Company’s properties will be able to commercially produce cesium, lithium, tantalum and/or other critical minerals; that the Company will be able to finance and operationally establish mines on its properties to viably and commercially extract the critical minerals; that Australian shareholders and investors in the Company will provide development and other expertise to assist the Company; that Winsome Resources will continue to own a significant stake in the Company; that the Company’s property will one day have one of the only potential mines in the world that is producing cesium; that the Company can finance ongoing operations and development; that the Company can achieve its business plans and objectives as anticipated. These forward-looking statements are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information. Risks that could change or prevent these statements from coming to fruition include the development of alternative technologies that do not require the use of minerals and resources currently considered as critical; that other resources are utilized in future in favour of rare earth metals such as cesium; that alternative technologies utilize other resources or that cesium, lithium, and tantalum are not utilized; that other companies discover resources of cesium and other battery metals that are more favorable or more easily developed into commercial production that the Company’s property; that the Company’s properties are unable to produce commercial amounts of cesium, lithium, tantalum or other critical metals; that the Company will be unable to finance or operationally establish mines on its properties for commercial extraction of any critical minerals; that the Company’s Australian investors will not be able to provide development and other expertise to meaningful assist the Company; that Winsome Resources may for various reasons divest its stake in the Company in future; that the Company’s properties may fail to develop mines producing cesium; that the Company may be unable to finance its ongoing operations and development; that the business of the Company may be unsuccessful for various reasons. The forward-looking information contained herein is given as of the date hereof and we assume no responsibility to update or revise such information to reflect new events or circumstances, except as required by law.

DISCLAIMERS

This communication is for entertainment purposes only. Never invest purely based on our communication. We have not been compensated by Power Metals Corp. for this article but may in the future be compensated to conduct investor awareness advertising and marketing for Power Metals Corp. The information in our communications and on our website has not been independently verified and is not guaranteed to be correct. The content of this article is based solely on our opinions which are based on very limited analysis and we are not professional analysts or advisors.

SHARE OWNERSHIP. The owner of Oilprice.com owns shares of Power Metals Corp. and therefore has an incentive to see the featured company’s stock perform well. The owner of Oilprice.com will not notify the market when it decides to buy more or sell shares of Power Metals Corp. in the market. The owner of Oilprice.com will be buying and selling shares of this issuer for its own profit. This is why we are biased in our views and opinions in this article and why we stress that you should conduct your own extensive due diligence regarding the Company as well as seek the advice of your professional financial advisor or a registered broker-dealer before you consider investing in any securities of the Company or otherwise.

NOT AN INVESTMENT ADVISOR. Oilprice.com is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation.

ALWAYS DO YOUR OWN RESEARCH and consult with a licensed investment professional before making any investment. This communication should not be used as a basis for making any investment in any securities.

RISK OF INVESTING. Investing is inherently risky. Don't trade with money you can't afford to lose. This is neither a solicitation nor an offer to Buy/Sell securities. No representation is being made that any stock acquisition will or is likely to achieve profits.

Lordstown bankruptcy points to EV hype that didn't deliver

Lordstown Motors files for bankruptcy while suing Foxconn

Ines Ferré
·Senior Business Reporter
Tue, June 27, 2023 

Lordstown Motors' (RIDE) Chapter 11 bankruptcy filing highlights the rise and fall of EV startups whose stocks went to the moon and back during the pandemic.

Lordstown was a Wall Street favorite during the pandemic after unveiling its Endurance truck at the White House next to former President Donald Trump. The startup went public via a special purpose acquisition company (SPAC) in 2020, and its share price soon skyrocketed to $435.

Shares of the Ohio-based electric truck developer closed 17% lower on Tuesday at $2.29 each — a 99% drop from their peak in February 2021.

Like some other EV pandemic darlings, Lordstown has been plagued by short seller pressure, investigations, and now tighter monetary policy as the era of easy money is gone. Making matters worse, cash-intensive EV startups have been forced to sell more shares in the public markets over the last year to raise money, lowering their stock prices further.

"It’s not a surprise to me that some of the froth is going out of this area," Matt Maley, chief market strategist at Miller Tabak, told Yahoo Finance. "There’s less money sloshing around... and it’s going into AI right now."

Last month, Lordstown announced a reverse stock split in order to increase the Nasdaq's minimum per share listing requirement of $1.00.

Phoenix-based Nikola's (NKLA) stock has met a similar fate, with shares falling below $1 in May.

The startup was flying high in 2020 after going public via a SPAC. A scathing short seller report tanked the stock in November of that year. Nikola's founder and chairman, Trevor Milton, eventually stepped down and the C-suite went through a reshuffle.

Despite its challenges, earlier this year, the startup celebrated the milestone of 100 Class 8 Nikola Tre hydrogen fuel cell electric vehicles (FCEVs) sold.

However, compared to established EV giant Tesla (TSLA), production targets for startups have been tough to meet amid interrupted supply chains, high labor costs, and inflated prices for raw materials.

Lordstown's stock hovered around $2 on Tuesday— a 99% drop from its peak in February 2021. REUTERS/Dado Ruvic/Illustration

Tesla’s (TSLA) Q4 production rate was 4,779 units per day.

By comparison, newcomer California-based Lucid (LCID) was only producing vehicles at a rate of about 38 units per day, "which is nowhere near achieving mass production," Garrett Nelson, VP and senior equity analyst at CFRA Research, told Yahoo Finance in January.

The company expects to deliver between 10,000 and 14,000 vehicles in 2023, compared to Wall Street expectations of roughly 20,000 to 22,000.

