Ivan Ermokhin: Trump's strategy may stall development of climate projects

Ivan Ermokhin, Researcher, International Best Practice Analysis Department at the Gaidar Institute, estimated in a Prime article how Trump’s strategy will impact the future of climate projects.

“Certainly, the refusal to provide subsidies and benefits to projects that are linked to climate agenda can have an impact on their development. In June 2024, the OECD noted that climate agenda in the country is driven by subsidies, which, however, have been insufficient,” the expert said.

Ermokhin also noted that not all measures introduced under the previous US president will be canceled by the current Administration. For example, the already agreed projects aimed at developing the extraction of critical materials worth more than $3 bn will not be canceled. Such incentives as tax breaks for purchasing of electric cars require not only a presidential decision but also approval by the Congress.  

Moreover, the US companies looking to enter new markets will most likely continue to be interested in emission-reducing technologies for oil production and will also continue to plan and implement renewable energy projects. In this regard, the new Administration can help. For example, one of the new Administration's priorities is to develop mining in Alaska, which is rich in critical materials needed to build wind farms, solar panels and other equipment.

Tuesday, 28.01.2025