It was no surprise when President Donald Trump signed executive orders withdrawing the US from the Paris Agreement on climate change — again. This was followed by a new energy policy and declaring a national energy emergency.
This order aims to reduce regulations, lower energy costs and bolster national security, highlighting the reality that burdensome and ideologically motivated regulations have impeded the development of America’s energy resources.
The order stated that high energy costs were devastating US consumers by driving up the cost of transportation, heating, utilities, farming and manufacturing. It argued that this weakened national security and limited job creation. It was thus in the national interest to unleash America’s affordable and reliable energy resources to restore prosperity.
The new US energy policy will:
- Encourage energy exploration and production on federal lands and waters.
- Endeavour to establish the US as a leader in nonfuel minerals production.
- Protect economic and national security by ensuring reliable energy supply.
- Ensure energy regulations are based on applicable law.
- Eliminate the electric vehicle (EV) mandate to promote consumer choice.
- Safeguard the freedom to choose various goods and appliances.
- Separate evaluation of global effects from domestic costs and benefits.
- Guarantee public comment and scientific analysis for regulations.
- Ensure Federal funding aligns with outlined principles.
Trump’s America First strategy is deeply intertwined with the new energy policy in several ways. Primarily, the strategy emphasises the importance of energy independence, reflected in the policy’s push for increased energy exploration and production on federal lands and waters.
The policy aims to reduce reliance on foreign energy imports, bolstering national security and economic stability. It will remove the EV mandate to promote consumer choice and safeguard the freedom to choose various goods and appliances. This approach enhances individual freedoms, allowing market forces to dictate the best energy solutions.
National energy emergency
The energy state of emergency involves a multifaceted approach that includes increasing domestic energy production, prioritising energy infrastructure development, and reducing regulatory constraints to accelerate energy projects. This underscores the urgency of achieving energy independence, shielding the nation from geopolitical risks associated with foreign energy dependency and preventing disruptions to the energy supply chain.
Moreover, the state of emergency calls for substantial investments in renewable energy initiatives, promoting research & development in advanced energy technologies and ensuring the national power grid’s resilience. It emphasises the need to balance economic growth with environmental stewardship, and seeks to leverage America’s vast natural resources while encouraging innovation and market-driven solutions to meet energy demands.
These measures are intended to mitigate the effects of climate change, reduce greenhouse gas emissions and foster a diversified, secure energy portfolio. Through this order the US will only leave the Paris Agreement in 2026, but will immediately cease or revoke all financial commitments made under the UN Framework Convention on Climate Change. This includes commitments to SA.
Meanwhile, developing countries have taken out ruinous climate loans yet contribute the least to climate change. The US contributes about 15% of the world’s total greenhouse gas emissions. On a per capita basis, the US emits about 16.5-million tonnes CO2 annually. This high per-capita emission rate reflects America’s heavy reliance on fossil fuels and its high standard of living. This figure eclipses the global average, which according to the World Bank stands at about 4.8Mt CO2 per capita annually.
This figure highlights the vast discrepancies between different regions, particularly when compared with Africa, where the average per capita emissions are about 0.9 tonne per person per year. The statistic highlights the US’ disproportionate effect on global climate change despite accounting for just more than 4% of the world’s population.
This reality underscores the America First principles and a “do as I say, not as I do” imperial mindset. Trump’s wrecking ball approach has let the bull loose in the china shop, as the world’s nations prepare to report back on their nationally determined contributions for the first time since the Paris Agreement was signed.
• Mashele, an energy economist, is a member of the board of the National Transmission Company of SA.
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