Short sellers have piled on to names like Lucid, which reached a high of $55 in November 2021. The stock's short interest currently sits at 25% of the float.

EV makers are coming up with strategies to weather the economic storm ahead as the economy slows and demand concerns grow.

California-based Rivian (RIVN) is turning to experiential store spaces to sell more of its vehicles. Rivian delivered nearly 30,000 vehicles since the start of production in September 2021 and produced nearly 35,000.

As Yahoo Finance's senior auto reporter Pras Subramanian notes, "Rivian’s target for 50,000 deliveries this year alone is a big one — especially for trucks that start around $73,000."

There is "a lot of uncertainty regarding who will survive," the economic challenges ahead, senior equity analyst at CFRA Research Garrett Nelson told Yahoo Finance on Tuesday.

Nelson added "we think the companies which are more favorably positioned are those who are currently producing and selling vehicles... those with a sizable liquidity position, and ideally the backing of major investors."

Ines is a senior business reporter for Yahoo Finance. Follow her on Twitter at @ines_ferre

Tesla Rival Goes Bankrupt

Lordstown Motors filed for Chapter 11 bankruptcy and put itself up for sale because it lacked the funding for a scalable vehicle-development platform.

LUC OLINGA
17 HOURS AGO

Lordstown Motors is down.

To recap: The electric vehicle upstart was founded in 2018 and was hailed in 2019 by then-President Donald Trump, after it took over a former General Motors plant in Lordstown, Ohio.

The company was then riding on the Republican president's Made in America bandwagon. It promised to revive the auto industry in the region by creating the jobs that were lost after GM GM closed the plant.

But five years later, the company is the first of all young Tesla competitors to file for Chapter 11 bankruptcy -- in U.S. Bankruptcy Court for the District of Delaware -- after a long nightmare.

The company explained in a June 27 statement that it had no choice but to file Chapter 11 because its partner, Foxconn, one of the main suppliers of Apple (AAPL) - Get Free Report, had abandoned it.
Bankruptcy the 'Only Viable Option': Lordstown

The bankruptcy filing will enable a strategic restructuring, says the manufacturer of the EV pickup truck Endurance.

Lordstown Motors has decided to put itself up for sale by "commencing a comprehensive marketing and sale process for its all-electric Endurance pickup truck and related assets."

"As one of the early entrants to the EV industry, we have delivered the Endurance, an innovative and highly capable EV with significant commercial and retail potential – and had subsequently engaged with Foxconn in a purposeful, strategic partnership to leverage this expertise into a broader EV development platform," Chief Executive Edward Hightower said in a statement.

"Despite our best efforts and earnest commitment to the partnership, Foxconn willfully and repeatedly failed to execute on the agreed-upon strategy, leaving us with Chapter 11 as the only viable option to maximize the value of Lordstown's assets for the benefit of our stakeholders.

"We will vigorously pursue our litigation claims against Foxconn accordingly."

Lordstown (RIDE) - Get Free Report has indeed filed a complaint against Foxconn, which it accuses of fraud and broken promises.

Last November, Foxconn, formally known as Hon Hai Precision Manufacturing, announced that it would take an 18.3% stake in Lordstown Motors, as well as two seats on the board, for an equity injection of around $170 million.

The deal, which would have been run through Foxconn affiliate Foxconn Ventures Pte Ltd., would have made it the biggest Lordstown shareholder, topping the stake of Founder Stephen Burns.

Foxconn purchased Lordstown's Ohio facility in 2022. That plant, with Foxconn's assistance, is now producing the Endurance pickup truck.

Lordstown Motors


Lordstown's Legal Fight With Foxconn

Last month, Lordstown said that Foxconn honored part of the investment agreement in November, buying about $22.7 million of Class A common stock and $30 million of preferred stock.

The world's biggest contract electronics manufacturer agreed to further buy about 26.9 million Lordstown shares for about $47.3 million within 10 business days after the two companies received clearance from the Committee on Foreign Investment in the U.S.

The carmaker received that agency's clearance on April 25, but Foxconn didn't buy more Lordstown shares, according to the carmaker. In total, Foxconn has invested about $52.7 million in Lordstown as part of the agreement and currently holds an almost 8.4% stake in the EV maker.

"Foxconn consistently failed to honor its agreements," Lordstown alleged in the lawsuit, adding that after getting the valuable assets it desired up front, Foxconn then "sabotaged" the carmaker's business, "starving it of cash and causing it to fail."

"Instead of building a thriving business for the benefit of all Lordstown's stakeholders, Foxconn maliciously and in bad faith destroyed that business, costing Lordstown's creditors and shareholders billions," the company charged.

The group is asking the court to award unspecified damages.

Foxconn, in turn, has accused Lordstown Motors of having breached the contract by letting the stock price fall below $1 a share for too long.

On June 27, the Taiwanese company said it had maintained "a positive attitude in conducting constructive negotiations with Lordstown.” But it added that the carmaker had been reluctant to execute the investment agreement in accordance with its terms.

Foxconn added that it reserved the right to pursue legal action.

Lordstown

Lordstown Motors Is Looking for a Buyer

At the end of May, Lordstown tried to respond to Foxconn's criticisms by carrying out a reverse stock split, which initially boosts the stock price by proportionately cutting the number of shares outstanding.

It was a 1-for-15 split, which meant that an investor who owned 15 shares would have received 1 share at 15 times the presplit price. Investors with less than 15 shares would have been paid the market value of their shares in cash. Fractional shares would also have been paid in cash.

The problem is that a reverse split often leads the stock price to drop because investors see it as a sign of a company's financial weakness. This is the case with Lordstown Motors.

