With President Donald Trump winning the 2024 election and Republican control returning to the Senate, Washington is preparing for a shift in the climate policy landscape. While the new administration may recalibrate federal support for green energy and re-evaluate international climate commitments, the momentum for climate action—built up over decades—continues to be stronger than ever. Recent progress shows that climate solutions are increasingly driven by industry, innovation, citizens and consumers, rather than by any one political office.
Rachel Delacour, CEO of Sweep, notes: “Conversations with businesses and investors clearly show that the commitment to emissions reduction is unwavering, spurred on by both economic resilience and environmental goals. Companies in the United States and beyond recognize that sustainable practices are key to thriving in an evolving policy environment, positioning them to lead confidently into the future.”
In the sections below, we look at five potential areas of policy change, from regulatory shifts to clean energy investments, and outline how companies can continue to shape a sustainable future..
Mandatory climate reporting
With President Donald Trump’s return to the Oval Office, a rollback of the SEC’s mandatory climate-related financial disclosure rules cannot be ruled out. These rules, implemented under President Biden, aimed to improve transparency around corporate climate risks and enable informed investment decisions. The new chair of the SEC is yet to be appointed, however it is noted that President-elect Trump’s appointee during his last mandate, Hester M. Peirce, has previously criticized these regulations, describing them as burdensome for companies.
If these mandatory disclosures are rescinded, some states may step in to enforce their own. For example, California’s Climate Corporate Data Accountability Act already mandates climate risk disclosures, and other states could implement similar requirements.
Globally, companies with a significant footprint in the European Union will still need to adhere to the EU’s Corporate Sustainability Reporting Directive (CSRD), thereby maintaining transparency requirements for U.S.-based international corporations. As regulations shift, U.S.-based companies may find themselves navigating a complex landscape of state and international compliance standards. For businesses with long-term climate goals, maintaining transparency can build trust with stakeholders and investors, who are increasingly prioritizing environmental risk management.
Clean energy investments
Clean energy investments have grown steadily over the past few decades, with private sector support, state-level policies, and federal tax incentives proving instrumental during the mandates of several U.S. Presidents.
During President Donald Trump’s first term in office, clean energy continued to advance, driven by market forces, rising consumer demand, and job creation in sustainable industries. A reality echoed by Jason Grumet, CEO of the American Clean Power Association, who notes in a statement that renewable energy investment was strong throughout that period and remains so now: “Private sector clean energy investment is bringing jobs and economic opportunity to small towns and rural communities across the nation, while hundreds of new factories have come online.”
With solar and wind costs decreasing, renewable energy remains highly competitive. According to Dan Lashof, U.S. Director of the World Resources Institute, “Thanks to federal tax incentives and investments from the Inflation Reduction Act, subnational actors have more resources than ever to cut emissions, expand clean energy, and address environmental injustices.”
Paris Agreement commitments
A pressing question following President Trump’s win is whether the U.S. will remain committed to the 2015 Paris Agreement, the historic global accord focused on reducing carbon emissions. In 2020, President Trump formally withdrew the United States from this agreement, arguing that it placed undue burdens on the U.S. economy.
However, climate action at the local and corporate levels does not depend solely on federal policy. Lashof contends that, “While President Trump may retreat, leaders from states, cities, businesses, and elsewhere will eagerly step into the breach to take forward ambitious climate action.” Notably, certain states have maintained their Paris-aligned goals regardless of federal direction. California, for example, continues to implement ambitious emissions reduction targets, and other states are adopting similar standards.
At the corporate level, business leaders are increasingly setting their own emissions goals regardless of the level of federal participation, with their decisions more strongly driven by global investor and consumer pressure. U.S.-based companies with international reach will likely continue aligning with climate standards, regardless of changes in Washington’s stance, in order to meet global compliance requirements and maintain competitiveness abroad.
