President Donald Trump caused major disruption in the clean energy industry last week with his initial executive orders, which included plans to unravel key electric vehicle and energy-efficiency policies enacted by the Biden administration.
What's happening?
As reported by Reuters, the Trump administration issued and later had to clarify executive orders that would significantly weaken federal regulations on vehicle emissions, reduce EV subsidies, and scale back investments in clean energy infrastructure.
These measures target cornerstone initiatives of the Biden administration, such as its nonbinding goal — not a mandate, as some have reported — to have 50% of new car sales be electric by 2030.
The plan includes cutting funding for nationwide EV charging networks and halting incentives for manufacturers and consumers who adopt cleaner technologies through the Inflation Reduction Act and the Infrastructure Investment and Jobs Act.
Reuters noted that the White House Office of Management and Budget clarified in a follow-up memo that the orders only apply to "funds that contravene a list of stated policy aims, which include encouraging more energy production on federal lands and eliminating support for EVs." The Reuters report concluded that "it is unclear whether the order puts much [previously approved] funding at risk."
Why is this concerning?
Transportation is the largest source of gas pollution in the United States.
EVs are important because they produce no exhaust, which helps reduce harmful air pollution. By removing EV subsidies and relaxing emissions standards, the proposed policies could lead to higher levels of pollution, reversing gains made under the Biden administration.
Environmental advocates warn the rollbacks could have dire consequences, both domestically and globally. Increased pollution could accelerate the impacts of Earth's overheating, which include rising sea levels and more frequent extreme weather events. The changes could also hinder the United States' ability to meet its international climate action commitments under the Paris Agreement — which Trump also signed an order to pull the U.S. out of — potentially weakening global efforts to combat the crisis.
Critics also argue the rollbacks would stifle innovation in the fast-growing EV sector, risking economic opportunities tied to clean energy industries.
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Absolutely 💯 Vox called the Trump administration efforts "just theater — so far," suggesting there are hurdles to be cleared before these orders change policy. The outlet noted "you can still get $7,500 for buying an electric car" but said "the fact that Trump decided to attack EVs as one of his first acts in office deserves some concern."
The same applies for the other programs targeted, such as the IRA, which has already dispersed funds to states that applied to be included in its key programs, though their future is still in some doubt, according to EnergySage.
What's being done about this?
Efforts to counter the proposed rollbacks are already taking shape.
Environmental organizations and state governments, such as California's, are mobilizing to challenge federal deregulation through lawsuits and policy enforcement at the state level.
Previously, automakers expressed concern over the potential disruption of investments in EV technologies, with some pledging to continue their transition to electric fleets regardless of federal mandates. On that note, EV maker Rivian's CEO, RJ Scaringe, said last week that his company isn't "particularly worried about any of it" but that the lack of support for EV manufacturing will likely at least have some short-term effect on the industry.
"The challenge with some of these short-term changes, for the world and for the U.S. leadership in technology, is that it will cause some manufacturers to invest less in electrification," Scaringe said at a Rivian event last week. "And I think that's probably good for Rivian from a competitive landscape, but bad for the world."
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