Lordstown’s shares fell more than 60% to $1.10 on June 27 in premarket trading. The day before, these shares had ended the session down 7.2% at $2.77.

The carmaker has produced 56 units of the Endurance pickup truck and delivered 18 to customers. Endurance, base-priced at a little more than $65,000, competes with Rivian's (RIVN) - Get Free Report R1T, Ford's (F) - Get Free Report F-150 Lightning, and General Motors' GMC Hummer EV.

In a few months, Tesla (TSLA) - Get Free Report will join the competition with its Cybertruck, while GM will market the electric version of the Chevrolet Silverado.

Faced with this competition, Lordstown seems not to have had much opportunity without the funds to support its operations.

Lordstown is, however, "confident that a buyer could utilize the Endurance platform to create multiple EV variants and take the product to the next level."

SELF INFLICTED IRONY

Georgia governor attacks Biden's electric vehicle policy at federally-backed battery material maker


Gov. Brian Kemp smiles as he stands next to a Rivian electric truck during a ceremony to announce that the electric truck maker plans to build a $5 billion battery and assembly plant east of Atlanta projected to employ 7,500 workers, Thursday, Dec. 16, 2021, in Atlanta. Kemp is escalating his attack on President Joe Biden’s electric vehicle policy. The Republican governor spoke Tuesday, June 27, 2023 at the groundbreaking for a company that got more than $100 million in federal funding to refine graphite for electric batteries. But Kemp says Biden's infrastructure law wrongly puts the government's “thumb on the scale.”

 (AP Photo/John Bazemore, File)


JEFF AMY
Updated Tue, June 27, 2023


ATLANTA (AP) — Georgia Gov. Brian Kemp is escalating his attack on President Joe Biden’s electric vehicle policy, speaking Tuesday at the groundbreaking for a company that received more than $100 million to refine graphite for electric batteries from the infrastructure law Biden signed.

“Georgia’s electric mobility boom is taking place because our state is second to none for companies looking to invest, relocate, expand, and innovate – not because the federal government continues to put their thumb on the scale, favoring a few companies over the industry as a whole,” Kemp said, according to advance remarks of his speech at Anovion Technologies.

The remarks are unusually partisan for a factory groundbreaking. Anovion's $800 million investment promises 400 new jobs in rural Bainbridge, in the state's far southwest corner.

Georgia has been a top beneficiary of a nationwide electric vehicle investment boom, with more than 40 electric vehicle-related projects since 2020 pledging $22.7 billion of investment and 28,400 jobs in the state.

“When President Biden and others falsely try to take credit for Georgia’s success, don’t forget that next year is an election year," Kemp said.

The Republican governor planned this attack knowing Democratic Sen. Jon Ossoff would likely share his stage at the groundbreaking. Ossoff has been Georgia’s most high-profile supporter of Biden’s electric vehicle policies. The two could be rivals for the Senate seat in 2026.

Ossoff has argued that Georgia's investment boom wouldn't happen without Democratic policies.

“It is bizarre to attend a groundbreaking and launch a political attack on the very policy that made the groundbreaking possible,” Ossoff told The Associated Press before the event, where he was invited but not scheduled for a speaking role. “The governor is throwing a panicked political tantrum over the success of federal manufacturing policies in his own state.”

Kemp has always opposed the Inflation Reduction Act, which is pumping billions into electric vehicle subsidies. He's disagreed in particular with its domestic content standards, meant to increase America's clean-energy manufacturing capacity. They make tax incentives on electric vehicles available only when the vehicle, the battery, and key raw materials in the battery are all made in the United States.

Hyundai Motor Group, which is building a $5.5 billion plant to assemble electric vehicles and batteries in Ellabell, Georgia, near Savannah, has said the tax credits are unfair because its electric vehicles aren't currently eligible. Kemp referenced the South Korean conglomerate's criticism in his speech Tuesday, saying “that approach simply doesn’t work.”

While Ossoff's fellow Democratic senator, Raphael Warnock, had proposed making the tax credits more flexible, Ossoff has emphasized that benefits will be available to Hyundai once the Ellabell plant starts production.

Kemp has said it's wrong to credit Biden for the boom, noting that Rivian Automotive announced a $5 billion plant east of Atlanta in December 2021, while Hyundai announced in May 2022, both before Biden signed the Inflation Reduction Act.

For his part, Kemp said again Tuesday that he wants to make Georgia the “e-mobility capital of the nation” as his second-term legacy.

But Ossoff has claimed credit for Biden and Democrats, including for solar panel plant expansions in northwest Georgia.

Things got tenser when Hyundai and LG Energy Solution announced a $4.3 billion electric battery plant in May at Hyundai’s new complex. Ossoff assertively trumpeted the news while Kemp was in Israel, a move that chafed some Kemp administration officials.

Kemp attributed Anovion's choice of location to state and local officials, saying “they don’t posture or showboat, and they don’t try to steal credit.”

The governor himself is in an awkward spot politically, with many Republicans opposing electric vehicles. Weeks after the Hyundai battery announcement, former President Donald Trump told the Georgia Republican convention that he would abolish Biden's electric vehicle policies, saying “First day in office, I’ll be ending all of that," to cheers from a crowd in Columbus.

Kemp who didn't attend that convention out of dissatisfaction with state the party's leadership, has tried to persuade Republicans to break off their love affair with Trump, while at the same time opposing a Democratic president whose administration has lavished electric vehicle makers with billions in incentives.

“Unlike top-down systems like China’s, and those advocated by some on the federal level, we aren’t dictating how this growth happens,” Kemp said Tuesday. “We aren’t picking winners and losers. We’re letting the market drive this innovation and expansion.”

