U.S. President Donald Trump signed an executive order aimed at reviving the coal industry. This move comes as U.S. electricity demand rises for the first time in 20 years, driven by AI data centers, electric vehicles, and cryptocurrency mining.
As per U.S. Energy Information Administration (EIA), coal once powered half the nation’s electricity, but today, it accounts for less than 20%. Cheaper natural gas from fracking and the growth of solar and wind have reduced coal use over time.
DOE Unveils Five Steps to Support America’s Coal
Following Trump’s executive order titled “Reinvigorating America’s Beautiful Clean Coal Industry,” Energy Secretary Chris Wright announced new actions from the Department of Energy (DOE). These steps aim to modernize coal technologies, boost critical mineral production, and improve the energy grid.
He said,
“The American people need more energy, and the Department of Energy is helping to meet this demand by unleashing supply of affordable, reliable, secure energy sources– including coal.”
“Coal is essential for generating 24/7 electricity generation that powers American homes and businesses, but misguided policies from previous administrations have stifled this critical American industry. With President Trump’s leadership, we are cutting the red tape and bringing back common sense.”
Here are the DOE’s five main initiatives:
1. Return of the National Coal Council
The DOE is bringing back the National Coal Council, which ended during the Biden administration. The 50-member group will advise on coal’s future and include voices from coal producers, users, suppliers, and local leaders.
2. $200 Billion in Energy Financing
Through the Energy Infrastructure Reinvestment Program, the DOE is offering $200 billion in low-interest loans. These funds will support coal-powered projects—upgrading old plants, restarting closed facilities, or building new ones using existing infrastructure.
3. Steelmaking Coal Named ‘Critical Material’
The DOE and Department of the Interior are recommending that coal used for steelmaking be officially listed as a critical material in the 2025 assessment. This status highlights the importance of maintaining a steady supply for national security and the economy.
4. Extracting Minerals from Coal Ash
The DOE’s National Energy Technology Laboratory has developed new technology to pull valuable minerals from coal ash. These materials are key for defense, manufacturing, and clean energy industries.
5. Commercial Use of Coal Byproducts
The DOE is also working with labs and startups to turn coal ash into useful products. This move supports building a U.S.-based supply chain for materials that are now mostly imported from countries like China.
Energy Security and Job Growth
The Trump administration believes coal still has a major role to play in U.S. energy security. Coal is cost-effective, available in all weather, and still abundant. Reviving the coal industry could lower power costs, stabilize the grid, and bring back high-paying jobs.
The EIA reported that natural gas supplied 43% of U.S. utility-scale electricity in 2023, while coal dropped to 16%. This decline was mainly pushed by phasing out fossil fuels.
With trillions of dollars in untapped coal resources, the U.S. could also export more to help its allies and stay competitive.
The policy statement declares that coal is vital for both economic and national security. It stresses the need to end policies that discourage coal use, promote coal exports, and support coal-powered electricity.
Burning Coal Packs a Toxic Punch
Burning coal for electricity remains one of the most harmful sources of air pollution in the U.S. It releases several major pollutants.
- Sulfur dioxide (SO₂)
- Nitrogen oxides (NOₓ)
- Particulates
- Carbon dioxide (CO₂)
- Mercury and heavy metals
- Fly ash and bottom ash
Some of these toxic substances can cause severe respiratory and lung problems and even hinder neurological development.
Although U.S. regulations now require fly ash emissions to be captured, coal ash storage still poses significant environmental threats. In the past, ruptures at coal ash impoundments have caused severe downstream damage.
Coal’s Role in U.S. Emissions Still Looms Large
As per EIA, in 2022, coal burning for energy contributed around 19% of total U.S. energy-related CO₂ emissions. Coal accounted for a major 55% of CO₂ emissions within the power sector.
Despite a 2.7% drop in coal production in 2023 to 577.9 million short tons (MMst), the electric power sector still consumed 387.2 MMst. It’s roughly 91% of the total U.S. coal use.
But ironically, the number of coal mines slightly increased from 548 to 560, indicating that there’s still a demand despite declining output.
The latest data from Ycharts shows that US Coal Consumption was 38.59M t in last December.
Emissions Reduction Goals at Risk
A report by Carbon Brief showed that the U.S. had fallen behind on its climate goals. This means decarbonization had slowed down. By 2035, emissions are expected to be only 24- 40 % lower than 2005 levels.
That was still far from the Paris Agreement’s targets of a 50–52% reduction by 2030 and a 61–66% reduction by 2035.
The study further showed that in 2024, emissions barely changed. It fell just 0.2%, despite coal use dropping to its lowest in nearly 60 years. This stagnation was mainly due to:
- A rise in electricity demand.
- Increased transportation emissions.
- Economic growth of 2.7%.
It also emphasized that rolling back regulations through Trump’s executive orders alone could add between 270 and 470 million metric tons of CO₂ equivalent emissions by 2035. This would account for roughly 25–50% of the total emissions increase expected if all of Biden’s climate policies were repelled.
Coal Comeback vs. Climate Goals: Can America Have Both?
The U.S. is the world’s second-largest emitter and has the highest per-capita emissions. That puts a big responsibility on the country to lead climate action.
But hitting the 2030 climate goal won’t be easy. The Rhodium Group says emissions must fall by 7.6% every year from 2025 to 2030. And undoubtedly, that’s a steep drop.
At the same time, the Department of Energy is pushing to bring coal back. The focus is on boosting energy reliability, creating jobs, and securing critical materials. Trump supports this move and plans to remove barriers to make coal central to America’s energy mix again.
The EIA further forecasts that U.S. energy-related CO₂ emissions will rise by 2% in 2025 and dip by 1% in 2026. This year’s increase will be driven by:
- Coal: Emissions are expected to rise due to more coal-fired power generation.
- Natural gas: Its use will grow, mainly for heating in homes and businesses.
- Petroleum: Emissions will climb as demand for distillate fuel oil and jet fuel increases.
This shift raises a big question. As coal makes a comeback, is the U.S. falling further behind on climate goals? Well, short-term energy gains may come at the cost of long-term climate progress. Only time will tell!
