Trump 2.0: A New Era for U.S. Climate Policy

Donald Trump is back in the White House, and less than two weeks into his second term, the pendulum has swung decisively away from the Biden-era climate policy agenda - at a pace and scale few could’ve anticipated.  

Within hours of his inauguration, the newly re-elected President signed a flurry of executive orders to backtrack many of the U.S.’s climate policies, instead prioritising new fossil fuel projects as part of his plan “Unleash American Energy”.  

Key Climate Policy Reversals

Amongst the most significant actions taken by Trump during first days back in office are: 

• Immediately withdrawing from the Paris Climate Accord – for the second time. 

• Declaring a national energy emergency to promote fossil fuel energy.  

• Ordering an immediate pause on all Inflation Reduction Act Funding – putting over $300 billion of funding tied to the clean energy transition at risk   

• Pausing all new leases, permits and loans for both onshore and offshore wind projects 

• Repealing tax credits for new EV purchases   

• Opening up public lands for fossil fuel exploration and resource extraction

State Resistance and Market Realities 

Despite federal rollbacks, there are signs of resistance at the state level. A coalition of 24 Democratic governors have reaffirmed their commitment to the Paris Climate Agreement, pledging to align their states with global climate targets. Meanwhile, some analysts argue that market forces may blunt the impact of Trump’s reversals. More coal-fired power plants closed during Trump’s first term that under Obama, and the Inflation Reduction Act has set in motion a clean energy transition that could prove difficult to derail.  

The Road Ahead

The long-term impact of Trump’s second term on U.S. and global climate policy remains uncertain. What is clear, however, is that his return to the White House has dramatically reshaped the political landscape, casting a shadow over the future of renewable energy markets and global climate commitments in the years ahead. 

References

• Trump's Executive Orders | LinkedIn 

• Trump Issues Executive Order to Halt All IRA Funding Disbursements - Inflation Reduction Act Tracker 

• What Trump's Executive Orders Really Mean for the Climate | TIME

Written by Jonathan Marriage, Content Manager, Innovation Zero