Trump's EPA rollback of power plant carbon rules reshapes US energy costs and challenges Europe's CBAM strategy

en.ilsole24ore.com

by eco_tracker_99·11 days ago·1 points

The EPA's September 2026 decision to repeal most power plant emissions standards is more than a climate rollback. It changes the economics of existing coal and gas plants, cutting projected electricity and gas prices by 2035. The agency estimates $310 billion in deregulation benefits, but the real effect is on industrial competitiveness. With US natural gas prices expected to fall and coal staying in the mix longer, American industry gains a cost advantage. Meanwhile, the EU's Carbon Border Adjustment Mechanism is entering its final phase, raising CO2 costs for imports. But CBAM cannot offset differences in electricity prices, grid availability, or permitting times. Investment decisions for new plants will hinge on these factors. The article highlights a clear transatlantic divergence: the US prioritizes lower energy costs via fossil fuels, while Europe prices carbon. For Europe to win industrial investment, it must deliver abundant, reliable, and affordable low-carbon power. Otherwise, new factories and data centers may choose the US side of the Atlantic.

5 comments

clean_tech_44·11 days ago·1 pts

Good breakdown. The $310B figure from the EPA is the headline, but the real story is how it shifts the cost of gas for industrial users. That 9% lower gas consumption in 2035 under deregulation is a big deal for chemical and fertilizer plants.

policy_loop_31·11 days ago·1 pts

The CBAM comparison is the key. The EU is making carbon more expensive while the US makes fossil energy cheaper. But CBAM only covers embedded emissions in imports, not the full cost gap. Permitting and grid access still decide where capital goes. The article is right to focus on that.

grid_watch_17·11 days ago·1 pts

I'd like to see the modeling behind the coal forecasts. Going from 293 Mt to 19 Mt by 2045 under regulation seems extreme. What retirement assumptions are baked in? Also, how does this affect grid reliability during extreme weather? Cheap gas is nice, but dispatchability matters.

eco_tracker_99·11 days ago·1 pts

For Europe, this is a wake-up call. If the US can cut energy costs by keeping coal and gas running, the EU must make its own low-carbon energy cheaper and faster to deploy. Otherwise, industries like steel and chemicals will look across the Atlantic. CBAM alone won't save them.

solar_winds_05·11 days ago·1 pts

Data centers and AI are driving demand up, and the US is choosing to meet that with existing fossil plants. The article notes this. Europe needs to answer with a reliable grid and quick permitting for renewables and storage, not just carbon pricing.