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Trump signs sweeping energy bill slashing clean power support sparking concern in canada over jobs and climate goals
US President Donald Trump signed the 鈥淥ne Big Beautiful Bill Act鈥 into law on Friday(July 4), delivering sweeping tax cuts and energy reforms that could derail North America鈥檚 clean energy goals and deal a blow to Canadian jobs, investment, and climate plans.The legislation, more than 800 pages long, eliminates key clean energy subsidies introduced during Joe Biden鈥檚 presidency, including tax credits for home solar, heat pumps, and battery storage. It also scraps electric vehicle (EV) rebates of up to US$7,500 for new and US$4,000 for used vehicles starting October 1.Why it matters to CanadaMuch of Canada鈥檚 EV manufacturing, mining, and battery production was built on the promise of North American integration, a shared supply chain supported by Biden-era climate incentives. The rollback of those supports could now stall projects and push companies to reconsider investments.鈥淭his interrupts whatever delicate momentum we had toward stronger climate policy and a clean energy transition,鈥 said George Hoberg, a climate policy professor at the University of British Columbia.Live EventsMajor wind and solar projects in the US that once had up to a decade to qualify for tax credits must now be operational by the end of 2027. Projects that haven鈥檛 started construction within the next year may lose federal backing. This could impact over 28 gigawatts of planned projects, according to Atlas Public Policy.Canada鈥檚 clean energy workers are watching closely. The Laborers鈥 International Union of North America (LIUNA), which represents workers in both countries, warned the bill could destroy jobs. 鈥淭hese solar and wind projects weren鈥檛 abstract policy ideas,鈥 said LIUNA general president Brent Booker. 鈥淭hey were real job opportunities for real people.鈥漁il and gas get a boostWhile clean energy takes a hit, fossil fuels get a boost. Trump鈥檚 bill expands offshore drilling leases and adds tax incentives for oil, gas, and coal companies. The American Petroleum Institute called it 鈥渁 win for American-made energy.鈥滳anadian Prime Minister Mark Carney is pursuing his own energy agenda, including carbon capture projects and a zero-emission vehicle mandate. But experts say Trump鈥檚 bill makes that harder. 鈥淚t doesn鈥檛 make it impossible,鈥 Hoberg said. 鈥淏ut it increases the cost and political resistance.鈥滳anada may still benefitExperts say US uncertainty could push clean tech companies north, especially those looking for hydropower and a stable climate policy. But Canada must act fast. Trade experts are urging Ottawa to offer investment incentives or waive tariffs on US parts to stay competitive.(You can now subscribe to our Economic Times WhatsApp channel)
Read More News onDonald TrumpJoe BidenCanadian jobsEV rebatesTrump energy billclean energy fundingLaborers鈥 International Union of North Americaclimate policy Canada
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(You can now subscribe to our Economic Times WhatsApp channel)Read More News onDonald TrumpJoe BidenCanadian jobsEV rebatesTrump energy billclean energy fundingLaborers鈥 International Union of North Americaclimate policy Canada(Catch all the Business News, Breaking News, Budget 2025 Events and Latest News Updates on The Economic Times.) Subscribe to The Economic Times Prime and read the ET ePaper online….moreless
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