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The report provides a detailed analysis of the power sectors of seven major countries and regions in 2025, which collectively represent 72% of global electricity demand. Key trends include China's unprecedented solar growth and first absolute decline in power sector emissions since 2015, the US seeing wind and solar overtake nuclear power for the first time, and the EU's wind and solar generation exceeding fossil generation. India saw renewable growth double its demand increase, while Brazil maintained one of the cleanest systems globally with 87% renewable generation. Conversely, Russia and Japan continue to rely heavily on fossil fuels, with Russia's wind and solar remaining marginal at less than 1% of its mix.

The Gulf Coast is a primary hub for U.S. hydrogen due to its concentration of petroleum refining and chemical production. With Texas and Louisiana leading in refining and ammonia capacities, the region is well-positioned to transition to clean hydrogen to meet domestic needs and international demand from markets like Japan, South Korea, and the European Union.

The policy brief advocates for system-wide transmission planning over the customer-by-customer load interconnection process to manage rapid electric load growth. It highlights that system-wide planning, which evaluates needs over 5 to 20 years, leads to more efficient grid design and higher benefit-to-cost ratios. To manage the risk of anticipated load not materializing, the document recommends scenario planning to identify "least-regrets" projects and phased, modular investment strategies with built-in triggers, illustrated through case studies from the Southwest Power Pool, ERCOT in Texas, and NV Energy in Nevada.

After a record year in 2024, the U.S. EV market experienced a 4% sales decline in 2025, driven by the expiration of federal tax credits and a volatile regulatory environment. While charging infrastructure continues to grow through private investment, nearly $20 billion in manufacturing projects have been canceled, particularly in the Midwest and South. Major automakers are shifting strategies toward hybrids and affordable models to mitigate losses, while workers face increased layoffs and production pauses. Despite these setbacks, long-term forecasts from BloombergNEF and the IEA suggest continued, albeit slower, EV adoption through 2030.

In Q4 2025, U.S. clean energy investments were characterized by significant uncertainty driven by a record 43-day government shutdown, the One Big Beautiful Bill Act (OBBBA), and Department of Energy (DOE) funding cuts. While utility-scale solar and storage remained strong, with $18 billion in actual investments, other sectors like wind, hydrogen, and sustainable aviation fuel (SAF) faced substantial project cancellations. Nuclear energy showed signs of growth through large-scale partnerships and DOE loans, while the manufacturing sector saw $8.4 billion in EV supply chain cancellations, partly due to shifting federal incentives and corporate pivots toward gas and hybrid vehicles.

Upgrading the millions of US homes relying on electric resistance heating to air-source heat pumps (ASHPs) and heat pump water heaters (HPWHs) offers significant benefits for affordability, grid reliability, and climate goals. For single-family homes, these upgrades can save households an average of $1,530 annually and reduce total carbon pollution by approximately 40%. At scale, such transitions could reduce US residential summer peak demand by 11 GW and winter peak demand by 51 GW. The report advocates for updating building energy codes to discourage electric resistance in new construction and retrofits, setting specific replacement targets, and implementing midstream incentive programs and on-bill financing to overcome up-front cost barriers.

The document highlights the economic and environmental benefits of transitioning US households from electric resistance heating to heat pumps, noting potential annual national savings of nearly $20 billion and a significant reduction in peak electricity demand.

The report details how the EU's strategy to diversify energy supplies has led to an increased reliance on US LNG, which is expected to reach up to 80% of European imports by 2030. This demand fuels infrastructure expansion in the US Gulf Coast and Permian Basin, resulting in ecosystem destruction, hazardous living conditions for residents, and significant methane emissions. The text highlights the role of Italian entities, including the bank Intesa Sanpaolo and energy companies like Eni and Edison, in financing and purchasing this gas, while noting legal disputes over delivery obligations and the environmental 'sacrifice zones' created by relentless extraction.

In 2025, the U.S. generated a record 853,210 GWh from solar and wind, accounting for 19% of total electricity generation. This represents a more than threefold increase since 2016, with solar generation growing more than seven-fold and wind doubling. Despite this growth, the document notes that the U.S. faces new challenges, including the repeal of clean energy tax credits via the One Big Beautiful Bill Act of 2025 and the U.S. withdrawal from the Paris Agreement in 2026. These policy shifts, combined with rising electricity demand from data centers, are projected to increase heat-trapping pollution and raise average annual household energy costs by over $280 by 2035.

The report advocates for reconductoring as a primary solution to the U.S. energy grid's capacity crisis, which currently stalls 2,500 GW of clean energy projects. By replacing traditional steel-core cables with advanced composite conductors, the grid can double its transfer capacity at less than half the cost of building new lines, with installation times of 18-36 months compared to 10-15 years for new construction. The document highlights the potential for $180 billion in system savings by 2050 and a 3-4% reduction in wholesale electricity costs. It details technical improvements, such as trapezoidal wires and carbon-fiber cores, and cites successful implementations in Texas, Nevada, California, and Minnesota, as well as international adoption in Europe and Asia. The report concludes by urging policymakers to support legislation like the High-Capacity Grid Act and the REWIRE Act to incentivize the adoption of these technologies.

