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Global shift to renewable energy slows down amid tariff disputes and Saudi Arabia's environmental goals

Global shift to renewable energy slows down amid tariff disputes and Saudi Arabia's environmental goals

Bitget-RWA2025/10/28 20:30
By:Bitget-RWA

- Saudi Arabia advances 4.5 GW renewable projects under NREP, including record-low-cost solar/wind initiatives aligned with Vision 2030. - U.S. 50% tariffs on Indian goods and protectionist policies risk disrupting global energy collaboration, per Outlook India and PV Magazine. - Executive Order 14318 prioritizes nuclear/natural gas infrastructure, raising fossil fuel vs. renewables balance concerns in U.S. strategy. - Experts warn tariffs create artificial scarcity and inflate clean energy costs, threaten

Saudi Arabia is making significant progress with its large-scale renewable energy initiatives, even as a global conversation continues about how tariffs and trade restrictions may slow the shift to clean energy. The country has recently allocated 4.5 gigawatts (GW) of new renewable energy capacity through its National Renewable Energy Programme (NREP), featuring solar and wind projects at record-low costs, as reported by

. These advancements reflect the ambitions of Saudi Vision 2030 to broaden the nation's energy portfolio. However, there are ongoing worries that international trade measures—such as U.S. tariffs on Indian exports—could hamper cross-border cooperation in the energy sector, as highlighted in .

Global shift to renewable energy slows down amid tariff disputes and Saudi Arabia's environmental goals image 0

The projects, with a combined value exceeding $2.4 billion, include the 1,500 MW Dawadmi Wind IPP and the 1,400 MW Najran Solar PV IPP, both achieving unprecedented low Levelised Cost of Energy (LCOE), according to Reuters. A partnership between

and Aljomaih Energy & Water has also won a contract for a 400 MW solar facility in As Sufun, which is expected to supply electricity to 68,400 households by 2027, as noted by . These projects demonstrate Saudi Arabia’s commitment to renewable energy, with the Ministry of Energy projecting that total capacity put out to tender will reach 64 GW by the end of the year, as detailed in the Reuters report.

Yet, the worldwide transition to clean energy is being challenged by protectionist trade policies. Since 2023, the U.S. has imposed a 50% tariff on goods from India, a move New Delhi has criticized as "unfair and unreasonable," according to Outlook India. The two countries are close to finalizing a bilateral trade deal, with energy security becoming a central topic in the negotiations. Critics argue that such tariffs distort markets and discourage investment in clean energy, particularly in developing nations.

At the same time, changes in U.S. energy policy are opening new domestic opportunities.

, signed in July 2025, is designed to accelerate the development of AI data centers and energy infrastructure, with a focus on reliable baseload sources such as nuclear and natural gas. , an American company specializing in nuclear technology, has been chosen for the Department of Energy's Fuel Line Pilot Program to advance its molten salt reactor innovation. This initiative supports President Trump’s agenda to strengthen domestic energy independence, but it also raises debates about the right balance between fossil fuels and renewables in U.S. policy.

Market responses to new energy alliances have also shown significant fluctuations. Shares of American Rebel Holdings (AREB) jumped 75% after announcing a strategic partnership in the energy sector, according to

, though experts warn that the company’s history of volatility—including an 80.9% drop in net income—poses risks for investors. The company’s move into energy-related markets illustrates how shifts in the sector can impact stock prices, even as global trade tensions continue.

Industry experts caution that tariffs and trade restrictions could slow down the global move toward clean energy. "Tariffs artificially limit supply and drive up prices at a time when rapid, scalable decarbonization is essential," said a source familiar with Saudi Arabia’s energy sector. The nation’s renewable projects, which depend on international engineering and construction firms such as Energy China and PowerChina, may encounter setbacks if supply chain issues intensify, as reported by

.

As Saudi Arabia and other countries pursue ambitious renewable energy goals, the relationship between trade policy and energy infrastructure will be increasingly important. With COP30 on the horizon, the urgency for unified global action—rather than fragmented trade restrictions—has never been greater.

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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