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Climate

GOP Hardliners Win Quicker Clean Energy Credit Phase-Out in Budget

On budget negotiations, Climeworks, and a decline in shale

GOP Hardliners Win Quicker Clean Energy Credit Phase-Out in Budget
Heatmap Illustration/Getty Images

Current conditions: The chance of tornadoes continues through Tuesday in the Great Plains, Midwest, and South after weekend storms in the central U.S. killed at least 27The uncontained 18,000-acre Greer Fire in eastern Arizona is now encroaching on the towns of Greer, South Fork, and Eagar No tropical cyclones have formed anywhere in the Northern Hemisphere yet this year. The average by May 19 is 3.5.

THE TOP FIVE

1. Republican hardliners secure promise of quicker phase-out for clean energy tax credits

Late Sunday evening, lawmakers on the House Budget Committee reconvened to advance the reconciliation bill in a rare weekend vote. The package had initially failed to progress in a vote on Friday after Republican hardliners, including members of the House Freedom Caucus, expressed concerns that it did not go far enough to reduce the nation’s budget deficit. Though the package is still under negotiation — the four holdouts from Friday voted “present” to express their continued dissatisfaction — Politico reports that “Republican leaders put their commitments to the GOP holdouts in writing.” Per Punchbowl, that included House Speaker Mike Johnson proposing “a quicker phase-out of clean energy tax credits that were put into law as part of the 2022 Inflation Reduction Act. Republican leaders tentatively agreed to cut off all credits by 2028.”

We’ve been closely following what such cuts — such as erasing the electric vehicle tax credit and others for energy efficiency, heat pumps, and rooftop solar, as well as deep cuts to clean energy programs — would do to the IRA. As things stand, Johnson has “a bruising negotiation ahead” as conservatives and moderate Republicans, especially those from states that have been significant beneficiaries of the economic and job-creating upsides of the IRA, remain at odds. The House Rules Committee will hold its hearing on the package on Wednesday morning at 1 a.m. — not a typo — with Republican leadership “warning us that they won’t send members home for the Memorial Day recess until the House passes the reconciliation bill,” Punchbowl writes.

2. Icelandic newspaper claims Climeworks fails to capture enough CO2 to cover its own emissions

The Mammoth carbon removal plant.John Moore/Getty Images

The Swiss carbon removal company Climeworks allegedly fails to capture enough carbon even to offset its own emissions, an investigation by the Icelandic newspaper Heimildin found. According to the report, since Climeworks began operations in Iceland, “it has captured a maximum of 1,000 tons of CO2 in one year” — not enough to offset its emissions of 1,700 tons of CO2 in 2023. Climeworks operates two plants in Iceland: Orca and the recently opened Mammoth, which together have captured 2,400 tons of CO2, per the report. The goal is for Mammoth to capture more than 36,000 tons per year by the time it is fully installed later in 2025.

Last week, we covered in AM that Climeworks is preparing for significant cuts to its workforce. While the company confirmed those reports, its founder, Jan Wurzbacher, pushed back on Heimildin’s investigation on LinkedIn, writing that Orca and Mammoth have together captured 1,058 tons of net CO2, explaining that “the difference between theoretical and actual output is due to various factors such as planned and unplanned down-times, weather, filtering losses” and additionally, that Mammoth is “still under ramp-up.” In a fact-check on Twitter, Jack Andreasen Cavanaugh, formerly of Breakthrough Energy, added that “operational challenges are to be expected with scale up of any technology, let alone one as nascent and challenging as DAC,” but that Heimildin’s report also “clearly shows the challenges of scaling a necessary climate technology that doesn’t have a market.”

3. Trump to ‘preside over decline in shale production’

Despite his calls to “drill, baby, drill,” President Trump “is set to preside over a decline in shale production,” with U.S. oil executives warning that the industry is at a “tipping point,” The Wall Street Journal reports. Though crude oil production is expected to increase slightly in 2025, S&P Global Commodities Insights expects production to dip by 13.33 million barrels a day next year, or about 1%.

Trump’s tariffs and OPEC’s recent decision to accelerate oil production are expected to add to the decline in U.S. oil. Production in the Permian Basin was already slowing, and with oil prices around $62.49 a barrel — well below the $85 benchmark one driller said would “encourage new drilling” — many companies are “reluctant to drill through low prices,” the Journal adds. Oil and gas production in the U.S. emits more than 6 million tons of methane per year, Stanford researchers have found, with nearly 10% of the total methane volume produced in the New Mexico portion of the Permian Basin alone going straight into the atmosphere.

4. Offshore wind industry resolves to respond to Trump admin ‘with strength’

The offshore wind industry is preparing to take a “more aggressive approach” in response to the Trump administration’s nearly all-out halt of permits, the Financial Times reports. While the industry had initially “opted for a passive approach” to then-candidate Donald Trump’s rhetoric on the campaign trail, FT notes that companies and industry groups have since increased spending — especially in light of the administration’s decision to cancel Equinor’s Empire Wind project south of Long Island. “The only way out is through,” Liz Burdock, the chief executive of the Oceanic Network, said at an offshore wind conference last week, adding: “It’s time we respond with strength.”

5. Cybertruck slips as America’s top-selling electric pickup

The Tesla Cybertruck is no longer the best-selling electric pickup truck in the United States, InsideEVs reports. Despite selling 39,000 Cybertrucks in 2024, Tesla has seen a company-wide slowdown as CEO Elon Musk’s popularity has cratered with his involvement in the Trump administration’s federal layoffs and program cancellations. In the first quarter of 2025, Tesla registered 7,126 Cybertrucks — falling behind the Ford F-150, which had 7,913 registrations, followed in turn by the Chevrolet Silverado EV in third place, then the GMC Sierra EV, and the Rivian R1T. At the same time, “celebrations aren’t exactly welcome,” InsideEVs writes, “seeing how even the best-selling EV truck in the U.S. has struggled to move over 7,000 units in three months.”

THE KICKER

Electric and biodiesel-powered ambulances in New York City have brought the city’s alternative-powered vehicles to 21,500, or more than 75% of the entire fleet. Fire Commissioner Robert Tucker said the next goal was to “eventually rush to emergencies in electric fire trucks,” Gothamist reports.

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