U.S. Halts $300B in Clean Energy Loans, Germany Boosts Wind
The U.S. Department of Energy has made a significant change in its funding priorities, cancelling billions of dollars in subsidies for clean energy projects. This move, which reverses parts of the Inflation Reduction Act of 2022, primarily affects solar and wind energy companies in the U.S., with over $300 billion in government loans halted. Meanwhile, in Germany, biomass and biogas projects are less favored, while wind energy projects continue to receive strong support.
The cancellation of clean energy subsidies has led to a withdrawal of around $14 billion in funding that was originally intended for green technologies in 2025. This shift in funding priorities comes as part of an effort to boost support for coal projects. However, it's not all bad news for clean energy in Germany. Wind energy projects continue to see increasing approvals and investments, with over 500 GW of potential wind energy capacity awaiting grid connection evaluation. Additionally, efforts are underway to repurpose sites like the former Hamburg-Moorburg coal power plant for green hydrogen production, representing alternative clean energy investments.
The cancellation of clean energy funding in the U.S. is a setback for the industry, but Germany's continued support for wind energy and efforts to repurpose coal sites for green hydrogen production show that the transition to clean energy is not derailed. The long-term impact of these changes remains to be seen.
