U.S. Clean Energy Investment Plummets Amid Policy Reversals

The Government of the United States caused a 36 percent decline in clean energy investing during the fourth quarter of 2025 compared to the second half of 2024. This contraction followed the administration's September decision to eliminate the $7,500 federal electric vehicle tax credit and the reversal of a 2009 law that classified carbon dioxide as a threat to public health.

These policy shifts led to significant financial losses for the automotive sector. Ford Motor Company and Stellantis reported combined write-offs of $65 billion and cancelled various electric vehicle programs in response to the rollback of tax incentives. Rhodium Group, LLC noted a shrinking pipeline of new clean energy investment resulting from these changes.

Globally, however, renewable energy investment reached a record $386 billion in the first half of 2025, with growth driven by small-scale solar in Pakistan and sub-Saharan Africa and offshore wind projects. By 2026, private equity dealmaking began to resurge in the United States, though this growth is primarily fueled by the power requirements of artificial-intelligence data centers rather than a return to general clean energy goals.