Trump’s New EO Sparks A New Battle Over States’ Climate Power
On April 8, 2025, U.S. President Donald Trump signed a new executive order called “Protecting American Energy from State Overreach.” The order directs the federal government to stop states from enforcing laws related to climate change, greenhouse gas emissions, and ESG (Environmental, Social, and Governance) policies. This move could change how states fight climate change in the future.
What Does the Executive Order Say?
The new executive order gives power to U.S. Attorney General Pam Bondi. She must identify state laws that focus on:
- Climate change
- Carbon and greenhouse gas emissions
- Environmental justice
- ESG initiatives
- Carbon taxes and cap-and-trade programs
If any of these state laws are found to be “illegal” or go against federal law, the attorney general is ordered to take steps to block or stop them. Bondi has 60 days to report back to the President with actions taken and any further recommendations.
Why Did Trump Issue the Order?
According to the order, Trump’s goal is to support “American energy dominance.” This means making it easier to produce oil, gas, coal, critical minerals, nuclear, and other energy sources inside the U.S. Trump believes some state climate policies make energy more expensive and harm national security.
The order states:
“These state laws and policies weaken our national security and devastate Americans by driving up energy costs for families coast-to-coast, despite some of these families not living or voting in States with these crippling policies.”
Trump further says that states like New York and Vermont have passed laws that unfairly punish fossil fuel companies. These states want companies to pay for their past role in causing climate change. The executive order calls these efforts “extortion” and says they are unconstitutional.
California’s cap-and-trade system was also named. Under this system, businesses must buy credits if they go over their carbon limit. Trump’s order says this creates extra costs and makes it hard for companies to operate.
How Did States React?
Some states strongly disagreed with Trump’s action. Governors Kathy Hochul (New York) and Michelle Lujan Grisham (New Mexico) responded with a joint statement. Both are leaders of the U.S. Climate Alliance, a group of 24 governors committed to fighting climate change. They said:
“We will keep advancing solutions to the climate crisis that safeguard Americans’ fundamental right to clean air and water, create good-paying jobs, grow the clean energy economy, and make our future healthier and safer.”
In short, they believe states have the right to protect the environment and will continue to do so, even if the federal government tries to stop them.
Support from the Oil and Gas Industry
The American Petroleum Institute (API), a trade group for the oil and gas industry, welcomed Trump’s move. API said the order would stop states from illegally punishing companies that provide energy to American families.
Ryan Meyers, a senior vice president at API, said, “We welcome President Trump’s action to hold states like New York and California accountable.”
What Are the Legal Issues?
The executive order could start new legal fights between states and the federal government. In the U.S., both state and federal governments can pass laws. But the Constitution limits how much states can control things like interstate commerce and foreign trade.
Trump’s order argues that state climate laws break these rules. For example, if New York tries to fine a company for emissions that happened in another state or country, it may be seen as overstepping its power.
Still, legal experts say it’s unclear how far the federal government can go to stop these state laws. Past efforts to block climate lawsuits have had mixed results. For instance:
- Lawsuits by New Jersey and New York were dismissed this year.
- Lawsuits in California and Hawaii are still ongoing.
- The U.S. Supreme Court refused to dismiss climate lawsuits in 2024.
States With Climate Targets Could Be Affected
As of now, 14 states have set net-zero targets to reduce emissions by midcentury. These include large states like California, New York, and Illinois. The new executive order could challenge their ability to enforce those goals.
States like California also require companies to report their climate risks. These climate disclosure rules could also be blocked by Trump’s order.
ESG Policies in the Crosshairs
The order also mentions ESG rules. These are policies that consider environmental and social factors when making business or investment decisions.
Since 2021, at least 41 states have introduced ESG-related laws. Twenty states have passed anti-ESG laws. These laws try to stop the use of ESG factors in investments.
Only 8 states have passed pro-ESG laws, which support clean energy and responsible investing. Trump’s order may be used to block pro-ESG laws or stop investors from avoiding fossil fuel companies.
A Shift in Federal Climate Policy
Trump’s action marks a big change from the previous administration. Under President Biden, the U.S. supported climate action:
- Biden kept the U.S. in the Paris Climate Agreement.
- The Securities and Exchange Commission (SEC) defended rules on climate risk reporting.
- Federal agencies joined global climate networks.
Trump’s administration has done the opposite, and it has:
- Pulled the U.S. out of the Paris Agreement again.
- Paused federal funding for many climate programs.
- Stopped defending the SEC’s climate rules in court.
READ MORE: Donald Trump Exits Paris Agreement, Again: What It Means for the U.S. and the World?
What Happens Next?
It’s still not clear how much power the executive order will have. Attorney General Bondi will likely face legal challenges from other states. Courts will have to decide if the federal government can stop states from enforcing climate rules.
In the meantime, states say they won’t back down. They plan to keep fighting climate change and protecting their rights.
Trump’s new executive order has opened a new chapter in the fight over climate change in the U.S. It could reshape how states create and enforce environmental laws. The oil and gas industry supports the move, but many states and legal experts are ready to push back.
- FURTHER READING: Trump’s New Tariffs Wipe Out $2.5 Trillion: How Can It Stall America’s Clean Energy Future?
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