The U.S. Environmental Protection Agency (EPA) has announced plans to scrap Biden-era carbon emission limits on coal- and gas-fired power plants, marking a major reversal in U.S. climate policy.
The decision, announced on Monday on the sidelines of the G20 energy ministers’ meeting in Houston, is part of President Donald Trump’s broader effort to roll back environmental regulations that his administration says have restricted energy production.
The EPA also proposed removing the remaining greenhouse gas emission requirements for power plants, arguing that the agency does not have the authority under the Clean Air Act to regulate carbon emissions from the electricity sector.
EPA Administrator Lee Zeldin said the changes would help the U.S. build new power infrastructure needed to meet rising electricity demand, particularly from energy-intensive industries such as artificial intelligence.
“Americans have been demanding more common sense at federal agencies under President Trump’s leadership,” Zeldin said, adding that the changes would reduce regulatory barriers and allow faster construction of new power facilities.
The electricity sector accounts for nearly a quarter of U.S. greenhouse gas emissions and is the country’s second-largest source of emissions after transport.
According to the U.S. Energy Information Administration, power sector emissions increased by 4 per cent last year.
The Biden administration’s regulations required coal-fired power plants and new natural gas facilities to reduce emissions through technologies such as carbon capture or by transitioning towards cleaner energy sources.
The rules were expected to cut greenhouse gas emissions by around one billion tonnes by 2047 as part of efforts to tackle climate change.
The Trump administration argues the regulations increased costs for energy producers and limited the expansion of reliable power generation.
The EPA estimates that repealing the rules would save the industry around $370 million in direct compliance costs.
Environmental organisations criticised the decision, warning that removing carbon limits could increase pollution and worsen the effects of climate change.
Maggie Coulter of the Center for Biological Diversity’s Climate Law Institute said the move could contribute to increased risks from extreme weather events, including heatwaves, storms and wildfires.
Dena Adler, a senior attorney at the Institute for Policy Integrity, said the EPA had underestimated the potential public health and environmental costs of reversing the rules.
The Biden administration had previously estimated that its regulations would deliver around $370 billion in net benefits.
U.S. Energy Department officials welcomed the move, saying it would support coal-fired power generation.
Energy Under Secretary Kyle Haustveit said the administration had “ended the war” on coal and described the fuel as reliable and affordable.
The Edison Electric Institute, which represents major U.S. investor-owned utilities, also welcomed the repeal of carbon capture requirements but said it would continue working with regulators to provide certainty for the sector.
However, some states are expected to maintain their own emissions-reduction policies, meaning utilities may still face climate-related requirements at the state level.
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