U.S. Energy-Related CO2 Emissions to Drop 25-38% by 2030, EIA Predicts
The U.S. Energy Information Administration (EIA) has projected that increased electrification, higher equipment efficiency, and the deployment of renewables in the electric sector will drive down America’s energy-related CO2 emissions 25 percent to 38 percent below 2005 figures by 2030. This reduction in emissions is expected to continue through 2050, even with the expected growth in the U.S. transportation and industrial activity.
The EIA also predicts that the United States will remain a net exporter of petroleum products and natural gas through 2050 due to high international demand leading to continued growth in U.S. production, and combined with relatively little growth in domestic consumption. Domestic natural gas consumption is expected to remain relatively stable, despite a shift in electricity generation towards renewables.
The projections from the EIA show an increase in the share of zero-carbon electricity generation due to investments in renewable sources like wind and solar, which come with an operating cost advantage. The Energy Information Administration anticipates that the installation of battery capacity will increase in all scenarios to provide the necessary support for the expansion of renewable energy sources.
The EIA has projected that the Inflation Reduction Act (IRA) will lead to a 33% decline in energy-related CO2 emissions by 2030 relative to 2005. Without the IRA, energy-related emissions would fall by a 26%. EIA analysts project that clean cars will only make up less than 20% of the overall automobile market in 2050, and that clean electricity as a percentage of total generation could increase to over 80% in 2030 under mid-case assumptions.
The significant shifts in energy production and use over the next 30 years will be most sensitive to assumptions regarding economic growth and the cost of zero-carbon generation technology, according to EIA Administrator Joe DeCarolis. Motor gasoline and diesel fuel are still in demand for 2050, despite the expected growth in clean energy and clean electricity.
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