Donald Trump’s Energy Policy: Immediate Implications for Renewable Energy and Cleantech Sectors
On his first day as president, Donald Trump wasted no time in making his mark on the energy industry. Rystad Energy’s Head of New Energies Research, Artem Abramov, notes that Trump’s actions were in line with his campaign promises, particularly in accelerating domestic oil and gas supply and revoking former President Joe Biden’s pause on new LNG permitting.
While the energy emergency declaration and policy direction were expected, the implications for low-carbon energy sectors are of particular interest. Rystad has identified four major immediate implications for renewable energy and cleantech sectors:
Suspension of Offshore Wind Permitting and Paris Agreement Exit
Trump’s suspension of offshore wind permitting aligns with his campaign promises, effectively halting any new offshore wind developments in the US. This move may have significant international implications, potentially strengthening anti-climate policies in Europe and other regions.
Moderately Positive Sentiment in the Biofuels Sector
Biofuels have been explicitly favored for accelerated permitting or development under the new administration’s ‘Unleashing American Energy’ order. While Trump aims to balance support for the farming and oil industries, disruption for US bioenergy is unlikely in the next few years. However, uncertainty remains around clean fuel tax credits.
Electric Vehicles Heavily Targeted
Trump’s orders on his first day heavily targeted support programs for electric vehicles, signaling a shift in policy towards traditional energy sources.
According to Abramov, these initial executive orders do not have immediate implications for other cleantech or renewable energy sectors. However, the future growth of low-carbon energy markets in the US beyond 2025 will depend on continued government support for tax credits and loan programs.
Overall, while Trump’s energy policies may favor traditional energy sources in the short term, the long-term impact on renewable energy and cleantech sectors remains uncertain. Continued government support will be crucial for the growth and sustainability of low-carbon energy markets in the US.