The U.S. climate tech industry may face a more turbulent road ahead as Donald Trump prepares to return to the White House. With policy promises that include withdrawing from the Paris Climate Agreement, cutting funds allocated by the Inflation Reduction Act (IRA), and expanding fossil fuel production, Trump’s agenda could present formidable challenges to green innovation and sustainability initiatives. Yet, climate tech entrepreneurs and leaders insist the sector is better positioned now than ever to weather the storms.
Threats to Policy and Progress
Trump’s campaign platform underscores a rollback of climate-focused policies that had been instrumental in accelerating the transition to renewable energy. His proposals include reducing federal incentives for clean energy, curtailing the Environmental Protection Agency’s authority to regulate emissions, and imposing new tariffs that could increase the costs of clean energy technologies.
“A new administration has the potential to significantly scale back opportunities for climate tech,” says Martin Keighley, CEO of CarbonFree, a company specializing in carbon capture technologies, “whether by withdrawing from the Paris Agreement or weakening policies related to the Inflation Reduction Act and 45Q tax credits that support carbon capture.”
Keighley also highlights the risks posed by weakened environmental regulations and reduced funding for climate research agencies like NOAA, the knock-on effect could deprioritize innovative climate technologies.
Global Competition and Momentum
Despite the looming policy risks, industry leaders believe that the climate tech sector has gained substantial momentum in recent years. The industry is stronger now than it was during Trump’s first presidency in 2016. “Corporate and public sectors will face pressure to uphold sustainable practices that drive market incentives for carbon capture technology. Many large corporations are likely to retain self-imposed net-zero targets, focusing on Scope 3 emissions reductions,” says Keighley.
U.S. states and municipalities have taken a leading role in climate action, with progressive regions like California and New York enforcing stringent regulations regardless of federal leadership. Internationally, nations such as China, India, and members of the European Union are ramping up investments in green technologies, with the global green economy now worth over $10 trillion annually.
“U.S.-based companies must maintain these sustainability targets to remain competitive in markets like the European Union,” Keighley asserts.
Market Advantages Drive Adoption
The resilience of the climate tech sector will be driven by its market advantages; it offers an opportunity for profit that aligns with community and environmental impact. CarbonFree’s flagship technology, SkyCycle, captures up to 50,000 metric tons of CO₂ annually per industrial plant, converting it into calcium carbonate, (limestone), which can be used in products like plastics and paints.
“For manufacturers, we know that they remain interested in sustainable and recycled materials as long as the price is competitive and quality is equivalent or higher quality, which our calcium carbonate is. For hard-to-abate industries, we believe that their sustainability will continue largely uninterrupted,” Keighley says.“Our partnerships with companies like U.S. Steel to install carbon capture plants demonstrate the viability of these solutions,” he adds.
Private Sector Leadership
Brightly.earth focuses on combating food waste—a major contributor to greenhouse gas emissions—through carbon credit systems incentivizing waste reduction. Andy Levitt, founder and CEO of Brightly.earth, sees private-sector leadership as essential in addressing gaps left by shifting political priorities.
He stresses the critical role of corporations in sustaining the momentum of climate innovation. “While government policies set the tone, the pace and scale of action often depend on the private sector’s ability to innovate and deploy solutions quickly,” he explains.
“Corporations have the resources and influence to drive systemic change,” Levitt says. “By aligning their climate goals with measurable outcomes, they can deliver environmental benefits while strengthening their business value.”
Staying the Climate Course
For startups navigating this uncertain terrain, resilience and adaptability are key. Keighley advises entrepreneurs to focus on solutions that do not rely heavily on government incentives. “For example, our SkyCycle produces endurocal, a zero-carbon calcium carbonate that can be sold wholesale to manufacture an array of everyday items, including plastics and paints, at a lower cost than the incumbent chemical processes,” he notes.
Levitt echoes this sentiment, urging startups to refine their strategies and partnerships: “Regulatory uncertainty creates opportunities to engage corporations and other private stakeholders,” he says. “Many companies are setting ambitious sustainability goals, which Brightly’s platform supports through credible, data-driven solutions.”
“We would also continue to focus on expanding our global partnerships and diversifying revenue streams. For instance, leveraging our technology to support companies’ internal emissions reductions ensures that we can deliver value even outside traditional carbon markets,” Levitt adds. “As public demand for climate accountability grows, we believe consumer pressure will keep sustainability high on the agenda, regardless of regulatory shifts.”
Net-Zero Pressure Remains
Despite the challenges, climate tech leaders remain hopeful. “We hope companies recognize the economic and community benefits our industry can provide,” says Keighley. “For example, carbon capture projects like ours can create as many as 50 direct jobs per project and more than 370 indirect jobs, while providing cleaner air to the communities surrounding large industrial plants. Companies will ideally continue to capitalize on these types of benefits, regardless of the decisions made by the incoming administration.”
Levitt emphasizes the importance of innovation in overcoming obstacles. “When politics create barriers, the entrepreneurial spirit finds ways around them,” he says. “By driving solutions that are scalable and impactful, we can build momentum that transcends political cycles.”
Headwinds Offer Opportunities to Adapt
“For months we’ve been preparing for what happened during the election, and we knew that the decarbonization sector would change regardless of its outcome. In the context of CarbonFree, we remain full steam ahead,” says Keighley. “Climate tech startups must evaluate and prioritize technologies that don’t rely on government incentives or carbon tax credits.”
He also underscored the importance of investment to drive climate tech growth, saying investors will focus on technologies that provide scalable, near-term answers to climate issues, as long as they prove to deliver profitable returns. He notes a growing preference for solutions with clear commercialisation paths and measurable impact, marking a shift from high-risk R&D projects to proven technologies that can be quickly implemented.
Resilience and Innovation Drive Progress
Keighley and Levitt urge climate tech entrepreneurs to remain steadfast: “Resilience and innovation are the foundations of meaningful progress,” Levitt says. “Setbacks can be opportunities to adapt and uncover new pathways for success.”
“The challenges we face today—whether they come from shifting policies or economic headwinds—are not insurmountable. They’re reminders of why we do what we do and why our work is more critical than ever,” Levitt adds.
As the U.S. political landscape shifts, the coming years will test U.S. climate tech’s resilience. But with strong leadership, innovation, and growing global momentum, the industry has the potential not just to survive but to thrive: “Resilience means staying focused on the mission, says Levitt, “even when external conditions are volatile. It’s about understanding that systemic change is a marathon, not a sprint, and that impact often comes from perseverance through uncertainty.”
