Trump turns back clock on Inflation Reduction Act, Paris Agreement in first day of second term

LinkedIn
Twitter
Reddit
Facebook
Email

Following his inauguration on Monday morning, US president Donald Trump signed a raft of executive orders outlining his administration’s plans for the next four years.

Among orders on social measures, international relations and the naming of parts of the map, the energy sector received a lot of attention. 

This article requires Premium SubscriptionBasic (FREE) Subscription

Enjoy 12 months of exclusive analysis

  • Regular insight and analysis of the industry’s biggest developments
  • In-depth interviews with the industry’s leading figures
  • Annual digital subscription to the PV Tech Power journal
  • Discounts on Solar Media’s portfolio of events, in-person and virtual

Or continue reading this article for free

Revocation of Biden’s 2022 Executive Order on IRA implementation

The president has announced challenges to the Inflation Reduction Act (IRA), a cornerstone piece of climate and economic legislation from the Biden administration.

Trump’s executive order on “Unleashing American Energy” announced plans to revoke an executive order on the “Implementation of the Energy and Infrastructure Provisions of the Inflation Reduction Act of 2022.”

The order said that this act and a number of others “are revoked and any offices established therein are abolished”. It is unclear exactly how much of the IRA and its effects this order intends to revoke. Trump also called for an end to the “Green New Deal”, which encompasses the IRA and the Bipartisan Infrastructure Law (BIL).

It required that “all agencies shall immediately pause the disbursement of funds” administered through either bill. It is unclear whether this would cover tax credits or just direct funding, such as that which is provided by the Department of Energy’s Loan Programs Office (LPO).

Though it remains unclear exactly which parts of the IRA or which offices are covered by the order, it clearly shows Trump’s ambition to undo the legislation which has spurred the US’ clean energy revolution more than any other.

The executive order also announced a review of agencies that “potentially burden the development of domestic energy resources”. It calls on government agencies to “identify those agency actions that impose an undue burden on the identification, development, or use of domestic energy resources—with particular attention to oil, natural gas, coal, hydropower, biofuels, critical mineral and nuclear energy resources.”

Trump also announced an end to the electric vehicle (EV) mandate and a suspension on offshore wind leasing.

Second withdrawal from Paris Agreement

As in his previous term, Trump has ordered the withdrawal of the US from the Paris climate agreement, the international treaty on climate change signed in 2016.

In an executive order, the president said the US would “immediately submit formal written notification” to the United Nations withdrawing from the agreement.

Trump also declared a national energy emergency, promised to fill the country’s strategic oil reserves and doubled down on his pledge to “drill, baby, drill”. He plans to increase fossil fuel production in Alaska and begin exporting natural gas.

The Paris agreement aims to limit global warming to 2 degrees Celsius above pre-industrial levels. Countries that have signed the treaty agree to support these efforts through domestic decarbonisation plans and financial support from large economies to enable decarbonisation in developing countries.  

To read the full version of this story, which focuses on the above Executive Orders and others from a solar PV and energy transition perspective, visit PV Tech.

26 March 2025
Austin, Texas
The Energy Storage Summit USA is the only place where you are guaranteed to meet all the most important investors, developers, IPPs, RTOs and ISOs, policymakers, utilities, energy buyers, service providers, consultancies and technology providers in one room, to ensure that your deals get done as efficiently as possible. Book your ticket today to join us in 2025!

Read Next

February 13, 2025
The Moss Landing BESS fire has focused attention on safety, as Aaron Marks at Clean Energy Associates (CEA), takes a closer look.
February 12, 2025
UBS Asset Management has selected data analytics software company ACCURE to optimise a portfolio of battery storage assets in Texas, US.
Premium
February 12, 2025
ESN Premium speaks with Wärtsilä’s director of strategic market development, Adam Atkinson-Lewis on the company’s battery energy storage technology, its domestic content strategy and the future of energy storage in the US.
Premium
February 11, 2025
Ørsted has taken a final investment decision (FID) on a 250MW/500MWh BESS that will be co-located with one of the company’s operational solar facilities in Fort Bend County, Texas.
February 11, 2025
North American lithium-ion battery recycling specialist Li-Cycle has seen a significant increase in battery energy storage system (BESS) materials in its feedstock.

Most Popular

Email Newsletter