As the elections are finalized in US and the result has been announced worldwide, today’s article aims to present a series of possible consequences on the new Washington administration’s program and the Grean Deal, as well as current situation in Europe regarding sustainable approaches.
The energy transition—driven by surging investments in renewable power and modernized grids—faces a complex future shaped by political decisions. Recent developments in the U.S., Europe, and beyond highlight the interplay between government policy, market dynamics, and climate action, revealing both opportunities and risks for achieving sustainability goals.
The U.S. Energy Transition Amid Political Uncertainty
The outcome of the U.S. presidential election has profound implications for the country’s energy landscape and global climate action. A return to leadership by Donald Trump could stymie efforts to combat climate change in critical ways. Trump has vowed to roll back environmental regulations, dismantle the Inflation Reduction Act (IRA), and expand fossil fuel production, moves that could stall progress on decarbonization.
The IRA, hailed for driving up to $1 trillion in green energy investments, has delivered significant benefits even in Republican-dominated districts. Analysts predict that while Trump might slow the renewable energy boom, he is unlikely to reverse the U.S.’s status as a global clean energy leader entirely. The rise in solar and wind installations, along with advancements in battery technology, has momentum too robust to be fully derailed. Nevertheless, Trump’s policies could add billions of tons of carbon emissions and weaken international climate cooperation, pushing the world closer to catastrophic warming.
Europe: Building the Case for Grid Expansion
In Europe, modernizing energy grids is critical to achieving ambitious climate goals. A report by the World Economic Forum highlights the need for $750 billion in annual investments by 2030 to support the continent’s energy transition. Building a solid business case for grid development—through economic, societal, and environmental considerations—is essential to attract private and public sector funding.
The European Investment Bank (EIB) has taken a pioneering role, backing innovative projects like Belgium’s “artificial energy island.” Such initiatives exemplify how Europe can integrate offshore wind power with mainland grids, bolstering the reliability of renewable energy supplies. However, achieving long-term success will depend on streamlined policies and cross-border collaboration to align infrastructure with green energy deployment.
Global Trends and Challenges in Energy
Around the world, the energy transition faces both promising developments and significant obstacles:
- Hydropower Struggles in South America: Severe droughts are reducing energy production, leading to blackouts.
- Australia’s Renewable Surge: A forecasted 300% increase in renewable capacity by 2043 underscores the nation’s shift toward solar, wind, and storage technologies.
- Middle East and Asia Investments: QatarEnergy’s solar expansion in Iraq and Petronas’ ventures in Indonesia highlight regional moves to diversify energy portfolios.
- Lithium Oversupply: Falling global lithium prices, driven by weaker EV demand, have forced Argentine producers to scale back operations. Despite advancements, geopolitical competition and supply chain disruptions remain challenges. For example, the rising demand for critical minerals like lithium and cobalt could slow progress if international cooperation falters.
The Stakes of Climate Inaction
A rollback of climate policies in the U.S. or elsewhere could have irreversible consequences. Scientists warn that inaction over the next few years will lock the planet into conditions unprecedented in human history, with devastating effects such as intensifying heatwaves, ecosystem collapses, and rising sea levels. Political leaders’ decisions now will resonate for generations, determining whether humanity can avert the worst impacts of climate change.
The Path Forward: Collaboration and Innovation
Even though the new Washington administration is known now, it is still uncertain what will happen regarding the green deal. However, it is expected that the collaborations will be slowed down and in no case will they be cancelled. Therefore, it is necessary to ensure continuous collaboration for a sustainable energy future. Global leaders must align policies with technological innovation and investment; strengthened international collaboration, especially on emissions reduction and renewable energy development, will be crucial to maintaining momentum. Whether in the U.S., Europe, or developing regions, fostering a robust business case for clean energy and resilient infrastructure can provide the foundation for a successful energy transition.
References
Bocca, R. (2024, November 08). How the US election result could affect the energy transition, and other top energy stories. Retrieved from World Economic Forum : https://www.weforum.org/stories/2024/11/us-election-green-transition-and-other-top-energy-stories/
The Guardian. (2024, October). Five ways a Trump presidency would be disastrous for the climate. Retrieved from The Guardian: https://www.theguardian.com/us-news/2024/oct/28/donald-trump-climate-change-environment
Photo:
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