Report on U.S. Energy Policy Shift and Its Impact on Sustainable Development Goals (SDGs)

Executive Order to Roll Back Renewable Energy Support

On July 7, President Donald Trump signed an executive order aimed at reducing support for wind and solar energy. This policy change is part of the One Big Beautiful Bill Act, which reduces renewable energy tax credits and emphasizes traditional energy sources.

Trump’s Executive Order and Its Implications for Renewable Energy

Labeling Renewable Energy as Unreliable

The administration characterized wind and solar energy as unreliable, costly, and dependent on foreign supply chains. It argued that clean energy policies threaten U.S. national security, disrupt the electric grid, and damage the environment. This represents a significant policy reversal from the 2022 Inflation Reduction Act, which had promoted clean energy through incentives.

Shift Back to Conventional Energy Sources

The new policy prioritizes coal, natural gas, and nuclear energy, described as “reliable and dispatchable.” The administration contends that renewable energy has been unfairly advantaged and is weakening the national energy system.

Termination of Tax Credits and Regulatory Changes

1. The Treasury Department is directed to end tax credits for wind and solar energy production.
2. Stricter regulations will be imposed on foreign-controlled companies involved in renewable energy supply chains.
3. The Interior Department must revise policies favoring renewables, including permitting and leasing processes.
4. Federal agencies are barred from issuing new permits, loans, or contracts for wind energy projects until a government review is completed.

Both the Treasury and Interior Departments have 45 days to report their actions to the White House.

Impact on Wind and Solar Energy Sectors

Wind Power at Risk

• Wind energy currently contributes approximately 10% of U.S. electricity, serving as the largest renewable source.
• States such as Iowa and South Dakota generate over 50% of their electricity from wind.
• More than 131,000 Americans are employed in the wind energy sector, now facing job uncertainty.
• Tax benefits for wind and solar projects will only apply if construction begins before the end of 2026 and projects are completed by 2027, shortening previous incentive timelines.

Offshore Wind Development Uncertainty

States with ambitious climate goals, including New York and New Jersey, rely heavily on offshore wind capacity to meet their targets:

• New York aims for nine gigawatts of offshore wind by 2035, powering approximately six million homes.
• New Jersey plans for 11 gigawatts by 2040 and a 100% clean energy sector by 2050.

Federal policy changes threaten these plans, potentially delaying emissions reduction targets and requiring states to revise energy strategies or seek alternative funding. Several states have expressed concerns and initiated legal actions regarding the freeze on wind energy projects.

Solar Energy Slowdown

• Solar energy has become one of the cheapest electricity sources in the U.S., but large-scale projects still depend on financial incentives.
• New solar capacity installations dropped 7% in Q1 2025 compared to Q1 2024, and 43% compared to Q4 2024.
• Removal of federal benefits may slow solar development and deter private investment amid increasing international competition in green energy.

Future of U.S. Energy Policy Under Trump’s Administration

Renewed Focus on Fossil Fuels and Nuclear Energy

The administration has declared a “National Energy Emergency” to remove bureaucratic barriers and promote energy production. The establishment of the National Energy Dominance Council aims to:

• Increase fossil fuel production.
• Attract private investment.
• Accelerate domestic energy output.

Supporters argue this will strengthen the economy, create jobs, reduce trade deficits, and enhance the U.S. global position.

Setback for Clean Energy and Global Competitiveness

• Global energy investment in 2025 is projected at $3.3 trillion, with $2.2 trillion allocated to clean energy sources including renewables, nuclear, and energy efficiency.
• Investment in clean energy is double that of fossil fuels, which receive approximately $1.1 trillion.
• The U.S. risk falling behind in technology development and market share if it reduces clean energy leadership.

Critics highlight the long-term risks of continued fossil fuel reliance amid climate change impacts. Many cities, companies, and states, including some Republican-led, have embraced renewables for environmental and economic benefits. Federal support withdrawal threatens to stall progress and undermine clean energy investments.

