US court deals blow to Trump’s bid to scrap climate grant programme

Core Impact Points

• The US Court of Appeals for the District of Columbia ruled that the Environmental Protection Agency (EPA) cannot freeze roughly $20bn in grants awarded to nonprofit groups for clean energy projects.
• The ruling reverses an earlier decision by the same court and restores an injunction that had been put on hold, but the money will not be released immediately.
• The dispute centers around the Greenhouse Gas Reduction Fund, a programme created by Congress through former US President Joe Biden's 2022 Inflation Reduction Act.
• EPA Administrator Lee Zeldin has been trying to dismantle the programme, accusing its recipients of fraud, waste, and mismanagement, but the organisations deny any wrongdoing.
• The ruling has significant implications for the US market, as it preserves a key climate policy and maintains the flow of funding for clean energy projects.
• The decision also highlights the ongoing battle between the Trump administration and the Biden administration over climate policies, with the Trump administration seeking to dismantle key initiatives.