Green energy developers canceled $1.4 billion in projects in May as President Donald Trump and Senate Republicans move to bulldoze former President Joe Biden’s climate agenda, according to data from the green energy group E2.
The number of abandoned projects in just the first five months of 2025 doubles the project cancellations in all of 2024; more than $15 billion in green energy investments have been canceled so far this year, according to E2 data. The industry is under duress as the Trump administration reverses Biden-era policies favoring industries like offshore wind and solar, and Congressional Republicans consider rolling back and phasing out green energy tax credits.
“The consequences of continued policy uncertainty and the expectation of higher taxes on clean energy businesses are becoming painfully clear,” Michael Timberlake, a spokesperson for E2, told the Daily Caller News Foundation. (RELATED: Billions In Green Projects Up In Smoke As Trump, GOP Slice Up Dems’ Climate Largesse)
Biden signed on his signature Inflation Reduction Act (IRA) in August of 2022, which spurred green energy projects with billions in tax credits and subsidies that Trump and several GOP Senators would like to void. Though Democrats initially touted the IRA as a way to reduce inflation, Biden later admitted it was a vehicle to advance his climate agenda; by contrast, Trump’s energy policies have incentivized and cleared red tape for more conventional energy source industries like coal.
The IRA credits are now subject to change as Republicans in Congress advance the GOP’s major reconciliation package.
Carving out protections for IRA green energy credits would run counter to Trump’s energy goals and will lead to a weaker electrical grid, policy experts previously told the DCNF. As Senate Republicans rush to meet Majority Leader John Thune’s July 4 goal, numerous GOP senators have expressed their desire to salvage or adjust some tax credits that House Republicans looked to limit in May.
Since Republicans currently hold 53 Senate seats, just four defecting lawmakers would be enough to block the reconciliation package.
The “one big, beautiful bill” can still be adjusted, though it currently allows for phase-outs of green energy tax credits that could pave the way for an indefinite continuation, at least for some subsidies, energy sector experts previously told the DCNF.
“I HATE ‘GREEN TAX CREDITS’ IN THE GREAT, BIG, BEAUTIFUL BILL,” Trump wrote in a Saturday afternoon post to Truth Social. “They are largely a giant SCAM. I would much prefer that this money be used somewhere else, including reductions. ‘Anywhere’ would be preferable!”
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