Department of Energy report questions economic impact of CO2 and reach of US climate policies

A Department of Energy report states that US actions on greenhouse gases would have a limited global impact, while highlighting a gap between perceptions and the economic realities of global warming.

Share:

Subscribe for unlimited access to all the latest energy sector news.

Over 150 multisector articles and analyses every week.

For less than €3/week*

*For an annual commitment

*Engagement annuel à seulement 99 € (au lieu de 149 €), offre valable jusqu'au 30/07/2025 minuit.

The Department of Energy (DOE) has published an assessment report on the impact of greenhouse gas (GHG) emissions on the US climate, led by a working group of five independent scientists with recognised backgrounds in physical science, economics, and academic research. This study is based on an extensive review of scientific literature and institutional data. It concludes that the economic consequences of warming linked to carbon dioxide (CO2) are less significant than suggested by conventional climate communication.

A critical analysis of climate policy
The report highlights that mitigation policies, particularly those focused on the rapid reduction of emissions, risk causing significant costs without measurable immediate effect on the global climate. According to the DOE team, US initiatives would produce direct impacts that are barely detectable at a global scale, due to the worldwide nature of the phenomenon and the delays needed to observe such effects. The authors specify that the economic and social benefits derived from current energy systems remain a central factor in growth over the past two centuries.

Profiles of the experts involved
Contributors include John Christy, Professor at the University of Alabama in Huntsville, and Judith Curry, Professor Emerita at the Georgia Institute of Technology. Steven Koonin, former Under Secretary for Science at the DOE, Ross McKitrick, Professor of Environmental Economics at the University of Guelph, and Roy Spencer, Principal Research Scientist at the University of Alabama, also participated in the drafting. All have careers marked by major publications, institutional responsibilities, and numerous presentations before US and international legislative bodies.

Public consultation and political stakes
The report was released as part of a proposed rule by the Environmental Protection Agency (EPA) to repeal the 2009 Endangerment Finding, a key measure in the federal GHG regulatory framework. A public consultation period has been opened to gather feedback from the sector, scientists, and civil society on the results of this assessment and its potential implications. This approach reflects a stated intention to favour innovation and industrial competitiveness, moving away from measures considered ineffective or premature.

The expected contributions on this report could influence the regulatory trajectory of the US energy sector. “If we encourage innovation instead of hindering it, the United States can provide more energy and support economic growth,” said Secretary of Energy Chris Wright at the report’s release.

The U.S. Department of Energy has extended until November the emergency measures aimed at ensuring the stability of Puerto Rico’s power grid against overload risks and recurring outages.
Under threat of increased U.S. tariffs, New Delhi is accelerating its energy independence strategy to reduce reliance on imports, particularly Russian oil.
With a new $800 million investment agreement, Tsingshan expands the Manhize steel plant and generates an energy demand of more than 500 MW, forcing Zimbabwe to accelerate its electricity strategy.
U.S. electric storage capacity will surge 68% this year according to Cleanview, largely offsetting the slowdown in solar and wind projects under the Trump administration.
A nationwide blackout left Iraq without electricity for several hours, affecting almost the entire country due to record consumption linked to an extreme heatwave.
Washington launches antidumping procedures against three Asian countries. Margins up to 190% identified. Final decisions expected April 2026 with major supply chain impacts.
Revenues generated by oil and gas in Russia recorded a significant decrease in July, putting direct pressure on the country’s budget balance according to official figures.
U.S. electricity consumption reached unprecedented levels in the last week of July, driven by a heatwave and the growth of industrial activity.
The New York Power Authority targets nearly 7GW of capacity with a plan featuring 20 renewable projects and 156 storage initiatives, marking a new phase for public investment in the State.
French Guiana plans to achieve a fully decarbonised power mix by 2027, driven by the construction of a biomass plant and expansion of renewable energy on its territory.
The progress of national targets for renewable energy remains marginal, with only a 2% increase since COP28, threatening the achievement of the tripling of capacity by 2030 and impacting energy security.
Investments in renewable energy across the Middle East and North Africa are expected to reach USD59.9 bn by 2030, fuelled by national strategies, the rise of solar, green hydrogen, and new regional industrial projects.
Global electricity demand is projected to grow steadily through 2026, driven by industrial expansion, data centres, electric mobility and air conditioning, with increasing contributions from renewables, natural gas and nuclear power.
Kenya registers a historic record in electricity consumption, driven by industrial growth and a strong contribution from geothermal and hydropower plants operated by Kenya Electricity Generating Company PLC.
Final energy consumption in the European industrial sector dropped by 5% in 2023, reaching a level not seen in three decades, with renewables taking a growing role in certain key segments.
Réseau de transport d’électricité is planning a long-term modernisation of its infrastructure. A national public debate will begin on September 4 to address implementation methods, challenges and conditions.
The Spanish Parliament has rejected a package of reforms aimed at preventing another major power outage, plunging the national energy sector into uncertainty and revealing the fragility of the government's majority.
The U.S. government has supported Argentina’s request for a temporary suspension of an order to hand over its stake in YPF, a 16.1 billion USD judgment aimed at satisfying creditors.
The United States Environmental Protection Agency extends compliance deadlines for coal-fired power plant operators regarding groundwater monitoring and the closure of waste ponds.
Eskom aims to accelerate its energy transition through a new dedicated unit, despite a USD22.03bn debt and tariff uncertainties slowing investment.
Consent Preferences