Trump's Energy Policy and its Influence on Clean Technology and Employees
In the wake of pardoning insurrectionists involved in storming the U.S. Capitol, former President Trump took further action by withdrawing the nation from the Paris Agreement and blocking unspent funds for President Biden's key achievements, including the Bipartisan Infrastructure Law and Inflation Reduction Act. Trump's intent is to "unleash America's energy potential," targeting its oil and natural gas resources. However, this tactic risks jeopardizing America's long-term growth, hindering the clean tech economy, and negatively affecting national well-being.
Trump's goal revolves around flooding domestic markets with oil and gas to lower energy prices, especially considering the soaring demand for electricity due to new data centers and artificial intelligence. Regardless of this plan sounding appealing on paper, it's essential to consider a few factors. The U.S. already leads the world in oil and gas production, and the federal government has minimal influence over private companies' boardroom decisions regarding exploration. In addition, utilities saw record rates of renewable energy integration in 2024, adding wind, solar, and battery storage to account for 94% of total capacity additions.
Renewable energy sources are becoming increasingly popular for several reasons. Investors poured over $2.1 trillion into renewables worldwide in 2024, while 200 countries have vowed to reduce greenhouse gas emissions under the Paris Climate Agreement. Renewable energy not only helps mitigate the most damaging effects of global warming, such as rising temperatures, droughts, and floods, but it's also the most cost-effective form of electric power according to bank Lazard, ranking it ahead of natural gas combined cycle plants, gas peaking plants, and nuclear power.
Despite these benefits, some critics argue that the focus should primarily be on affordability, accessibility, and reliability, considering coal and natural gas's ability to run around the clock, while renewables have capacity factors as low as 35% due to their dependency on sunlight and wind. To achieve the triple use of renewables by 2030, the ultimate goal in tackling climate change, we will need to invest in cutting-edge technologies and overcome specific challenges.
If green energy projects, such as those announced after President Biden signed the Inflation Reduction Act, come to fruition, they are expected to create thousands of jobs and attract substantial investments. In fact, natural disasters cost America an estimated $217.8 billion in 2024, with 2025 California wildfires expected to cost between $28 billion and $75 billion, emphasizing the importance of investing in renewable energy.
Dan Brouillette, former Secretary of the U.S. Department of Energy under Trump, acknowledges the commitment of utilities to providing reliable, around-the-clock power. Brouillette also emphasizes the significant role of energy in global economics, noting historical conflicts that have been fueled by energy production and supply. As a result, policymakers and stakeholders must weigh the advantages and disadvantages of various energy sources to develop a balanced energy strategy.
In conclusion, former President Trump's energy policies have both economic and environmental implications, both nationally and internationally. While they may boost the oil and gas industry and lower energy prices for some, they may also hinder the growth of renewable energy sources, increase greenhouse gas emissions, and compromise U.S. climate leadership on the global stage. Balancing interests and societal needs is essential to ensure a sustainable and prosperous future for all.
Trump's dismissal of President Biden's unspent funds for climate initiatives could impact the business sector, as access to creditlines might become more challenging for companies investing in renewable fuels.
The storming of the U.S. Capitol and subsequent pardons have shifted focus from climate action to energy policies, potentially leaving the trillion-dollar renewable energy market vulnerable to policy fluctuations.
Despite Trump's emphasis on oil and gas business expansion, alternative energy firms, backed by investor creditlines, continue to attract billions in funding, signaling a shift towards a more energy-diverse economic landscape.
