US sees economy grow & GHG emissions drop in 2023

The decline in emissions, the most significant since 2016 (excluding the pandemic-affected drop in 2020), was largely attributed to an 8 per cent decrease in the power sector, driven by a mild winter and a reduction in coal power plant generation. However, the transportation sector, the highest emitter, saw a 1.6 per cent increase in emissions, though fuel consumption remained below pre-pandemic levels. The industrial sector, the second-highest emitter, witnessed a 1.2 per cent rise in emissions due to methane and CO2 emissions in fuel production and transportation.

Despite these gains, meeting the US' ambitious climate target under the Paris Agreement remains a daunting task. The US has set a goal of reducing emissions by 50-52 per cent below 2005 levels by 2030, requiring an average annual reduction of 6.9 per cent in emissions from 2024 through 2030. This target is significantly higher than the 1.9 per cent decrease achieved in 2023 and underscores the need for significant policy intervention, as per Rhodium.

The US economy's resilience is further evidenced by its continued growth post-pandemic, with a 2.4 per cent increase in GDP in 2023, bolstered by consumer and government spending. However, the energy sector, in particular, faces challenges due to persistently high inflation rates.

While the decrease in GHG emissions in 2023 is a step in the right direction, the approaching deadline for the 2030 climate target brings into focus the urgent need for a major new policy push. The final GHG report card for 2023, to be finalised by the Environmental Protection Agency (EPA) in spring 2025, will provide a clearer picture of the nation’s progress. Until then, the US remains on a challenging path to meet its climate commitments under the Paris Agreement, requiring concerted efforts at every level of society and governance.

Fibre2Fashion News Desk (DP)