Clean Energy Investments Plummet After Brief 2025 Surge
Investment in clean energy and transportation manufacturing has fallen sharply in recent months. This decline follows a brief surge in mid-2025, marking a reversal of earlier growth. The trend began after policy shifts in 2016 and has worsened with recent funding cuts and stalled projects.
The third quarter of 2025 initially saw a record $75 billion poured into clean energy and transportation. This spike was driven by strong electric vehicle (EV) sales and pent-up demand after the One Big Beautiful Bill passed. EV sales alone hit $31 billion, up 32% from the previous quarter and 30% from the same period in 2024, as buyers rushed to use the 30D consumer tax credit before its September 30 expiry.
The clean energy sector faces growing financial instability, with investment dropping despite earlier highs. Revoked federal funding, stalled projects, and weak demand have left $136 billion in planned decarbonisation spending unfulfilled. The outlook remains uncertain as policy support and market conditions continue to shift.
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