Political uncertainty in the US leads to cancellation of multibillion-dollar investments in sustainable energy and mobility

Uncertainty surrounding US federal government policy and tax credit programmes has had a significant impact on planned investments in recent months. According to E2, investors have canceled or suspended investments worth $14 billion since the start of this year. This is also reflected in expectations for the labour market: E2 says around 10,000 jobs in clean energy and the automotive sector will not be created because of the canceled investments.

The arrival of the new US administration led by Donald Trump has brought significant changes in recent months. In addition to imposing blanket tariffs on imports into the US, the federal budget is also being consolidated, negatively affecting planned investment levels. According to E2, uncertainty surrounding future support programmes has already led to the cancellation of a large number of investments. In April alone, the company says, planned investments worth $4.5 billion were canceled or suspended.

According to E2, these included investments in new battery systems, electric vehicle manufacturing and wind farm construction. Considerable uncertainty is linked above all to the proposed “One Big Beautiful Bill Act”, which is intended to rein in federal spending. In addition to cuts to healthcare, it would also significantly scale back the tax credits planned under the Inflation Reduction Act, which is intended, among other things, to support investment in sustainable energy.

“If the tax plan approved by the House of Representatives last week becomes law, construction and investment can be expected to grind to a halt in states across the country, as more projects and jobs are canceled. Business leaders are now counting on Congress to come to its senses and stop this costly attack on an industry that is essential to meeting America’s growing energy demand and is driving unprecedented economic growth in every part of the country,” said Michael Timberlake, E2’s communications director, at the end of May.

Republican-controlled US states, which according to E2 stood to benefit most from tax credits for clean energy investments under the 2022 Inflation Reduction Act, are facing the most investment cancellations. So far, the company says, these amount to $12 billion in investments and 13,000 associated jobs.