But it's hard to say Anovion is solely a creature of the market. The Chicago-based firm's Georgia factory will make synthetic graphite — a key ingredient for lithium batteries — benefitting from the content standards that are boosting domestic graphite demand. It won $117 million in federal financing to build and improve factories. And it may be able to claim federal tax credits of 10% on the costs of producing graphite as well as 30% on its factory investment, both part of the Inflation Reduction Act.

“Manufacturing is coming back to America and it’s coming to Georgia, as we intended when we passed these infrastructure and manufacturing policies,” Ossoff said.

EPA creates youth council to advise the agency on climate change policy

The new panel will focus on disadvantaged communities.


REUTERS/Craig Hudson

Jon Fingas
Reporter
 Mon, June 26, 2023

If younger generations are more likely to feel the effects of climate change, shouldn't they have a say in related government policies? The Environmental Protection Agency (EPA) thinks so. It's officially forming its "first-ever" National Environmental Youth Advisory Council. The agency is inviting 16 people aged 18 to 29 to have them influence the agency's approach to environmental issues that affect youth communities.

In keeping with the EPA's increasing focus on environmental justice, at least half of the council's overall membership will come from, live in or do most of its work in "disadvantaged" communities where clean air, land and water aren't guaranteed. Youth interested in the panel will have until August 22nd at 11:59PM Eastern to apply, with webinars for would-be applicants on June 30th and August 7th.

Agency head Michael Regan argues that it's not practical to address environmental issues without the help of younger people who are often at the "forefront of social movements." The council makes sure that youth play a role in decisions, the administrator adds.

Plans for the council were originally unveiled in June 2022, and come several months after the EPA created an Office of Environmental Justice and External Civil Rights. That new division is meant to include "underserved communities" in the regulatory process, Vice President Kamala Harris said at the time. In that light, the youth council is an extension of last year's strategy.

The Biden's administration has made the environment a key element of its policy. The wide-ranging Inflation Reduction Act includes $3 billion in environmental justice grants as well as revised (if sometimes stricter) EV tax credits. The youth council won't necessarily lead to major changes in policy, but it makes sense when young adults are more likely to deal with the most severe effects of rising global temperatures than the official rule makers.

EU warns of rising climate-fuelled conflict, risks of geoengineering - draft

Mon, June 26, 2023
By Kate Abnett

BRUSSELS (Reuters) - The European Union will call on countries to prepare for "spill over" effects from increased climate change-driven conflicts, according to a draft document, and warn of the need to assess new risks posed by large-scale technological interventions that alter the climate as a potential route to tackle global warming.

In the draft paper due to be published on Wednesday, the European Commission said action was needed from national governments and Brussels to address increasing risks posed by climate change.

"We should prepare ourselves for increased spill-over effects on the European Union," said the draft, seen by Reuters.

"These can arise though increased demand for aid, the disruption of supply chains or with people fleeing from uninhabitable areas or severe adverse conditions at home, with the potential of internal displacement and increased irregular migration," it said.

Climate change worsens conflict risks in fragile areas, by unleashing destructive weather or harming crop yields - exacerbating food insecurity and destroying people's livelihoods. In West Africa's Sahel, for example, the United Nations has warned climate change risks unleashing decades of armed conflict and displacement.

The Commission said the EU would start analysing a range of climate impacts related to security, such as migration, and assess the security implications of a global shift away from fossil fuels.

Non-profit group Clean Air Task Force said more governments need to take expand their climate change policies to be more inclusive of other risk factors.

"Decarbonisation pathways that do not account for energy security, economic growth, development, and that fail to reflect other external risk factors are extremely fragile," said Lee Beck, a senior director at the group.

The draft paper, which could change before it is published, also flagged new and "poorly understood" risks associated with geoengineering - potential large-scale technological interventions to shift the climate, with an aim of cooling the earth.

"Guided by the precautionary principle, the EU will support international efforts to assess comprehensively the risks and uncertainties of climate interventions," it said, adding that the EU would also promote talks on a possible international framework to govern such technologies.

These methods - which could include, for example, spraying sulfate aerosols into the stratosphere to reflect more sunlight back into space - have not been attempted at scale, and remain deeply controversial, with scientists warning of ethical issues and potential unintended consequences.

(Reporting by Kate Abnett; Editing by Aurora Ellis)

Billions are being spent to turn the tide on the US West's wildfires. It won't be enough













1 / 14

U.S. Forest Service crew members put tree branches into a wood chipper as they prepare the area for a prescribed burn in the Tahoe National Forest, Tuesday, June 6, 2023, near Downieville, Calif. The Biden administration is trying to turn the tide on worsening wildfires in the U.S. West through a multi-billion dollar cleanup of forests choked with dead trees and undergrowth. (AP Photo/Godofredo A. Vásquez)

MATTHEW BROWN, TERRY CHEA, CALEB DIEHL and CAMILLE FASSETT
Tue, June 27, 2023

DOWNIEVILLE, Calif. (AP) — Using chainsaws, heavy machinery and controlled burns, the Biden administration is trying to turn the tide on worsening wildfires in the U.S. West through a multi-billion dollar cleanup of forests choked with dead trees and undergrowth.

Yet one year into what's envisioned as a decade-long effort, federal land managers are scrambling to catch up after falling behind on several of their priority forests for thinning even as they exceeded goals elsewhere. And they've skipped over some highly at-risk communities to work in less threatened areas, according to data obtained by The Associated Press, public records and Congressional testimony.

