The U.S. Environmental Protection Agency’s decision to withdraw federal greenhouse gas limits for power plants is expected to increase carbon dioxide emissions from the sector by about 123 million metric tonnes over the next decade, according to the agency analysis cited by Oilprice.com.
The rollback removes a key mechanism for regulating greenhouse gas emissions from coal and gas fired power plants under the Clean Air Act. The previous standards introduced in 2024 were projected by the EPA to deliver significant emissions reductions along with health and economic benefits.
Under the new analysis, power plant operators could save about $370 million in direct compliance costs. However, the assessment does not include the economic value associated with health benefits that could result from lower air pollution.
EPA Administrator Lee Zeldin has described the policy change as an effort to end what he called the “war on coal” and expand U.S. energy production. The administration has also backed increased use of natural gas and efforts to keep some coal-fired power plants operating.
The decision has drawn opposition from environmental groups including the Sierra Club, which has announced plans to challenge the rollback in court.
The policy change comes amid continued warnings from international climate institutions about rising greenhouse gas emissions and the growing risk of exceeding the 1.5°C warming threshold. Climate researchers have linked continued warming with risks including more extreme heat, flooding, sea level rise, glacier loss and changes to major ocean systems.
The U.S. power sector remains a major source of the country greenhouse gas emissions making changes to emissions standards significant for future national emissions levels.