U.S. energy transition faces policy shifts and banking withdrawals

The landscape of U.S. energy policy and corporate climate commitments is undergoing significant shifts. A report from the Massachusetts Institute of Technology’s Center for Energy and Environmental Research, titled “Glass Half-Full: Building a Decarbonized U. S. Power Sector,” suggests that while the Trump administration’s policies may delay certain decarbonization initiatives and reduce wind and solar subsidies, the energy transition remains active. The model estimates that approximately three-quarters of the clean electricity capacity projected under the Biden-era Inflation Reduction Act may still come online.

However, other reports indicate substantial setbacks. The BlueGreen Alliance noted that recent energy initiatives have already led to the delay or cancellation of 223 wind and solar projects, representing an $82 billion loss in capital investment and 111,000 jobs. Additionally, a study for Unleash Prosperity highlights a reversal in financial sector support for climate goals, noting that six major U.S. banks—including JPMorgan Chase, Bank of America, Goldman Sachs, Citigroup, Morgan Stanley, and Wells Fargo—have withdrawn from the Net-Zero Banking Alliance.