Clean Energy Dreams Face Harsh Reality: ABB Expects Global Slowdown Amid US Policy Reversal and Shifting Targets
ABB flags a worldwide reset on clean energy timelines as governments, led by the US, rethink climate goals and investments in 2025.
• ABB (India) Motion Business 2024 Revenue: ₹4,287 crore
• 99.13%: Efficiency of ABB’s latest industrial motor
• $6 million: Estimated lifetime energy cost savings per unit sold
• 10%: Portion of ABB India revenue from exports in 2024
The path to a clean energy future just hit a major speed bump. ABB Ltd, the Swedish-Swiss engineering powerhouse and India’s largest electrical equipment maker, has sounded the alarm: the world’s climate transition targets are being pushed back as optimism gives way to realism.
Global ambitions for fast green transitions, turbocharged over the past decade, are now being dialed back. The political winds have shifted sharply after Donald Trump’s return as US president in early 2025. With sweeping changes to US climate policy—including the removal of key tax credits and incentives for clean technologies—the domino effect is being felt worldwide.
Why Are Clean Energy Timelines Slipping?
Across boardrooms and parliaments, climate action strategies are getting a sober redo. Industry insiders at ABB believe previous goals set by governments, from Europe to Asia, simply weren’t grounded in what’s technically or economically possible.
A senior executive at ABB’s motion business detailed how the world’s biggest economies are resetting expectations. Instead of chasing aggressive deadlines, countries are acknowledging the need for feasible, longer-term solutions. Meanwhile, consulting leaders from Kearney argue that US policy now actively prioritizes oil and gas production, leading to inevitable slowdowns in the rollout of renewables.
The US, for example, has walked back critical support measures. Major recent legislation stripped tax credits for low-carbon sources and cut incentives for electric vehicles, a move echoing America’s exit from the Paris Agreement in late 2024.
How Is ABB Navigating the Energy Transition Headwinds?
ABB insists its diversified portfolio shields the company from sector-specific disruption. Supplying essential motors, drives, and generators to every key industry, ABB argues it “powers progress” regardless of which sector or region advances the fastest—or slows the most.
In India, where ABB holds sway with industrial giants like Tata Steel, ArcelorMittal, and JSW Steel, the company’s motion business surged in 2024, generating ₹4,287 crore—an increase of more than 13% year-over-year.
One standout success: ABB recently delivered a synchronous motor with 99.13% efficiency to a steel plant, projected to slash $6 million in electricity costs across the motor’s working life. These sustainability-meets-savings solutions are core to ABB’s pitch in turbulent times.
Q&A: What Are the Biggest Obstacles to Clean Energy Progress?
Q: How will shifting US policies affect international renewable projects?
A: The rollback of American climate incentives reverberates through global investment, slowing progress and increasing risk, particularly for suppliers targeting export markets.
Q: Are market leaders like ABB changing their growth strategies due to these trends?
A: ABB is doubling down on local-for-local manufacturing strategies, ensuring resilience even as tariffs and trade barriers increase. Export remains a priority—but with a sharper eye on regional advantages.
Q: Is India’s 2070 carbon neutrality target at risk?
A: With major economies pushing out deadlines, India and others may also revise their roadmaps. Still, ABB’s localized manufacturing base and product lineup position it to support domestic industry, even if ambitions cool.
How to Future-Proof Against Energy Transition Uncertainty
1. Diversify supply chains: ABB’s model shows the advantage of serving multiple sectors, reducing exposure to policy swings.
2. Focus on efficiency: Investing in tech that offers both sustainability and cost-cutting wins hearts—and contracts.
3. Localize production: Minimize tariff threats by making essentials close to target markets.
4. Track global policy shakeups: Stay agile as governments adjust incentives and targets.
Find more global energy news at Reuters and industry analysis at Bloomberg.
Bottom Line: The global race to clean energy is becoming a marathon, not a sprint. Governments are rethinking their strategies, timelines are slipping, and companies like ABB are adjusting to a new era of pragmatic progress. The clean revolution isn’t cancelled—just recalibrated.
2025 Energy Transition Action Checklist:
- Reassess your organization’s sustainability goals with an eye on new global timelines
- Prioritize investments in energy-efficient technologies and solutions
- Review supply chains for resilience against tariffs and policy changes
- Monitor major markets like the US, India, and Europe for policy updates
- Stay connected to industry leaders and news for the latest insights
