What's happened
Recent US policy shifts have led to the cancellation of funding for two hydrogen hubs, impacting the country's competitiveness in green energy. Meanwhile, companies are increasing carbon credit use amid record market activity, reflecting a broader push toward cleaner energy and carbon offset initiatives.
What's behind the headline?
The US's recent policy reversal on hydrogen funding indicates a strategic retreat from its previous ambitions in green energy. This move will likely slow the country's progress in developing a competitive hydrogen economy, especially as China and Europe continue to invest heavily in this sector. The cancellation of $2.2 billion in hydrogen hub funding, part of over 220 projects cut amid government shutdowns, underscores political and fiscal priorities shifting away from ambitious climate goals.
Meanwhile, the surge in carbon credit usage—over $10 billion committed in the first half of 2025—demonstrates a growing market for offsetting emissions. Companies like Microsoft and Mercedes are investing in verifiable, land-based carbon removal projects, signaling a shift toward tangible, measurable climate actions. However, the challenge remains in sourcing high-quality, native hardwoods for land restoration, which Chestnut Carbon is addressing by becoming the largest buyer of hardwood seedlings in the US Southeast.
This divergence between policy retreat and market activity suggests that private sector initiatives are filling some gaps left by government funding cuts. Yet, the long-term impact hinges on whether the US can re-align its policies to support scalable, high-impact green technologies like hydrogen, or risk falling behind China and Europe in the race for clean energy dominance.
What the papers say
Bloomberg reports that recent US policy shifts have led to the cancellation of funding for two hydrogen hubs, which were part of a broader set of over 220 projects cut amid the government shutdown. This move marks a significant setback in the US's green energy ambitions, especially as China continues to advance in green hydrogen technology, where it currently holds a competitive edge. Bloomberg also highlights the record activity in carbon markets, with companies increasing their use of carbon credits—over $10 billion was publicly committed in the first half of 2025, according to MSCI Carbon Markets. Business Insider UK provides insight into private efforts like Chestnut Carbon, which is working with major corporations to create verifiable, land-based carbon removal credits, emphasizing the importance of tangible climate actions. The contrasting narratives from Bloomberg and Business Insider underscore a complex landscape where government policy and private market initiatives are evolving in different directions, shaping the future of US green energy strategy.
How we got here
The US has historically aimed to lead in clean energy, with significant investments in hydrogen and other green technologies. Recent policy changes, including funding cuts, reflect shifting priorities amid political and budgetary constraints. Meanwhile, global competitors like China continue to advance in green tech, especially hydrogen, which the US is now ceding ground in.
Go deeper
- What are the implications of the US retreat from hydrogen tech?
- How are private companies responding to government funding cuts?
- Will the US regain its leadership in green energy?
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