The latest report from the Sierra Club paints a sobering picture of the U.S. utility sector’s transition to clean energy. The Biden administration set an ambitious goal for the U.S. power sector to fully decarbonize by 2035. However, the report finds that the 50 utility parent companies with the most significant fossil fuel investments are only on track to reach 52% clean energy by that deadline.
The Sierra Club analysis suggests that the gap between current plans and the federal decarbonization goal could delay efforts to mitigate climate change impacts.
Decarbonization Dreams or Delays?
The Biden administration set a clear target in early 2021, aiming for the U.S. power sector to achieve net-zero emissions by 2035. Achieving this target is crucial for limiting global warming and avoiding the most severe consequences of climate change.
However, the Sierra Club’s report reveals that utilities currently relying heavily on coal and natural gas are not on track to meet these goals. Instead, many of these companies plan to add significant new natural gas capacity, totaling 93 gigawatts (GW) by 2035.
This expansion is reflected in data from S&P Global Commodity Insights, which indicates an increase in planned natural gas projects in the U.S. As of September 2024, 148 new natural gas-fired power plants were either announced or under development, up from 133 projects recorded in late April.

This growing investment in natural gas raises concerns about the power sector’s ability to transition away from fossil fuels. It can also impact if the sector can meet its 2035 clean energy target.
Utility Report Card: Who’s Leading, Who’s Failing?
The Sierra Club’s report evaluates a wide range of utilities, including investor-owned utilities, public power providers, cooperatives, and large municipal utilities. The analysis focuses on three key metrics:
- plans for phasing out coal by 2030,
- halting the construction of new natural gas plants by 2035, and
- scaling up clean energy resources by 2035.
Utilities were graded on their progress, with several prominent companies receiving failing marks. Among those receiving an “F” rating were Southern Co., PPL Corp., and Duke Energy Corp.

According to the Sierra Club, these companies have made inadequate progress toward their decarbonization goals and continue to invest in fossil fuel infrastructure. Xcel Minnesota, on the other hand, gets an “A” for its clean energy transition plan.
While some utilities acknowledged the findings of the report, they emphasized the complexities of transitioning to a cleaner energy mix.
For example, Duke Energy spokesperson Madison McDonald acknowledged the challenges ahead, noting that the company aims to reduce carbon emissions by at least 50% by 2030, compared to 2005 levels, and reach net-zero emissions by 2050. McDonald highlighted the importance of balancing short-term fluctuations in emissions as the company retires coal plants and brings new energy sources online.
When State Policy Clashes with Climate Ambitions
The Sierra Club’s analysis also highlights instances where utilities have rolled back previously announced climate targets. FirstEnergy Corp., for example, announced in late 2023 that it would not meet its goal of reducing greenhouse gas emissions by 30% by 2030. The company cited state policies as a significant factor, explaining that it had to extend the operations of its two coal-fired plants in West Virginia to align with local energy policy priorities.
FirstEnergy’s spokesperson, Tricia Ingraham, pointed to West Virginia’s support for maintaining coal generation, emphasizing that reducing coal-fired output for environmental reasons would be inconsistent with state energy policy. This scenario underscores the tension between federal climate goals and state-level policies, which can complicate the path to decarbonization.
Clean Energy Momentum and Barriers
Despite the challenges highlighted in the report, there are some positive trends in the U.S. power sector’s transition to clean energy. According to the U.S. Energy Information Administration (EIA), over 40% of U.S. electricity currently comes from carbon-free resources. These include renewables like wind and solar, as well as nuclear energy.

This is also echoed by Sarah Durdaller, a spokesperson for the Edison Electric Institute. Durdaller emphasized that achieving the 2035 target will require collaboration between environmental groups, industry leaders, and government entities to overcome obstacles such as building transmission infrastructure.
Another study by the Pacific Northwest National Laboratory (PNNL) suggests that completing 12 high-voltage electric transmission projects in the US West could significantly cut carbon emissions, reducing power-sector emissions by 73% from 2005 levels by 2030.
The study emphasizes the importance of renewable energy and improved transmission infrastructure in achieving national climate targets, including President Biden’s goal of a 100% carbon-free power system by 2035. These projects are seen as vital for connecting renewable energy sources to the grid and accelerating the transition to a cleaner energy future.
