A new study suggests that a potential rollback of clean energy policies under Donald Trump could cost the US billions while creating market opportunities for countries like India. Under the Biden administration, key investments through the CHIPS Act, Bipartisan Infrastructure Law (BIL), and Inflation Reduction Act (IRA) have driven over $200 billion in clean energy investments, boosting US manufacturing and positioning the nation within global clean energy supply chains.

The report, Trump’s proposed clean energy retreat: US costs and global rewards, argues that if US domestic manufacturing weakens due to policy changes, countries with established clean tech capabilities, such as India, China, Japan, and South Korea, stand to gain. India, in particular, could benefit in sectors like electric vehicles, solar, and wind energy. China is expected to see advantages in battery production as well.

The report warns that a significant retreat from clean energy investments could undermine the US’s ability to develop next-generation technologies and challenge China’s growing dominance in the sector. 

Foreign companies have already contributed over 45% of IRA investments, illustrating the interconnectedness of global clean energy markets. While a complete repeal of the IRA may be politically difficult for Trump, given bipartisan support, any retreat could harm US competitiveness in clean tech, potentially repeating the failure of US clean tech firms in the past, when they faced bankruptcy due to market volatility and competition from Chinese firms.

US leadership in clean technology is crucial for both domestic growth and maintaining global competitiveness. A policy retreat could have long-term negative effects on US economic health and technological advancement.