$7.5B clean tech cuts put US building sector at risk as EU advances
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The United States Department of Energy (DOE) recently canceled more than $7.5 billion in clean energy awards, terminating 223 projects. At the same time, the DOE placed nearly $100 billion in clean energy loans and conditional commitments under review. These decisions have created disruption across key industries, particularly in building systems and emissions reduction.
The cuts represent a shift in policy direction. Projects once aimed at accelerating low carbon technologies are now stalled or under threat, leaving private sector actors to rethink their investment timelines.
Europe moves in the opposite direction
While the United States presses pause, the European Union is accelerating its green transition. Under the NextGenerationEU recovery plan, over €250 billion is available for energy and climate-related programs. Member states have already realized €66 billion in direct benefits, according to the European Commission. Investments are flowing into building retrofits, clean transportation and renewable infrastructure.
This contrast highlights two very different strategic environments. European policies now offer more predictability for private and public investors, especially in building renovation and decarbonization.
Buildings sector faces increased risk
Buildings are particularly vulnerable to policy changes. According to the International Energy Agency, commercial and public buildings consume 32 percent of global energy and produce 34 percent of energy-related CO₂. In the United States, commercial buildings alone emit around 830 million tonnes of CO₂ each year, which is roughly equivalent to Germany’s national total.
Donatas Karčiauskas, CEO of Exergio, an energy optimization company, sees this sector as the most affected by the DOE’s decision. “Buildings run every day and consume energy regardless of funding timelines,” he said. “When grants are cut, companies have fewer options to invest in newer, more efficient technologies.”
Operational fixes take priority
With hardware investments now on hold for many firms, software-based optimization is emerging as a realistic alternative. Karčiauskas believes that operational adjustments can deliver significant savings with less upfront capital. “Software on top of existing controls is already working. It can reduce energy waste by up to 30 percent,” he said.
Exergio implemented an AI-based energy system for a major Lithuanian shopping center, achieving over one million euros in savings. “It is cheaper and faster than deep renovations, and it keeps systems performing better every day,” he said.
Businesses must act despite federal uncertainty
Even as federal programs are paused, regulatory pressure is increasing at the state level. New York requires emission reporting from buildings, Washington DC has fixed compliance cycles, and California is preparing to mandate corporate emissions disclosures.
This evolving landscape suggests that businesses cannot wait for national policy to catch up. Local rules are advancing with or without federal alignment, and companies that delay may risk penalties or higher long-term costs.
A clearer horizon in Europe
Europe’s policy path appears more stable. The EU’s updated Energy Performance of Buildings Directive mandates zero-emission standards for new buildings by 2030 and sets efficiency requirements for existing stock. Combined with funding certainty, this gives investors and building owners more confidence to act.
Karčiauskas emphasized that the clean energy transition should not depend entirely on government programs. “It is not about who is leading but about making progress. Businesses that take initiative will benefit now and in the future,” he said.
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