US Drops Carbon Emission Limits for Coal and Gas-Fired Power Plants

The Donald Trump administration has repealed major Biden-era limits on greenhouse gas emissions from coal- and gas-fired power plants, marking another significant rollback of US climate regulations.

The Environmental Protection Agency announced the move on September 14 at the G20 Energy Abundance Ministerial in Houston. The agency also proposed eliminating the remaining federal greenhouse gas standards for the power sector.

EPA Administrator Lee Zeldin said the changes would reduce regulatory burdens and support reliable and affordable energy. The agency estimates that the finalized repeal will save about $310 billion, while the proposed removal of the remaining standards could save another $370 million in direct compliance costs.

The rules being rolled back were introduced during Joe Biden’s presidency in 2024 under the Clean Air Act. They were designed to curb greenhouse gas emissions from existing coal plants and new natural-gas plants, including through technologies such as carbon capture.

EPA SEEKS BROADER ROLLBACK

The administration’s action goes beyond repealing the 2024 standards.

The EPA has proposed rescinding the remaining greenhouse gas requirements for fossil-fuel power plants and is seeking to establish that the agency should not regulate greenhouse gas emissions from the power sector under the relevant Clean Air Act provisions.

The agency argues that the previous requirements imposed excessive costs and could undermine the reliability and affordability of electricity. Critics, however, say removing the restrictions could make it harder to reduce emissions from one of the country’s major sources of greenhouse gases. Reuters reported that the power sector accounted for about 24% of US greenhouse gas emissions and was the country’s second-largest emitting sector in 2025.

ENVIRONMENTAL GROUPS PREPARE LEGAL CHALLENGES

Environmental and public-health organisations have criticised the rollback and indicated that the changes could face legal challenges.

Legal experts have also pointed to questions surrounding the administration’s different arguments for repealing the existing rules and limiting future EPA regulation. Reuters reported that environmental groups are preparing to challenge the actions in court.

The repeal does not eliminate all restrictions on power-plant emissions. State-level climate and emissions regulations remain in force in some parts of the country, creating a patchwork of requirements even as federal rules are being rolled back.

ANOTHER MAJOR CLIMATE POLICY REVERSAL

The power-plant decision is part of Trump’s broader effort to reverse climate and environmental policies adopted during the Biden administration.

The EPA describes the latest action as the largest power-sector deregulation in US history and says it will help expand coal and natural-gas generation.

Environmental advocates argue that the rollback could increase greenhouse gas pollution and weaken federal efforts to address climate change. The administration, meanwhile, maintains that reducing regulatory requirements will strengthen the country’s energy supply and lower costs for households and businesses.