I've recently returned from a fascinating and beautiful trip to Singapore and Indonesia. 

Singapore was for a good friend's wedding, where I met an interesting chap who has been a freelance journalist out there for the last 15 years. We talked about Trump's policies and the impact they're having on the net-zero/sustainability world. We also talked about how much less in vogue green and renewable topics seem to be.

Fast-forward two weeks later, and I'm sitting reading my fiancées copy of The Economist, which was littered with headlines about Trump's attacks on renewable energy and his anti-green policies in favour of fossil fuels.

It’s no surprise that, according to The Economist, Trump's policies (and more specifically the One Big Beautiful Bill) will see a significant increase in carbon emissions in the U.S. I recently wrote about what is happening in the EV space as a result. 

So, as the world watches the return of Donald Trump to the White House, the focus has naturally shifted to his policies impacting the US energy sector. Yet, beyond America’s borders, Trump’s trade-first, climate-sceptic stance carries indirect—but powerful—implications for the UK’s renewable energy market.

At first glance, the UK may appear insulated: it boasts strong domestic policy support, a newly launched Great British Energy investment vehicle (whose mission is to power Britain with clean, secure, home-grown energy and to become a global leader in clean energy), and a steady pipeline of offshore wind and solar projects. 

This was certainly the perspective of my new-found journalist friend who believes the UK is light years ahead of everyone. But scratch beneath the surface and global turbulence reveals cracks that must be addressed proactively.

Cost Pressures in a Connected Market

The UK renewable sector relies on global supply chains for critical components: wind turbine blades, solar PV modules, and battery storage systems. Trump’s sweeping tariffs on Chinese imports, including renewable technologies, push up costs worldwide—not just in the US.

Higher component costs tighten project margins. This affects not just headline projects but also the tier‑two and tier‑three suppliers (the suppliers are one or two steps removed from the final product) or otherwise - the scaffolding of the clean energy transition. Many of these smaller firms already operate on thin margins and limited liquidity. For them, sudden price spikes or delayed shipments can threaten viability, which in turn threatens the UK’s ambitions. 

The Restructuring Imperative

With cost pressures rising and financing conditions tightening, we are likely to see more distress among smaller developers, installers, and component suppliers. Some will look to restructure; others may exit the market entirely.

In this environment, restructuring is not merely a reaction to a crisis—it becomes a strategic tool —although, admittedly, this view doesn’t take into account the human factor. Directors always have the challenge of removing the emotion from such decisions to allow for the necessary restructuring to take place. That’s why we find it's too little too late to make a meaningful impact on wider business goals.

To stay ahead of risk, forward-thinking firms should ideally consider some of the following approaches:

• Proactively review capital structures to get the right balance of debt and equity, which in turn helps cashflow and enforcement risk.
• Secure longer‑term contracts to lock in pricing. We have seen this have a negative impact on the construction sector, adding cost to complete pressure, but where there is volatility it will make forecasting and planning simpler—and pleases funders.
• Diversify supplier bases to reduce geopolitical risk exposure—this will largely look like focusing on European suppliers.
• Consider partnerships or mergers to build scale and resilience—there will be a new appetite as investors start to focus on the European markets more.

Advisors, lenders, and investors must prepare for a market where geopolitics—not project fundamentals alone—dictate viability. Conversely, there are some silver linings, as pointed out by The Economist. Because there is so much uncertainty and a tariff regime in the US, more and more investors are looking to Europe, which in turn opens up more opportunities for funding.

The UK Advantage—If We Seize It

Paradoxically, Trump’s pivot away from clean energy could also push global capital toward more predictable, stable markets like the UK—especially as the government doubles down on renewables investment.

Major projects like Scotland’s Berwick Bank offshore wind farm (the largest wind farm in the world with enough power to meet the annual energy needs of Scotland twice over) highlight ongoing investor appetite despite Trump's strong emotive views to the contrary—seemingly, he doesn't enjoy the aesthetic of wind farms near his Turnberry golf course.

Yet to secure this capital, the sector must show it can manage global risk: flexible contracts, resilient supply chains, and credible restructuring plans where necessary. All sounds easy, right? Clearly not, but where there is a will there's a way. 

The need for Government Support

One of the biggest challenges will be with the government—balancing the realignment of defense spending increases in the UK with a strong and resolute belief in the green energy sector, regardless of what Trump tells us. 

There seems to already be headway being made here—citing The Economist again, Britain has just launched several initiatives as cited above. So, despite defense spending becoming more of a focal point, it seems that our government, at least, is adamant that green energy is here to stay.

Final Thought

Geopolitical volatility isn’t going away. Nor is the science behind the facts surrounding global warming—whether that's being illustrated through increased plane turbulence (he says writing this from an airport), flooding, wildfires, rising sea temperatures and so on. 

Trump’s policies are a stark reminder that the energy transition doesn’t occur in a vacuum. It has ripple effects on the world around us. For UK renewables, the path forward lies not in assuming insulation—but in building structural resilience into how we invest, build, and finance clean energy, coupled with the ongoing support of our government.

The winners of this decade won’t simply have the best technology; they’ll have the most adaptable corporate strategies—backed by robust restructuring playbooks ready to meet whatever global shocks come next.

Whilst we have seen an increase in restructuring activity in the renewable space, looks can be deceiving—I've been dealing with restructuring in this space since I was a junior in my firm over 10 years ago. It's always been a challenging space. Reducing climate change isn’t straightforward —as The Economist alludes to: “the fundamental energy balance of a planet cannot be changed overnight; nor can a fossil-fuel-based economy that serves billions of people be replaced without furious political objections”. 

If you're interested in learning more about restructuring in the renewable sector, we would love to hear from you.