North American net energy-related emissions from the power sector are set to fall 20% by 2030 compared with 2024 levels, a Wood Mackenzie report finds.
From 2030, transport electrification will accelerate emissions reductions across North America, says the report, “Energy Transition Outlook 2024-25: Americas.”
However, the report also said North America’s energy transition could slow down by rising trade tariffs, infrastructure delays and policy uncertainty for emerging technologies.
The report explores the progress made against renewable power targets. It maps out four North American energy transition scenarios as well as regional updates by country.
The Republican trifecta that emerged in the 2024 U.S. election cycle is set to pivot U.S. energy policy away from net zero, Wood Mackenzie said. However, President Trump’s agenda for U.S. energy will encounter roadblocks, such as Republican support for the Inflation Reduction Act (IRA) in Congress, renewable power’s competitive economics and private-sector net zero targets.
The IRA has supported over $220 billion in manufacturing investments, much of which has been concentrated in Republican-led states. “With significant momentum for low-carbon investment, the impact of the election will vary by sector, commodity and technology,” the report said.
With Republican majorities in Congress, the U.S. under a second Trump administration has the best chance in decades to pass infrastructure reform, Wood Mackenzie said. Along with permitting reform, the report said policies that incentivize cost-sharing, hybrid wind, solar and energy storage portfolios need to expand to put the region on a net zero pathway.
Read the full report here.
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