Donald Trump’s second term starts off with a blitz of executive orders, and climate measures are in the crosshairs.
From the President that said: “Drill, baby, drill” this is not much of a surprise, but the real scale of the announcements is yet to be seen. This is, after all, the second term and the world has shifted. Moreover, the Biden Administration has done what it can to ‘lock in’ parts of the Inflation Reduction Act.
None-the-less, on the face of it, there are measures that will affect the progress of climate preservation such as redrawing from the Paris Agreement, cutting car makers obligations on EVs and supporting windfarms.
Oil and Gas
the new administration has announced a "national energy emergency" that reverses climate regulations with the aim to boost oil and gas energy.
In his executive order, the President said: “The policies of the previous administration have driven our nation into a national emergency, where a precariously inadequate and intermittent energy supply, and an increasingly unreliable grid, require swift and decisive action.”
It is a clear message that the reserves of oil and gas in the US will be used to increase ‘energy security’ despite any plan to curb the resultant emissions.
Paris
Any withdrawal will take time, at least a year in fact, but Trump is not one for internationally led organisations. He is equally scathing of the WHO but following a year of the highest temperatures breaking the 1.5C line and wildfires in California, the break with Paris is a concern, both directly and indirectly as it throws all international cooperation into doubt.
EV Production
Trump will also cancel the requirement for US car makers to have a 50 per cent electric vehicle target for 2030. Fearful of the influence of China in manufacturing EVs, Trump is shedding the target, which was voluntary in any case. How this squares with supporter Elon Musk is an interesting conjecture.
Wind Power
Another executive order will prevent federal land and water to be leased wind turbines. Most notably, when it comes to offshore wind, the order is explicit in its banning wind power from generation of energy but pointedly does not limit their use when connected to, but not limited to, oil, gas, minerals, and environmental conservation.
Taxonomy
Green policies are intrinsically linked to economic politics, and to some extend thee will always be an element of weaponisation. Thus, some green regulations can be seen as trade barriers, but for the US the main issue is with the EU.
To be fair, Biden saw the EU’s green economic policies as an issue, but when added to a more belligerent approach it is likely to flare up.
There are issues of ‘carbon taxes’ and reporting burdens, wit the latter dragging legal compliance and possible fines with it. The EU taxonomy was always ambitions, and in opposing it the US might have allis within right leaning Member States too.
Where that leaves the UK is anyone’s guess, and any Prime Minister would have a fine balancing act to perform here.
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