Trump "strikes hard" at American new energy by halting federal funding, cutting loans and grants!

After Donald Trump's return to the White House, he immediately took action to revoke the Biden administration's "Green New Deal," delivering a "shock" to the clean energy industry. Analysts believe this move could put over $300 billion in potential federal infrastructure funding at risk. On January 21, according to CCTV News, Trump was sworn in again as President of the United States on the 20th and signed more than 40 presidential executive orders that day. Among them was an order to suspend federal grants to manufacturers and infrastructure developers. According to an analysis by the Financial Times of the Department of Energy's loan portfolio, this funding primarily comes from two landmark legislative achievements of the Biden administration—the Inflation Reduction Act and the Bipartisan Infrastructure Law. The affected funds include nearly $50 billion in approved Department of Energy loans and $280 billion in loan applications currently under review. The Trump administration stated in an executive order titled "Unlocking American Energy" that "all agencies should immediately suspend the disbursement of funds allocated through these acts." This move dealt a "heavy blow" to the clean energy industry and directly impacted several large projects, including a $9 billion conditional loan to Michigan utility DTE Energy and a $3.5 billion loan to Oregon utility PacifiCorp. Shay Natarajan of the New York private equity fund Mobility Impact Partners pointed out: "The executive order indicates that federal support funds for electric vehicle and battery manufacturing will be harder to obtain, increasing the risk of capital stalling for ongoing manufacturing projects." However, analysts believe that the tax credits in the Inflation Reduction Act may not be affected, as these tax credits have been a major driver of investment, with manufacturers committing to invest over $130 billion since the act's passage. Previously, Biden officials rushed to provide nearly $50 billion in loan commitments to developers in November, considering that Trump might take action to stop funding in the weeks following his re-election. In addition, Trump also promised to increase fossil fuel production and stated he would stop the construction of wind farms on federal lands and waters, as well as end "unfair subsidies" for electric vehicles, leading to a decline in stock prices for electric vehicle and wind power companies such as Tesla, Rivian, and Ørsted on Tuesday. On the same day, energy consulting firm Rystad Energy also stated that under the Trump administration, nearly 25 GW of offshore wind projects (accounting for 65% of the projects under construction in the U.S.) may not be able to proceed. Eli Hinckley, a partner at Baker Botts law firm, warned: "When investors start to feel that their investments in the U.S. lack stability, it could have a very negative impact on our ability to attract capital in the long run."