Green Energy

Donald Trump began his second term as President by signing a flurry of executive orders

Some of those will influence the trajectory of green energy in the United States. These measures indicate a clear shift from the previous administration’s policies. The new rules emphasize fossil fuel development over renewable energy initiatives.

Declaration of a National Energy Emergency

One of President Trump’s initial actions was to declare a national energy emergency. This order will expedite the permitting process for oil, gas, and power projects. His goal is to bolster fossil fuel production. The administration asserting that increased drilling will lead to more affordable and reliable energy for Americans. 

Electric Vehicle Mandates

In a move impacting the automotive industry, President Trump directed the elimination of electric vehicle (EV) mandates and the rollback of regulations on automotive pollution and fuel-economy standards. This policy shift will affect global carmakers and battery manufacturers. That could stunt the growth of the EV industry. The administration is also considering removing EV subsidies, which could further influence the market dynamics of EV’s. 

Halt on Wind

The administration has temporarily halted leasing and permitting wind energy projects, both offshore and onshore. An executive order mandates a review of the environmental, economic, and subsidy impacts of these projects. This pause reflects President Trump’s longstanding skepticism of wind power, which he argues is costly and less reliable compared to fossil fuels. 

Repealing the Inflation Reduction Act

The Trump administration has expressed intentions to weaken or fully repeal the Inflation Reduction Act (IRA), a significant legislative achievement of the previous administration aimed at reducing greenhouse gas emissions and promoting clean energy. While the complete termination of the IRA may face legislative hurdles, the administration plans to rescind unspent funds allocated under the act, potentially impacting various renewable energy programs. 

Market Reaction

The new policies triggered varied responses from the energy sector. For instance, both Ford (NYSE: F) and General Motors (NYSE: GM) experienced a boost in stock value, influenced partly by the anticipated easing of the Environmental Protection Agency (EPA) emissions standards under the new administration. 

However, the proposed 25% tariffs on imports from Canada and Mexico could increase costs for the auto industry, introducing a complex dynamic for manufacturers.
The executive orders impacted broader renewable energy stocks. The iShares Global Clean Energy ETF (ICLN) and the Invesco Solar ETF (TAN) have both experienced declines, reflecting investor concerns over the administration’s policy direction.

Outlook for Green Energy

Despite federal policy shifts, the renewable energy sector may continue to advance, just more slowly. A simple executive order can’t halt a multi-billion initiative to grow electrical power supply. Not to mention the billions of dollars invested thanks to the Inflation Reduction Act. Concerns about the Trump administration’s future impact on renewable energy may be overstated. Companies that already sunk millions into these developments will continue to build out the plan.

The new Trump administration’s policies does represent a significant pivot toward fossil fuels, slowing federal support for green energy initiatives. The long-term impact on the renewable energy landscape will depend on a complex interplay of federal actions, market responses, and global commitments to clean energy.

Our overall sentiment in the green energy sector remains cautious. The long-term impact of these executive orders will depend on how policies evolve and how companies adapt to the changing regulatory environment.

For the Good

Michael Nichols

Numbers You Need to Know

3721

Throughout U.S. history, there have been several thousand executive orders, George Washington signed eight executive orders, while Franklin Roosevelt signed the most at 3,721. (Statista)

1907

The numbering of executive orders did not start until 1907, and regulations for filing them in the Federal Register were established only in 1936 (ironically via executive order, issued by Roosevelt).(NPR)

1937

Executive orders signed since 1937 are available on the Federal Register although it can take several days from signing to appear in the system. (Federal Register)

What’s New in Sustainable Investing

Can sustainable investing survive Trump 2.0?

So far, 2025 is starting with a distinctly anti-sustainable mood. Donald Trump is about to re-enter the White House and has threatened to roll back the Inflation Reduction Act that spurred huge investment in clean energy. (Financial Times)

Trump’s executive orders no golden ticket for energy stocks

While promising to halt offshore wind projects, open up wild lands for drilling, and cull incentives for electric vehicles, Trump’s first round of actions may not necessarily boost energy companies or hold back renewables, observers said. (Investment News)

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