New Trump Orders Clash with Climate Goals in Coal Boost Drive

Backers of the coal industry argue that existing plants, which currently operate at only around 40% capacity, can be made more productive through deregulation.

Washington: U.S. President Donald Trump has signed a series of executive orders aimed at revitalizing the domestic coal industry, a move that comes amid a nationwide surge in electricity demand driven by energy-intensive technologies such as artificial intelligence, electric vehicles, and cryptocurrency mining.

Speaking from the White House, surrounded by a group of coal miners in hard hats, Trump declared, “We’re bringing back an industry that was abandoned,” and added, “We’re going to put the miners back to work.” The coal sector has seen its workforce dwindle from 70,000 a decade ago to about 40,000 today.

The orders are the latest step in Trump’s broader push to expand U.S. energy output by rolling back regulations that he argues have hampered traditional fuel industries. Though coal now generates less than 20% of U.S. electricity—down from 50% in 2000, according to the Energy Information Administration—Trump is positioning the fuel as vital to the nation’s energy and industrial security.

Among the executive directives is an order to invoke the 1950 Defense Production Act, potentially enabling the federal government to intervene and prevent the retirement of coal-fired plants. Another instructs Energy Secretary Chris Wright to assess whether metallurgical coal, used in steelmaking, should be classified as a “critical mineral”—a designation typically reserved for materials essential to high-tech defense and infrastructure.

Additionally, Trump’s orders call on the U.S. Attorney General to identify and challenge state-level climate laws that may hinder fossil fuel development, including coal. The Department of Energy followed up by announcing $200 billion in financing for its Loan Programs Office, which will now include funding for advanced coal technologies—an area previously underutilized under past administrations.

The Interior Department was also directed to formally lift a moratorium on new coal leasing on federal lands, with Interior Secretary Doug Burgum instructed to prioritize such leasing efforts moving forward.

Investors appeared to welcome the announcement. Shares in major U.S. coal producers, including Peabody and Core Natural Resources, jumped roughly 9% following the news.

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However, despite the policy push, analysts remain skeptical about market appetite for expanded U.S. coal output. Over the past decade, hundreds of coal-burning plants have closed due to competition from cheaper natural gas, expanding renewables, and ongoing regulatory uncertainty. Coal combustion remains the most carbon-intensive form of power generation, and its environmental impact continues to draw criticism from public health and environmental advocates.

Backers of the coal industry argue that existing plants, which currently operate at only around 40% capacity, can be made more productive through deregulation. In Trump’s first term, his administration proposed subsidizing coal plants for their role in ensuring grid stability—a plan that was ultimately rejected by energy regulators in 2018.

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Still, industry leaders expressed optimism. “Trump’s orders will clearly prioritize how to responsibly keep the lights on, recognize the enormous strategic value of American mined coal and embrace the economic opportunity that comes from American energy abundance,” said Rich Nolan, president and CEO of the National Mining Association.

Environmental groups, on the other hand, sharply criticized the initiative. “Coal plants are old and dirty, uncompetitive and unreliable,” said Kit Kennedy of the Natural Resources Defense Council. “The Trump administration is stuck in the past, trying to make utility customers pay more for yesterday’s energy. Instead, it should be doing all it can to build the electricity grid of the future.”

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