Renewable Energy Investment Falls 36% in US as EU Spending Surges

In the first half of 2025, global investment in renewable energy reached a record $386 billion, driven mainly by small-scale solar projects and increased offshore wind investments, particularly in China and Europe. However, the United States experienced a significant 36% decline in renewable energy investment, dropping by $20.5 billion compared to the second half of 2024, largely due to policy uncertainty, tariff concerns, and President Trump's restrictive measures on wind projects. This decline reflects a rush to complete projects in late 2024 to secure tax credits, followed by reduced spending amid worsening policy conditions and growing tariff uncertainty. Meanwhile, the European Union saw a 63% surge in renewable investments, mainly in onshore and offshore wind, as developers shifted focus away from the U.S., especially the U.S. coast, toward the North Sea. China's investment remains the highest globally, accounting for about 44% of all renewable energy investment in the first half of the year. These trends highlight a reallocation of capital from the U.S. to Europe and Asia, influenced by contrasting government policies and market dynamics.