The Energy Department is dramatically walking back new energy efficiency standards for distribution transformers – a move that highlights how the Biden administration is trying to balance its climate agenda and concerns from lawmakers, industry groups, and pro-union allies in an election year. POLITICO’s James Bikales breaks down why DOE is scaling down the rule and how Biden’s climate agenda is walking a tightrope. Plus, the European Union says carbon dioxide emissions from power plants and industrial sites dropped a record 15.5 percent last year.  For more news on energy and the environment, subscribe to Power Switch, our free evening newsletter: https://www.politico.com/power-switch And for even deeper coverage and analysis, read our Morning Energy newsletter by subscribing to POLITICO Pro: https://subscriber.politicopro.com/newsletter-archive/morning-energy Catherine Morehouse is an energy reporter for POLITICO. James Bikales is the host of Morning Energy and a reporter for POLITICO. Nirmal Mulaikal is a POLITICO audio host-producer. Annie Rees is a senior audio producer-host at POLITICO. Gloria Gonzalez is the deputy energy editor for POLITICO. Matt Daily is the energy editor for POLITICO.