Energy Diplomacy
US energy shifts from renewables to fossil fuels: Fitch
- Low chances to see carbon emissions regulations under Trump presidency, the rating agency says

The U.S. energy infrastructure is shifting to fossil fuels, from renewable energy sources, the global rating energy Fitch ratings said Wednesday.

President Donald Trump promised to "unleash an energy revolution" in the U.S., by removing regulations on oil, natural gas and coal sectors.

Some of the deregulations include opening federal lands to oil drilling, expediting the approval of LNG export projects, and reopening coal mines that were shut down during the past decade.

Trump also withdrew the U.S. from the Paris Climate Agreement, which is seen as a major obstacle for further development of renewable energy and technologies in the U.S., according to experts.

Fitch, however, said that despite the U.S. administration's new policies, energy projects in the country are not much likely to be affected.

"The Trump administration's increased focus on fossil fuels and less reliance on renewable energy is unlikely to change the ratings for power projects in the coming months," Fitch said.

"The financial cushion remains significant for all of Fitch's rated solar projects and most of its wind projects even during unusually low renewable resources of late," it added.

The LNG export projects in the U.S. are also expected to be completed on time, according to the rating agency.

On the other hand, Trump's attempt to roll back former President Barack Obama's Clean Power Plan that aims to fight climate change "reduces the chances we will see carbon emissions regulations under the Trump presidency," Fitch noted.

Trump signed an executive order in March ordering the Environmental Protection Agency to review the Clean Power Plan.

By Ovunc Kutlu in New York

Anadolu Agency


21 Jul,2017