- Improving grid resilience and expanding transmission capacity are seen as essential steps in making the power sector more sustainable.
Rural Energy Revolution: Will Co-Ops Catch Up?
The report also turned its focus to electric cooperatives, which supply power to many rural communities across the United States. These cooperatives, many of which are still heavily reliant on fossil fuels, generally received low grades in the analysis.
Still, the increase in renewable energy adoption among cooperatives is a sign that even these smaller players are beginning to embrace cleaner energy solutions.
The Sierra Club’s report highlights a significant disconnect between the U.S. utility sector’s current trajectory and the federal government’s 2035 decarbonization goals. While some progress has been made in adding renewable energy capacity, the planned expansion of natural gas generation poses a major hurdle to achieving a fully decarbonized power sector.
The study underscores the need for more ambitious actions and policies to steer utilities away from fossil fuel dependency and toward a cleaner, more sustainable America.
The post Are U.S. Utilities Falling Short of Biden’s 2035 Clean Energy Goals? appeared first on Carbon Credits.
Carbon Footprint
The Strategic Case for Nature-Based Carbon Investments
Nature-based carbon investments deserve consideration when they address a specific business dependency and produce outcomes you can measure. Imagine Moonbucks, a global coffee roaster planning next season’s espresso blend. It is considering natural Grade 4 coffee from Jimma, in southwestern Oromia, Ethiopia. Its sourcing decisions affect the roasting schedule and the cash tied up in coffee purchases. Moonbucks needs to understand which measures could protect that supply, what they would cost and how it would judge the results.
1. Define the sourcing problem before choosing a project
Moonbucks needs a dependable component for its espresso blend. Its procurement team wants continuity of volume and an agreed cup profile. Replacing a shipment at short notice could require new sample approval and changes to the blend, and given the schedules for cultivation, processing, and freight delivery, is practically impossible. Moonbucks needs to get this right, and its initial concern is inconsistent deliveries. It commissions an assessment of the supplying farms and post-harvest chain. The questions cover land condition, harvest availability and whether drying or storage problems are affecting saleable lots.
This distinction changes the investment brief. A tree-planting proposal cannot be assumed to fix drying problems. Better storage cannot restore eroded land. The team must establish which problem exists before selecting the response.
CCC’s guide to finding nature-based solutions in your supply chain explains where to look. Here, the next task is to turn a broad concern into a testable proposal.
2. Develop nature-based carbon investments around the actual supply chain
The assessment would trace Moonbucks’ purchases back through the exporter and supplying producer groups. Which farms supply the contracted lots? Who controls land-management decisions? How long does the buyer expect to maintain the purchasing relationship?
Furthermore, Jimma natural Grade 4 cannot be treated as interchangeable with every Ethiopian coffee. Moonbucks would need to test any substitute against its own blend and quality requirements.
Suppose Moonbucks’ assessment identifies an opportunity to maintain shade trees and restore vegetation along exposed streambanks. The IPCC describes agroforestry as a way to store carbon in vegetation and soil, with potential benefits for erosion control and water quality.1 Moonbucks would need local advice on species, growing conditions and maintenance before deciding how these measures fit its sourcing plan.
The proposal now has a defined sourcing connection and a candidate intervention. The next steps are to test its effect on production, assess carbon eligibility and build the financial case.
3. Compare the proposal with other ways to protect supply
WBCSD’s Nature-based Solutions Blueprint recommends comparing nature-based options with other responses across their benefits and costs.2 For Moonbucks, that means evaluating the landscape proposal alongside drying improvements, storage controls and alternative sourcing arrangements.
The product’s natural-process designation matters. Moonbucks should examine the drying and dry-milling chain alongside land conditions. Its team would check storage practices, contamination risks and incoming-lot quality to see whether problems arise before or after the coffee leaves the farms.
The revised proposal might combine land stewardship with separate post-harvest controls. Each component needs its own purpose and budget. A sustainability label should not obscure which activity is expected to solve which problem.
The project develops as the evidence improves. Its scope should follow the diagnosis rather than preserve the first idea unchanged.
4. Establish what the carbon outcome could count toward
Moonbucks’ sustainability team now tests the proposed carbon case separately from the sourcing case. Is the objective a measurable change in Moonbucks’ value-chain emissions, verified credits for separate voluntary use, or distinct outcomes under carefully defined arrangements?
