We are officially in the find out stage of Trump’s attack on climate investment.
When the Trump administration came into office, to say climate activists were concerned was putting it mildly. But many authorities tempered the dread, predicting that climate advancements and investments might slow but wouldn’t come to a complete halt.
But that optimism may have been…umm, misplaced. New research shows just how much climate advancement is being stymied within the first three months of the Trump administration. And that slowdown could have an impact for CFOs. Delayed solar, wind, and other clean energy projects could disrupt companies’ climate procurement timeline goals, prompting CFOs to reevaluate climate investments in the future.
Bottoming out. Between January and March, 16 large-scale clean energy projects along with other smaller projects, amounting to $8 billion in investment, were abandoned, according to E2, a nonprofit advocacy and research group of climate-conscious business professionals. That’s triple the amount of clean energy investment canceled in the previous three years. In February and March alone, 13 projects were canceled or downsized.
Among the stalled projects is Empire Wind 1, an offshore wind project along the coast of Long Island that would power 500,000 homes with 54 wind turbines. Earlier this month, Interior Secretary Doug Burgum ordered construction to pause while the Trump administration reviewed the permitting documentation. He claimed the Biden administration didn’t do its due diligence reviewing the project.
News built for finance pros
CFO Brew helps finance pros navigate their roles with insights into risk management, compliance, and strategy through our newsletter, virtual events, and digital guides.
Other projects canceled in the past three months include a $200 million hydrogen fuel cell factory expansion in South Carolina and a $2.6 billion Freyr battery factory in Georgia. (To be fair, Freyr said it was pivoting to focus on solar cell production after the company acquired a solar manufacturing facility in Texas). According to E2’s analysis, the total canceled projects in the first quarter of 2025 would have created 7,800 new jobs in the clean energy sector.
What’s behind the course reversal? It’s the two buzzwords of 2025—tariffs and uncertainty. Most of the materials for wind farms, solar panels, and electric cars are imported. Only 30% of wind turbine blades are manufactured domestically. Asia produces most of the solar components for US solar projects, and China, responsible for 95% of polysilicon wafers, got slapped with a 145% tariff.
Secondly, uncertainty on the federal clean energy tax credits created by the Inflation Reduction Act is also fueling the pullback. The credits helped drive $493 billion in clean energy investments from 2022 to 2024. But President Trump has repeatedly floated repealing the entire IRA. Although most experts think that’s unlikely, 21 Republican lawmakers recently wrote a public letter urging the president to preserve the tax credits that have largely helped red districts.
Look who supports clean energy now.