By Somini Sengupta
President Donald Trump’s rejection of renewable energy technologies risks positioning the United States as an anomaly worldwide.
In contrast, many other large economies are opting for a different direction. Although coal, oil, and gas continue to fuel the global economy, and the consumption of fossil fuels increases yearly, there is a strong global trend toward substantial investment in solar, wind, and battery technologies, which have seen significant price reductions in recent times.
The European Union has made significant strides in moving away from coal. The region’s reliance on natural gas is decreasing, and solar energy accounted for 11% of power generation across the 27-member bloc last year, surpassing coal, according to a recent analysis by Ember, a research organization.
The United Kingdom shut down its last coal-burning power station last year, and its government has pledged not to issue any new drilling permits in the North Sea. Norway, a nation that has prospered through oil exports, provides such appealing incentives for clean transportation that 90% of new vehicles sold in 2024 were electric.
Even Saudi Arabia, the largest oil exporter globally, aims to source half of its electricity from renewable resources by 2030.
China stands out. It consumes more coal than any other country, making it the largest emitter of climate-warming greenhouse gases. Yet, it also accounts for nearly two-thirds of all utility-scale solar and wind projects currently under construction worldwide. China’s dominance over low-cost solar panel manufacturing has driven global solar energy prices down. Moreover, its companies are establishing electric vehicle manufacturing plants as far away as Thailand and Brazil.
Globally, in 2024, investors allocated nearly double the amount of capital to renewable energy compared to fossil fuels, as reported by the International Energy Agency. “We are witnessing an unstoppable global energy transition,” stated Simon Stiell, the leader of the United Nations’ climate agency, on Tuesday at the World Economic Forum in Davos, Switzerland.
Trump’s executive orders regarding energy, many of which were enacted on his first day in office, aim to simplify the production of oil and gas, while granting the government the authority to halt clean energy initiatives that have already received approval. (The use of coal has significantly declined in the United States, primarily due to the availability of low-cost fracked gas.)
“Focusing heavily on fossil fuels puts the U.S. on a markedly different path compared to Asian and European economies,” noted Chris Seiple, vice chair for renewables at Wood Mackenzie, a research firm.
Ultimately, the relatively inexpensive oil and gas available is what the United States has to offer the global market. It is the leading supplier of natural gas and currently produces more oil than any other nation.
Kelly Sims Gallagher, dean of the Fletcher School at Tufts University, remarked that the United States does not need to aggressively retreat from renewables, as proposed by the Trump administration, since such a move would only concede an advantage to its main competitor, China.
“The U.S. oil and gas sector is already thriving, arguably stronger than ever,” said Gallagher, who previously served in the Obama administration. “It is not endangered by the growth of renewable energy. From both economic and security perspectives, it is against U.S. national interests to limit the ongoing development of clean energy technologies.”
Of course, several nations are advancing their extraction of coal, oil, and gas, including those that portray themselves as leaders in climate action. For instance, Brazil is increasing its oil production, particularly offshore, while simultaneously establishing ambitious domestic renewable goals. Australia has ramped up its liquefied natural gas production over the last decade. Canada has consistently raised its gas output.
Several countries continue their extraction of all available fossil fuels. Russia remains steadfast in its exploration of oil and gas resources, though international sanctions have impacted its ability to trade with the European Union since the invasion of Ukraine.
Furthermore, there are still many eager buyers for oil and gas and substantial profits to be made from these sales, presenting major challenges to the global energy transition. Investments in renewable energy technologies have largely been made to complement rather than replace traditional fossil fuels. “The ‘transition’ has yet to actually commence. We are in a phase of global energy addition, not substitution,” stated Brett Christophers, a professor of human geography at Uppsala University in Sweden.
International gas demand rose in 2024 and is projected to increase this year, albeit at a slower rate, according to the International Energy Agency. Global oil demand is also on the rise, but it is expected to plateau within the next decade, according to various analyses. Much of this increasing demand originates in Asia, including India, where U.S. oil and gas could discover new markets.
Immediately following Trump’s announcement regarding his “drill baby drill” initiative, India’s petroleum minister, Hardeep Singh Puri, indicated that India might increase its energy purchases. “More U.S. energy entering the market is welcomed,” he stated, according to a Reuters report.
