Trump energy pivot takes aim at renewables but unlikely to deter ESG investments

US President Donald Trump's first day back in the White House saw his administration halt funding for new energy, electric vehicle, and critical minerals projects. Through his Jan. 20 executive order, "Unleashing American Energy," Trump mandated government agencies to pause funding from the Inflation Reduction Act of 2022 and the Bipartisan Infrastructure Law of 2021 to review alignment with the new administration and its preference for fossil fuels. Trump also declared a national energy emergency, citing rising energy prices as an "active threat" and emphasizing goals like increasing mineral production and easing emissions restrictions.

"They're essentially putting a halt on any actions they don't want happening in the background until they are fully staffed up and they have an idea of how they want to proceed on certain efforts moving forward," said Anna Mosby, head of global environmental policy at S&P Global. "This isn't any different in most ways from what we would expect from a new administration of a different political party with different policy priorities."

Trump addressed a top priority for the gas utility sector by ensuring a continued market for natural gas and gas-powered appliances. Before his inauguration, the American Gas Association urged Trump to protect access to gas amid concerns over restrictions on gas use in buildings and efforts to block pipeline infrastructure. Trump issued directives promoting gas appliance access and ordered federal departments and agencies to "deliver emergency price relief" to households by eliminating policies that raise home appliance and fuel costs.

The US wind industry remains on alert following Trump's executive order freezing offshore leasing in federal waters and suspending offshore and onshore permits, approvals, and loans pending a review by the Interior Department. While industry experts expected the new administration to block future offshore wind development, the targeting of onshore wind could surprise the power sector. The American Clean Power Association is opposing potential federal intervention in private land projects, asserting that such actions contradict national interests. Some industry players also took Trump's executive order in stride. Dominion Energy, which is building the largest US offshore wind facility, believes the project will finish on time despite the presidential action.

The energy policy shift under Trump and new foreign regulations are stoking investor caution, although analysts and financial firms predict a limited impact on the sustainable investment market in 2025 and beyond. Funds focused on energy transition face uncertainty in the US, while those with European operations must navigate stricter taxonomy regulations. However, ESG investors are expected to maintain their strategies while responding to global economic factors beyond US politics, experts say. Companies aiming to reduce costs are also anticipated to keep adopting technologies that make their businesses more energy-efficient and resilient.

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Deep Dives

In-depth features looking at the impact of major news developments in key industries.

Financials

US banks turned toward equity issuance and away from senior debt in Q4 2024?????

Senior debt, which typically makes up the bulk of issuance activity, was drastically reduced and common equity offerings recorded a robust increase as banks took advantage of higher valuations.

—Read more on S&P Global Market Intelligence.

CRE-heavy bank stocks lost ground to peers as Fed signals fewer cuts

Stock prices of US banks with outsized commercial real estate (CRE) exposures lost ground to the broader industry as the Federal Reserve signaled less aggressive rate cuts in 2025.

—Read more on S&P Global Market Intelligence.

French banks forecast to post record aggregate revenue, profits for 2024

BNP Paribas, Crédit Agricole and Société Générale are expected to have largely overcome political and economic turbulence in France during 2024 to deliver their best-ever aggregate full-year performance, according to analyst consensus estimates.

—Read more on S&P Global Market Intelligence.

Asia to carefully navigate monetary policy as Fed slows easing, US tariffs loom

Potentially higher tariffs can create inflationary pressures in the US economy and push the Federal Reserve to slow its easing cycle that started in July 2024.

—Read more on S&P Global Market Intelligence.

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Insurance

Majority of large-cap US insurers start 2025 in positive territory?????????????

Several life and health insurers booked some of the largest gains on Wall Street in the first two weeks of the year, while a handful of property and casualty insurers were among the worst performers.

—Read more on S&P Global Market Intelligence.

Los Angeles wildfires to lead agenda on US P&C insurers' Q4 2024 earnings calls

Combined ratios are expected to deteriorate sequentially for a majority of the largest US property and casualty carriers in the fourth quarter of 2024.

—Read more on S&P Global Market Intelligence.

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Fintech

Fintech's US IPO drought expected to end in 2025??????????

After recording no initial public offerings for the third consecutive year in 2024, fintech companies might return to public markets in the coming year.

—Read more on S&P Global Market Intelligence.

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Real Estate

US REIT average short interest ticks up in December 2024

The advertising sector booked the highest average short interest among all property types, rising 88 basis points month over month to 5.6% of shares outstanding.

—Read more on S&P Global Market Intelligence.

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Credit and Markets

Global economic outlook: January 2025

Expected post-election shifts in US economic policy remain the focus of ?nancial markets. Consistent with recent favorable US growth signals and heightened concern over in?ation prospects, futures markets now discount just one 25-basis-point rate cut by the US Federal Reserve during 2025.

—Read more on S&P Global Market Intelligence.

Older Americans' workforce share nears 20-year low

Stock market gains, soaring home prices and growing family responsibilities are keeping workers aged 55 and older out of the labor market, likely for good.

—Read more on S&P Global Market Intelligence.

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Energy and Utilities

Experts see few winners if US enacts tariff on Canadian oil, gas imports

Prime Minister Justin Trudeau warned that Canada could retaliate by imposing counter-tariffs on US goods. But the premier of Alberta broke ranks and urged continued talks with the US, the province's largest customer.

—Read more on S&P Global Market Intelligence.

Pacific Northwest hydropower generation jumped in December

Pacific Northwest hydropower output in December grew 25.8% year on year and was up 23% from November.

—Read more on S&P Global Market Intelligence.

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Technology, Media and Telecommunications

GenAI funding hits record in 2024 boosted by infrastructure interest

GenAI funding reached over $56 billion in 2024, nearly doubling from 2023, as investors focus on select winners and infrastructure growth.

—Read more on S&P Global Market Intelligence.

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Metals and Mining

Greenland no quick fix for Trump team's desire for critical minerals – experts

Greenland has a lot of mineral potential, but it is a tough place to build mines, and the US has other better options for mineral supply, industry experts said.

—Read more on S&P Global Market Intelligence.

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The Week in M&A

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US power sector saw more robust company-level M&A activity in 2024

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Deal Tracker: Europe's media, telco M&A activity slumps in December 2024

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Oil, gas M&A deal values plummet YOY as activity slows in 2024

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REIT M&A activity muted in 2024

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The Big Number

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Trending

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