President Donald Trump’s declaration of a “national energy emergency” in early 2025 has sent ripples across the global energy landscape. His aggressive push to expand fossil fuel production under the slogan “drill, baby, drill” is not just reshaping domestic policies but also influencing international energy strategies. As the U.S. ramps up oil and gas extraction, other nations and corporations are reconsidering their commitments to climate goals.
The UN climate summit in 2023 ended with a call to transition away from fossil fuels, a moment hailed as a historic step in global climate action. However, less than two years later, that momentum appears to be slowing. While investments in clean energy have surpassed $2 trillion globally, their growth has begun to taper off. At the same time, fossil fuel consumption continues to rise, fueled in part by shifts in U.S. policy under Trump’s leadership.
Countries that have long struggled with balancing economic growth and climate commitments are taking note. In Indonesia, officials have questioned the fairness of international climate agreements, particularly when major polluters like the U.S. withdraw from them. Special envoy Hashim Djojohadikusumo pointed out that Indonesia produces far less carbon per capita than the U.S. yet is expected to cut back on emissions while the world’s largest economy expands its fossil fuel production. In Argentina, President Javier Milei has expressed intentions to withdraw from the Paris Agreement, echoing Trump’s rhetoric and pushing for increased oil and gas production.
The corporate world is also reacting. Norwegian energy giant Equinor recently announced that it would cut its investments in renewables over the next two years while increasing fossil fuel production. BP is expected to make similar moves, reflecting a broader industry shift driven by changing global priorities.
Trump’s ambition to export “American energy all over the world” is already materializing in strengthened partnerships with key allies. India has agreed to significantly boost imports of U.S. oil and gas, reinforcing its energy security while reducing dependence on other suppliers. Japan and South Korea, both major importers of liquefied natural gas, have signaled similar intentions, diversifying their energy sources while aligning with Trump’s push for expanded fossil fuel exports.
This shift raises pressing questions about the future of global climate commitments. While the Trump administration argues that boosting fossil fuel production will lower costs and enhance economic stability, environmentalists warn that it could derail progress toward reducing emissions. Scientists have long stated that no new fossil fuel extraction should occur if the world is to stay within the 1.5°C warming limit set by the Paris Agreement. Yet, with the U.S. accelerating its oil and gas output, other nations may follow suit, making global decarbonization efforts even more difficult.
Trump’s energy policies are not just about America’s energy future—they are shaping the direction of the entire global energy market. By prioritizing fossil fuels and retreating from climate agreements, the U.S. is providing both the economic incentive and political cover for other countries to do the same. Whether this shift proves to be a short-term setback or a lasting change remains to be seen, but its effects on the climate and international energy policies will be felt for years to come.
