Climate technology's survival under the Trump presidency questioned
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In a world where profitability and resilience are key for businesses, climate technology companies that minimise operational risk and increase resilience are poised to thrive. These solutions range from drought-resistant agricultural technologies to climate-resilient infrastructure, and more efficient logistics, aligning perfectly with businesses' core economic interests.
However, a search for relevant information on which climate technology companies were successful and profitable under the Trump administration yields no substantial results. This underscores the fact that climate tech is about economics, not politics; making the green solution the best solution ensures its success under any administration.
Laurie Menoud, co-founder of At One Ventures and the author of a contributed article, emphasises this point. She explains that companies that create real value through efficiency, lower costs, or better performance will thrive, regardless of who is in office.
At One Ventures' portfolio companies, including Helios, leverage disruptive deep tech to upend the unit economics of industries damaging the planet. Helios' green steel production process, for instance, reduces iron temperature four times lower than traditional blast furnaces, eliminating carbon emissions and offering up to 20% lower cost compared to conventional steel.
Businesses increasingly recognise the financial risks posed by climate change and are investing in resilient climate technologies, even under the Trump administration. Over the past decade, photovoltaic panel costs have dropped more than 90%, making solar energy economically competitive, even subsidy-free, in many regions.
However, companies that rely entirely on subsidies to be economically viable may go out of business under the Trump administration, as grants, tax credits, and government incentives for clean energy and sustainability are set to be cut drastically. This trend is evident even among major oil companies like BP, Shell, and Equinor, who have recently cut investments in renewable energy and increased spending on oil and gas projects.
Sustainability is not a strong enough business case on its own to ensure the survival of climate tech companies. In a capitalist world, companies will prioritise profitability over sustainability when necessary. ESG policy will be deprioritised under the Trump administration, making it crucial for climate tech companies to prove their financial viability.
Tesla's success in the electric vehicle market is a prime example. While environmental concerns played a role, the company's primary success was due to producing innovative, desirable, and increasingly affordable cars. Green businesses will succeed when they make financial sense, not solely due to goodwill.
The opinions in this article do not reflect the views of the website or any of its staff. It serves as a reminder that in the world of business, profitability and resilience will drive the success of climate technology companies, regardless of the political climate.