With climate change making the situation increasingly dire, mixed early results from the administration’s initiative underscore the challenge of reversing decades of lax forest management and aggressive fire suppression that allowed many woodlands to become tinderboxes. The ambitious effort comes amid pushback from lawmakers dissatisfied with progress to date and criticism from some environmentalists for cutting too many trees.

Administration officials in interviews and during testimony maintained that the thinning work is making a difference. Work announced to date, they said, will help lessen wildfire dangers faced by more than 500 communities in 10 states. But they also acknowledged finishing the task will require far more resources than what's already dedicated.

“As much money as we're receiving, it's not enough to take care of the problems that we are seeing, particularly across the West,” said Forest Service Chief Randy Moore. "This is an emergency situation in many places, and we are acting with a sense of urgency."

BIG MONEY FOR BIG PROBLEM

Congress in the last two years approved more than $4 billion in additional funding to prevent repeats of destructive infernos that have torched communities including in California, Colorado and Montana.

By logging and burning trees and low-lying vegetation, officials hope to lessen forest fuels and keep fires that originate on federal lands from exploding through nearby cities and towns.

The enormity of the task is evident in an aerial view of California's Tahoe National Forest, where mountainsides are colored brown and gray with the vast number of trees killed by insects and drought. After work on the Tahoe was delayed last year, Forest Service crews and contractors recently started taking down trees across thousands of acres.

“The forests as we know them in California and across the West, they’re dying. They’re being destroyed through fire. They’re dying from drought, disease and insects,” said forest Supervisor Eli Ilano. "They’re dying at a pace that we’re having trouble keeping up with.”

The scale of spending is unprecedented, said Courtney Schultz with Colorado State University. The forest policy expert said millions of acres have been through environmental review and are ready for work.

“If we really want to go big across the landscape — to reduce fuels enough to affect fire behavior and have some impact on communities — we need to be planning large projects,” she said.

Key to that strategy is addressing forest patches where computer simulations show wildfire could easily spread to inhabited areas. Some areas have yet to get the extra funding for thinning despite facing high risk, including portions of California’s Sierra Nevada range, Montana’s Bitterroot Valley and around Mescalero Apache lands in southern New Mexico.

Only about a third of the land the U.S. Forest Service treated last year was designated with high wildfire hazard potential, agency documents show. About half the forest was in the southeastern U.S., where wildfires are less severe but weather conditions make it easier to use intentional burns, the documents show.

The infrastructure bill passed two years ago with bipartisan support included a requirement for the administration to treat forests across 10 million acres — 15,625 square miles or 40,500 square kilometers — by 2027. Less than 10% of that was addressed in the first year.

“The Forest Service is obligating hundreds of millions of dollars, but not in the areas required by law,” said Sen. Joe Manchin, a West Virginia Democrat who chairs the Senate Energy and Natural Resources Committee.

Forest Service spokesman Wade Muehlhof said the agency was confident in the administration's strategy, but declined to say if it would meet the acreage mandates.

MIXED FIRST-YEAR RESULTS

An AP analysis of federal data reveals the scale of the challenge: Hundreds of communities are threatened by the potential for fires to ignite on federal forests and spread to populated areas.

In California, thinning zones announced to date address the risk to only about one-in-five houses and other buildings potentially exposed to fires on federal lands, the analysis shows. In Nevada and Oregon, it's about half of exposed structures, and in Montana it's one-in 25.

Most areas identified as hot spots where forest fires have high potential to burn into populated areas won’t be addressed for at least the next several years, according to government planning documents. And computer models project up to 20% of areas that need thinning will be hit by fires before that work occurs.

Architects of the Forest Service’s strategy based it on tens millions of computer wildfire simulations being used to predict areas that pose the greatest risk. Those scenarios showed fires on only 10% to 20% of the land would account for 80% of exposure to communities.

“This is a mapped plan through time, where we can laser-focus on one highly important issue: the problem of communities being destroyed by wildfires started on public lands,” said Forest Service fire scientist Alan Ager.

FALLING SHORT IN A RISKY AREA

In 2022, the Forest Service missed its treatment goals in four of 10 areas targeted as priorities. One was the Tahoe National Forest's North Yuba region, where the agency addressed only 6% of the acreage planned.

Small towns tucked into the forest’s canyons escaped disaster two years ago when the Dixie fire raged just to the north, destroying several communities and burning about 1,500 square miles (3,900 square kilometers) in the Sierra Nevada range. Those communities also escaped another fire to the south that burned more than 1,000 homes and structures. The previous year, yet another fire killed 15 people and torched more than 2,000 homes and structures in the region.

The same conditions that whipped those fires into infernos exist on the Tahoe forest — densely-packed trees and underbrush primed to burn following years of drought. And government computer modeling suggests it’s among the U.S. communities most exposed to wildfires on federal lands.

Five million trees died on the Tahoe last year alone, said Ilano, the forest supervisor.

“What we’re realizing is we’re not moving fast enough, that the fires are burning bigger and more intense, more quickly than we anticipated,” Ilano said.

Earlier this month, tracked vehicles including one known as a “harvester” worked through dense stands on the North Yuba, clipping large trees at their base and stripping them bare of branches in just seconds, then piling the trunks to be burned later. Elsewhere, work crews walked slowly behind a wood chipper as it was pulled along a forest road, stuffing the machine with small trees and branches cut to clear the understory.

The increased logging needed to reach the government’s lofty goals has gained acceptance as the growing toll from wildfires softens longstanding opposition from some environmental groups and ecologists.

“Gone are the days when things were black and white and either good or bad,” said Melinda Booth, former director of the South Yuba River Citizens League. “We need targeted treatment, targeted thinning, which does include logging.”

