Recently, President Donald Trump has shifted his approach to climate policy. This change may lead businesses to downplay their environmental efforts. Instead of publicly announcing their climate goals, companies might focus on making changes quietly. Sanjay Patnaik, from the Brookings Institution, mentions that while businesses may still pursue sustainability, they won’t be vocal about it. They won’t announce, “Look, we’re going green!”
Janel Everly, an analyst at Gartner, agrees that companies are likely to embrace what she calls “quiet leadership.” While initiatives to support the environment will continue, public announcements about climate goals might decrease. She added that businesses are transforming their models to adapt and improve, even if they aren’t shouting about it.
Janel Everly: “It’s going to be a change of vernacular around positioning, but I don’t know that it’s going to change their approach or their business model.
Trump’s recent executive order, called “Unleashing American Energy,” prioritizes energy exploration in the U.S. He aims to focus on federal lands and waters for energy production. This order also includes reviews of regulations on domestic energy resources like oil, gas, and coal. Several of Biden’s climate-related executive orders have been revoked as well, including those addressing the climate crisis and energy sustainability.
Patnaik noted that shifts in climate policy are common between different administrations. He observed that U.S. climate policies often experience significant changes depending on whether a Republican or a Democratic president is in charge. Everly remarked that Trump’s drastic policy changes could create a gap between federal and state regulations, especially in states like California that have stronger climate policies in place.
Many fear these changes may hinder the U.S.’s long-term investments in renewable energy. Everly worries that this could make the U.S. less competitive in clean technologies like solar energy.
In addition to withdrawing from the Paris Agreement, which many view as symbolic, Trump’s focus will shift towards the Inflation Reduction Act (IRA). This act aimed to promote clean energy, but under Trump’s new direction, federal support for electric vehicle infrastructure could be halted. While Trump could face challenges in fully repealing the IRA, especially with some House Republicans supporting its provisions, the landscape of U.S. clean energy development may still face obstacles.
Despite the changes, there are some areas of agreement between the Biden and Trump administrations. Both administrations recognize the need for domestic mining and processing of critical minerals, especially given concerns over China’s dominance in this sector. These minerals are essential for powering modern technology, from smartphones to electric vehicles.
Moreover, permitting reform is likely to remain a focus. There is bipartisan interest in streamlining the lengthy permitting process, but Republicans and Democrats often clash on the specifics of what to reform. Nonetheless, highlighting this issue shows that while the discussions may differ, the need for change is recognized on both sides.
Overall, while businesses may navigate these policy shifts with caution, their commitment to sustainability continues in the background.
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