25.07.2025, 06:34
Investments in the US green energy sector have declined, the study showed
Source: OREANDA-NEWS
OREANDA-NEWS Investments in the implementation of renewable energy (REI) projects decreased by $ 22 billion in the first half of the year amid the adoption of the tax bill proposed by US President Donald Trump, which cancels benefits for companies in the green energy sector, the American research group E2 found out together with analysts from Clean Economy Tracker.
"Companies canceled, closed and reduced investments in the construction of new plants and the development of renewable energy projects worth more than $ 22 billion in the first half of 2025, only $ 6.7 billion of this amount accounted for the cancellation of projects in June, according to the latest analysis by E2 and Clean Economy Tracker," the release says.
"The latest wave of cancellations, affecting five battery, energy storage, and electric vehicle plants in Colorado, Indiana, Michigan, New York, and Oregon, followed growing uncertainty among businesses as Congress took final steps to effectively end federal tax breaks for the green energy sector." it is added there.
The abolition of tax incentives for the green energy sector led to job cuts of more than 5,000 units in June, and in total in 2025, due to the cancellation of renewable energy projects, the labor sector decreased by 16,500 jobs, the publication notes.
At the same time, the decrease in investments in June was mainly due to the cancellation of initiatives in the transport sector. For example, General Motors canceled a $4.3 billion project to expand the Orion plant in Michigan to produce new electric pickups, according to the study. Instead of implementing this plan, the company decided to invest in the production of gasoline cars.
"Companies canceled, closed and reduced investments in the construction of new plants and the development of renewable energy projects worth more than $ 22 billion in the first half of 2025, only $ 6.7 billion of this amount accounted for the cancellation of projects in June, according to the latest analysis by E2 and Clean Economy Tracker," the release says.
"The latest wave of cancellations, affecting five battery, energy storage, and electric vehicle plants in Colorado, Indiana, Michigan, New York, and Oregon, followed growing uncertainty among businesses as Congress took final steps to effectively end federal tax breaks for the green energy sector." it is added there.
The abolition of tax incentives for the green energy sector led to job cuts of more than 5,000 units in June, and in total in 2025, due to the cancellation of renewable energy projects, the labor sector decreased by 16,500 jobs, the publication notes.
At the same time, the decrease in investments in June was mainly due to the cancellation of initiatives in the transport sector. For example, General Motors canceled a $4.3 billion project to expand the Orion plant in Michigan to produce new electric pickups, according to the study. Instead of implementing this plan, the company decided to invest in the production of gasoline cars.
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