- U.S. tariffs on Chinese goods, including clean technology exports, create uncertainty for investors in renewable energy sectors.
- Despite challenges, rising global energy demand and trade shifts towards developing nations support long-term clean energy growth.
U.S. trade policies under President Donald Trump may threaten global clean energy adoption. Due to declining manufacturing costs, renewable energy dominates new power capacity worldwide.
Earlier this month, Trump doubled tariffs on all Chinese goods, including clean technology exports. Although these tariffs have not directly targeted green sectors, investors fear uncertainty in solar, battery, wind, grid, and electric vehicle (EV) industries.
Emily Chew, sustainability head at Singapore’s GIC, said renewable energy investments have struggled since early 2022. She cited market uncertainty, price volatility, and policy challenges as key concerns for private investors.
At a recent summit in Singapore, she noted that rising interest rates, supply chain disruptions, and geopolitical events have benefited fossil fuel industries while harming renewables.
Despite setbacks, Chew highlighted structural shifts that favour clean energy. Trade conflicts could push China to strengthen ties with developing nations, increasing green technology exports.
UN data shows that China now exports about half of its solar and wind equipment to emerging markets. South Africa, Egypt, and Brazil rank among the top importers.
Energy demand continues to rise due to artificial intelligence and digital infrastructure growth. Chew said energy efficiency improvements and grid expansion must support this shift. Several countries have already restricted data centre expansion due to power constraints.
GIC has launched multiple climate investment strategies, including a private equity portfolio for energy transition technologies. The firm also invests in climate-related public equities and sustainable finance opportunities. Chew emphasised that higher global temperatures pose the most significant climate risk to investors.
The United Nations estimates that developing nations need up to $366 billion annually for climate adaptation by 2030. However, private sector contributions remain unclear. Chew said GIC is exploring adaptation investments but warned that the world is not transitioning to net zero fast enough.
Clean energy faces challenges, but long-term demand remains strong. Investors and policymakers must navigate trade conflicts and regulatory uncertainties to ensure continued progress in the sector.