Trump set to dismantle climate policies, boost oil drilling
On his first day in office, Trump announced that he would spearhead a revolution in the energy sector. His primary focus will be to ease regulations on oil extraction from federal lands. He also anticipates the USA's re-exit from the Paris Climate Agreement.
According to Bloomberg, Donald Trump is prepared to exercise extraordinary powers as part of his strategy to bolster national energy production. It has been reported that he intends to implement his plan immediately following the inauguration on Monday.
One of the key objectives will be a nod to the so-called "big oil," referring to domestic extraction companies. Trump announced plans to reverse Biden’s decision to withdraw approximately 2.5 million square kilometres of U.S. waters from availability for oil and gas leasing. Regulation changes are designed to facilitate oil and gas development on federal lands.
During his election campaign, Trump claimed that declaring a state of emergency in the energy sector is essential to increasing production and meeting the rising demand stemming from the swift implementation of artificial intelligence.
Special powers
As Bloomberg explains, invoking emergency provisions would enable the president to grant special permissions regarding oil transportation and utilise authority to manage alterations in how electricity is generated and transmitted.
These measures are anticipated to have a wide-ranging impact. According to a report cited by Bloomberg from the Brennan Center for Justice, declaring a state of emergency allows the president to employ up to 150 special powers, typically utilised to respond to hurricanes, terrorist attacks, and other unforeseen occurrences.
The agency notes that Trump had previously considered using this mechanism during his last term to prevent the closure of unprofitable coal and nuclear power plants across the country. However, he did not implement this plan. It remains uncertain whether Trump could effectively apply these provisions to construct more power plants, even though he has announced plans to double the nation’s energy production.
In the USA, Trump will likely use executive power to lift the moratorium on new U.S. licences to export liquefied natural gas (LNG).
He also plans to revoke federal incentives for electric vehicles and impose strict government regulations on vehicle emissions and fuel efficiency.
There is a loophole
As Bloomberg mentions, Trump could use the provisions of the Federal Power Act and extraordinary powers rooted in other statutes, including a Cold War-era law once employed by President Harry Truman to boost steel production during the Korean War.
Previously, Joe Biden invoked the Defense Production Act to stimulate American production of renewable energy technologies, including solar panels, fuel cells, and heat pumps, asserting that they are essential to aid in combating climate change and enhancing domestic security, Bloomberg notes.
