The energy transition
fossil fuel output under his new executive order titled ‘Unleash American Energy’ (Chu and Smyth, 2025). These decisions mean renewable energy-related manufacturers including EV battery makers will find federal funding much more difficult to access. This in turn increases the risk of stranded capital that has been tied down with green projects as they may lack the funding to keep them going, which discourages further investment, stalling (necessary) long-term innovation. One of Trump’s most significant actions was to unpick the Inflation Reduction Act, which Biden passed in 2022 (National Association of Counties, 2024). The IRA was the largest investment for climate action in American history, allocating $369 billion to clean energy and climate projects, in an effort of getting the US as close to net-zero by 2050 (Shah, 2025). The IRA was crucial in funding advanced and expensive projects such as carbon capture and storage technologies which would not have otherwise been financially feasible (Shah, 2025). Under the IRA, the private sector announced at least 210 significant green projects across the US which would create up to 75,000 jobs and attract $86.3 billion into the economy if they came to fruition (Environmental Entrepreneurs, 2024), therefore highlighting the immense benefits that the IRA could have rewarded the US, but Trump’s decision to reverse this act stalls the green potential of the US economy. The IRA aimed to make the US more globally competitive in clean energy industries, to try to catch up with world leaders China. If these investments are not resumed, then the US will essentially be ceding market dominance in these industries to China and others. If America wants to lead in the global energy business, they need to be on the hunt for these renewable technologies and continuing research, building and deploying, which is crucial because renewable energy is 30% of the global energy market, according to John Kerry, former Secretary of State of the USA (Khan, 2025). Kerry claims that, as a result of Trump’s attempt to rollback the incentives created by the IRA in the US, China will have free rein to dominate the manufacturing of clean energy products like solar panels and wind turbines. China produces green products of higher quality and in much greater quantity than the US does. If America wants to have worldwide demand and dominance, they cannot simply abandon the US renewable industry (Khan, 2025). ‘The market globally has made its decision to move to a low-carbon, no-carbon economy,’ said Kerry. ‘The market knows it and many CEOs around the world have committed to net-zero 2050, and [although it may be a hurdle] politics is not going to change that commitment.’ This insight from Kerry highlights that, despite the immense power Trump holds and all the climate-wrecking decisions he may choose to make, it is unlikely to cause the energy transition to fail. For example, Texas produces 43% of US oil and yet is simultaneously the largest deployer of wind in America, and Texas is in fact dependent on that wind to balance its power delivery (Statista, 2023). Therefore, political decisions made by Republicans will not mean there is going to be a sudden dismantling or discontinuing of plans involving clean energy, as they already hold huge importance for entire states. Mr. Kerry continued to say that, through investing in climate initiatives, ‘there are a lot of companies making a pretty healthy return on investment. You’re looking at double digit returns . . . and that’s powerful, as more people become aware of the size of this market and the scope of opportunity, I think things are going to start to move faster.’ Therefore, if Trump truly wants to compete with China, he must face the truth that renewable energy is the future, and if the US takes its opportunities correctly, it has a good chance not only of limiting the impacts of global warming, but also of making a lot of money.
40
Made with FlippingBook - PDF hosting