Apr 9, 2025
Trump issues executive orders to enhance the US coal industry as the demand for power increases.
On Tuesday, U.S. President Donald Trump signed executive orders aimed at increasing coal production, marking a move that contradicts global efforts to limit carbon emissions. According to the Energy Information Administration, coal-fired plants account for less than 20% of U.S. electricity, down from 50% in 2000, as fracking and other drilling methods have increased natural gas production. The rise of solar and wind energy has also contributed to the decline in coal use.
Standing in front of approximately thirty-six mostly male coal miners wearing hard hats at the White House, Trump stated, "We’re reviving an industry that was neglected." He further remarked, "We’re going to get the miners back to work," referring to a workforce that has diminished from around 70,000 to about 40,000 over the past ten years. A Republican, Trump campaigned on a promise to enhance U.S. energy production and has aimed to roll back energy and environmental regulations since his inauguration on January 20.
Electricity demand in the U.S. is increasing for the first time in twenty years, driven by the expansion of power-hungry data centers for artificial intelligence, electric vehicles, and cryptocurrencies. The executive orders include initiatives to save coal plants that were at risk of closure, utilizing the 1950 Defense Production Act to increase coal production. They also instruct Energy Secretary Chris Wright to assess whether coal used in steel production qualifies as a "critical mineral." If this classification is granted, usually reserved for minerals necessary for high-tech defense systems, it could pave the way for the use of emergency powers to enhance production.
Another directive requests the U.S. Attorney General to identify state climate regulations that impede energy resource development like coal and to work on preventing their enforcement. Following Trump's signing of the orders, Wright's department made $200 billion available for its loan programs, including for new coal technologies. Historically, these loans have rarely funded carbon capture initiatives at coal facilities under prior administrations.
The orders also instruct Interior Secretary Doug Burgum to recognize the end of a moratorium that paused new coal leasing on federal lands, which allows private companies to acquire rights to extract coal, and to prioritize this leasing process. Following the announcement, shares of U.S. coal producers Peabody and Core Natural Resources rose by about 9%. However, it remains unclear what demand exists for increased coal production, as numerous domestic coal-burning plants have shut down this decade due to cheaper fuel options and worries about future regulations, even if Trump's administration dismantles existing ones.
When burned, coal emits more carbon dioxide, a primary greenhouse gas, than any other fossil fuel, along with pollutants related to respiratory and cardiovascular diseases. Its use has significantly declined due to regulations initiated by Democratic leaders, including former President Joe Biden.
Existing coal plants in the U.S. only supply power to the grid approximately 40% of the time. Supporters argue that this figure could be improved through deregulation and other interventions. During his first term, Trump attempted to support the coal industry by having his energy secretary instruct federal energy regulators to subsidize coal plants for their role in enhancing the reliability and resilience of power grids, but the plan was rejected by regulators in 2018.
Coal proponents expressed optimism regarding the new strategy. According to Rich Nolan, president and CEO of the National Mining Association, Trump's orders will "clearly prioritize how to responsibly keep the lights on, acknowledge the significant strategic value of American-mined coal, and embrace the economic opportunities that arise from America's energy abundance." Meanwhile, environmental organizations criticized Trump's coal initiatives. Kit Kennedy, managing director for Power at the Natural Resources Defense Council, remarked, "Coal plants are outdated and pollutive, uncompetitive, and unreliable. The Trump administration is mired in the past, attempting to make utility customers pay more for yesterday’s energy. Instead, it should focus on constructing the electricity grid of the future."
Standing in front of approximately thirty-six mostly male coal miners wearing hard hats at the White House, Trump stated, "We’re reviving an industry that was neglected." He further remarked, "We’re going to get the miners back to work," referring to a workforce that has diminished from around 70,000 to about 40,000 over the past ten years. A Republican, Trump campaigned on a promise to enhance U.S. energy production and has aimed to roll back energy and environmental regulations since his inauguration on January 20.
Electricity demand in the U.S. is increasing for the first time in twenty years, driven by the expansion of power-hungry data centers for artificial intelligence, electric vehicles, and cryptocurrencies. The executive orders include initiatives to save coal plants that were at risk of closure, utilizing the 1950 Defense Production Act to increase coal production. They also instruct Energy Secretary Chris Wright to assess whether coal used in steel production qualifies as a "critical mineral." If this classification is granted, usually reserved for minerals necessary for high-tech defense systems, it could pave the way for the use of emergency powers to enhance production.
Another directive requests the U.S. Attorney General to identify state climate regulations that impede energy resource development like coal and to work on preventing their enforcement. Following Trump's signing of the orders, Wright's department made $200 billion available for its loan programs, including for new coal technologies. Historically, these loans have rarely funded carbon capture initiatives at coal facilities under prior administrations.
The orders also instruct Interior Secretary Doug Burgum to recognize the end of a moratorium that paused new coal leasing on federal lands, which allows private companies to acquire rights to extract coal, and to prioritize this leasing process. Following the announcement, shares of U.S. coal producers Peabody and Core Natural Resources rose by about 9%. However, it remains unclear what demand exists for increased coal production, as numerous domestic coal-burning plants have shut down this decade due to cheaper fuel options and worries about future regulations, even if Trump's administration dismantles existing ones.
When burned, coal emits more carbon dioxide, a primary greenhouse gas, than any other fossil fuel, along with pollutants related to respiratory and cardiovascular diseases. Its use has significantly declined due to regulations initiated by Democratic leaders, including former President Joe Biden.
Existing coal plants in the U.S. only supply power to the grid approximately 40% of the time. Supporters argue that this figure could be improved through deregulation and other interventions. During his first term, Trump attempted to support the coal industry by having his energy secretary instruct federal energy regulators to subsidize coal plants for their role in enhancing the reliability and resilience of power grids, but the plan was rejected by regulators in 2018.
Coal proponents expressed optimism regarding the new strategy. According to Rich Nolan, president and CEO of the National Mining Association, Trump's orders will "clearly prioritize how to responsibly keep the lights on, acknowledge the significant strategic value of American-mined coal, and embrace the economic opportunities that arise from America's energy abundance." Meanwhile, environmental organizations criticized Trump's coal initiatives. Kit Kennedy, managing director for Power at the Natural Resources Defense Council, remarked, "Coal plants are outdated and pollutive, uncompetitive, and unreliable. The Trump administration is mired in the past, attempting to make utility customers pay more for yesterday’s energy. Instead, it should focus on constructing the electricity grid of the future."