New Delhi: The United States witnessed a notable 1.9 per cent reduction in greenhouse gas emissions in 2023 compared to the previous year, a positive shift attributed primarily to an 8 per cent decline in the power sector, according to preliminary data released by the Rhodium Group.
As mentioned in S&P Global Commodity Insights, this decline is significant as it comes after two years of emissions growth during the post-pandemic economic recovery.
The reduction occurred amid a projected 2.4 per cent increase in the country’s gross domestic product (GDP), as highlighted in the Rhodium Group’s assessment released on January 10.
“In 2023, the US experienced something it hasn’t since before the COVID-19 pandemic: a growing economy paired with shrinking greenhouse gas emissions,” stated the think tank, emphasising the unusual convergence of economic expansion and reduced emissions.
Rhodium expressed keen interest in whether the US can sustain and accelerate this emissions decline in 2024 and beyond, underscoring the importance of continued efforts to address environmental concerns.
While the US Environmental Protection Agency (EPA) is set to finalise its greenhouse gas inventory for 2023 in spring 2024, as mentioned in S&P Global Commodity Insights, this decline is significant as it comes after two years of emissions growth during the post-pandemic economic recovery. Estimates, if confirmed, suggest a cumulative reduction of just over 17 per cent in emissions since 2005.
However, this falls short of the necessary strides to achieve the goal of halving the country’s carbon footprint by 2030 under the Paris Agreement.
The Rhodium Group’s estimates indicate that economy-wide emissions must now decrease by 6.9 per cent annually between 2024 and 2030 for the US to meet its 2030 climate pledge. These reductions are crucial not only for national targets but also to address global concerns about climate change impacts.
The decline in US coal generation over several years has played a pivotal role in emission reductions, particularly in the power sector.
However, the Rhodium Group raised concerns about the industry, noting that natural gas-fired generation grew more than twice as fast as power production from renewable sources in 2023.
The report also highlighted a 1.2 per cent growth in industrial emissions due to record natural gas and oil production during the year.
The US Energy Information Administration projected further growth in crude oil and dry natural gas production in 2024 and 2025.
In a related development, Republican lawmakers raised concerns over recently finalised EPA methane regulations, arguing that they could raise energy prices and potentially harm the industry.
EPA officials defended the regulations, emphasising the measures’ importance in addressing methane emissions and promoting technological innovation within the oil and gas sector.
The dialogue between policymakers and environmental regulators reflects the ongoing challenges and debates surrounding emissions reduction strategies as the US continues to navigate its climate goals and economic priorities.
