Trump "clears the way" for coal in the US - New measures ease production, while energy demand increases
United States President Donald Trump signed executive orders aimed at increasing coal production, in his latest action that runs counter to global efforts to curb carbon emissions.
Coal-fired power plants generate less than 20 percent of U.S. electricity, down from 50 percent in 2000, according to the Energy Information Administration, as drilling techniques have boosted natural gas production. The rise of solar and wind power has also reduced coal use.
Trump campaigned on a promise to increase U.S. energy production and has sought to roll back energy and environmental regulations since taking office on January 20.
Demand for electricity in the US is rising for the first time in two decades, driven by the expansion of data centers, which require more energy to power artificial intelligence, electric vehicles and cryptocurrencies.
The executive orders include efforts to save coal-fired power plants that could be decommissioned, as well as unlocking authorities in the Defense Production Act of 1950 to increase coal production.
They also direct the Secretary of Energy to determine whether coal used in steelmaking is a “critical mineral.” Allowing this classification, usually reserved for minerals needed for high-tech defense systems, could create the conditions for using emergency powers to increase production.
The orders also direct the Interior Secretary to end a moratorium that had banned new coal leases. The change allows private companies to buy the right to mine coal on federal lands and give them priority over leases. Shares of U.S. coal producers rose about 9 percent on the news.
However, the level of demand for more coal generation in the US is uncertain, with hundreds of domestic coal-fired power plants having closed this decade in favor of cheaper fuels. There are also concerns about future regulations, even if the Trump administration scraps current ones.
When burned, coal releases more carbon dioxide than any other fossil fuel. It also releases pollutants linked to lung and heart disease. Much of its use has declined due to regulations by Democrats, including former President Joe Biden.
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