Scope 3 covers value-chain emissions. A purchasing relationship alone does not prove that a farm intervention can be included in Moonbucks’ inventory. The team needs an applicable accounting method, defensible boundaries and evidence supporting attribution.
SBTi’s FLAG Guidance (forest, land and agriculture), version 1.2, says purchased credits used as offsets cannot meet near-term FLAG or energy and industry targets. Eligible land-based removals are subject to accounting requirements.3 Moonbucks needs to test its proposal against those rules before including an outcome in its targets.
For Moonbucks’ Jimma proposal, maintaining existing trees and establishing new vegetation could involve different carbon questions. Specialists must examine the baseline and additionality, meaning what changes because the project proceeds. They must also assess measurement and the risk that stored carbon is lost. CCC’s MRV and additionality article introduces those tests.
Until that work is complete, Moonbucks should not budget an assumed Scope 3 reduction or credit-sale receipt. Direct emissions reductions remain the priority.
5. Build a financial case that survives weaker assumptions
Moonbucks’ finance team would now build a multi-year budget. UNEP’s State of Finance for Nature 2023 compares current finance with the investment needed to meet climate, biodiversity and land-restoration goals.4 The company would cost its proposed activities, farmer participation and ongoing monitoring. Verification, where required, is a separate expense. Maintenance and responsibility for replacing failed plantings must remain visible after the initial establishment budget ends.
Operational benefits need equally careful treatment. If fewer rejected lots reduce emergency purchasing, count that saving once. Do not add “supply resilience” as another financial benefit when it represents the same avoided cost.
Moonbucks should compare a base case with slower benefits, higher implementation costs and no carbon revenue. It should also distinguish production outcomes from quality and shipment outcomes. A single good harvest would not prove that the landscape intervention caused better delivery performance.
A project can remain worth funding even when its carbon case needs more work. That decision must rest on the operational evidence and the company’s objectives, without unsupported environmental claims.
6. Fund a pilot with a clear expansion decision
Moonbucks’ first approval would fund a bounded pilot, rather than commit the entire sourcing program. Before spending, Moonbucks would agree on participating farms, responsibilities and the evidence needed at review.
Its scorecard could track farmer participation, implementation costs and plant survival, alongside accepted coffee volumes and lot-quality results. Carbon measurements would follow the selected method. Farm-level traceability must connect the intervention to the actual sourcing relationship.
Suppose Moonbucks’ review later finds that storage changes explain most quality improvements, while the land measures need longer observation. Those findings would shape the next decision: expand the proven component, adjust the landscape work or pause further spending. They would not justify crediting all improvements to tree planting.
This gives nature-based carbon investments a practical place in a multi-year strategy. Funding increases as the evidence supports it, and the project can change direction before a larger commitment.
Discuss a sourcing opportunity with CCC
Carbon Credit Capital’s nature-based supply-chain investment service uses its Dual-Value Model to examine supply-chain economics alongside potential sustainability outcomes.
Schedule a consultation to discuss your sourcing exposure and the questions to resolve before allocating capital.
Sources
- Intergovernmental Panel on Climate Change (IPCC), Climate Change 2022: Mitigation of Climate Change, Chapter 7, Agriculture, Forestry and Other Land Uses, section 7.4.3.3 (Agroforestry).
- World Business Council for Sustainable Development (WBCSD), Nature-based Solutions Blueprint, 5 June 2024.
- Science Based Targets initiative (SBTi), Forest, Land and Agriculture Science-Based Target-Setting Guidance, version 1.2, March 2026, section 3.1.4, pp. 37–38.
- United Nations Environment Programme (UNEP), State of Finance for Nature 2023, 2023.
Carbon Footprint
How to buy plastic credits, and what to check before you do
A plastic credit funds the collection of plastic waste in places where no formal system exists to collect it. Each credit represents a measured, independently audited quantity of plastic taken out of the environment or returned to use, tracked on a public registry.
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Carbon Footprint
EU carbon credit claims after 27 September 2026
EU carbon credit claims changed on 27 September 2026, the day the Directive (EU) 2024/825 began to apply across the European Union. The change is narrow. It changes how a company can talk about the credits it buys. A product can no longer be called neutral on the strength of compensation alone; however, every specific, evidenced statement about what a company measured, reduced, and funded stays fully available.
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