Concerns over the impacts of U.S. energy use on the environment, the economy, and national security demand an understanding of the critical drivers of energy consumption. The energy industry is expected to make some changes in 2025, driven by technological advancements, structural changes to energy supply and demand, and reducing greenhouse gas emissions through various forms of decarbonization. In this blog, we will explore the latest US energy trends for 2025 and their impact on business and renewable energy law firms.
Key Observations and Changes Made in the Energy Industry in 2024
Based on the Global Energy Trends Report 2024, despite the increased wind and solar power generation, the share of renewables in energy and power mixes grew only slightly, and consequently, CO2 emissions rose by 1.7%. The pace of reduction in the carbon factor has remained insufficient to meet the 2°C target.
With the COP29 in Azerbaijan, various announcements have been made regarding giving the energy transition a significant boost in 2025.
Nigar Arpadarai, UN Climate Change High-Level Champion for COP29, said, “At COP29, we’re seeing a surge of real economic progress toward accelerating the clean energy transition. We need to urgently focus on mobilizing investment at scale and ensuring finance is accessible, available, and affordable where it is needed most. We must ensure that the transition is fair and equitable so that no country is left behind.”
This highlights the role of the renewable energy law firm in industry, the energy efficiency measures that can be taken, and how to devise the proper budget for them.
Transition in the Energy Industry: Trends in 2025
The world is rapidly shifting towards renewable energy, with the deployment of affordable solar and wind power driving progress. By 2030, global renewable capacity is expected to triple, while energy efficiency is set to double. Let’s take a closer look at the trends in the energy industry and how renewable energy lawyers can help regulate those trends.
Shifting to Cleaner Energy Sources
With annual global temperatures rising, the world is increasingly shifting to renewable energy sources. The shift towards cleaner energy sources will be accelerated in 2025. According to the International Energy Agency (IEA), renewable capacity will meet 35% of global power generation by 2025. According to UNEP, transitioning from fossil fuels to clean energy sources will depend on critical energy transition minerals. Minerals – such as copper, lithium, nickel, and cobalt – are essential in many of today's rapidly growing clean energy technologies, from wind turbines and solar panels to electric vehicles. In this regard, a mineral rights attorney can help you achieve your clean energy goals.
Decarbonization: Achieving Carbon Quota Limit
The 2025 goal is to flatline CO2 emissions with the strict implementation of quota limits and carbon credits. As one of the significant carbon emitters, the US will need to reduce its emissions. This might pose a challenge to many businesses and industries, and in this regard, consulting renewable energy legal services can help optimize tax benefits, resolve conflicts, and ensure adherence to evolving energy laws.
Inflation Reduction Act for Energy Investments
The Inflation Reduction Act is unlikely to be repealed in 2025. “The IRA is considered Biden’s landmark energy, climate, and industrial policy achievement.” It gives a bonus credit of 10 percent to clean energy projects in energy-impacted communities.
Innovative Solutions through Emerging Technologies
As the world shifts towards AI and data science, innovative solutions in the energy sector are expected to accelerate in 2025. These solutions can help predict supply and demand patterns and plant maintenance requirements and improve energy efficiency. For instance, the 2025 TCF Base CLIMR Lab Call can be considered a significant step in accelerating the commercialization of vital clean energy technologies. Seeking help from an energy law firm can help you decide how much investment to set aside for technological assistance for your energy industry-related concerns. Discover how a renewable energy law firm helps businesses go green by tackling legal challenges, ensuring compliance, and driving sustainable growth. Read more!
The Affect of Trade Barriers on Renewable Energy Transition
At the COP 29 event, renewable industries demanded the removal of trade barriers. However, Trump’s policies are expected to be reminiscent of Biden’s policy on trade barriers. If that continues, imposing these restrictions will trigger a tit-for-tat response from significant trading partners like the European Union and Asian countries. This makes transitioning to renewable energy difficult, creating obstacles in international trade.
Changes in Fiscal Policy Could Impact Energy Investments
Political instability in the US could affect fiscal and monetary policy, which, in turn, could hurt investments in the energy sector. A new federal tax bill is expected to be debated in the US in 2025, which could suggest changes in federal income tax rates, affecting the efficacy of the tax credits used to stimulate investment. This would jeopardize the US government’s ability to invest in energy projects. It would be ideal for independent firms to consult energy attorneys if such a situation arises.
Numerous challenges, including high tariffs, fiscal deficits, inflation, interest rate pressures, and uncertain tax, labor, and environmental policies, threaten to increase costs, risks, and financing difficulties for U.S. projects. These hurdles may deter energy investments, undermining the sector's growth and development. Businesses might feel overwhelmed adjusting to these changes. Read more about the challenges in renewable energy law here to save yourself from surprises!
Conclusion
To wrap up, an overview of these energy trends in 2025 provides policymakers, relevant stakeholders, businesses, and renewable energy law firms with a comprehensive understanding of how the energy industry will transform in the coming year. Many companies, especially those unaware of the latest energy trends, will need help navigating through the energy landscape in 2025. It is crucial to understand the laws regarding energy. So, if you’re looking for the best renewable energy law firms near you, Contact us today at Rammell Law and easily regulate all your energy needs.
