A new report from Wood Mackenzie warns that a second Trump administration could put $1 trillion in clean energy funding at risk. The report predicts that decarbonization efforts initiated by President Joe Biden could come to a halt, leading to potential cuts in incentives for electric vehicles, green hydrogen, and carbon capture and storage technologies. The report also suggests that fossil fuel generation could increase, making net-zero goals harder to achieve.
Despite Trump’s promises to repeal energy tax credits, the report indicates that a full repeal of the Inflation Reduction Act is unlikely. Changes to production and investment tax credits are also not expected due to bipartisan support. However, the report suggests that certain provisions could be altered to favor fossil fuels over clean energy alternatives.
Potential rollbacks under a Trump administration include the reversal of methane regulations, power plant emissions standards, and transportation emission targets, as well as cuts to various green energy programs. These changes could create a pathway for natural gas and new nuclear capacity to meet power demand.
In other energy news, the U.S. has surpassed five million solar installations, with over half coming online since the start of 2020. Solar Energy Industries Association and Wood Mackenzie predict that solar installations will double to 10 million by 2030. However, concerns over tariffs on Chinese solar products and warnings of potential supply shortfalls in various regions over the summer highlight ongoing challenges in the energy sector.
Microsoft’s emissions have increased by 30% since pledging to go carbon-negative by 2030, largely due to the energy consumption of its data centers for artificial intelligence technology. The company has made progress in reducing Scope 1 and 2 emissions and has increased its portfolio of renewable energy sources.
Chevron is preparing to sell its remaining assets in the North Sea after more than 55 years of operation, a decision that some speculate may be related to potential new taxes in the U.K. A recent bill signed by Florida Governor Ron DeSantis removes references to “climate change” in state law and imposes restrictions on energy regulations and offshore wind projects, drawing criticism from environmental advocates.
