Global Shift to Renewable Energy Contrasts with U.S. Policies
Amidst a global shift towards renewable energy, the United States is charting a different course under President Trump’s administration, which could isolate it from other major economies. While coal and fossil fuels continue to power the world, the focus in many countries is increasingly on solar, wind, and battery technologies, whose costs have significantly decreased.
The European Union, for example, is making a concerted effort to reduce coal usage. Solar energy accounted for 11% of power generation across its 27 member countries last year, surpassing coal, according to Ember, a research group. The United Kingdom has shut down its last coal-burning power plant, and Norway is encouraging electric vehicle sales with tax incentives, resulting in 90% of new cars sold in 2024 being electric.
Saudi Arabia, known for its massive oil exports, aims to source half of its electricity from renewables by 2030. Meanwhile, China is leading in renewable energy projects, with nearly two-thirds of the world’s utility-scale solar and wind developments underway there. Its manufacturing of affordable solar panels has reduced global solar energy costs, and Chinese companies are expanding electric vehicle production internationally, including in countries like Thailand and Brazil.
Investment trends also reflect this shift. According to the International Energy Agency, in 2024, investors allocated nearly double the amount of funds into renewables compared to fossil fuels. At the World Economic Forum in Davos, Simon Stiell, head of the UN’s climate agency, stated, “The world is undergoing an energy transition that is unstoppable.”
In contrast, President Trump’s executive orders aim to simplify oil and gas production and halt approved clean-energy projects. Despite the decline in coal use due to affordable fracked gas, the administration’s policies focus on bolstering fossil fuel industries.
Chris Seiple of Wood Mackenzie points out, “Doubling down on fossil fuels puts the U.S. on a very different trajectory than Asian and European economies in particular.” The U.S. remains a top natural gas supplier and leads in oil production. However, experts like Kelly Sims Gallagher warn against withdrawing from renewables, noting that it could give China an edge. She asserts that expanding renewables aligns with U.S. economic and security interests.
Globally, countries like Brazil continue to extract fossil fuels while pursuing renewable targets. Australia and Canada have increased liquefied natural gas production, and Russia remains committed to oil and gas exploration despite trade sanctions. The demand for fossil fuels persists, with Brett Christophers of Uppsala University observing that the current period is one of energy addition rather than transition.
The International Energy Agency reports rising global gas demand, with oil demand expected to peak within the next decade. Asian markets, including India, represent potential customers for U.S. energy exports. Following Trump’s “drill baby drill” announcement, India’s petroleum minister Hardeep Singh Puri indicated a possibility of increased American energy imports, according to a Reuters report.
Original Story at www.nytimes.com