The global shift from fossil fuels to renewable energy has gained significant momentum in the last two years, particularly by adopting electric vehicles (EVs). However, as the United States transitions from President Joe Biden’s administration to Donald Trump’s, the trajectory of clean energy policies remains uncertain. While hope for a continued push toward renewable energy endures, many of Biden’s climate initiatives face potential setbacks.
President Biden’s climate policies established numerous funding streams for clean energy projects, most of which have already been allocated. However, approximately $20 billion in grant funding remains vulnerable to cancellation under the Trump administration.
According to Climate Power, since 2022, the U.S. has created over 406,000 clean energy jobs and attracted $422 billion in investments across 751 new clean energy projects. Despite this progress, the Trump administration has indicated a potential pivot toward energy dominance, which could involve expanding offshore oil and gas drilling across significant portions of U.S. coastal waters.
Tim Sahay, Co-Director of the Net Zero Industrial Policy Lab at Johns Hopkins University, emphasized the global implications of canceled green projects in the U.S. “Other countries can step in to seize investment opportunities in clean technologies. China, for instance, would be more than happy to lead in EV manufacturing as U.S. manufacturers lag,” he stated.
The transition to clean energy, however, appears irreversible in many respects. Reports indicate that oil consumption may have already peaked, as more drivers switch to EVs at an unprecedented rate. Global electric vehicle (EV) sales grew by 25% in 2024, with over 17 million units sold worldwide.
While the Chinese EV market expanded by 40%, the U.S. and Canadian markets saw growth of around 10%. Notably, 12,000 new high-voltage EV chargers were installed in the U.S. in 2024 alone, funded in part by Biden’s Inflation Reduction Act (IRA).
Despite these advancements, the Trump administration has hinted at reversing consumer tax credits for electric vehicle purchases, labeling them as wasteful expenditures. Many Biden-era initiatives such as incentives for domestic electric vehicles manufacturing, charging infrastructure, and emissions regulations have strengthened the U.S. automotive industry’s ability to compete in the global EV market.
According to Cox Automotive, electric vehicles are projected to achieve a 10% market share in the U.S. by 2025, setting another record for adoption. However, Trump’s potential policy shifts could jeopardize these gains.
“Make no mistake about it, we’re committed to electrification,” said Randy Parker, CEO of Hyundai Motor America, reflecting the industry’s determination to transition to EVs despite political uncertainties.
Tariffs on raw materials critical for the green industrial transition could also pose challenges. While these tariffs are intended to stimulate domestic industries, they risk increasing prices for American consumers and reducing competitiveness in key sectors, including EV manufacturing. The Trump administration’s approach contrasts with Biden’s targeted tariffs on Chinese imports, which were designed to bolster domestic green manufacturing.
China’s dominance in Electric Vehicles technology and production further complicates the landscape with a challenge to take the lead in clean energy investments. It’s apparent that under Biden, strategic tariffs sought to protect U.S. interests in clean energy manufacturing. In contrast, Trump’s prior administration took a different approach to the climate crisis, opting to deprioritize climate action in favor of other economic goals.
Alexandra Scott, Senior Expert in Climate Diplomacy at the Italian Climate Change Think Tank ECCO, highlighted the stakes: “The climate crisis brings immense destruction, as seen in the devastating cost of the Los Angeles fires. At the same time, the clean energy and clean tech markets present vast economic opportunities. The promises made by Trump cannot be fulfilled without addressing climate impacts and embracing the new economy.”
As the EV market continues to evolve globally, the direction of U.S. policies under the Trump administration will play a critical role in shaping the future of clean energy, both domestically and internationally.
