US emissions rose 2.4% in 2025, reversing a two-year decline and breaking a three-year streak in which economic expansion outpaced emissions growth, a new report found.
The main drivers of the emissions increases were commercial buildings and the power sector, according to estimates by the Rhodium Group, a research firm. Harsh winters boosted heating demand, pushing fossil fuel emissions up 6.8%. Data centers and other large-load customers were the biggest contributors to higher electricity use, and that coupled with higher natural gas costs made it more economic for utilities to turn to coal, leading power plants to burn 13% more coal than they did in 2024.
Fossil-fuel-friendly policies from the Trump administration played only a minor role, mainly by keeping a few coal plants running through Department of Energy orders. But Rhodium warns this could shift in the next couple of years as data center demand rises and the grid leans more heavily on existing fossil generation.
On a brighter note, solar was the fastest-growing power source in 2025, surging 34%, its highest growth rate since 2017. And transportation emissions were largely flat despite record travel activity thanks to the proliferation of EVs.
