The United States, poised to lead the global clean energy revolution, faces a potential setback that could derail its progress and bolster China’s dominance.
According to a new report, former President Donald Trump’s proposed reversal of key climate policies could divert billions in investment, cost jobs, and diminish America’s standing in clean energy innovation.
Under President Joe Biden, landmark policies such as the Inflation Reduction Act (IRA), the Chips Act, and the Bipartisan Infrastructure Law have spurred a surge in clean energy manufacturing and job creation.
The IRA alone has been credited with generating over 300,000 new jobs and driving $150 billion in investment, largely in Republican districts.
These measures have laid the foundation for the U.S. to compete globally in producing electric vehicles, batteries, and renewable energy technologies.
However, Trump’s pledge to dismantle these initiatives—labeling them as wasteful—could undermine the progress.
Analysts warn that repealing these policies may push $80 billion in investment overseas and lead to $50 billion in lost exports.
China gains as U.S. clean energy initiatives face political threats and uncertainties.American firms risk falling behind, becoming reliant on foreign suppliers, and surrendering market share to competitors like China, South Korea, and European nations.
Bentley Allan, a policy expert from Johns Hopkins University, highlighted the stakes: “The energy transition is inevitable… if we exit the competition, it will be very difficult to re-enter.”
While the Biden administration has championed renewables, Trump’s agenda focuses on fossil fuel dominance, including expanded drilling and cuts to renewable subsidies.
Even with political challenges in undoing Biden-era initiatives, the threat to America’s clean energy leadership is significant.
Meanwhile, China’s steady investments and skepticism of U.S. policy shifts position it advantageously in the global market.
Despite these risks, clean energy’s economic viability offers resilience. Renewables like solar, whose costs have plummeted by 90% over the past decade, are growing at record rates.
While Trump’s deregulation efforts might paradoxically accelerate some clean energy projects, the overall momentum depends on consistent policy support.
As global climate talks at COP29 unfold, the world watches whether the U.S. can sustain its clean energy progress or if a policy reversal will hand leadership to others, reshaping the future of the global energy landscape.