Trump Administration Plans $20 Billion Cut to Green Energy Fund

The Trump administration has taken significant steps regarding U.S. climate policy, notably through an executive order that aims to dismantle the 'social cost of carbon' calculation, a key measurement for evaluating the economic impacts of climate change. This move could shift financial responsibilities from polluting industries onto American citizens, as it would eliminate a crucial tool used to balance regulatory burdens with climate-related costs. Meanwhile, the administration has also sought to accelerate carbon capture and storage (CCS) projects, promoting faster permitting in fossil fuel-producing states, recognizing CCS as a promising area for bipartisan support. A notable provision from the Inflation Reduction Act, the 45Q tax credit for carbon capture, has emerged as a rare point of agreement between the oil industry and some climate advocates, despite its criticism from environmental groups. Critics argue that while carbon capture may reduce atmospheric carbon, it primarily serves to benefit the oil industry rather than serve as a standalone climate solution. Overall, these developments illustrate a complex interplay between promoting fossil fuel interests and addressing climate change, with varying implications for the future of U.S. energy policy.