Energy Dealmaking in Transition: Profits, Politics, and the Future of Renewables

The legal landscape for energy dealmaking is poised for a significant shift under the newly elected Trump administration, with Big Law firms expecting increased activity in the oil and gas sector. The anticipated easing of environmental and antitrust regulations could streamline mergers and acquisitions (M&A), boosting profitability and expediting deal timelines.

In a recent article by Bloomberg Law, Zach Crowley, a partner at Clean Energy Counsel, highlighted a potential divergence in focus among law firms. With decreased returns on renewable energy projects potentially leading some investors to exit, Crowley remarked that many firms may reduce their involvement in renewables, noting, "They’re not really committed to the outcome of developing these projects, they’re committed to the profits." Crowley's comment underscores the prioritization of financial outcomes over environmental objectives in some legal circles.

However, uncertainty lingers. The Inflation Reduction Act (IRA) tax credits supporting renewable projects may remain intact unless Republicans gain control of both houses of Congress. Even in such a scenario, many incentives under the IRA enjoy bipartisan popularity, especially in states where renewable energy projects create jobs and economic benefits.

Crowley’s perspective casts a critical lens on the shifting priorities within the legal sector, emphasizing the need for genuine commitment to sustainable energy development amidst political and economic changes.