Paris Agreement: the great comeback of the United States

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TheParis climateagreement has recently made a comeback on the part of the world’s major powers.
Following China’s announcement of carbon neutrality by 2060, it’s now the turn of the United States to announce new climate efforts.

Newly elected President Joe Biden has decided to join the Paris agreement, while aiming for carbon neutrality by 2050.
This decision will have a considerable impact on limiting the rise in global temperatures to 2 degrees by 2100.

Paris Agreement: Biden turns the page on Trump

The end of an energy policy focused on fossil fuels

Under the Trump administration, energy policy was largely focused on supporting the exploitation of fossil fuels on American soil.
Based on the concept of “Energy Dominance”, this strategy aimed to give the United States true energy independence.
It was in this context that the Paris Agreement was seen in Washington as an obstacle to American energy sovereignty.
Having withdrawn from the agreement in 2017, the Trump administration launched a series of measures to deregulate environmental standards.
The oil and gas industry thus benefited from a drastic reduction in constraints linked to the regulation of methane emissions.
Likewise, the administration abandoned Obama’s Clean Power Plan, aimed at reducing CO2 emissions by 32%.
Last month, Trump authorized oil drilling in a protected reserve in northern Alaska.

Read on energynews.com: Keystone XL: Joe Biden buries the controversial pipeline

Is America a bad climate pupil?

This fossil fuel orientation of US policy has resulted in a serious slowdown in climate efforts.
According to Rodhium Group, the Trump administration’s actions would have added nearly 1.8 billion tonnes of CO2 by 2035.
To put this in perspective, this represents almost 30% of annual emissions in the United States.
Nonetheless, the lack of effort on climate issues needs to be qualified.
On the one hand, CO2 emissions have continued their downward trend, with gas clearly outpacing coal.
Secondly, in opposition to the Trump administration, many American states have announced ambitious plans for the environment.
California and New York, for example, have voted to become carbon neutral by 2050.

Paris Agreement: a lever for the energy revolution promised by Biden

Joe Biden’s ambitious energy plan

After four years of the Trump presidency, Biden intends to put the United States back at the heart of the fight against global warming.
By joining the Paris Agreement, he is sending a clear message of his determination to achieve carbon neutrality by 2050.
For him, unlike Trump, the agreement represents a tremendous opportunity to defend American leadership.
After all, the American withdrawal in 2017 had favored China’s rise to diplomatic prominence.
The latter had shown itself to be a responsible promoter of the global public good that is the environment.
It should also be added that the withdrawal risked weakening American industry in the competition for low-carbon technologies.

Read on energynews.com: Energy Transition 2050: what strategy for the IEA in 2021?

Concrete measures right from the start of his mandate

For all these reasons, Biden wants to rapidly implement strong measures before COP26 at the end of the year.
He has announced the reinstatement of environmental standards decided by Obama but abandoned by Trump.
He has also cancelled the construction permit for the Keystone XL pipeline by presidential decree.
He also intends to legislate a program to decarbonize the electricity sector by 2035.
This last objective now seems achievable following the change of majority in the Senate after the double victory in Georgia.
Controlling the legislative agenda, the Democrats can count on the vote of Vice President Kamala Harris in the event of a tie.
What’s more, despite losing seats, the Democrats still control the House of Representatives.

The impact of the United States’ return to the Paris climate agreement

The 2-degree objective is possible again

With a majority in Congress, the Biden presidency could represent a turning point in the fight against global warming.
According to Carbon Tracker, a carbon-neutral United States could reduce global temperatures by 0.1 degrees by 2100.
This may not seem like much at first glance, given that Washington is responsible for just 12% of emissions, compared with 25% for China.
Nevertheless, it could make it possible to achieve the two-degree target set out in the Paris Agreement, for two reasons.
Firstly, Biden’s election comes on the heels of carbon-neutrality announcements by a number of countries.
China, South Korea, the European Union and Japan have all announced this objective.
On the other hand, thanks to their economic power and influence, American decisions have a global ripple effect.