The future of the Inflation Reduction Act
When the Inflation Reduction Act (IRA) was signed in 2022, it accelerated growth in the U.S. clean energy industry, bringing transformative economic opportunities. The IRA spurred a wave of investments through tax credits for renewable energy projects, electric vehicle infrastructure, and climate resilience, creating jobs, lowering energy costs, and boosting local economies. Many businesses and communities are already seeing positive outcomes, with clean energy projects helping to revitalize towns, stimulate manufacturing, and expand workforce opportunities nationwide.
Jason Grumet, CEO of the American Clean Power Association, notes that “hundreds of new factories” have been launched thanks to IRA-driven investments. Clean energy has demonstrated strong potential to deliver benefits across economic, environmental, and public health dimensions, supporting greater resilience and cost savings for communities.
Even if the IRA’s spending priorities are adjusted, business leaders across industries have increasingly recognized the economic value of clean energy investments, driven by strong demand from both investors and consumers. Investors are increasingly favoring companies with a focus on environmental sustainability, seeing these as more resilient and better aligned with future market trends. Likewise, consumer demand for cleaner, more sustainable options has surged, with studies showing that brands committed to environmental responsibility often gain a competitive advantage.
Looking forward – how climate action will continue
As we see shifts infederal policies, climate action within the U.S. remains on firm ground, driven by powerful economic incentives, investor demands, and evolving consumer preferences. A recent EY-Parthenon report highlights how clean energy is now seen as a “strategic necessity,” not only for addressing environmental risks but for ensuring long-term financial performance and resilience. The momentum toward sustainability extends beyond the federal level, with investors like BlackRock placing sustainability at the core of their strategies.
The EY report found that 90% of global institutional investors are willing to revise their portfolios if companies fail to prioritize ESG criteria. Consumers, too, increasingly seek sustainable products, with revenue from these offerings growing at nearly six times the rate of others, demonstrating broad public commitment to climate-positive choices. Businesses adopting sustainability practices are also meeting the demands of younger consumers who prioritize social and environmental impact, helping brands align with shifting values while also securing financial advantages.
The wave of corporate sustainability commitments is now undeniable. With over 9,500 global companies, representing more than $1 trillion in market capitalization, committed to climate action, companies are increasingly positioning themselves for a future where sustainability is not only the norm but a driver of competitive advantage. As Simon Stiell of the UN Framework Convention on Climate Change has noted, the benefits of clean energy investments are already visible in jobs, wealth creation, and lower energy costs.
What are the benefits of climate action for US businesses?
For U.S. businesses, managing both your organization’s impacts on the environment, and its own exposure to risks generated by climate change remains crucial, even in a shifting regulatory landscape. Here’s why it’s essential to continue measuring and acting on your this data:
Investor expectations and pressure
Investors increasingly prioritize ESG performance. Transparent emission management improves investor confidence, attracts capital, and aligns with international markets.
Consumer demand for sustainability
Consumer preference for brands that demonstrate environmental commitment is growing. Taking action on emissions can enhance brand reputation and foster loyalty.
Global compliance requirements
International markets, especially the European Union, mandate carbon disclosures. Companies with global supply chains need to meet these standards to remain competitive and avoid penalties.
Operational resilience and risk management
Climate disruptions impact supply chains and infrastructure. Carbon reduction and climate change adaptation strategies reduce vulnerabilities and strengthen resilience.
Long-term cost savings
Sustainable practices can cut costs by reducing energy use, streamlining processes, and minimizing waste. Companies can lower operating expenses and enhance profitability by reducing their carbon footprint.
Competitive advantage
Companies that lead in emissions management are increasingly valued in a landscape prioritizing climate accountability. Climate-focused businesses attract talent, partnerships, and opportunities, differentiating them from competitors.
Measuring and managing your carbon footprint isn’t just about compliance—it’s an investment in the future stability, resilience, and reputation of your business. Even as policies change in Washington, the importance of sustainable practices for business longevity remains clear.