The Trump victory in the Presidential election is likely to bring big changes to U.S. energy and environmental policies, affecting consumers in every corner of their lives.
While Trump has big plans to boost traditional fossil fuel industries, analysts don't expect him to completely reverse the nation's progress on clean energy initiatives.
"I don't think a Trump president can slow the transition," said Ed Hirs, energy fellow at the University of Houston, in a Reuters report. "This is well under way."
Much of the spending on solar and wind power comes from the Inflation Reduction Act which President Biden signed in 2022.
Trump has criticized the measure as being too expensive and has said he would cancel projects that aren't already underway. But Congress, especially representatives from states that are benefiting from the program, are likely to resist those efforts.
"The jobs and the economic benefits have been so heavy in red states, it's hard to see an administration come in that says, 'we don't like this,'" said Carl Fleming, a partner at law firm McDermott Will & Emery, who advised the Biden White House on renewable energy policy.
Keeping in mind that campaign rhetoric doesn't always translate into action, here's a look at a few of the policies that are likely to be tackled by the new Administration.
Electric Vehicles (EVs)
Trump plans to roll back policies that push for more EV sales, including EPA rules that require automakers to produce cleaner vehicles. He might also limit which EVs qualify for tax credits, focusing more on where the vehicles are made and the sources of their materials.
Oil and Gas
Trump aims to increase U.S. oil and gas production, focusing on more drilling and faster permitting for pipelines. This could mean more offshore drilling and fracking on federal lands. The oil and gas sector, in particular, stands to benefit from these policy shifts.
Offshore Wind
Trump has criticized offshore wind projects and could halt new wind farm permits, which would slow down the U.S. offshore wind industry. This could put pressure on states with economic interests in wind energy to push back.
Power Plants
Trump could reverse rules that limit emissions from coal and gas power plants, arguing that the country needs more electricity to support growing industries like AI and manufacturing. His focus would likely be on keeping coal plants running longer and slowing the transition to cleaner power sources.
Clean Energy Tax Credits
Clean energy incentives, a big part of Biden’s climate agenda, might face cutbacks or adjustments under Trump. While Congress is unlikely to repeal these credits entirely, Trump could make them harder to obtain, especially for green technologies like hydrogen. Tax credits may be restructured to favor fossil fuel projects.
High-Tech Loans
Trump may eliminate or heavily restrict the Department of Energy’s loan program that funds clean technology projects, redirecting support toward fossil fuels or cutting funding altogether.
LNG Exports
Trump is likely to lift restrictions on liquefied natural gas (LNG) exports, allowing companies to sell more LNG to countries that aren't free-trade partners with the U.S. This could lead to growth in LNG projects, especially those aimed at Asian markets.
These expected shifts point to a more fossil fuel-friendly energy policy that prioritizes oil, gas, and coal while scaling back but not eliminating support for renewable energy initiatives.