Others think officials are going too far. Sue Britting with Sierra Forest Legacy says the North Yuba plan includes about nine square miles (23 square kilometers) of older trees and stands along waterways that should be preserved. Yet for most of the work, Britting said it's time to “move forward” on a thinning project years in the making.

OBSTACLES TO THINNING STRATEGY

Hindering the Forest Service nationwide is a shortage of workers to cut and remove trees on the scale demanded, government officials and forestry experts say. Litigation ties up many projects, with environmental reviews taking three years on average before work begins, according to the Property and Environment Research Center, a Bozeman, Montana think tank.

Another problem: Thinning operations aren’t allowed in federally designated wilderness areas. That puts off limits about a third of National Forest areas that expose communities to high wildfire risk and means some thinning work must be carried out in a patchwork fashion.

Keeping track of progress presents its own challenges. Acres that get worked on are often counted twice or more — first when the trees are cut down, again when leftover piles of woody material on the same site are removed, and yet again when that landscape is later subjected to prescribed fire, said Schultz of Colorado State University.

Even where thinning is allowed, officials face other potential constraints, such as protecting older groves important for wildlife habitat. A Biden inventory of public lands in April identified more than 175,000 square miles (453,000 square kilometers) of old growth and mature forests on U.S. government land.

The inventory will be used to craft new rules to better protect those woodlands from fires, insects and other side effects of climate change. But there’s overlap between older forests and many areas slated for thinning. That includes more than half of the treatment area at North Yuba, according to an AP analysis of mature forest data compiled by the conservation group Wild Heritage.

“What’s driving all of this is insect infestation, drought stress, and all of that is related to the climate,” said Wild Heritage chief scientist Dominick DellaSalla. “I don’t think you can get out of it by thinning.”

___

On Twitter follow Matthew Brown @MatthewBrownAP and Camille Fassett @camfassett.

___

Associated Press climate and environmental coverage receives support from several private foundations. See more about AP’s climate initiative here. The AP is solely responsible for all content.

Maps show where the Canadian wildfires are burning

Emily Mae Czachor
Updated Tue, June 27, 2023

Canada is experiencing its most destructive wildfire season on record, as hundreds of blazes burning from coast to coast continue to send tremendous plumes of smoke into the atmosphere. Thick bands of soot and smoke particles captured over the last month by satellite images showed the extent of the air pollution traveling south over the Canadian border and into the United States, producing hazy skies and triggering air quality alerts across the country.

Wildfire season typically happens around this time of year in Canada, which is home to about 9% of the world's forests. But with the season occurring annually from May until October, devastation seen from the outset this year put the country almost immediately on track for its worst season in more than 30 years. Out-of-control blazes have cropped up in nearly every corner of Canada and forced thousands of people to evacuate.

A map updated daily by the Canadian Interagency Forest Fire Centre shows how widespread the wildfires have become, although eastern provinces like Quebec, Ontario and Nova Scotia have been hit particularly hard this year by large and at times uncontrollable blazes. Officials on Tuesday reported the highest number of active fires in Quebec, with 117 blazes recorded. British Columbia, along Canada's west coast, had the second-highest number of active blazes — 99 — followed by Alberta and Ontario.

/ Credit: Natural Resources Canada

The spread — reaching from the westernmost provinces right across to the eastern ones — is unusual, particularly so early in the year, Canadian government officials have said. Political leaders, including President Joe Biden, and environmental experts acknowledge the causal link between rising temperatures driven by climate change, as well as drought, and the extreme wildfire season that Canada is experiencing now. Plus, as CBS News previously reported, harsh weather conditions in Canada are fueling the fires and making it harder for firefighters to combat the flames.


The interagency fire center has recorded 2,956 wildfires since the beginning of 2023. The fires have scorched at least 7.8 million hectares — or around 19.2 million acres — of land across Canada this year, according to the center. This acreage surpassed the amount of land burned in 1989, which previously held Canada's annual record, the country's National Forestry Database reported.

/ Credit: Natural Resources Canada

There were 490 active fires burning in Canada on Tuesday, according to the latest interagency tally, with two new blazes recorded since officials put out the previous day's update.

After wildfire smoke traveling south from eastern Canadian provinces brought a marked spell of fog, fumes and copper skies to the northeastern U.S. earlier in June, states being affected most severely this week are in the Midwest, with air quality in Chicago and Minneapolis ranked as the world's worst and second-worst on Tuesday, according to the Swiss air quality technology company IQAir. Meanwhile, NASA published an image Tuesday that showed a thick band of smoke from the wildfires in eastern Canada drifting across the Atlantic Ocean and reaching as far as Europe.

Smoke from the Canadian wildfires travels across the Atlantic Ocean and hovers over western Europe in this satellite image captured on June 27, 2023. / Credit: NASA MODIS

As of Tuesday, a majority of Canada's active fires were classified as "out of control," with 259 blazes fitting that distinction. The number was up slightly from the 250 fires marked as out of control by the agency 2 weeks ago. Of the remaining wildfires being monitored, 158 were marked "under control" and another 73 were "being held," which is the label assigned when a fire is not under control but also is not moving.

/ Credit: Fire Information Resource Management System for US/Canada

Canadian officials have declared a "national preparedness level 5" in response to the wildfires, which means the country will deploy any resources necessary to combat the flames. Mr. Biden said earlier this month that firefighters from the U.S. would be sent to Canada to assist in the effort, alongside others from Australia, New Zealand and South Africa, a research officer from the Canadian Forest Office previously told CBS News.

