EPA repeals limits on greenhouse gas emissions from power plants

# Analysis The EPA's repeal of greenhouse gas emissions limits on power plants removes one of the federal government's most direct tools for decarbonizing the electricity sector, which accounts for roughly 25 percent of U.S. carbon emissions. Without these standards, coal and natural gas plants face no federal penalty for carbon output, eliminating the economic incentive that had begun shifting utilities toward renewable energy and efficiency investments over the past decade. The decision effectively transfers climate policy authority to individual states, creating a fragmented patchwork where some regions aggressively pursue clean energy while others remain locked into fossil fuel infrastructure for decades—a outcome that typically results in higher overall emissions and increased transition costs when federal standards eventually return. For utilities and energy markets already pricing in the social cost of carbon, this creates significant regulatory whiplash and may slow near-term renewable development even as climate damages and long-term price trajectories continue favoring clean energy.