U.S. Sees Reductions in Carbon Emissions From Coal Use

The United States power sector saw an 8% reduction in carbon emissions due to a decline in coal use for power generation in 2023, a recent report found.

The annual report by Ceres examined emissions based upon power generation, ownership of the plant, and emissions data of the 100 largest power producers in the U.S., which account for about 80% of electric generation and associated emissions. Ceres is a nonprofit advocacy organization that works to accelerate the transition to a cleaner, more sustainable economy.

The report indicated that the power sector is continuing its shift toward zero-emissions generation growth from renewables while coal generation declined to its lowest share of the energy mix since 1967. However, with that decline, natural gas is being used more for power generation and fossil fuels were still responsible for 60% of all generation.

The Institute for Energy Economics and Financial Analysis (IEEFA) has analyzed a steady shrinking of the coal industry itself, with predicted closures or retirements of the plants. The report states there has been consistent averaging of closures with a capacity of 10,000 megawatts of power annually, across the country.

There has been a noticeable change since 2012, when coal accounted for 37% of power production. In 2023, it accounted for just 16%, with natural gas jumping from 30% to 42%. During the same period, wind and solar production has increased from 4% to 14%. The U.S. Energy Information Administration has forecast a continued drop in coal, while solar power is to be the leading source of growth in the energy sector, and U.S. generating capacity for solar follows along. Although solar is predicted to lead the growth, natural gas is expected to remain the top provider of energy, providing 42% of the nation’s power.

In 2022, 19% of total U.S. energy-sector related emissions resulted from the burning of coal alone, as natural gas emits almost 50% less carbon dioxide then coal when burned, according to the EIA. The transition from coal to natural gas is partially driven by price, with natural gas and renewable energy costs becoming more competitive while at the same time helping producers meet federal clean air regulations. In 2030, it is predicted by IEEFA that 64% of the nation’s coal capacity of 2011, the peak year, will fall off grid.

As energy production has transitions to sources that emit less greenhouse gases, the use of coal for domestic power generation has decreased. However, with the U.S. facing a sudden rise in demand for electricity and a tightening supply market, coal may still have a place in the country’s energy mix in order to ensure a reliable, secure electric grid. That could stall the progress that has been made in emissions reductions.