Federal clean energy initiatives are tied to over half a trillion dollars worth of proposed projects

The second quarter of the year saw a significant event in the world of clean investment, as the Clean Investment Monitor, a joint project between the Rhodium Group and the Massachusetts Institute of Technology's Center for Energy and Environmental Policy Research, released a new analysis. This report examined the clean investment activity during the quarter, and it was conducted amidst the debate and refinement of the One Big Beautiful Bill Act, H.R. 1 (119), being debated and refined by Republicans.

The analysis revealed a concerning trend. Out of the $517 billion in outstanding investments for the construction and installation of 2,203 proposed energy facilities, a majority has yet to be deployed. This means that more than three-quarters of the energy projects that have not yet come online were announced after the enactment of the Inflation Reduction Act, a climate law enacted by the Democrats.

The One Big Beautiful Bill Act, H.R. 1 (119), was under consideration during the second quarter of the year, during which the report on clean investment activity was examined. The Republicans' changes to clean energy tax credits in their tax and spending law could potentially impact more than $500 billion in pending energy investments.

As a result, many projects listed by the Clean Investment Monitor—such as large-scale solar and wind installations—have not yet been realized due to funding uncertainties and policy shifts. The delay or limitation in the disbursement of clean energy tax credits, as a result of the Republican tax and spending package passed in July 2022, has caused a stall in the progress of these energy investments.

The energy investments in question are for the construction and installation of energy facilities, and the delay in their deployment could have far-reaching implications for the transition to a cleaner energy future. It is hoped that further discussions and refinements in the One Big Beautiful Bill Act, H.R. 1 (119), will address these concerns and help to unlock the potential of these pending investments. The analysis was released on Thursday, providing valuable insights into the current state of clean investment activity.