United States: emissions stagnate in 2024, uncertainty under Trump administration

In 2024, US CO₂ emissions remain stable at 5.1bn tonnes, as the Trump administration prepares hydrocarbon-friendly energy policies, raising questions about the future evolution of the American market.

Share:

In 2024, the United States maintained its carbon dioxide (CO₂) emissions at approximately 5.1bn tonnes, a level nearly unchanged compared to the previous year, according to the Energy Information Administration (EIA). Despite this apparent stability, sectoral data reveal contrasting dynamics, particularly in the electricity sector where emissions have slightly increased, while other economic sectors such as transport and industry show relative stagnation. Against this backdrop, Donald Trump’s return to the presidency in early 2025 opens the way for a profound revision of US energy policy, likely promoting fossil fuels. This shift raises major questions about the potential impacts on future emissions and investment strategies in the energy sector.

Emission stabilisation in a complex context

In 2024, the US electricity sector emitted around 1.64bn tonnes of CO₂, marking a moderate increase of 0.5% compared to the previous year. This rise is mainly due to increased electricity consumption and greater use of natural gas-fired power plants. Natural gas now accounts for approximately 73% of US thermal electricity production, while coal’s share continues to decline, reaching 26%. Reduced coal usage is a well-established trend supported by economic rationale, linked to the increasing competitiveness of natural gas and renewable energy sources.

Trump administration announces fossil fuel revival

Donald Trump’s assumption of office in January 2025 heralds significant regulatory revisions in the US energy sector. Immediately upon taking office, Trump initiated a process aimed at relaxing existing environmental regulations, notably by challenging emissions limits imposed on power plants under the Clean Power Plan (CPP). This strategy aligns with a broader effort to bolster domestic oil and natural gas production, aiming to enhance American industrial competitiveness internationally. Additionally, the announced US withdrawal from the Paris Agreement in early 2025 sends a strong political signal to all stakeholders in the energy sector.

Mixed reactions within the US energy sector

These regulatory changes have sparked varied reactions among US industrial players. Companies such as ExxonMobil and Chevron positively view the new federal orientation, anticipating renewed investment and increased international competitiveness. Conversely, firms heavily invested in renewable energies like NextEra Energy and Duke Energy express concerns about potential negative impacts of new federal policies on their growth and investment strategies. According to these stakeholders, Trump’s announced tariff modifications on imports of renewable energy equipment could significantly slow momentum in this rapidly expanding sector in the United States.

Projected impacts of new regulatory measures

According to analyses published by Rhodium Group and government agencies, relaxing environmental constraints could cumulatively increase US CO₂ emissions by approximately 123mn additional tonnes by 2035. The Congressional Budget Office (CBO) further indicates that the new measures could significantly stimulate US hydrocarbon production, but also warns of potential increased health and environmental costs linked to rising air pollutant emissions. Investors must therefore anticipate revisions in regulation-related costs and a rebalancing of financial risks in energy projects in the medium term.

Moderating factors on the US market

Despite these announced federal measures, economic factors could moderate the actual impact of Trump’s new policies on US emissions. The growing economic competitiveness of solar and wind technologies, alongside energy storage solutions, represents a strong trend likely to persist irrespective of federal regulatory contexts. Additionally, many US states and private stakeholders maintain ambitious environmental and energy policies that could mitigate the effects of federal deregulation. This complex situation will force companies into deep strategic analyses to best anticipate US market developments in the coming years.

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.
Several major U.S. corporations announce investments totaling nearly USD 90 billion to strengthen energy infrastructure in Pennsylvania, aimed at powering data centers vital to the rapid growth of the artificial intelligence sector.
Nearly USD92bn will be invested by major American and international groups in new data centres and energy infrastructure, responding to the surge in electricity demand linked to the rise of artificial intelligence.
Nouakchott has endured lengthy power interruptions for several weeks, highlighting the financial and technical limits of the Mauritanian Electricity Company as Mauritania aims to widen access and green its mix by 2030.
Between 2015 and 2024, four multilateral climate funds committed nearly eight bn USD to clean energy, attracting private capital through concessional terms while Africa and Asia absorbed more than half of the volume.
The Global Energy Policies Hub shows that strategic reserves, gas obligations, cybersecurity and critical-mineral policies are expanding rapidly, lifting oil coverage to 98 % of world imports.
According to a report by Ember, the Chinese government’s appliance trade-in campaign could double residential air-conditioner efficiency gains in 2025 and trim up to USD943mn from household electricity spending this year.
Washington is examining sectoral taxes on polysilicon and drones, two supply chains dominated by China, after triggering Section 232 to measure industrial dependency risks.
The 2025-2034 development plan presented by Terna includes strengthening Sicily’s grid, new interconnections, and major projects to support the region’s growing renewable energy capacity.
Terna and NPC Ukrenergo have concluded a three-year partnership in Rome aimed at strengthening the integration of the Ukrainian grid into the pan-European system, with an in-depth exchange of technological and regulatory expertise.
GE Vernova has secured a major contract to modernise the Kühmoos substation in Germany, enhancing grid reliability and integration capacity for power flows between Germany, France and Switzerland.
The National Energy System Operator forecasts electricity demand to rise to 785 TWh by 2050, underlining the need to modernise grids and integrate more clean energy to support the UK’s energy transition.
Terna has signed a guarantee agreement with SACE and the European Investment Bank to finance the Adriatic Link project, totalling approximately €1bn ($1.08bn) and validated as a major transaction under Italian regulations.
India unveils a series of reforms on oil and gas contracts, introducing a fiscal stability clause to enhance the sector’s attractiveness for foreign companies and boost its growth ambitions in upstream energy.
The European Commission is launching a special fund of EUR2.3bn ($2.5bn) to boost Ukraine’s reconstruction and attract private capital to the energy and infrastructure sectors.