IEA policy review highlights US leadership on energy security and clean energy transition – News

The United States has made significant progress in its efforts to ensure a secure, sustainable and affordable energy system in recent years thanks to government actions that have helped trigger increased investment in clean energy, according to the IEA's latest study of US energy policies.

The United States 2024: Energy Policy Review, released today, provides an assessment of U.S. policies and their implications for the nation’s energy and climate goals. It finds that the U.S. clean energy economy is booming as the federal government works to build diverse and resilient energy supply chains to increase energy security and position the nation as a global leader in clean technology manufacturing. However, meeting the nation’s energy and climate goals and anticipating emerging risks will require a focus on rigorous implementation.

Over the past four years, the United States has seen a nearly 60% increase in clean energy investment, creating more than 310,000 jobs in the sector, the report said. A hub of technology innovation, the country is now a major market for renewables, batteries and electric vehicles, among other clean energy technologies. It is also using energy more efficiently. Last year, the rate of improvement in energy efficiency in the United States reached 4%, helping to meet the global goal of doubling energy efficiency improvements by 2030, agreed at the COP28 climate change conference in December.

At the same time, the United States continues to play a critical role in maintaining global energy security as the world’s largest producer of oil and gas. Oil and gas exports, which are expected to continue to grow in the coming years, have eased pressure on global markets following Russia’s invasion of Ukraine. The Strategic Petroleum Reserve (SPR) remains a cornerstone of national and global oil security and is a key pillar of the IEA’s oil storage system.

The IEA regularly conducts peer reviews of its member countries’ energy policies and makes key recommendations, a process that supports energy policymaking and encourages the exchange of good practices and international experiences. This latest assessment shows that net greenhouse gas emissions in the United States, the world’s second-largest energy consumer and carbon dioxide (CO2) emitter, fell by 18% between 2005 and 2022, reflecting strong improvements in energy efficiency and investments in clean energy, including renewables and energy storage.

Following the implementation of the bipartisan Infrastructure Bill (BIL) and the Inflation Reduction Act (IRA) in recent years, the decarbonization of the U.S. energy system is accelerating. The IEA projects that the BIL and IRA could lead to substantial reductions in greenhouse gas emissions across the economy, with the U.S. government seeking to reduce greenhouse gas emissions by 50 to 52 percent below 2005 levels by 2030 and achieve a net-zero energy system by 2050. According to the report, roadmaps and milestones to achieve these goals are visible across sectors. However, they are not yet fully supported by implementation, financing, and program policies.

Accessibility, equity and quality jobs are at the heart of the government's energy policy, and many BIL and IRA initiatives and investments benefit disadvantaged communities and aim to build a strong base of skilled workers and quality jobs.

In the electricity sector, the report finds that the U.S. government has recently adopted a number of important measures, including clean electricity tax credits under the IRA and measures to accelerate the connection of renewables, such as improved permitting and electrical interconnections. These reforms are expected to increase the share of renewables in the energy mix from 22% in 2023 to 34% in 2028, although additional efforts are needed to achieve the goal of 100% carbon-free electricity generation by 2035.

The United States is also increasing its investments in nuclear power generation, low-carbon fuels and battery energy storage capacity, which has already increased six-fold in the past four years.

In its recommendations, the report highlights the importance of policy clarity to maintain investor confidence and encourages the United States to strengthen federal programs that can improve affordability, clean energy production, energy security, and innovation. The report also recommends increasing collaboration with international partners on people-centered clean energy transitions and energy security, including by focusing on emerging risks related to critical minerals, clean energy supply chains, nuclear fuel, and the resilience of energy infrastructure to extreme weather and climate events.