Renewable energy projects require substantial financial resources, and development and maintenance can be a significant barrier, especially in regions with limited funding. The target set at COP28 to triple renewable energy capacity worldwide draws attention to the urgent need to increase investments in clean energy.

Governments have a significant impact on progress toward such targets, but this may be lacking in light of the tax and budget legislation proposed by the US House of Representatives on May 22, 2025. The laws would make major cuts to tax provisions supporting clean energy technology deployment. Almost every clean energy provision has been reduced by premature terminations and new restrictions, termed “unworkable” by the opposition. 

Green Deal backlash challenges efforts to accelerate the transition to green energy in the EU, and a European expert has advised revising the values of internal rates of return, or IRR, downward to 4.5% (onshore wind), 4% (solar PV), and 7.5% (bio-energy and CHP). The IRR is the break-even interest rate that a project is expected to earn.

The situation is no better in Asia. Many of the largest continent’s power grids are outdated because they were designed for legacy power systems that relied on centralized generators. Integrating renewables is a significant challenge as they are often variable and distributed. Current grid infrastructure is not equipped to handle the bidirectional flow of electric power and the increased capacity that renewable sources require.

Global instability will impede the energy transition in 2025

Global instability will cause short-term uncertainty, according to DNV’s annual survey on energy industry-focused insights. Political risk is considered the primary barrier to growth for the year ahead. Just 55% of energy experts believe the transition to clean energy is accelerating, down from 79% in 2023 and 72% in 2024.

A successful energy transition may hurt some communities through prohibitive costs, uneven benefit distribution, and economic displacement, according to 51% of respondents. Poorer regions might struggle with the adoption of new technologies, and workers in traditional energy sectors will lose jobs in the absence of retraining opportunities.

Respondents see a pressing need to implement accessible and affordable clean energy technologies using innovative financing models. Developing economically sound clean energy projects will guarantee the shift to clean energy creates real, lasting benefits.

Economic gatekeepers control capital allocation

In order for large-scale environmental projects to succeed, they must appeal to economically influential decision-makers, for whom the environment isn’t necessarily a priority. Projects such as offshore wind farms or carbon capture infrastructure require billions in capital investment, complex financing structures, and access to infrastructure. These resources are controlled or heavily influenced by economically powerful stakeholders like governments, institutions, and corporations.

If these decision-makers don’t see a compelling economic case, such as strong returns, cost savings, or long-term competitiveness, they are unlikely to support the project. Appealing to their financial interests ensures access to capital, infrastructure, and political influence, all of which are critical for scaling up environmental efforts.

Decentralization and transparency underlie energy project feasibility 

Decentralization and transparency significantly contribute to a project’s economic viability. EcoYield Energy, a Web3-powered clean energy platform, allows businesses and individuals to fund real-world solar and battery storage projects and earn stable yields from energy revenue in ETH/USDC. The platform combines decentralized governance, NFTs, and smart contracts to bring clean infrastructure onto the blockchain. Its model centers on investments in tokenized clean energy infrastructure.

Clients include institutions seeking transparent and clean energy exposure, ESG-focused funds interested in stable and secure returns, entities interested in DAO-governed infrastructure, ESG-conscious individuals who want both passive returns and a clean energy impact and Web2 retail users seeking accessible investments.

EcoYield is a major player in Regenerative Finance, placing equal focus on profit and long-term social and environmental impact. ReFi projects can include carbon credit markets, decentralized platforms for funding conservation efforts, or initiatives that promote equitable access to resources. EcoYield also offers transparent impact tracking with a CO2 offset module, allowing users to monitor performance and CO2 savings in real time. The tool displays the amount of savings the user has contributed, with Chainlink verifying the data on-chain.

Policy and market leverage flow from power centers

Economically powerful actors have disproportionate influence over policy, regulation, and market norms. If environmental initiatives can be framed to align with their interests, such as through energy security or long-term cost reduction, they can become advocates rather than obstacles. Once influential stakeholders support a project, they can help remove regulatory barriers, influence public opinion, and accelerate adoption across entire sectors. This creates systemic change much faster than relying solely on grassroots or environmentally driven motivations.

The implications of the US government’s legislation

Opportunities to invest in economically sound projects become all the more important considering the prospects of the House-passed bill, which will terminate most clean energy-related credits after 2025 if passed into law, including those going directly to households and consumers for purchases of charging equipment, clean vehicles, and residential clean energy property like solar rooftops. It will repeal tax credits for investment and clean electricity production and eliminate the transferability of certain clean energy credits to other taxpayers in exchange for cash. This option, which remains available, ensures that a wider range of projects and developers can benefit from the credits.

Green Deal backlash has thwarted environmental reform in the EU

The European Green Deal is a massive package of environmental reforms launched by EC President Ursula von der Leyen in late 2019. Backlash ensued, but farmers’ protests against draconian green rules in early 2024 marked a turning point. On June 20, the EC repealed a rule on corporate greenwashing, which had forced companies to provide verifiable evidence of environmental claims. In perpetrating greenwashing, these companies are unwilling to invest funds in green initiatives with less-than-stellar returns.

Accelerating the rollout of clean energy infrastructure was upheld as a priority at EU Sustainable Energy Week in June 2025, suggesting that little progress has been made in this direction.

Drop by drop, a river is made. Economically powerful entities like institutions, corporations, and governments are pivotal to the successful transition to clean energy, but individuals’ contributions shouldn’t be underestimated. Economically appealing projects result in fewer harmful effects on the environment and help ensure cleaner water and air for everyone, one token at a time.