As the world prepares for COP30, the urgency for decisive carbon reduction action is intensifying. Yet recent moves by the US Environmental Protection Agency (EPA) to roll back key climate standards are sending shockwaves through global efforts.
2025 is a pivotal year for global climate action. It’s when emissions must peak to keep the 1.5 °C goal within reach, and when the UN’s Global Stocktake will assess collective progress. In this context, the US retreat from climate action sends a troubling signal, especially as major economies are expected to lead, not lag.
The EPA’s policy reversals mark a significant shift in American climate leadership, raising urgent questions for the UK’s net zero targets and sustainability strategies. TEAM Energy’s Service Delivery Director, Graham Paul, explores through the lens of policy alignment, investment decisions, and the broader momentum behind Britain’s climate ambitions.
EPA reversals shake global carbon reduction strategy
2025 has brought a significant shift in US climate policy. After several years of increasing environmental ambition under the previous administration, the EPA is now moving to roll back key climate regulations. These reversals include loosening emissions limits for power plants, scaling back vehicle efficiency standards, and reducing oversight of methane leaks from oil and gas operations.
Reports indicate the Agency is seeking to repeal or water down standards that were designed to cut carbon emissions across major sectors. In practical terms, this could mean loosening limits on power plant emissions, retreating from aggressive vehicle efficiency standards, and easing controls on methane leaks from oil and gas operations all signature policies of the prior climate strategy. These were signature policies designed to curb emissions across major sectors and support the US pledge to halve emissions by 2030 (from 2005 levels).
What’s being undone
The previous administration implemented some of the most ambitious climate rules in US history, including requirements for carbon capture on new fossil fuel plants, a target for 67% of new car sales to be electric vehicles by 2032, and strict protocols for detecting and repairing methane leaks. Collectively, these measures were designed to align the United States with its international climate commitments.
Global implications
The EPA’s 2025 policy revisions are widely viewed as a rollback of the previous administration’s climate agenda, with consequences that extend well beyond US borders. Responsible for roughly 14–15% of global CO₂ emissions, the US is the world’s second largest emitter and plays a pivotal role in shaping international climate efforts. Its actions, or lack thereof, can slow global momentum, increase pressure on other nations to fill the gap, and even embolden some to lower their own ambitions.
With 2025 marked as the critical year for global emissions to peak, this reversal sends a troubling signal ahead of COP30 and the UN’s Global Stocktake. Strong US climate leadership has historically helped raise ambition worldwide, as other countries often take cues from American policy. Conversely, weakened environmental standards risk encouraging delays or diluted targets elsewhere.
Without active US engagement, achieving global climate goals becomes significantly more difficult. Experts warn that any backtracking by a major emitter like the US shrinks the remaining carbon budget and narrows the already tight path to limiting warming to 1.5 °C.
Trump’s Solar Tax Reversal adds to global uncertainty
In a further blow to international climate momentum, President Trump’s July 2025 repeal of the U.S. residential solar tax credit, years ahead of schedule, has disrupted global clean energy markets. The rollback weakens domestic solar adoption and signals a broader retreat from decarbonisation incentives. For UK policymakers, this shift adds to the uncertainty triggered by the EPA’s reversals, increasing pressure to uphold net zero goals independently amid volatile energy markets.
Economic and market effects
Shifts in US climate policy can reverberate across the global clean tech sector with significant economic and market implications. For example, if federal support for electric vehicles or renewable energy declines, it may dampen overall investment in these technologies. This could slow progress on cost reductions for innovations like advanced batteries, carbon capture, and methane mitigation – technologies that have benefited from strong US demand and R&D.
As a result, countries like the UK may face higher costs or greater difficulty accessing the solutions needed for their own net zero transitions. A retreat from climate leadership by the US risks undermining global momentum in technology development, international diplomacy and collective resolve.
What’s at stake for UK net zero goals?
For a country that has led on climate action, shifts in US policy raise immediate concerns for the UK. As the first major economy to legally commit to net zero by 2050, with an ambitious interim target of a 78% emissions cut by 2035, the UK has built a broad consensus around climate leadership. Organisations across sectors have invested heavily in renewables, energy efficiency, fleet electrification, and clean tech innovation.
Now, the US EPA’s rollback of climate measures introduces new headwinds for the UK’s net zero journey.
Lost global momentum and rising pressure
The Paris Agreement depends on collective progress. If the US emits more under looser rules, the global carbon budget tightens. The UK may face pressure to go further, both to compensate and to maintain its leadership role.
Competitive and economic challenges
UK organisations, especially in carbon-intensive sectors like steel or chemicals, are investing to cut emissions, often at significant cost. If US companies operate under weaker standards, they may gain a short-term cost advantage, raising the risk of carbon leakage. This could prompt calls for UK measures like a carbon border tax to protect businesses playing by the rules and to ensure fair competition.
Technology and market impacts
Many UK organisations, including TEAM Energy’s partners, are active in clean tech. A slowdown in US climate ambition could dampen global demand for green solutions or shift investment flows. Cheaper fossil fuels from deregulation could impact UK renewables’ economics, although global energy prices depend on multiple factors.
Staying the course
In this turbulent landscape, the UK’s commitment to net zero is being tested. However, if the US falters, it’s even more vital for others to lead.
With COP30 in Brazil just weeks away, the world is looking for leadership and renewed ambition. The US retreat from climate commitments is casting a long shadow over these talks, making it harder for nations to unite behind the urgent action we need. As we gather in the Amazon, one of the planet’s lungs, the stakes could not be higher.
The UK, alongside the EU and other climate-progressive nations, can help keep global efforts on track.
While the EPA’s policy reversal poses challenges, it also underscores the importance of resilience and leadership. The climate crisis remains urgent, and every delay elsewhere only increases the need for bold action here.
UK organisations must remain optimistic and take initiative. Equipped with the right knowledge and partnerships, they can keep advancing toward a sustainable net zero future.