After the dust settled on the 2024 election, Donald Trump’s return to the White House in early 2025 introduced a new wave of policy shifts—many of them reminiscent of his first term’s environmental rollbacks. Once again, federal agencies found themselves re-evaluating clean-energy programs, and some high-profile solar and wind projects were put on hold while regulators adjusted to the new administration’s stance. Yet, despite the turbulence, fundamental technological and market trends in climate tech have proven far too strong for any administration to halt. Rather than spelling doom for climate-focused innovation, these headwinds appear to be slowing—rather than stopping—the surging tide of low-carbon progress.
Investment Trends: Steady Despite Policy Shifts
A New Normal
Venture and growth investment in climate tech totaled $30 billion in 2024, down 14% from the previous year. This drop might sound discouraging, but it’s actually part of a larger story about the market “settling in.” The sector also saw 1,460 deals—nearly flat from 2023’s 1,468. Investors are still placing bets on climate tech solutions, but they’ve become more selective. Deals are a bit smaller, with an average size of $24 million, but the bar for commercial viability is higher than ever.
Growth-Stage Slowdown, Early-Stage Curiosity
Later-stage (Series D and beyond) funding fell 38% in 2024, even before Trump’s return. The new administration’s lukewarm stance on clean-energy regulation adds another layer of uncertainty for large-scale projects. Meanwhile, early-stage investments are in a curious spot. Seed funding was up by 3% in 2024, while Series A dipped 8%. Though smaller deals overall, they indicate that the pipeline of new ideas—ranging from advanced battery materials to sustainable agriculture solutions—remains robust. If anything, they signal confidence that breakthrough technologies can weather political cycles.
Market Forces Trump Policy
States and Markets Take the Lead
While federal leadership has once again become less predictable, state-level initiatives and market forces have continued to propel climate tech forward. Texas, for instance, recently overtook California in installed solar capacity, fueled by local incentives, falling solar-panel prices, and strong consumer demand for cheaper, cleaner power. Even as the Trump administration hints at reevaluating federal clean-energy subsidies, these broader trends are too entrenched to simply roll back.
The Inevitable Renewables Revolution
From data centers seeking 24/7 renewable power to rural farmers profiting from wind turbines, the economic benefits of clean energy are proving irresistible. Despite the drama in Washington, the underlying cost-curve advantage of solar, wind, and battery technologies remains a key driver of growth. Corporate buyers, for example, continue flocking to power purchase agreements (PPAs) to lock in low-cost, reliable, and clean electricity. Meanwhile, advanced nuclear (think small modular reactors) and next-gen batteries are attracting new investment as their technical viability improves.
Trump’s Impact: Slowing, Not Stopping
Policy Delays and Investor Jitters
Regulatory agencies tasked with approving new infrastructure have taken a more cautious approach under the new administration, leading to notable delays in large renewable projects. Some VCs and corporates have paused select funding rounds, waiting to see if (and how) the White House might attempt to repeal or weaken components of the Inflation Reduction Act (IRA). Yet the private sector’s appetite for scaled, profitable climate solutions remains high, and the IRA’s core tax incentives—still on the books—continue to draw investments, particularly in solar, wind, and EV manufacturing.
A Buyer’s Market for Acquisitions
Another sign of resilience? Exits more than doubled in 2024, with acquisitions making up 92% of all deals. Many suspect that 2025 will bring more consolidation, fueled by legacy energy companies looking to expand into renewables, as well as large corporates seeking to green their supply chains. While some smaller deals may fly under the radar—and the administration’s new policies may inject extra caution—this wave of tuck-in acquisitions is expected to persist, bolstering tech synergy and knowledge transfer across the board.
2025 and Beyond: Mixed Challenges, Bright Prospects
Looking ahead, Trump’s second presidency is unlikely to reverse the meteoric rise of climate tech. Political support comes and goes, but innovation marches on, driven by corporate ESG commitments, consumer demand for sustainable products, and international accords that keep pushing the envelope. Yes, a tepid White House stance can slow the pace of new infrastructure or hamper federal funding for early-stage startups; but states, private investors, and global markets are all stepping in to fill those gaps.
In short, 2025 might feel like a reset in federal leadership, yet it’s really just another year in climate tech’s unstoppable climb. The bottom line? Despite the headwinds, companies are still raising capital, forging partnerships, and scaling solutions that tackle climate change head-on.
Join the Climate Tech Movement
If you’re considering a career move—or are simply passionate about shaping a greener future—there’s never been a better time to jump into climate tech. From engineering roles in advanced batteries to policy positions in carbon capture, the industry needs diverse talent to keep the momentum rolling.
Ready to make your mark? Head over to impakt.work and discover a long list of exciting openings at some of the most innovative climate tech companies out there. Whether you’re an engineer, scientist, marketer, or policy expert, your skill set can make a world of difference in the fight against climate change. Now is the time to take action—be part of the solution, and help shape the future of energy, transportation, agriculture, and beyond.