In a move that has drawn sharp criticism from environmental groups and clean energy advocates, the U.S. Department of Energy (DOE) has announced plans to cancel over $13 billion in funding previously allocated for renewable energy development. The funds were earmarked for projects including wind and solar power, large-scale battery storage, and electric vehicle infrastructure—key pillars of the country’s clean energy transition.

The decision is being framed by the administration as part of a broader budget realignment, with officials arguing that the subsidies are no longer necessary at the proposed scale. However, environmental experts warn that withdrawing this level of support could slow down the growth of the renewable sector at a critical time. The funding was intended not only to accelerate deployment of clean technologies but also to stimulate job creation, innovation, and manufacturing in emerging green industries.

States like California, which have ambitious renewable energy and climate goals, have voiced particular concern. Leaders argue that federal support is crucial for scaling up infrastructure to meet both state-level and national climate commitments. Critics also note that the cancellation undermines U.S. credibility on the international stage, especially as other nations—including China and members of the European Union—are increasing investments in renewable energy and green technology.

The announcement comes just weeks before COP30 in Brazil, where countries are expected to present updated climate targets and demonstrate progress toward the Paris Agreement’s 1.5 °C goal. Environmental groups have called the DOE’s move a step backward, warning that without aggressive federal investment, the U.S. risks falling behind in the global clean energy race.

Despite the setback, advocates stress that the momentum for renewable energy remains strong at the state and private sector level. Solar and wind installations continue to expand across the country, and clean technology companies are pushing ahead with innovations in storage and electrification. Still, without federal funding to match the urgency of the climate crisis, the road to a sustainable future could become steeper and more uncertain.