Trump Cancels $3.7 Billion in Clean Energy Funding

Clean energy is at the center of the global agenda, driven by technological innovation and the need to reduce carbon emissions . In the United States , the debate on energy policies is taking on an increasingly strategic role in defining actions to combat climate change. However, recent decisions by the Trump administration have destabilized the sector, with the withdrawal of crucial subsidies for the development of renewable energy projects , jeopardizing investments and progress towards a sustainable transition.

The Department of Energy (DOE) has announced the elimination of $3.7 billion in grants , a move that has raised concerns among industry experts and activists. These grants, awarded under the Biden administration, were intended for innovative projects that could contribute to a more sustainable energy transition. The justification given for this decision was that the previous administration had not conducted an adequate financial review and that the projects were not considered economically viable, not ensuring an adequate return on public investment.

In total, 24 awards were canceled, two-thirds of which were signed between Election Day 2024 and Trump’s inauguration. Most of the canceled projects were carbon capture and storage and decarbonization initiatives that could advance a clean energy transition. Notable canceled projects include a $ 500 million investment in a carbon capture facility by Heidelberg Materials , a $ 330 million clean hydrogen project by Exxon Mobil , and a $ 375 million plastic recycling initiative by Eastman Chemica l.

The cancellation of these funds could slow the development of technologies for the ecological transition and for clean energy, with repercussions on sectors such as the production of cement, plastics and hydrogen . Some experts and environmental groups have criticized the decision, calling it a step backwards for the competitiveness of the United States in the renewable energy market.

Energy Secretary Chris Wright said the administration is trying to ensure that public funds are used effectively , promoting affordable and reliable energy sources. However, the move has drawn strong criticism from energy transition groups, who warn it could undermine U.S. competitiveness in the global clean-tech market.

With this move, the Trump administration marks a sharp shift from the previous administration's energy policies, raising questions about the future direction of American energy policy and the country's ability to address the climate crisis. Advocates of sustainable finance fear that the move could undermine global carbon neutrality goals and U.S. leadership in green technology.