Firms Cancel $8 Billion in Renewables Investment on Trump Policies

U.S. clean energy companies have had to cancel or reduce investments in projects worth $7.9 billion in the first quarter of 2025. This has resulted in over $6 billion in canceled projects and the loss of 10,000 jobs, mainly in GOP-held districts. Despite some projects continuing, the pace of new investment commitments has slowed significantly.

Market and policy uncertainties have led to the cancellation of $8 billion in investments in U.S. clean energy projects during the first quarter of the year. Companies have withdrawn $7.9 billion in investments since January due to the chilling effects of the Trump Administration’s trade policy and attempts to repeal certain green energy incentives, according to the clean energy business group E2. The cancellations in the first quarter alone exceeded the total investments canceled over the previous 30 months. Companies are increasingly worried about the future of federal tax credits for clean energy and the impact of President Trump’s trade and tariff policies on the supply chain for green projects.

In the first three months of 2025, 16 large-scale factories and other projects have been canceled, closed, or downsized due to escalating market uncertainty and discussions in Congress about repealing tax credits and other incentives. While some announcements of green energy investments continue, the number of cancellations far outweighs new investment pledges, with cancellations increasing notably since President Trump took office.

Republican districts, which have benefited most from Biden’s clean energy tax credits, have seen the highest number of cancellations, totaling over $6 billion and more than 10,000 lost jobs. Clean energy companies are still interested in investing in the U.S., but uncertainty surrounding Trump administration policies and the future of critical clean energy tax credits are negatively impacting the industry, according to E2’s Communications Director, Michael Timberlake.

The Trump Administration’s lack of support for clean energy is causing concerns in the industry. While ongoing projects are progressing, commitments to new projects are declining. Wood Mackenzie reported that the U.S.’s wind capacity additions for the next five years have been significantly reduced due to U.S. policy changes and economic uncertainties. The Department of the Interior even ordered the suspension of construction at the Equinor-led Empire Wind offshore project in New York this week, highlighting the challenges facing the clean energy sector.