Near-Term Emission Targets Need Immediate Attention in the USA
Abstract
Given recent changes in federal climate policy, the United States is unlikely to meet its original 2030 Paris Agreement emission target of a 50-52% reduction from 2005 levels. However, rapid near-term abatement remains achievable through targeted multi-sector energy transitions. Extending the open-source energy system model, PyPSA-USA, to perform multi-sector analysis, we evaluate the primary drivers of USA energy costs and emissions though applying global sensitivity analysis. Our results suggest that fossil fuel price volatility is the dominant driver of marginal electricity and energy costs across most of the nation, however, uncoordinated state-level renewable mandates can induce localized cost spikes due to regional bottlenecks. We find that system climate impact (CO2e) is overwhelming sensitive to fugitive methane leakage rates and global warming potential assumptions. Addressing upstream methane leaks will play a crucial role in abating climate-related damages. Finally, demand-side electrification, specifically light-duty electric vehicles and service sector heating, can act as immediate levers for carbon abatement. The results of this work suggest that many of the Inflation Reduction Act's clean energy initiatives, that have since been repealed, are effective near-term solutions to reduce exposure to fossil fuel price and mitigate future financial penalties associated with the rising social cost of carbon.