by Chloe Aiello
Columbia Business School climate economist Gernot Wagner says a lot of what Trump has done so far seems to be a case of “throw everything at the wall and figure out what sticks.” Here’s what the first day of Trump’s presidency had in store for climate and energy.
Au revoir, Paris
Columbia Business School climate economist Gernot Wagner agrees that it is “objectively bad” to have the U.S. sidelined from these international climate negotiations, but says that it may be beneficial from an efficiency standpoint.
“Had Trump stayed in the Paris Agreement, the only effect is that the Trump administration sends negotiators to the UN climate talks who are not going to be constructive participants,” he says.
Ending the so-called ‘EV mandate’
“Of course, there isn’t such a thing,” Wagner says. “What it means is he wants to loosen tailpipe pollution standards and emissions standards.”
The U.S. government has introduced a series of measures intended to stimulate the EV industry including consumer tax credits, incentives for manufacturers, and tailpipe emissions restrictions. The legislation, however, never required consumers to purchase EVs or manufacturers to make them. Furthermore, Trump’s close relationship with Tesla CEO Elon Musk has raised questions about the future of his EV policy. Regardless of Trump’s actions on EVs, however, Wagner says he believes the trend of the automotive industry toward EVs is moving too powerfully to be stopped.
Offshore wind
As expected, offshore wind took a major blow. Trump issued an executive order Monday to temporarily withdraw offshore federal lands from consideration for new or renewed use for wind power generation. The order explicitly notes, however, that the withdrawal “does not apply to leasing related to any other purposes such as, but not limited to, oil, gas, minerals, and environmental conservation.”
“What it means is certain projects will still move forward,” Wagner says. “There won’t be any new ones.”
Quoted in: “Trump Targets Climate Tech on Day One” by Chloe Aiello, Inc. (21 January 2025).
Related:
Wagner, Gernot. “The Climate Policy Pendulum” Project Syndicate (16 January 2025).