The UN General Assembly voted 141-8 to endorse a World Court opinion affirming that countries have a legal obligation to address climate change. The resolution, championed by Pacific island nation Vanuatu, affirms a July 2025 International Court of Justice advisory opinion requiring states to reduce fossil fuel use and tackle global warming. Though non-binding, the opinion is already influencing climate litigation worldwide.
The United States joined Russia, Saudi Arabia, Israel, Iran, and three others in opposition. India, Turkey, Qatar, and Nigeria abstained. The Trump administration, which has withdrawn from the Paris Agreement, called the resolution's demands around fossil fuels "inappropriate."
The vote carries particular urgency for Pacific nations facing existential threats: over a third of Tuvalu's population has applied for climate migration visas to Australia, while Nauru is selling passports to fund potential relocation. Scientists now warn that even optimistic projections overshoot the 1.5°C Paris target.
New York has become the first U.S. state to roll back a landmark climate law, as Governor Hochul struck a budget deal weakening the 2019 Climate Leadership and Community Protection Act (CLCPA). Two key changes: the deadline for carbon regulations is pushed from 2024 to 2028, and the state is switching to a less stringent methane accounting method that will make emissions appear lower without actual reductions.
The 2030 emissions target technically remains on the books but loses its teeth, with new regulations now aimed at a 60% reduction by 2040 instead. Environmental groups broadly condemned the deal as a dangerous precedent, though some see a path to recovery if robust cap-and-invest regulations are in place by 2028.
The methane change is particularly consequential: New York will drop its stricter 20-year warming metric in favor of the standard 100-year measure, effectively erasing "imported" pipeline emissions from its ledger and reducing pressure to electrify buildings and cut landfill emissions.
Critics argue the rollback does nothing to address affordability, the stated justification, and may worsen it by delaying clean energy revenue. A $1 billion allocation to the Sustainable Future Fund was included as partial mitigation.
Former Canadian environment minister Steven Guilbeault is leaving federal politics this summer, citing PM Mark Carney's rollback of climate policy. Guilbeault, a former Greenpeace activist who served as environment minister under Trudeau from 2021, had already resigned from Carney's cabinet last fall to protest a deal enabling a new Alberta oil export pipeline.
Under Carney, much of Guilbeault's climate legacy has been dismantled: the consumer carbon tax, a proposed oil and gas emissions cap, and an EV mandate have all been scrapped, with the government pivoting toward resource development and infrastructure expansion.
While the business community has welcomed Carney's approach, it has drawn pushback from Indigenous communities opposed to fast-tracked resource projects, climate groups warning Canada's 2030 emissions targets are slipping, and some Liberal party members uncomfortable with the direction. Canada officially targets a 40–45% emissions cut below 2005 levels by 2030, but Carney has given no clear commitment to meeting it.
The Strait of Hormuz closure due to the U.S.-Israeli war on Iran is severely straining global energy supply. Dallas Fed President Lorie Logan warned that if shipping doesn't recover soon, the world may need to significantly reduce oil and gas consumption, either by switching energy sources, improving efficiency, or curtailing economic activity.
The conflict has already cut global oil supply by ~13 million barrels/day, a gap currently being bridged by drawing down finite inventories. U.S. output growth is expected to be modest: only 250,000 barrels/day this year. Logan expects markets to rebalance eventually, but warns the adjustment could be painful.
Logan also used the speech to advocate for strengthening Treasury market resilience through central clearing and an expanded Fed liquidity toolkit, citing risks from leveraged investors who hold a growing share of Treasuries and could trigger rapid market disruptions under stress.
Chile's Atacama desert is becoming a hub for solar-plus-storage investment. KKR-backed ContourGlobal just inaugurated a ~$500 million facility, billed as Latin America's longest-duration utility-scale battery system. The project will be capable of delivering 200 MW for up to 6.5 hours, backed by a 15-year nighttime power agreement with Copec EMOAC.
Battery storage is critical in Chile because abundant daytime solar generation frequently exceeds demand, causing curtailments worsened by transmission constraints. BESS allows excess renewable energy to be dispatched at night or during low-generation periods.
Chile currently has over 3 GW of battery storage operating or in testing, with another 5.4 GW projected by year-end, making it one of the world's fastest-growing storage markets. Other major players include AES Andes, Engie, Enel Green Power, and BlackRock-backed Atlas Renewable Energy. ContourGlobal is already eyeing further Chilean investments, including projects near Santiago and wind developments in the south.
