U.S. threatens to leave International Energy Agency over unrealistic green transition push
07/20/2025 / By Laura Harris
The United States may exit the International Energy Agency (IEA) unless the organization reforms what U.S. officials call biased, overly optimistic green energy forecasts that diverge from its original energy security mission.
Created in 1974 to ensure oil supply stability after the 1973 oil embargo, the IEA has expanded its focus over the decades to include renewables, energy efficiency and climate transition planning, especially after the Paris Agreement.
Energy Secretary Chris Wright argues the IEA has become an advocate for climate policy rather than a neutral forecaster, calling its oil demand projections methodologically flawed and warning they may undermine traditional energy investment.
As the IEA’s largest funder (25 percent of the budget), a U.S. withdrawal could trigger a legitimacy crisis, disrupt emergency coordination and fragment international energy governance, potentially giving rise to rival institutions.
The loss of U.S. support could erode trust in IEA forecasts, heighten market volatility and complicate capital allocation across energy sectors, leaving investors grappling with conflicting signals and long-term strategic uncertainty.
https://www.climate.news/2025-07-20-us-leave-iea-over-unrealistic-green-transition.html
