U.S. energy regulations face 2024 election test

The climate and energy regulations put in place by the Biden administration are likely to undergo major changes after the 2024 elections, in the face of growing legal and political uncertainties.

Share:

Gain full professional access to energynews.pro from 4.90$/month.
Designed for decision-makers, with no long-term commitment.

Over 30,000 articles published since 2021.
150 new market analyses every week to decode global energy trends.

Monthly Digital PRO PASS

Immediate Access
4.90$/month*

No commitment – cancel anytime, activation in 2 minutes.

*Special launch offer: 1st month at the indicated price, then 14.90 $/month, no long-term commitment.

Annual Digital PRO Pass

Full Annual Access
99$/year*

To access all of energynews.pro without any limits

*Introductory annual price for year one, automatically renewed at 149.00 $/year from the second year.

US climate and energy regulations, introduced under the Biden administration, are at a pivotal moment in 2024.
With the presidential election approaching, the energy sector is on high alert, anticipating potential changes in political direction and regulations in place.
Ongoing court rulings, combined with the outcome of the election, will determine whether current regulations are upheld, modified or repealed.

Regulation under judicial pressure

The climate regulations established by the Biden administration face numerous legal challenges.
The Environmental Protection Agency’s (EPA) 2023 rule requiring 90% carbon capture for coal-fired power plants by 2032, and new fuel economy standards for vehicles by 2031, are already in litigation.
The Supreme Court’s repeal of the Chevron doctrine, which required courts to respect the regulatory interpretations of federal agencies, complicates the defense of these measures.
Courts must now independently interpret statutes, which could lead to rulings unfavorable to current regulations.
Legal uncertainty is amplified by the Major Issues Doctrine, which requires clear congressional authorization for agencies to regulate matters of great importance.
This makes enforcement of the Biden administration’s regulations even more complex, as several ongoing cases are before the federal courts.
Companies in the sector, aware of these risks, remain vigilant as to the evolution of judicial decisions.

Towards deregulation under a Republican administration?

A return of Donald Trump to the White House in 2024 could radically transform the regulatory landscape.
Trump promises to repeal Biden-era energy regulations, favoring a policy of “energy dominance” focused on fossil fuel exploitation.
Measures under consideration include withdrawing from the Paris Agreement, scrapping EPA rules on methane emissions and increasing oil and gas leasing, particularly in Alaska.
Legal experts anticipate a wave of executive orders as soon as a new Republican administration begins, aimed at overturning existing regulations and facilitating the exploitation of fossil resources.
Companies in the sector are already preparing for a potentially highly deregulated regulatory environment, reorienting their investment strategies accordingly.

Implications for the energy sector

The uncertainty surrounding regulations is creating significant volatility for energy companies.
The industry is faced with a dilemma: prepare for a continuation of climate policies under a Democratic administration, or complete upheaval under a Republican presidency.
Analyses indicate that companies need to anticipate a range of scenarios, from continued subsidies for renewables and emissions-reducing technologies to a return to fossil fuel investments.
Clean hydrogen tax credits, methane emission regulations and carbon capture standards are all subject to change depending on election results.
The Heritage Foundation’s “Project 2025” report proposes a far-reaching deregulation program that could serve as the basis for a Republican administration, including a review of Biden-era climate policies.

Industry strategies in the face of uncertainty

In this volatile environment, companies are adjusting their strategies.
Some are focusing on emission-reduction technologies and renewable energies, betting on a continuation of current regulations.
Others are preparing plans to exploit the opportunities offered by potential deregulation, refocusing on hydrocarbons and accelerating development projects.
The 2024 elections will not only determine the future of US energy policy, but will also have global repercussions.
The energy sector needs to prepare for a year of potential change, adjusting its strategies to navigate between tightened regulations and market liberalization.

Re-elected president Irfaan Ali announces stricter production-sharing agreements to increase national economic returns.
Coal India issues tenders to develop 5 GW of renewable capacity, split between solar and wind, as part of its long-term energy strategy.
US utilities anticipate a rapid increase in high-intensity loads, targeting 147 GW of new capacity by 2035, with a strategic shift toward deregulated markets.
France opens a national consultation on RTE’s plan to invest €100 billion by 2040 to modernise the high-voltage electricity transmission grid.
Governor Gavin Newsom orders state agencies to fast-track clean energy projects to capture Inflation Reduction Act credits before deadlines expire.
Germany’s energy transition could cost up to €5.4tn ($6.3tn) by 2049, according to the main industry organisation, raising concerns over national competitiveness.
Facing blackouts imposed by the authorities, small businesses in Iran record mounting losses amid drought, fuel shortages and pressure on the national power grid.
Russian group T Plus plans to stabilise its electricity output at 57.6 TWh in 2025, despite a decline recorded in the first half of the year, according to Chief Executive Officer Pavel Snikkars.
In France, the Commission de régulation de l’énergie issues a clarification on ten statements shared over the summer, correcting several figures regarding tariffs, production and investments in the electricity sector.
A group of 85 researchers challenges the scientific validity of the climate report released by the US Department of Energy, citing partial methods and the absence of independent peer review.
Five energy infrastructure projects have been added to the list of cross-border renewable projects, making them eligible for financial support under the CEF Energy programme.
The Tanzanian government launches a national consultation to accelerate the rollout of compressed natural gas, mobilising public and private financing to secure energy supply and lower fuel costs.
The Kuwaiti government has invited three international consortia to submit bids for the first phase of the Al Khairan project, combining power generation and desalination.
Nigeria’s state-owned oil company abandons plans to sell the Port Harcourt refinery and confirms a maintenance programme despite high operating costs.
The publication of the Multiannual Energy Programme decree, awaited for two years, is compromised by internal political tensions, jeopardising strategic investments in nuclear and renewables.
The US Energy Information Administration reschedules or cancels several publications, affecting the availability of critical data for oil, gas and renewables markets.
Brazilian authorities have launched a large-scale operation targeting a money laundering system linked to the fuel sector, involving investment funds, fintechs, and more than 1,000 service stations across the country.
A national study by the Davies Group reveals widespread American support for the simultaneous development of both renewable and fossil energy sources, with strong approval for natural gas and solar energy.
The South Korean government compels ten petrochemical groups to cut up to 3.7 million tons of naphtha cracking per year, tying financial and tax support to swift and documented restructuring measures.
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.

Log in to read this article

You'll also have access to a selection of our best content.