Implications for Sustainable Development Goals (SDGs)

The executive order and policy shifts have significant implications for multiple SDGs, including:

1. SDG 7: Affordable and Clean Energy – Reduction in renewable energy support may hinder access to sustainable energy sources.
2. SDG 8: Decent Work and Economic Growth – Job uncertainty in renewable sectors could impact employment and economic development.
3. SDG 9: Industry, Innovation, and Infrastructure – Potential slowdown in clean energy innovation and infrastructure development.
4. SDG 13: Climate Action – Delays in emissions reduction targets and clean energy deployment may exacerbate climate change challenges.
5. SDG 15: Life on Land – Increased fossil fuel use may negatively affect ecosystems and biodiversity.

Conclusion: U.S. Climate Goals at a Crossroads

The executive order introduces significant uncertainty for the wind and solar industries, potentially delaying or canceling projects. Developers face stricter deadlines and increased costs, while states must reconsider clean energy goals and funding strategies. The implementation of this policy and responses from federal agencies, states, and the public will critically influence the future trajectory of U.S. energy policy and its alignment with global sustainable development objectives.

1. Sustainable Development Goals (SDGs) Addressed in the Article

1. SDG 7: Affordable and Clean Energy
   • The article focuses heavily on energy policy, particularly the shift from renewable energy sources like wind and solar to traditional fossil fuels and nuclear power.
   • It discusses tax credits for renewable energy, the role of wind and solar in the U.S. energy mix, and the impact of policy changes on clean energy development.
2. SDG 8: Decent Work and Economic Growth
   • The article mentions employment in the wind energy sector and the potential job impacts due to policy changes.
   • It also highlights economic arguments related to energy independence, trade deficits, and investment.
3. SDG 13: Climate Action
   • There is discussion about climate goals at state levels, emissions targets, and the risk of delaying clean energy timelines.
   • The article contrasts U.S. policy with global trends in clean energy investment aimed at mitigating climate change.
4. SDG 9: Industry, Innovation, and Infrastructure
   • References to infrastructure investments for offshore wind and workforce development relate to this goal.
   • The article also touches on technology development and global market competition in clean energy.
5. SDG 12: Responsible Consumption and Production
   • The shift in energy policy impacts sustainable consumption patterns, especially regarding energy sources.

2. Specific Targets Under Those SDGs Identified in the Article

1. SDG 7: Affordable and Clean Energy
   • Target 7.2: Increase substantially the share of renewable energy in the global energy mix.
   • Target 7.a: Enhance international cooperation to facilitate access to clean energy research and technology.
2. SDG 8: Decent Work and Economic Growth
   • Target 8.5: Achieve full and productive employment and decent work for all, including in emerging sectors like renewable energy.
   • Target 8.2: Achieve higher levels of economic productivity through diversification and technological upgrading.
3. SDG 13: Climate Action
   • Target 13.2: Integrate climate change measures into national policies, strategies, and planning.
4. SDG 9: Industry, Innovation, and Infrastructure
   • Target 9.4: Upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency and greater adoption of clean technologies.
5. SDG 12: Responsible Consumption and Production
   • Target 12.2: Achieve sustainable management and efficient use of natural resources.

3. Indicators Mentioned or Implied in the Article to Measure Progress

1. SDG 7 Indicators
   • Share of renewable energy in the total final energy consumption (implied by the discussion of wind energy contributing 10% of U.S. electricity and offshore wind capacity goals).
   • Installed renewable energy capacity (e.g., gigawatts of wind and solar capacity installed).
   • Number of jobs in renewable energy sectors (e.g., 131,000 Americans employed in wind energy).
2. SDG 8 Indicators
   • Employment rates in renewable energy industries.
   • Economic investment in energy sectors (e.g., federal tax credits, private investment levels).
3. SDG 13 Indicators
   • Progress towards emissions reduction targets at state and national levels (implied by concerns over delays in clean energy timelines).
   • Implementation of climate policies and integration into energy planning.
4. SDG 9 Indicators
   • Infrastructure development for renewable energy projects (e.g., offshore wind infrastructure investments).
   • Technological innovation and adoption rates in energy sectors.
5. SDG 12 Indicators
   • Efficiency of energy production and consumption patterns.

4. Table of SDGs, Targets, and Indicators

Source: carboncredits.com