New York Skies Set to Darken Again With Smoke From Canada Wildfires

Brian K. Sullivan and Laura Nahmias
Tue, June 27, 2023 


(Bloomberg) -- Smoke from Canadian wildfires will obscure the skies in New York and across the Mid-Atlantic starting Wednesday, just weeks after the blazes blanketed the region in a polluted haze.

Air quality could reach unhealthy levels in western and central New York Wednesday into Thursday, Governor Kathy Hochul said in a tweet. Alerts have already been posted for the area, including Buffalo, Ithaca, Syracuse and Binghamton, according to the National Weather Service.

While the potential intensity of the pollution wasn’t clear yet, Hochul said the smoke would start affecting New York City by Thursday.

“We’re expecting smoke and haze to come all across the state,” Hochul said in a press conference.

The state Department of Environmental Conservation said in a tweet that New Yorkers should be prepared for “possible elevated levels of fine particulate pollution caused by smoke on Wednesday June 28th.”

New York City and the Northeast had some of the worst air quality in the world earlier this month when smoke from Quebec forest fires swirled south, turning the skies over Manhattan an apocalyptic orange. The smog triggered flight delays and led to the cancellation of outdoor events.

“If you want to know the effects of climate change, you’re going to feel it tomorrow in real time,” Hochul said. “We are truly the first generation to feel the real effects of climate change, and we’re also the last generation to do anything meaningful about it.”

The smoke is currently bringing unhealthy air conditions to Chicago and other areas of the Midwest, according to AirNow.gov.

“It’s pretty bad in Chicago,” said Bryan Jackson, a forecaster with the US Weather Prediction Center. The city’s mayor, Brandon Johnson, said residents should consider wearing masks and limit outdoor activity.

A weather pattern that’s bringing thunderstorms and showers across the Northeast will move out of the region, causing winds to blow from north to south in coming days, Jackson said. This flow could channel the smoke from Canada’s fires south.

Large parts of Canada from coast to coast have been burning for weeks. Currently 257 fires were burning out of control across the country, according to the Canadian Interagency Forest Fire Centre.

Smoke from Canada’s wildfires has reached Europe. Will it affect air quality?



Rebecca Ann Hughes
Tue, 27 June 2023

Canada is currently experiencing the worst wildfire season on record.

At least 75,000,00 hectares across the country have already burnt and there are still several months of peak wildfire season to come.

After covering the east coast of North America, clouds of smoke from the blazes have now drifted across the Atlantic to Europe.

Here’s how the smog has travelled and the effects it could have on the continent.
Smoke from Canadian wildfires has reached Europe

On Monday 26 June, smoke from Canada’s raging wildfires could be seen across western Europe using satellite imagery, the UK Met Office reports.

The smog travelled across the Atlantic Ocean via the jet stream - a fast flowing air current in the Earth’s atmosphere.

At the beginning of June, the smoke reached Norway and on Monday, it also arrived in the UK.

For the remainder of the week, the smoke will remain in the upper levels of the atmosphere over Europe, forecasts predict.

As the smoke enters the atmosphere at high altitudes, it is able to linger for longer and travel long distances.
Will the Canada wildfire smoke affect air quality in Europe?

Earlier this month, the wildfire smoke enveloped New York City in a hazardous orange haze.

Residents were advised to remain indoors as much as possible.

“This is detrimental to people’s health,” New York Governor Kathy Hochul warned.

But in Europe, the effects will not be the same. The smoke will not lead to any significant worsening of air quality for residents as it will remain in the upper layers of the atmosphere.

It could, however, lead to some picturesque scenes in our skies.

“Whilst the smoke is high up in the atmosphere, it may make for some vivid sunrises and sunsets in the next few days,” the Met Office wrote on Twitter.
Canada wildfires are the worst on record

In Canada, the blazes continue to rage across multiple provinces. On 26 June, there were 27 new wildfires, according to the National Fire Situation Report.

While air quality in Europe has not been affected, many areas of North America are seeing dangerous conditions.

In Ottawa, Canada’s capital city, the air quality was deemed as “high risk” over the weekend.

Residents experienced a slight reprieve on Monday thanks to stormy weather and wind changes, but the smoke is likely to return later in the week.

Air quality warnings have also been issued in the US including in Wisconsin, Michigan, and Indiana.

“We’re seeing more and more of these fires because of climate change,” tweeted Canada’s prime minister Justin Trudeau.

Canada travel warning: Everything you need to know about travelling during wildfires


Canada fires: Millions breathing hazardous air as smoke spreads south into US

“These fires are affecting everyday routines, lives and livelihoods, and our air quality. We’ll keep working - here at home and with partners around the world - to tackle climate change and address its impacts.”

Direct links between the wildfires in Canada this month and climate change have not been confirmed by scientists. But in general, the climate crisis is provoking more fire-inducing conditions.

A 2021 report from the Intergovernmental Panel on Climate Change (IPCC) found that dry, windy and hot weather conditions, which increase the chances of fire taking hold, will become more common in some places, including Atlantic Canada and the US, as climate change worsens.

Canada’s Explosive Wildfires Have Damaged a Forest Carbon Offset Project

Natasha White and Zahra Hirji
Mon, June 26, 2023 

Canada’s Explosive Wildfires Have Damaged a Forest Carbon Offset Project


(Bloomberg) -- Canada’s explosive wildfire season has already pumped millions of tons of carbon dioxide into the atmosphere. Some of that carbon is coming from vegetation burned at a carbon offset project, highlighting the fragility of a tool the world is relying on to fight catastrophic climate change.

