WASHINGTON — A new report from the Progressive Policy Institute (PPI) finds that Pennsylvania has made significant progress reducing carbon emissions while maintaining energy affordability, but warns that the next phase of decarbonization will be more complex, costly, and politically challenging. Authored by Neel Brown, Managing Director at PPI, and John Kemp, an internationally recognized energy markets expert, “Pennsylvania’s Energy Crossroads: Charting a Pragmatic Path to Decarbonization,” outlines a strategy grounded in economic reality, technological flexibility, and energy reliability.
Pennsylvania has reduced emissions faster than the national average, largely due to a market-driven shift from coal to natural gas. Emissions fell from 276 million metric tons in 2005 to 201 million in 2023, a decline of 1.9% annually compared to 1.2% nationwide. At the same time, energy costs for residents remain below the national average, underscoring the importance of affordability in sustaining public support for climate action.
“Pennsylvania’s progress shows that durable emissions reductions are most effective when driven by markets and innovation, not rigid mandates,” said Brown. “The state has already captured the ‘low-hanging fruit’ of decarbonization. The next phase will require a more pragmatic strategy that balances climate ambition with economic competitiveness.”
The authors highlight that Pennsylvania’s emissions profile has shifted significantly. The industrial sector is now the largest source of emissions, followed by transportation and then electric power, which has already seen substantial reductions. This shift requires policymakers to rethink priorities and focus on sectors that are harder to decarbonize.
The authors also note that Pennsylvania’s electricity system remains heavily dependent on natural gas and nuclear power, which together provide a stable and affordable energy foundation. However, rising demand from data centers and capacity constraints in the Pennsylvania-New Jersey-Maryland region are beginning to put upward pressure on electricity prices, signaling new challenges ahead. Pennsylvania Gov. Josh Shapiro has proposed ambitious legislation to continue reducing emissions, but on a path that is more suitable to Pennsylvania’s unique energy profile. This approach reflects the kind of pragmatic, state-specific policymaking the report recommends.
To navigate this transition, the authors outline three core principles for policymakers:
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Media Contact: Ian O’Keefe – iokeefe@ppionline.org