An analysis of Texas oil and gas data reveals that methane waste is significantly underreported, with estimates suggesting actual losses are 3 to 4.5 times higher than official figures. The study finds that venting is the primary source of underreporting, particularly in low-production oil wells where economic incentives discourage gas capture. The report argues that current self-reporting systems are insufficient and recommends disaggregated reporting and more stringent regulations to reduce environmental harm and recover lost tax revenues.

The author contends that the Trump administration's approval of BP's Kaskida project, an ultra-deepwater drilling venture in the Gulf, risks a disaster similar to Deepwater Horizon and exacerbates toxic air pollution in refinery hubs like Port Arthur, Texas. The text highlights that Kaskida could access 10 billion barrels of oil but carries a six-fold increase in incident risk compared to other deepwater projects, with a potential worst-case spill of 4.5 million barrels. The author criticizes the Bureau of Ocean Energy Management for a limited 10-day public comment period and argues against new drilling given that the U.S. is already producing record levels of oil.

The Union of Concerned Scientists reports that the Trump administration has granted Clean Air Act exemptions to over one-third of 546 eligible industrial facilities, including coal plants and chemical manufacturers. This policy affects nearly 4.6 million people and over 4,300 schools and daycares, with a disproportionate impact on communities already facing high environmental and social stressors. The administration utilized a national emergency provision in March 2025 to allow a two-year exemption, which the EPA intends to make permanent.

Methane is a potent greenhouse gas that contributes approximately 0.5°C to global temperature increases. Human-made sources—including the fossil fuel industry, landfills, livestock, and agriculture—account for about 55% of methane pollution, while natural sources like wetlands and permafrost account for 45%. Mitigation strategies focus on stopping leaks in the oil and gas supply chain, improving landfill waste management, and altering livestock diets. International efforts include the Global Methane Pledge, aiming for a 30% reduction from 2020 levels by 2030, and EU regulations banning venting and flaring. RMI supports these goals through data tools like the Oil Climate Index plus Gas (OCI+), WasteMAP, and the MiQ certification standard.

The briefing discusses the systemic nature of climate disinformation, driven by the public relations industry and Big Tech algorithms for profit. It highlights Spain's initiative to hold digital platforms and executives legally accountable for the algorithmic amplification of illegal content and disinformation. The text also notes the European Union's endorsement of the UN Declaration on Information Integrity on Climate Change and the implementation of fossil fuel advertising bans in cities like The Hague, Amsterdam, and Florence as models for protecting the public from corporate-driven deception.

The report highlights a conflict between the strategic autonomy of the European Union and the financing activities of major European banks, which continue to support US LNG export terminals. It notes that the EU imported 57% of its LNG from the US in 2025, a figure that could rise to 80% by 2030. The document identifies specific banks—including ING, Crédit Agricole, Santander, BPCE (via Natixis), and Société Générale—as key financiers of US developers like Venture Global and Freeport LNG. It warns that this dependence, compounded by a July 2025 trade agreement requiring the EU to purchase US$750 billion of US energy by 2028, exposes Europe to price volatility, geopolitical leverage by the US administration, and the risk of stranded assets.

The report argues that the AI industry uses a 'bait-and-switch' greenwashing tactic, where the proven climate benefits of 'traditional' AI (such as predictive models) are used to justify the massive energy and water consumption of 'consumer generative AI' (such as ChatGPT). An analysis of 154 climate benefit claims found that 97% related to traditional AI, while only 3% related to consumer generative AI, with no evidence found that the latter leads to substantial emissions reductions. Furthermore, the report finds that evidence for these benefits is generally weak, with 36% of claims citing no evidence and only 26% citing published academic research. This narrative masks the immediate climate impacts of data centre expansion, which the report states is boosting demand for fossil fuels and risking the ability of regions like Ireland and Australia to meet carbon targets.

The report argues that European security of supply planning and clean procurement policies have been uncoordinated, often resulting in capacity mechanisms that favor fossil fuels and contracts that distort short-term market signals. It proposes a shift toward 'market-aligned' contracting—such as index REC structures—and co-optimized multi-product markets that separately value energy, capacity, and clean attributes to attract clean investment without sacrificing operational efficiency.

The report challenges the narrative of fossil gas as a necessary transition fuel for grid flexibility. It distinguishes between Open Cycle Gas Turbines (OCGT), which are agile but inefficient, and Combined Cycle Gas Turbines (CCGT), which are efficient for baseload power but suffer from premature aging, higher emissions, and reduced profitability when used for peak demand. The author highlights that CCGT viability often relies on costly government capacity mechanisms funded by consumers. Furthermore, a global shortage of gas turbines is delaying projects and increasing costs. The document advocates for replacing gas with sustainable flexibility solutions, including battery storage, pumped hydro, demand-side response, and improved interconnections, urging financial institutions to cease funding new gas power projects.

The United States now leads the world in gas-fired power capacity in development, with nearly 252 GW planned, driven significantly by the energy demands of AI and data centers. Globally, the pipeline for gas power grew by 31% in 2025 to 1,047 GW, though expansion is currently bottlenecked by turbine production backlogs stretching to 2030. Texas is the primary hub for this growth in the U.S., with 80.6 GW in development, nearly half of which is intended to power data centers directly.