Earlier this month, President Trump announced his intention to withdraw the United States from the 2015 UN Paris Agreement on climate change. Signalling a hiatus for the country’s decarbonisation efforts, the move reverberated not only across America but through the world.
In light of the unprecedented withdrawal, S&P Global Ratings has published its report, “Withdrawal Symptoms: What Trump’s Paris Agreement Decision Could Mean for American Generators”, outlining the repercussions for the American power grid.
Notably, S&P believes the withdrawal – largely motivated by President Trump’s plans to revive U.S. coal – may not boost the unregulated coal industry’s performance as hoped.
Meanwhile, the impacts on both the U.S. nuclear and natural gas industries are ambiguous. Although the Paris accord represented a boon for nuclear, S&P expects support for the industry to continue given its advantages of fuel security and grid stability.