EPA repeals power plant carbon limits and blocks future climate rules for US power sector

The US Environmental Protection Agency has moved to repeal Biden era carbon emission limits for coal and gas power plants and proposed blocking future greenhouse gas rules for the power sector. The announcement came during a G-20 energy ministers meeting in Houston. The power sector accounts for nearly a quarter of US greenhouse gas pollution, so the change has major implications for grid decarbonization and carbon market expectations. Supporters say the repeal cuts red tape and saves $370 million in direct compliance costs. Critics point to the Biden administration's estimate of $370 billion in net benefits and say ignoring climate damages is reckless. Utilities note that state level emissions rules still apply, so the regulatory picture becomes more fragmented. For investors and project developers, the key takeaway is that federal policy is now less supportive of carbon capture retrofits and clean power mandates, while state and market forces continue to shape the generation mix.