President Donald Trump’s executive orders on renewable energy could jeopardize hundreds of wind power projects across the U.S., analysts have reported.
According to recent analysis by financial data firm FactSet, up to 89 percent of undeveloped wind projects are at risk as a result of Trump’s Day One directive, which paused offshore wind lease sales in federal waters as well as approval, loan and permit issuance for onshore and offshore projects.
Newsweek has contacted the Department of Energy for comment.
Why It Matters
Trump campaigned on the promise to “drill, baby, drill,” and expand fossil fuel use to meet America’s energy needs. However, wind farms are becoming increasingly important in diversifying the nation’s energy portfolio and advancing the renewable transition, seen as key for averting future environmental crises.
FactSet also warned that should these projects now struggling for funding go under, this could result in the U.S. losing out on 228 gigawatts of potential capacity.
Jon G. Fuller / VWPics via AP Images
What To Know
Trump has long been skeptical of renewable energy, as well as global warming, dubbing this a Chinese hoax in 2012.
During his first administration, Trump largely focused on supporting fossil fuels and reducing regulations on energy production, with policies favorable to the oil, gas and coal sectors. He rolled back Barack Obama-era initiatives aimed at curbing carbon emissions and has recently said he is withdrawing the U.S. from the Paris Climate Agreement.
While the U.S. saw historic levels of growth for renewable energy in 2024, according to a recent report from green energy research firm Cleanview, Trump has signed several executive orders sidelining the sector and prioritizing oil and gas.
These orders contain promises such as “terminating the Green New Deal,” a proposed set of policies aimed at addressing climate change and economic inequality.
In the January 20 order cited by FactSet, Trump said that pausing lease sales and permits for wind projects was done in order to protect marine life and “to ensure that the United States is able to maintain a robust fishing industry for future generations and provide low-cost energy to its citizens.”
What People Are Saying
“After removing projects in the early stages of the development process and those in the middle stages that have yet to secure a permit, the future of wind looks much different than what it did just a few weeks ago,” FactSet analysts wrote in the report, published Thursday.
Trump’s executive order said that federal wind leasing programs suffered from “various alleged legal deficiencies,” which could result in “negative impacts on navigational safety interests, transportation interests, national security interests, commercial interests, and marine mammals.”
At a September, 2023, rally in South Carolina, Trump said that offshore “windmills” were making whales “crazy” and contributing to whale deaths “on a weekly basis.”
Morningstar senior equity analyst Tancrede Fulop previously told Newsweek that the outlook for the wind sector under Trump was “very gloomy.”
“We recognize that we may not be the most favored source of energy at the moment,” Frank Macchiarola, chief advocacy officer for the American Clean Power Association, previously told Newsweek. “But I think policymakers across both parties recognize that we are a necessary source of energy, and we are part of the ‘all-of-the-above’ equation.”
What Happens Next?
Trump’s order will remain in effect until it is revoked, and until a “a comprehensive assessment and review of federal wind leasing and permitting practices,” is completed.
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