In August 2022, U.S. President Biden signed the Inflation Reduction Act (IRA), which also marked theThe largest clean energy investment in U.S. history is officially underway. Although this move has been widely criticized by U.S. trading partners, the real money subsidies and the constant news of "investment and construction of factories" are enough to illustrate the profound impact of this policy on global industries.


Just when the excavator was rumbling and factories were taking shape, a thunderbolt came from the clear sky:The subsidy may be gone!

De-“new energy” fossil fuels are making a comeback

According to the latest news, a number of senior Trump campaign officials and staff have leaked that,Once the "King of Understanding" returns to the White House, he will seek to "completely change" the U.S. government's climate and energy policies and will seek to "maximize fossil fuel production."

In words that stock investors can understand, the most far-reaching impact of Biden's "Inflation Reduction Act" is the $369 billion in clean energy investment. For example purchaseelectric cars,Tax credits for photovoltaic equipment, setting up electric vehiclesInvestment tax credits and subsidies for clean energy manufacturing industries such as battery factories, clean energy industry chains (includingraw materials) investment subsidies,Upgrading and transformation of energy infrastructure such as power grids. The $7,500 tax credit per electric vehicle that investors are very familiar with comes out of an IRA.

People familiar with Trump’s policies revealed,Trump's "important tasks" when he returns to the White House will include reforming/abolition of government agencies, cuts in staffing, cutting spending on clean energy projects and repealing restrictions on the fossil fuel industry.

Of course, Trump’s own aversion to the Inflation Reduction Act and clean energy is no secret. He once called the IRA "the largest tax increase in American history" and blamed high oil prices on his successor's clean energy policies. He also often boasts that he achieved U.S. "energy independence" during his tenure, but clean energy policies have damaged this.


(U.S. crude oil production capacity, source: EIA)

In Trump's recent campaign video, he also mentioned that U.S. energy that relies on wind power is "fragile, low-level and expensive." The former president particularly emphasized that "wind turbines will rust, rot, and kill birds."

The 2024 US election is also a “war on climate”

Carla Sands, a Trump aide and vice president of the Center for Energy and Environment at the conservative think tank America First Policy Institute, revealed that if Trump begins his second term, he will work to revoke every Biden regulation that "kills jobs and industries" from the first day.

Judging from various signs, the 2024 U.S. election will also be a key vote related to the development direction of the energy field in the following years.

David Banks, who has advised Trump on energy policy, reminded the public,If Trump is elected, he is likely to withdraw from the Paris Climate Agreement again. Biden announced his rejoining the agreement on his first day in the White House.

Banks said this kind of thing is definitely going to happen with the Trump administration. He said the former president was a "climate change skeptic" who cared more about the economy and competitiveness.

Of course, clean energy supporters also have a clear idea of ​​what will happen if Trump is re-elected. Kevin Curtis, executive director of the environmental advocacy group NRDC Action Fund, warned that allowing Trump to serve for another term would "put the brakes on progress in combating climate change" and strengthen opposition to global climate change action.

Of course, repealing the Inflation Reduction Act requires a vote in Congress, and it is unclear whether Republican lawmakers can reach consensus. Statistically, most investments under IRAs fall more heavily in districts with Republican congressmen.