Week One: Trump’s return to the White House brings big shifts in environmental policy

Trump 2.0: President Donald Trump has wasted no time in implementing sweeping changes to U.S. environmental policy in his return to the White House. During the first week, the President issued a series of executive orders that mark a significant pivot from the climate-focused agenda of the previous administration. Here’s a recap…

• A national “energy emergency” has been declared, with the aim of boosting domestic energy production. This move is designed to reduce consumer costs and meet rising energy demands, leveraging Cold War-era powers to expedite the development of fossil fuel infrastructure.
• A quick withdrawal from the Paris Agreement, as expected.
• In a bid to prioritize fossil fuels, new orders rescind the previous administration’s climate initiatives and suspend energy-related spending under the Inflation Reduction Act. Additionally, the Environmental Protection Agency’s tailpipe emissions rules are being rolled back.
• Restarting approvals for liquefied natural gas terminals and halting large wind and solar project leases on federal lands and waters. This includes lifting bans on liquefied natural gas exports and resuming offshore oil and gas leasing.
• Wind energy development on federal lands and waters is temporarily halted, citing concerns over navigational safety, national security, and marine life. Former North Dakota governor Doug Burgum has been appointed as Secretary of the Interior to review federal wind leasing and permitting practices.
• A regulatory freeze has been imposed to expedite domestic energy resource development, with an emphasis on maintaining national security and economic growth. This includes overriding state-level environmental objections to energy infrastructure projects.

Mixed reactions: The response to the long list of changes has been mixed. The oil and gas industry unsurprisingly welcomed the shift as a step towards restoring American energy dominance. But environmental groups and the American Clean Power Association have criticized the prioritization of fossil fuels over environmental and public health concerns. Undoubtedly, the changes will impact nearly every industry in the energy, industrials, and infrastructure sectors. Note this is a developing, and we’ll be checking in with professionals with various ties to the changes, and report back on their commentary regarding the macro and micro impacts they’re seeing in market.