Why investors are avoiding U.S. renewable energy projects

Adapted from a BloombergNEF report; Chart: Axios VisualsGlobal investment in renewable energy projects hit a fresh record this year, but fell in the U.S., an analysis released Tuesday shows. Why it matters: Trump 2.0's reversal of federal support is starting to show up in hard financing data. Driving the news: The first half of 2025 saw the "reallocation" of investment dollars away from the U.S. begin, the research firm BloombergNEF found.U.S. spending fell by $20.5 billion, or 36%, from the second half of 2024 in what the firm calls a response to the U.S. presidential election.It was the steepest drop of any country."There was a rush to construct toward the end of last year as developers sought to lock in access to tax credits, and then a sharp drop in the first half of this year due to worsening policy conditions, particularly for wind, and growing tariff uncertainty," the report states.The intrigue: The European Union saw a big jump, which "supports the idea that developers and investors may be reallocating capital out of the U.S. and into Europe." Stunning stat: The U.S., in the first half of 2025, wasn't among the world's top-five wind markets for the the first time since 2016. The big picture: Worldwide investment was $386 billion in the first half of 2025, a tally that's largely wind and solar, but also includes biofuels, geothermal and more. The solar picture is split, with spending on small-scale projects up "reflecting cheap modules and the ease of siting" these assets.But financing for big, or utility-scale, projects fell sharply "amid concerns over revenue-risk.""[M]any of the markets that saw the largest year-on-year declines in investment — including mainland China, Spain, Greece, and Brazil — have seen rising curtailment, greater exposure to negative power prices, or both."What we're watching: How recent events sway U.S. investment trends. The Interior Department has unveiled fresh constraints on wind and solar projects, while the Commerce Department could impose new tariffs on wind blades and components.And just last week, Interior demanded that Ørsted halt construction on a big, nearly complete wind project off Rhode Island.

Comments

World news

A girl’s 15th birthday party was a huge disappointment. And then she went viral

Independent

Comments

World news

A girl’s 15th birthday party was a huge disappointment. And then she went viral

South Korean president says he avoided ‘Zelensky moment’ in White House because he read Trump’s book

Australia police shooting latest: Two officers dead and search underway for gunman ‘accompanied by children’

Flight from London Heathrow forced to land in Russia after ‘engine failure’

Riots engulf Swiss city after boy ‘of a migrant background’ killed during police chase

Why investors have bet Sainsbury’s shares will fall – and why they may lose out

Rage-baiting Gavin Newsom is now trolling Trump with merch – and Republicans aren’t happy

Finally, we have proof that nice people don’t finish last

Dozens to be deported in France migrant deal – as Farage unveils small boats plan

Why investors are avoiding U.S. renewable energy projects

Iran directed antisemitic attacks in Australia, PM Albanese says

AI's threat to entry-level jobs is real, per new Stanford study

British Army faces criticism despite a historic payout over Kenyan wildfires

Philippine president fires police chief who led arrests

‘I was forced to marry my cousin when I was 14 and live in a polyamorous cult’

London Heathrow 'engine failure' LIVE: Plane carrying 311 makes emergency landing

Maryam Abu Daqqa spent months photographing the war in Gaza. It claimed her life – but her images will endure

Korean Air strikes £37bn deal to buy over 100 Boeing aircraft

Israel destroyed Gaza’s water plants. Now a deadly condition is spreading like wildfire

‘Sanaa wasn’t a statistic’: Baby who ‘knew nothing but war’ dies of malnutrition as Gaza crisis deepens

‘We are living in fear and anguish every day’: Palestinians fear a ‘new Nakba’ as Netanyahu plans occupation

Archbishop who met with Putin admits he made a mistake by not calling for end to Ukraine war

‘Large lizard’ with potential to ‘lash out’ on the loose in Maine town, police say

Nevada state services shut down as authorities investigate ‘network security incident’

Australia shooting latest: Two police officers feared dead in ‘active incident’ in rural town

Alison Brie is the most underrated actor of our time

Ask an expert: Is it healthy to eat peanut butter every day?

Can I use equity release on my £700k house to limit inheritance tax?

Two sides of England’s ‘flag wars’, from a town at the heart of the debate

Crystal Palace and the great sense of injustice

I took my two under-12s Interrailing to Albania – and it was a surprising hit

The areas where possible property taxes would hit hardest, mapped

I’ve spent £50k on childcare – now I’m finally free

I might lose my new home because of HMRC glitch – I’m emotionally drained

Australia expels Iran ambassador over antisemitic attacks

'Active incident' under way after reports of shooting in Australia

British woman loses £1700 to elderly 'zimmerframe bandit' at Mallorca airport

Brit mum unable to walk properly after motorbike accident on holiday in Turkey

Australia blames Iran for antisemitic attacks in Sydney and Melbourne

Long-elusive Mexican drug lord Ismael 'El Mayo' Zambada pleads guilty in U.S.

Tuesday Briefing: Israeli Strikes Killed Five Journalists

Australia Accuses Iran of Directing Antisemitic Arson Attacks

4 A.M. at a Beijing Labor Market: Jobs, and Hope, Are in Short Supply

Vance boasts Trump’s ‘energetic diplomacy’ will end Ukraine war

Gaza latest: Journalists among 20 killed in Israeli strike on hospital as Netanyahu claims ‘tragic mishap’

Ukraine-Russia war latest: Zelensky says US and Ukrainian officials will meet to prepare for possible Putin summit

Lorne Michaels opens up on the future on SNL in Trump’s America: ‘Denouncing him doesn’t work’

Safety regulators launch investigation into 1.4 million Honda vehicles after reports of engine failures

Tennessee man with same name as Babe Ruth accused of using historic baseball trivia in scam, prosecutors say

"Authoritarian power grab": Democrats erupt as Trump moves to fire Fed governor Lisa Cook

"Great relationship": Trump at South Korea summit says he wants to meet with Kim Jong-un

Jays slugger Guerrero Jr. contributes in return

Trump orders removal of Federal Reserve governor Lisa Cook

South Korea's charm offensive and other takeaways from Trump meeting

Watch: Moment massive dust storm surges through Arizona

Watch: Trump says he wants to meet Kim Jong Un

Trump administration ‘absolutely forbidden’ from quickly deporting Kilmar Abrego Garcia to Uganda, judge says

Trump wants a reunion with Kim Jong Un - the timing is curious

Manitoba’s smoky summer not impacting some outdoor attendances

Jays open homestand with 10-4 rout of Twins