With Canada facing what’s on track to be its worst wildfire season on record — and climate change fueling ever more destructive blazes — climate experts and offset developers are concerned it could be a harbinger of what’s to come.

On June 3, British Columbia fire officials spotted a blaze that has impacted the BigCoast Forest Climate Initiative project, according to Domenico Iannidinardo, senior vice president for forests and climate at Mosaic Forest Management Corporation, which runs the project.

“About 100 hectares of our 40,000 hectare project was involved in this fire,” or about 0.25% of the project, Iannidinardo told Bloomberg Green. That’s an area equivalent to roughly 140 football pitches worth of forest.

So far, little is known about how the fire will impact BigCoast’s carbon removal capacity or how much carbon has been released. Werner Kurz, senior research scientist in the Canadian Forest Service, said its emissions could be up to 32,250 tons of carbon dioxide equivalent, depending on the fire’s severity. The impact is “clearly not trivial” for BigCoast or the local area, he said, but it’s a “rounding error” in terms of the climate impact of the wildfires that have ravaged the province.

As of June 23, crews had suppressed the fire so it was no longer spreading. Mosaic said that assessing the emissions from the area that was burned “will take some time.” They will be incorporated into future carbon accounting and be independently verified. Still, Iannidinardo described the “disturbance” as “negligible.”

Companies and countries are increasingly relying on carbon offsets to reach their emissions targets, a tool used in an attempt to compensate for their climate pollution by investing in projects that reduce or remove emissions elsewhere. But climate scientists and activists say the instruments, including those based on forests, aren’t generally effective at mitigating climate change, despite decades of experimentation and improvement. They point to forest fires — which are increasing in severity partly due to climate change — as a big reason why. Grayson Badgley, research scientist at CarbonPlan, a US-based non-profit​, said it’s a “risky bet” to count on trees — temporary stores of carbon — to compensate for the carbon dioxide released by burning fossil fuels that stays in the atmosphere for centuries.

In 2018, Mosaic, a logging company, and its partners committed to stop cutting down trees in the project area and instead protect them for 30 years. The company is measuring the tons of additional CO2 stored and the forestry-related emissions avoided, and packaging each of those as a carbon credit for sale to companies or individuals looking to offset their carbon footprint. Each credit represents one ton of CO2 removed or not added to the atmosphere.

The project has already issued 1.4 million credits, an amount equivalent to the total emissions of Sierra Leone in 2021. They’ve been bought by UK-based AI company Dataiku, global insurance firm Aspen and the American Institute for Foreign Study, a travel and insurance company, among others, according to Bloomberg Green analysis of public data. There’s currently no information to indicate any of those companies’ credits have been impacted by this year’s fire.

Under the rules of the offset registry Verra, whose standard Mosaic uses, the company has 30 days to report any damage to its forests and up to two years to submit a “loss report” detailing its impact. As a type of insurance mechanism against wildfires and other risks, project developers must contribute a portion of their credits to what’s known as a buffer pool. If disaster strikes and impacts a project’s carbon inventory, the standard states that an equivalent number of credits are taken out of the pool.

BigCoast’s buffer pool is 15.5% of its issued credits, Mosaic said. But none of these are earmarked for natural risks like extreme weather, pest outbreaks and fire, according to project documentation. That’s because the company evaluates that risk — calculated according to a matrix of significance and likelihood — to be zero.

That assessment is “mind-boggling,” said William Anderegg, director of the Wilkes Center for Climate Science and Policy at the University of Utah. Fires are a “really dramatic risk” that forest offset projects face, he said, along with other risks such as drought stress and insect outbreaks.

Mosaic said its risk assessment is based on the fact that “the project is geographically and ecologically diverse and distributed,” meaning the likelihood of widespread damage due to fires or something else measures as “insignificant.”

Under Verra’s rules, credits allocated against other risks can backstop a fire incident, but in the long run this could have a serious impact on the insurance efficacy, Anderegg said. If wildfires eat up more than was budgeted, that has “very real impacts on whether these projects are likely to succeed over a century,” he said.

A team of researchers led by Barbara Haya at the University of California, Berkeley’s Goldman School of Public Policy recently identified a set of shortcomings in carbon offset registry methods, like those used by BigCoast, that could “critically undermine” their buffer pool policies. None take into account how climate change may increase fire risk, for example.

The shortcomings represent an “over-crediting risk,” Haya said in an interview. “Credits are being awarded [for CO2] that might be lost back into the atmosphere, but you don’t have the number of credits to cover that,” she said.

In the US, CarbonPlan’s Badgley and a team of researchers found California’s buffer pool to be “severely undercapitalized.”

Verra relies on “the historical likelihood of an event occurring” to guide its buffer pool policies, said spokesperson Joel Finkelstein. The nonprofit is set to update its insurance tool later in the summer to better account for changing risks due to climate change.

Canadian offset developers across the country are nervous about the rest of the fire season. “This is a wake-up call,” said André Gravel, chief executive of Société de gestion d’actifs forestiers (Solifor), which runs the Monet Forest Conservation Project. “The frequency of fires is increasing,” he said.

“Everyone is very concerned and on high alert,” said Adrian Leslie, manager of a Nature Conservancy of Canada forestry offsets project called Darkwoods in British Columbia. The group said approximately 4,485 hectares of the project burned in 2021, or less than 10% of the total area. That equates to about 36,700 tonnes of CO2 being released, according to a preliminary estimate shared by Leslie.

“The IPCC has made it very clear that every ton matters, every year matters, every degree matters,” Kurz said. Wildfire risk is increasing and project developers must recognize and address this: “We have to bend the curve.”

--With assistance from Demetrios Pogkas.