A wave of policy and market uncertainty under the Trump administration has triggered the cancellation of nearly $8 billion in clean energy investments in the United States during the first quarter of 2025, according to a report by the clean energy business group E2.
This sharp reversal marks a dramatic increase in project cancellations, surpassing the total value of canceled investments over the past two-and-a-half years combined. The group attributes the downturn to growing concerns over federal support for green energy, including potential cuts to key tax credits and the effects of protectionist trade policies on supply chains.
In just three months, 16 major clean energy projects—such as factories and infrastructure developments—have been canceled, scaled down, or shut, affecting an estimated 7,800 jobs. This job loss exceeds the total number of cancellations in the clean energy sector from 2022 to 2024.
“Clean energy companies still want to invest in America,” said Michael Timberlake, Communications Director at E2, “but uncertainty over Trump administration policies and the future of critical clean energy tax credits are taking a clear toll.”
Despite these setbacks, investment announcements continue, though at a much slower pace. In March, companies unveiled around $1.6 billion in clean energy projects across six states, focused on solar energy, electric vehicles, and grid infrastructure. However, these investments are being dwarfed by the volume and value of cancellations.
February and March alone saw 13 projects worth over $5 billion canceled or downsized. Notable examples include Bosch scrapping a $200 million hydrogen fuel cell plant in South Carolina and Freyr Battery canceling a $2.5 billion battery facility in Georgia.
Ironically, Republican districts—many of which had benefitted most from the clean energy incentives established under the Biden administration—have experienced the largest losses. E2 reported that over $6 billion in investments and 10,000 clean energy jobs have been canceled in these areas so far in 2025.
The uncertainty has also affected long-term industry projections. A new report from energy consultancy Wood Mackenzie slashed its five-year forecast for U.S. wind power installations by 40%, cutting expected capacity growth from 75.8 gigawatts to just 45 gigawatts. The firm cited shifting U.S. energy policies and rising economic risks.
“Current projects that are under construction will likely complete, but announced projects will face greater challenges as developers reassess their strategies and project economics,” said Stephen Maldonado, an analyst at Wood Mackenzie.
Even projects already underway are feeling the pressure. This week, the Department of the Interior suspended construction on the Empire Wind offshore wind farm in New York, led by Equinor. The agency said the project might have been approved without a proper environmental review.
As debate continues in Congress over the fate of clean energy tax incentives, the sector faces a turning point. Advocates warn that without clearer policy support and stable regulations, more projects may be canceled, stalling America’s clean energy transition.
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