US: Trump’s Policies Push Green Energy to Its Lowest Point

Renewable energy sources in the US are experiencing a sharp decline due to policies enacted by the new administration. Donald Trump’s longstanding opposition to the sector, particularly wind farms, has been well-documented for years. During his first presidential term, he made several decisions affecting renewable energy. However, this time around, the situation appears much worse, threatening billions of dollars in investments and countless jobs. The White House is primarily targeting tax breaks and subsidies offered for these projects. Currently, there are various scenarios regarding the allocation of funds. One idea is to redirect them towards fossil fuel units, while another proposal suggests using them to reduce public debt. Meanwhile, high tariffs on products from China and other East Asian countries are drastically increasing the cost of solar parks. The previous administration doubled tariffs on Chinese systems, and now Trump’s additional tariffs, along with increased costs of imported steel and aluminum, negatively impact installations. The effects of these actions are already evident just three months into Trump’s leadership: Estimates report project cancellations totaling approximately $8 billion so far and a loss of about 10,000 jobs. Additionally, authorities abruptly halted construction of the large offshore wind farm Empire Wind off New York, developed by Norway’s Equinor. This development is significant as it indicates Trump might turn against mature projects. Based on recent developments, analysts at Wood Mackenzie now predict a 40% drop in renewable energy installations over the next five years, although they note the industry won’t ‘die.’ Lastly, it’s highly likely that renewable energy companies will take legal action against Washington’s decisions, questioning their legality in several cases.