Read on energynews.com: China’s energy mix: towards a zero-carbon future

The potential knock-on effect of the US decision

Today, including the United States, almost 127 countries have announced targets for carbon neutrality by 2100.
This represents around 63% of the world’s CO2 emissions.
According to Carbon Tracker, all these announcements make it possible to limit the rise in global temperatures to 2.1 degrees.
As a reminder, the same organization estimated the probable rise in temperatures at 3.6 degrees in 2015.
Indeed, further efforts must be made if we are to avoid exceeding 2 degrees by 2100.
The Biden presidency could play a key role in accelerating the energy transition.
The knock-on effect of American decisions could force countries like India and Brazil to tighten their environmental policies.
It should be remembered that the Paris Agreement operates above all on a system of “peer pressure”.
Consequently, the return of the United States to the Paris agreement could prove to be a climate “game-changer”.
By creating a ripple effect, the return of the United States to the Paris agreement creates the conditions for a strengthening of the national contributions of the States (NDRC).
Above all, it allows the two superpowers, China and the United States, to finally align their climate agendas.

European governments want to add review and safeguard mechanisms to the trade deal with Washington to prevent a potential surge of US imports from disrupting their industrial base.
The Carney–Smith agreement launches a new pipeline to Asia, removes oil and gas emission caps, and initiates reform of the Pacific north coast tanker ban.
The gradual exit from CfD contracts is turning stable assets into infrastructures exposed to higher volatility, challenging expected returns and traditional financing models for the renewable sector.
The Canadian government introduces major legislative changes to the Energy Efficiency Act to support its national strategy and adapt to the realities of digital commerce.
Quebec becomes the only Canadian province where a carbon price still applies directly to fuels, as Ottawa eliminated the public-facing carbon tax in April 2025.
New Delhi launches a 72.8 bn INR incentive plan to build a 6,000-tonne domestic capacity for permanent magnets, amid rising Chinese export restrictions on critical components.
The rise of CfDs, PPAs and capacity mechanisms signals a structural shift: markets alone no longer cover 10–30-year financing needs, while spot prices have surged 400% in Europe since 2019.
The Khor Mor gas field, operated by Pearl Petroleum, was hit by an armed drone, halting production and causing power outages affecting 80% of Kurdistan’s electricity capacity.
Germany plans to finalise the €5.8bn ($6.34bn) purchase of a 25.1% stake in TenneT Germany to strengthen its control over critical national power grid infrastructure.
Global South Utilities is investing $1 billion in new solar, wind and storage projects to strengthen Yemen's energy capacity and expand its regional influence.
British International Investment and FirstRand partner to finance the decarbonisation of African companies through a facility focused on supporting high-emission sectors.
The Ghanaian government is implementing a reform of its energy system focused on increasing the use of local natural gas, aiming to reduce electricity production costs and limit the sector's financial imbalance.
Budapest moves to secure Serbian oil supply, threatened by Croatia’s suspension of crude flows following US sanctions on the Russian-controlled NIS refinery.
On the 50th anniversary of its independence, Suriname announced a national roadmap including major public investment to develop its offshore oil reserves.
Moscow says it wants to increase oil and liquefied natural gas exports to Beijing, while consolidating bilateral cooperation amid US sanctions targeting Russian producers.
China's power generation capacity recorded strong growth in October, driven by continued expansion of solar and wind, according to official data from the National Energy Administration.
The European Investment Bank is mobilising €2bn in financing backed by the European Commission for energy projects in Africa, with a strategic objective rooted in the European Union’s energy diplomacy.
Russia faces a structural decline in energy revenues as strengthened sanctions against Rosneft and Lukoil disrupt trade flows and deepen the federal budget deficit.
The 2026–2031 offshore programme proposes opening over one billion acres to oil exploration, triggering a regulatory clash between Washington, coastal states and legal advocacy groups.
Washington imposes new sanctions targeting vessels, shipowners and intermediaries in Asia, increasing the regulatory risk of Iranian oil trade and redefining maritime compliance in the region.

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