Trump's Climate Rollbacks: A Year of Lost Ground

Within 12 months of returning to office, President Donald Trump has fundamentally altered the trajectory of federal climate and environmental policy. His administration declared an energy emergency and moved swiftly to dismantle regulations designed to cut emissions and control pollution.

The administration accelerated fossil fuel development while repealing the country's most ambitious climate actions. This retrenchment occurred even as global clean energy investment surpassed fossil fuel investment by 50 percent and renewables provided 40 percent of all electricity worldwide.

President Trump packed his cabinet with oil executives and climate skeptics who systematically rolled back protections established by presidents Obama and Biden. The administration reveled in reversing years of progress, from dismantling emissions regulations to repealing the Paris Agreement.

The withdrawal from both the Paris Agreement and the U.N. Framework Convention on Climate Change marked a definitive break from international climate cooperation. This move undercut scientific research at every opportunity and signaled a retreat from global leadership.

• Eliminated federal support for electric vehicles
• Slashed fuel-economy targets from 50 to 35 mpg
• Eliminated penalties for missing efficiency standards
• Stalled offshore wind projects already under development

The first year of Trump's second term brought sweeping changes to Washington's view of electric vehicles, and American automakers felt the squeeze. The administration eliminated the $7,500 consumer tax credit and slashed fuel-economy targets, creating uncertainty around battery and manufacturing investments.

The combined effect transformed what might have been a sustained industrial policy push into a landscape of slow growth and rapid market shifts. EV market share in the United States, which briefly topped 10 percent in the third quarter, has since fallen to single digits.

Chinese industrial policy continues driving down costs, with industry giants CATL and BYD now supplying more than half of the world's batteries.

Meanwhile, global competitors accelerated. Chinese manufacturer BYD overtook Tesla as the world's best-selling EV manufacturer, selling 2.26 million cars in 2025 compared to Tesla's 1.64 million. In the United States, Ford announced a $19.5 billion write-down and killed the F-150 Lightning pickup, citing federal policy changes as the primary driver.

Despite federal roadblocks, clean energy continued its upward trajectory. States like California and Texas expanded solar, wind, and storage capacity, demonstrating that market economics can outweigh federal policy decisions.

Electricity demand in the United States grew 3.1 percent last year, while solar generation rose by 27 percent, meeting nearly two-thirds of that extra demand. Utilities built massive battery banks to store power for when the sun isn't shining.

• California added nearly 70 percent more storage capacity in 2024
• Solar generation met 66% of increased electricity demand
• Market forces drove expansion despite federal opposition
• Cleaner grids proved cheaper and more reliable

The administration's attempts to slow renewable rollout and stall offshore wind projects faced resistance from states recognizing that a cleaner grid is a cheaper, more reliable grid. This divergence between federal policy and market reality created a complex landscape for energy transition.

The United States' climate retrenchment came as much of the world moved forward in 2025. Worldwide, renewables provided 40 percent of all electricity, while coal-fired power generation declined in India and China for the first time in two generations.

Global clean energy investment was 50 percent higher than fossil fuel investment, reflecting a fundamental shift in energy economics. The United States has clearly ceded leadership in the climate fight as other nations accelerated their transitions.

The seven charts reflecting this year's changes show implications that will be felt for a long time to come. From electric vehicle manufacturing to renewable energy deployment, the policy shifts have created new uncertainties while the global market continues to evolve.

The first year of Trump's second term has transformed the American climate and energy landscape. While the administration successfully rolled back federal initiatives, market forces and state-level actions have maintained momentum in clean energy deployment.

The price gap between used internal combustion and electric vehicles reached a record low of just $897 in August, suggesting continued consumer interest despite policy headwinds. A glut of used EVs expected to hit the market could drive prices down even further.

The long-term implications of these policy reversals will depend on whether market economics can continue to drive the energy transition without federal support. The global race for clean energy leadership continues, with the United States now facing a different competitive landscape.