Amidst the unprecedented cuts to Medicare, SNAP food assistance, and tax cuts for the wealthy that is expected to add over $4 trillion to the national debt, President Donald Trump’s One Big Beautiful Bill Act (OBBBA) also eliminates financial incentives for green energy projects at all levels—both industrial and consumer—threatening to not only undo the environmental progress made by former President Joe Biden’s Inflation Reduction Act, but also decimate the country’s trillion-dollar green manufacturing sector.

The OBBBA ends numerous long-standing credits aimed at encouraging the growth of the renewable energy sector, estimated to be worth $1.51 trillion in 2024 by Grand View Research, by eliminating tax credits for solar and wind-powered electrical projects that come online after 2027—the Biden administration’s Inflation Reduction Act initially extended the now two decade-old provisions to 2032—although an exemption has been provided for generation projects that start within 12 months after the passing of the OBBBA.

This reduction of the role of renewables in power generation is expected to halve the amount of additional capacity being added to the nation’s electrical grid by as much as 50 percent, and at a time of increasing demand this is expected to increase the average family’s electricity bill by $110 by next year, according to the Center for American Progress. This resulting increase in fossil fuel use by power plants is also expected to hike gasoline prices between 25 and 37 cents per gallon by 2035, adding nearly $440 billion to the revenues of oil and gas companies.

“Despite limited improvements, this legislation undermines the very foundation of America’s manufacturing comeback and global energy leadership,” according to Abigail Ross Hopper, CEO of the Solar Energy Industries Association, in a statement made before the passage of the OBBBA. “If this bill becomes law, families will face higher electric bills, factories will shut down, Americans will lose their jobs, and our electric grid will grow weaker.” The number of jobs lost may total two million, according to a report released by BlueGreen Alliance.

In addition to cuts to incentives for weather resilience and improved air quality at the individual and municipal levels, the elimination of energy efficiency tax credits aimed at households looking to upgrade their homes have also been cut. One such cut was made to a $7,500 New Clean Vehicle Tax Credit for EVs purchased in 2023 or later; in addition to the loss of an incentive for consumers to buy a low-emissions EV, the resulting loss in sales will directly affect the US auto manufacturers, as the credit was limited to vehicles assembled in North America.

“Taking away incentives for energy-saving improvements would raise monthly bills for families and businesses,” warned Steven Nadel, executive director for the American Council for an Energy-Efficient Economy. “It will only exacerbate the growing strain on the electric grid.”

Conversely, the OBBBA hands $15 billion in tax breaks to the fossil fuel industry, according to the Joint Committee on Taxation, and opens up access to oil and gas drilling on previously-protected federal lands and waters.

Needless to say, these measures will also negatively affect the United States’ efforts to lower carbon emissions, with levels expected to only drop by three percent by the end of the decade, about two billion tons short of the 40 percent target set for 2030, according to estimates released by CarbonBrief.

Overall, the measures mandated in the OBBBA are expected to increase U.S. greenhouse gas emissions by over 340 million tons of CO2 over the course of the next decade, increasing both the rate and intensity of climate change-related extreme weather events, such as heat waves, hurricanes and wildfires.