During a recent cabinet meeting on December 2, Energy Secretary Chris Wright captured attention by asserting to President Donald Trump that “The biggest determinant of the price of energy is politicians, political leaders, and policies — that’s what drives energy prices.” His statement highlights the significant role that federal energy and climate policies play in shaping the economy and society in the United States.
In the wake of the Trump administration’s second term, the impact of its energy policies is already evident both domestically and internationally. While many have attributed the surge in electric costs to the rapid growth of AI datacenters, it is crucial to note that power bills began escalating long before this tech boom, largely due to the regulatory frameworks established during the Obama and Biden administrations aimed at transitioning the nation to greener energy sources. High energy costs have been a deliberate aim of these climate-focused policies to promote conservation.
Since the inauguration, Trump and his administration have been proactive in dismantling much of the previous administration’s regulatory agenda. Key legislative victories, such as the One Big Beautiful Bill Act signed into law on July 4, have enabled the GOP to phase out costly green energy subsidies. This reduction in regulatory burdens and subsidy costs is expected to lead to a gradual decrease in electricity and other energy prices.
A noticeable decline in public concern regarding climate change—in stark contrast to previous years—has posed challenges for the climate alarm movement. Organizations that have historically relied on public fear for fundraising are struggling to maintain memberships and support. Reports indicate that the Sierra Club has seen a 60 percent drop in membership since 2019, while internal disputes have emerged over its direction. Similarly, Greenpeace faces financial turbulence following a significant legal defeat, and 350.org recently ceased its U.S. operations due to budget constraints.
The downturn in climate fears has also affected the Environmental, Social, and Governance (ESG) investing trend, prompting numerous corporations to reconsider their green investments and commitments. Major financial institutions, including Goldman Sachs and J.P. Morgan Chase, have opted out of the Net Zero Banking Alliance, signaling a retreat from prior commitments to sustainability.
The electric vehicle (EV) sector is experiencing its own challenges, with major automakers like Ford and Stellantis halting or scaling back production plans for electric models, coinciding with the repeal of federal subsidies. Additionally, new leasing for offshore wind projects has been halted, and several existing projects have been suspended as the administration shifts its focus.
The rapid policy shifts by the current administration demonstrate a clear understanding that public policy has profound implications for energy costs, corporate strategies, and investment decisions. The quick pace of these changes underscores the administration’s commitment to reshape the energy landscape, potentially leading to a more favorable economic environment for energy prices as the years advance. As these shifts continue, the hope is for a balanced and sustainable approach to energy that can support economic growth while considering environmental impacts.