US power sector CO2 emissions jumped 4% in 2025, just as SBTi opens its net-zero standard for comment

U.S. power sector carbon dioxide emissions rose 4%, or 58 million metric tons, in 2025, the U.S. Energy Information Administration reported on July 21. The increase was driven by record electricity generation, a sharp rebound in coal use, and accelerating demand from data centers and manufacturing facilities. Total energy-related CO2 emissions in the U.S. climbed 2%, or roughly 115 million metric tons, over the same period, according to Utility Dive's reporting on the EIA data.

The numbers land at an operationally inconvenient moment for power companies. The Science Based Targets initiative opened a second public consultation on its dedicated Power Sector Net-Zero Standard on July 15, and the comment window closes August 31, 2026. Utilities that have been watching from the sidelines now face a concrete deadline to either engage with the emerging rules or cede the standard-setting floor to others.

What drove the 2025 emissions increase

Net generation in the electric power sector surpassed 2024's record annual output, rising 3%, or 119 terawatthours, according to the EIA. Three forces converged: an unusually hot summer that set record peak demand for space cooling, continued build-out of energy-intensive manufacturing, and rapid expansion of data center load. Each of those demand drivers is structural rather than weather-dependent, which means the generation pressure is unlikely to reverse quickly.

Coal carried a disproportionate share of the additional generation. Coal-fired output jumped 13% in 2025, adding 78 million metric tons of CO2 to the power sector's total, as reported by Utility Dive. Natural gas generation fell 4%, trimming 23 million metric tons, but that reduction was not enough to offset coal's contribution. The net effect pushed power sector emissions to their highest level in recent years.

The sector's weight in the global picture is already substantial. The power sector accounts for nearly 40% of global energy-related CO2 emissions, according to figures the Science Based Targets initiative cites from the International Energy Agency. That share, combined with the sector's role as an enabler of electrification across transportation, buildings, and industry, makes it the highest-leverage point in any credible net-zero pathway.

SBTi's second consultation and what changed

The SBTi's updated Power Sector Net-Zero Standard draft reflects input from more than 120 stakeholders who participated in the first public consultation. The second draft aligns with the Corporate Net-Zero Standard V2.0, sharpens the scope of activities and emissions covered, and refines target-setting pathways, according to the SBTi. The initiative describes the changes as making science-based target setting more practical and actionable for power companies while preserving the scientific rigor that underpins its validation process.

Consultation materials include the main standard draft, a target-setting tool in spreadsheet form, a pathways specification document, and a pathways derivation document. All are available on the SBTi website. Feedback is submitted through a SurveyMonkey form, and the SBTi has published terms of reference for the project that detail governance and scope for companies wanting a fuller picture before they weigh in.

The draft standard is notable for its operational specificity. Rather than applying generic corporate net-zero logic to electricity companies, it attempts to reflect how utilities, independent power producers, and integrated energy companies actually operate across generation portfolios, grid services, and long-lived asset bases. For procurement and sustainability leaders building multi-year capital plans, the sectoral granularity matters: the final standard will likely become a reference point in RFPs, bond covenants, and supplier qualification frameworks.

Why the consultation window matters for operations teams

More than 11,000 companies globally have set science-based targets through the SBTi, according to the initiative. Those companies cite long-term competitive advantages as a key benefit, a claim that resonates differently now that the EIA has documented a sector-wide emissions reversal. Companies with validated targets and credible reduction plans are better positioned in procurement bids, regulatory discussions, and financing conversations where counterparties increasingly require emissions transparency.

For utilities and power-sector operations leaders, the August 31 deadline is both a compliance planning signal and a design opportunity. SBTi recommends that companies use the existing Quick Start Guide for Electric Utilities to set near-term targets while the Power Standard finalizes. Targets set under the current guidance are designed to be compatible with the incoming standard, reducing the rework risk. Companies that engage in the consultation also get advance visibility into the final requirements, a practical advantage when capital plans span decades.

What this means for your team

• Review the SBTi Power Sector Net-Zero Standard second consultation draft before August 31 and submit formal feedback through the SurveyMonkey portal, particularly on target-setting pathways that affect your generation mix or long-lived asset strategy.
• Map the EIA's 2025 emissions data against your own reported figures to identify whether your sector-level emissions performance is tracking ahead of or behind the power sector average, and document the gap for your next ESG disclosure cycle.
• Use the Quick Start Guide for Electric Utilities to set or update near-term science-based targets now; SBTi has confirmed these targets will be compatible with the final Power Standard, reducing revalidation costs.
• Evaluate whether data center and manufacturing electrification contracts in your demand portfolio are factored into your emissions intensity trajectory, since the EIA data flags these load categories as a primary driver of the 2025 increase.