As U.S. shifts away from clean energy and deeper into fossil fuels, China plows ahead

President Trump’s plan to gut clean energy tax breaks has split Republicans and may give China a lasting edge in global energy markets.

Zack Colman and Karl Mathiesen report for POLITICO.


In short:

  • The Trump administration sees clean energy tax credits as a boon for China and is aiming to dismantle key Biden-era incentives through a broad GOP tax and spending bill.
  • House Republicans are divided, with moderates hoping to preserve credits that benefit manufacturing in their districts, while hard-liners seek sweeping rollbacks to focus on fossil fuels.
  • Analysts warn that weakening these incentives could devastate U.S. clean energy manufacturing, allowing China and other nations to dominate future markets in solar, batteries, and EVs.

Key quote:

“What has surprised me is the extent to which the administration hasn’t just pursued an agenda but has thrown sand in the gears of the parts of agenda that they don’t agree with. Even when it costs American jobs.”

— Thom Woodroofe, former Australian diplomat in Washington who now works at the Smart Energy Council

Why this matters:

The future of U.S. clean energy policy is hanging in the balance. As the Trump administration shifts decisively toward oil, gas, and coal, billions in private investment tied to solar panels, battery factories, and electric vehicle production may dry up. The risk is not only to jobs and technology development at home but also to global competitiveness. China already leads in many areas of green manufacturing, having spent decades building up its supply chains. If the U.S. exits this race, it could be surrendering both economic opportunity and influence over the climate technologies that will define the next half-century.

Related:

A view of a hydropower plant during a storm

Trump officials move to strip tribes of veto power over hydropower projects

After the Navajo Nation successfully halted a hydropower proposal on Black Mesa, the Trump administration is pushing to roll back a federal policy that requires tribal consent for such projects.

A closeup of an Uber light in the back window of a car

Uber pulls back from EVs, slashing incentives for drivers

After years of promoting electric vehicle adoption among its drivers, Uber has abruptly scaled back bonuses and support programs, even as its emissions climb and regulators press for cleaner fleets.

A smokestack viewed from below

Boom in burning waste for fuel puts human health and environment at risk

As the world desperately searches for a way out of its global climate change and plastic pollution crises, nations are increasingly turning to burning municipal waste to make fuel as a solution to both problems.

A female doctor standing next to a glass wall

Are environmental risks making Canada's doctor shortage worse?

From Alberta’s oilsands to B.C.’s gas fields and Ontario’s Chemical Valley, doctors in Canada are increasingly weighing air pollution, industrial toxins and climate-driven disasters when deciding where to live and work.

EPA web site page on causes of climate change
Photo Credit: EPA Website/ https://www.epa.gov/climatechange-science/causes-climate-change

The EPA erases mention of human-caused climate change from its website

Some pages have been tweaked to emphasize ‘natural forces’; others have been deleted entirely.
An illustration of a burning sun falling below the horizon

Bill McKibben: A low point of human inaction on climate change

The second Trump Administration’s assault on the environment has been as damaging as expected, but other developments this year give at least some hope for the future.
visualization of big data digital data streams in a data center
Photo Credit: vladimircaribb/BigStock Photo ID: 262677853

NextEra teams with Google, Exxon in massive AI build-out

The largest U.S. renewable energy developer announced deals with companies that could bolster gas at data center hubs across the country.
From our Newsroom
Multiple Houston-area oil and gas facilities that have violated pollution laws are seeking permit renewals

Multiple Houston-area oil and gas facilities that have violated pollution laws are seeking permit renewals

One facility has emitted cancer-causing chemicals into waterways at levels up to 520% higher than legal limits.

Regulators are underestimating health impacts from air pollution: Study

Regulators are underestimating health impacts from air pollution: Study

"The reality is, we are not exposed to one chemical at a time.”

Pennsylvania governor Josh Shapiro speaks with the state flag and American flag behind him.

Two years into his term, has Gov. Shapiro kept his promises to regulate Pennsylvania’s fracking industry?

A new report assesses the administration’s progress and makes new recommendations

silhouette of people holding hands by a lake at sunset

An open letter from EPA staff to the American public

“We cannot stand by and allow this to happen. We need to hold this administration accountable.”

wildfire retardants being sprayed by plane

New evidence links heavy metal pollution with wildfire retardants

“The chemical black box” that blankets wildfire-impacted areas is increasingly under scrutiny.

Stay informed: sign up for The Daily Climate newsletter
Top news on climate impacts, solutions, politics, drivers. Delivered to your inbox week days.