Efficiency Gains in Productive Carbon Use
Sustainable development requires efficient use of carbon fuels. Gas and coal remain significant resources within the US power industry. Yet, since US greenhouse gas emissions peaked in 2007, the U.S. economy has made notable strides in reducing emissions per unit of GDP, moving toward more sustainable growth. Reflecting on the progress since the emissions peak in 2007, there are several key factors driving this energy efficiency:
Natural Gas and Coal Shift: The U.S. has seen an 88% increase in natural gas electricity generation, which, paired with a nearly 60% reduction in coal-based generation, has reduced overall emissions. This shift has leveraged the lower carbon intensity of natural gas as we transition toward cleaner energy sources. Certainly more carbon emissions is not the solution to carbon emissions, but utilizing carbon sources efficiently has been beneficial. A note, I continue to watch natural gas leaks closely as reporting and studies emerge given the potential to remove much of these gains.
Renewable energy Surge: The contribution of renewables has grown more than 10x over this period as the fastest-growing energy source in the U.S. mix. This substantial growth in solar, wind, and other renewable technologies is not only cutting emissions but also adding resiliency and diversity to the grid.
Lower Emissions Per GDP Unit: Electricity generation composition is not the whole story; the US economy grows with fewer carbon inputs than in 2007. Lower emissions in the electricity sector compound with the impact of greater economic output to produce a 35% reduction in carbon required for a dollar of gross domestic product. We measure the energy transition in decades, and the last 17 years illustrates how sustainable development and economic growth can support one another - both marginally and longitudinally.
As we continue to advance in our energy transition, these efficiency gains underscore the importance of supporting energy policies and technologies that make emissions reductions scalable. These gains in carbon efficiency occurred across varied US policy environments. If the economics and value proposition of lower carbon resources remain as competitive as they have in the last 17 years, the US economy will continue to see efficiency gains.
