America's green transition in 10 charts

The US is poised for a monumental shift in spearheading global climate initiatives, leveraging its position as the world’s second-largest annual CO2 emitter to pioneer positive change. Leveraging its commitments under the Paris Agreement, the nation is on track to attain Net Zero emissions by 2050, with a critical pathway delineated to decarbonise its power sector by 2035.

1. The power sector, a vital contributor to the country’s CO2 emissions, stands as a pivotal area for change. Harnessing unparalleled opportunities here could significantly attenuate the US’s greenhouse gas emissions by 2030, paving a sustainable pathway forward.
2. Despite fossil fuels generating about 60% of the nation’s electricity, the US has set a firm foundation for green transition, driven by a decade of record-breaking deployment of renewable sources. This momentum is further escalated by rapidly expanding solar, wind and battery capacities, ushering in a new era of clean energy.
3. Over the past year, pivotal legislative advancements including the Inflation Reduction Act (IRA) and the Bipartisan Infrastructure Law have been implemented. These measures promise a transformative impact, potentially elevating the renewables’ contribution to domestic power generation to a staggering 60-80% by 2030.

This note highlights the bright prospects of the US decarbonising its power grid by 2035. As we review the progress and upcoming developments, it is evident that with robust policies and a spirit of innovation, the US is vigorously paving the way to a sustainable future.

Chart 1: American Renewable Capacity Has Grown Exponentially over the Past Century

(Sources: EIA; Wood Mackenzie 2021)

Chart 2: Renewable Assets Lead the Project Pipelines in the United States.

(Sources: EIA; Statista)

Chart 3: What is the Expected Capacity Expansion for US Battery Storage to 2030?

(Source: McKinsey 2023)

Chart 4: What is the Expected Capacity Expansion for US Solar Over the Next 5 Years?

(Sources: EIA/Wood Mackenzie Power & Renewables U.S. Solar Market Insight 2022 Year in Review; IRENA ; Solar Power Europe )

Chart 5: What is the Current Installed Capacity of US Wind?

(Sources: IRENA ; Wood Mackenzie ; Wind EUROPE )

Chart 6: What is the Expected Capacity Expansion for US Wind to 2030?

(Sources: IRENA ; Wood Mackenzie ; Wind EUROPE )

Chart 7: An Examination of the American EV Revolution.

(Source: IEA Global EV Outlook 2023)

Chart 8: How State Legislation is Driving the US Decarbonisation Effort.

(Source: Clean Energy States Alliance 2022)

Chart 9: Inflation Reduction Act: Energy Security as a Matter of National Security.

(Source: Wood Mackenzie 2023)

Chart 10: Inflation Reduction Act: Clean Sources Could Reach > 80% of the US Electricity Mix by 2030!

(Source: Rhodium Group 2022)

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