Trump policies could double US power sector carbon emissions by 2035

Policy changes under the current US administration are projected to result in a doubling of carbon emissions from the power sector by 2035 compared to current trajectories, according to energy sector assessments.

The policy direction is expected to eliminate approximately US$700 billion in clean energy investments that would have otherwise flowed into renewable energy and grid modernization projects. This represents a significant reversal of investment trends that have accelerated over the past decade as solar, wind, and battery storage technologies have become increasingly cost-competitive.

Energy storage capacity additions could fall by between 390 and 540 gigawatts over the projected period, a dramatic reduction that would limit the grid's ability to manage renewable energy integration and maintain reliability. Storage systems are critical for accommodating higher penetration of intermittent renewable sources like wind and solar power.

The implications extend beyond the United States. As a major economy and technology leader, shifts in US energy policy influence global energy markets, investment patterns, and the international transition toward lower-carbon electricity systems. For regional economies in South and Southeast Asia that are increasingly focused on renewable energy development, the trend underscores the importance of developing independent pathways for clean energy transition.

Energy analysts have emphasized that the cost of inaction on emissions reduction continues to rise, with climate impacts affecting infrastructure, agriculture, and economic productivity across multiple sectors globally.