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Analysis of U.S. Energy Policy and its Impact on Sustainable Development Goals

Introduction: Energy Policy and Economic Pledges

The current administration’s energy policy was introduced with a pledge to significantly reduce consumer energy prices. However, recent data indicates a contrary trend, with energy prices increasing at a rate more than double the overall rate of inflation. In Virginia, for instance, average electricity rates have risen by 11.3% year over year as of July. This report analyzes the administration’s policy actions and their direct implications for several key United Nations Sustainable Development Goals (SDGs), particularly SDG 7 (Affordable and Clean Energy) and SDG 13 (Climate Action).

Policy Actions and Contradictions with SDG 7 (Affordable and Clean Energy)

A series of legislative and regulatory actions have been implemented that appear to hinder the progress of clean energy, directly conflicting with the objectives of SDG 7. This goal emphasizes ensuring access to affordable, reliable, sustainable, and modern energy for all. The administration’s actions include:

• The repeal of tax credits designed to incentivize clean energy development and provide financial relief to consumers and businesses.
• Regulatory measures by the Departments of the Interior, Energy, Treasury, Transportation, and the Environmental Protection Agency that impede the deployment of clean energy technologies.
• Active discouragement of renewable energy sources, such as wind power, despite evidence of their economic benefits. For example, Iowa, which generates over 60% of its power from wind, maintains some of the lowest utility bills in the nation.

These policies restrict the supply of affordable, clean power at a time of increasing demand, thereby undermining the core principles of SDG 7.

Setbacks for Renewable Energy and Implications for SDG 13 (Climate Action)

The administration’s policy framework actively supports fossil fuels while creating barriers for the renewable energy sector. This approach presents a significant challenge to achieving SDG 13, which calls for urgent action to combat climate change and its impacts.

1. Fossil Fuel Subsidies: The administration has allocated substantial subsidies, including a recent announcement of $625 million, to support uncompetitive coal power plants. This action extends the operational life of high-emission energy sources.
2. Economic Inefficiency: According to analysis by Energy Innovation, 99% of the U.S. coal fleet is more expensive to operate than building new renewable energy capacity. Subsidizing these plants places a threefold burden on the public: taxpayer cost for the subsidy, higher electricity rates for consumers, and increased pollution and climate impacts.
3. Obstruction of Renewables: Permitting for wind projects has been frozen, and the development of wind and solar projects on federal lands has been slowed. This directly curtails the growth of the clean energy sector, which accounted for 93% of new energy capacity in the previous year.

These actions are inconsistent with the global effort to transition to a low-carbon economy as outlined in SDG 13.

Economic and Social Impacts on Consumers

The policy focus on fossil fuels and the obstruction of cheaper renewable alternatives have direct financial consequences for households, affecting progress toward SDG 11 (Sustainable Cities and Communities) by making essential services less affordable.

• Rising Utility Costs: Analysis of U.S. Energy Information Administration data shows that states with high reliance on wind and solar power often have lower electricity prices and below-average rate increases. Conversely, policies favoring more expensive energy sources contribute to rising bills.
• Widespread Rate Increases: Utilities in 41 states and the District of Columbia have requested rate increases. In Virginia alone, five such requests have been filed for the 2025-2026 period.
• Household Budget Strain: A recent survey by the Searchlight Institute found that 63% of respondents identified utility bills as one of the top three strains on their household budget, ranking higher than groceries, housing, and healthcare. This highlights the critical link between energy policy and household economic stability.

1. Which SDGs are addressed or connected to the issues highlighted in the article?

The article highlights issues directly connected to several Sustainable Development Goals, primarily focusing on energy, climate, and economic well-being.

• SDG 7: Affordable and Clean Energy

  This is the most central SDG in the article. The text revolves around the cost of energy for consumers (“cut your energy prices in half,” “Virginians are facing substantial electric bills”), the promotion of clean energy sources like wind and solar, and the contrasting support for fossil fuels. The entire debate about repealing tax credits for clean energy versus providing subsidies for coal plants falls under this goal.

• SDG 13: Climate Action

  The article explicitly connects energy policy to climate change. It refers to coal power plants as “dirty” and mentions that society will “bear the pollution and climate impacts” of burning fossil fuels. The administration’s actions to “disadvantage cleaner, cheaper energy” and promote fossil fuels are presented as a direct contradiction to taking urgent action to combat climate change.

• SDG 11: Sustainable Cities and Communities

  This goal is relevant through the lens of household affordability and environmental quality in communities. The article notes that for many households, utility bills are the biggest financial strain, impacting the economic sustainability of families. Furthermore, the mention of “pollution” from coal plants relates to the goal of reducing the adverse environmental impact on inhabitants.

2. What specific targets under those SDGs can be identified based on the article’s content?

Based on the issues discussed, several specific SDG targets can be identified:

• Under SDG 7 (Affordable and Clean Energy):

  • Target 7.1: By 2030, ensure universal access to affordable, reliable and modern energy services. The article’s core theme is the lack of affordable energy, citing an “11.3% year over year” increase in Virginia’s electricity rates and the fact that “63% of respondents named utility bills” as a primary financial strain.
  • Target 7.2: By 2030, increase substantially the share of renewable energy in the global energy mix. The article discusses this target from both positive and negative perspectives. It notes that “Iowans draw more than 60% of their power from wind energy,” but also that federal actions are “hindering clean energy” and impeding the offshore wind industry.
  • Target 7.a: By 2030, enhance international cooperation to facilitate access to clean energy research and technology… and promote investment in energy infrastructure and clean energy technology. The article describes actions that directly counter this target, such as the “repeal of tax credits that both spurred clean energy development and deployment” and “freezing the permitting for wind projects.”

• Under SDG 13 (Climate Action):

  • Target 13.2: Integrate climate change measures into national policies, strategies and planning. The article details how the administration’s national policies are actively working against climate measures. Actions like providing “$625 million in subsidies” for coal plants and the “all-out assault on clean energy” demonstrate a failure to integrate climate considerations into national strategy.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

Yes, the article provides several quantitative and qualitative indicators that can be used to measure progress.

• Indicators for SDG 7 Targets:

  • Indicator for Target 7.1 (Affordability): The percentage increase in average electricity rates. The article provides a specific figure: “Average electricity rates in Virginia were up 11.3% year over year.” Another indicator is the proportion of household income spent on utilities, implied by the survey where “63% of respondents named utility bills” as the top financial strain.
  • Indicator for Target 7.2 (Share of Renewables): The percentage of electricity generated from renewable sources. The article gives the example that “Iowans draw more than 60% of their power from wind energy.” It also provides a national figure for new capacity: “93% of newly generated energy capacity that came online last year came from wind, solar and storage.”
  • Indicator for Target 7.a (Investment/Policy Support): The value of financial incentives or disincentives. The article mentions the “$625 million in subsidies” for coal plants as a negative indicator and the “repeal of tax credits” for clean energy as another measure of policy direction.

• Indicators for SDG 13 Targets:

  • Indicator for Target 13.2 (Policy Integration): The existence and direction of national energy policies. The article points to regulatory actions by multiple government departments “to hinder clean energy and promote fossil fuel use” as a clear indicator that climate measures are not being integrated into national policy.

4. Table of SDGs, Targets, and Indicators

Source: pilotonline.com