US President Donald Trump has announced plans to counter China’s economic leverage, stemming from its reliance on coal-based electricity, by authorizing his administration to ramp up domestic coal production. In a social media post, Trump declared, “I am authorizing my Administration to immediately begin producing Energy with BEAUTIFUL, CLEAN COAL,” though the specifics of his statement and its impact on US policy remain unclear.
This announcement follows Trump’s earlier executive order declaring a national energy emergency, directing the Environmental Protection Agency (EPA) to bolster fossil fuel production and distribution across the country. Despite this move, coal now accounts for roughly 15% of US power generation, a sharp decline from over 50% in 2000, according to the US Energy Information Administration.
The decline of coal has been driven by increased competition from renewable energy sources, cheaper natural gas, and federal regulations that have made coal power more costly. Nevertheless, Trump’s administration could potentially use emergency powers to rejuvenate coal-fired electricity. During his first term, officials drafted plans that would have mandated grid operators to purchase electricity from struggling coal and nuclear plants in an effort to extend their lifespan.
In recent comments, Interior Secretary Doug Burgum indicated that the administration is contemplating the use of emergency powers to revive closed coal plants and prevent the shutdown of others. Additionally, Energy Secretary Chris Wright revealed earlier this month that the administration is working on a “market-based” strategy to address the closure of coal plants.
The closure of coal plants is projected to continue, with an estimated 120 additional plants scheduled to shut down within the next five years, primarily due to environmental regulations that have made these plants financially unviable. The America’s Power trade group, which represents utilities and mining companies like Peabody Energy Corp. and Core Natural Resources Inc., has expressed concern over this trend.
In response to mounting pressure, the EPA recently announced plans to revisit regulations limiting mercury and greenhouse gas pollution, potentially lowering operational costs for coal plants and extending their operational life. While some environmental groups argue for stricter pollution controls, citing health risks such as cardiovascular and respiratory issues, as well as the toxic effects of mercury, coal advocates argue that keeping plants open could help stabilize energy prices and ensure a reliable supply for industries like data centers and artificial intelligence.
The US has expressed concerns over China’s growing dominance in the global market, as the country has used cheap coal power to fuel its manufacturing sector, including critical industries such as solar panel production, semiconductors, and essential minerals. This has led China to become the world’s largest emitter of greenhouse gases. Despite this, China’s annual GDP surged from approximately $361 billion in 1990 to around $14.7 trillion in 2020, while its coal consumption quadrupled and carbon dioxide emissions tripled.
China’s reliance on coal to drive its economic growth has sparked bipartisan concern in the US, where officials fear that Beijing’s dominance in producing clean-energy technologies and other goods may jeopardize US jobs. However, China has also been investing heavily in renewable energy, setting records in solar and wind power installations, and pledging to peak its emissions before the end of the decade.
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