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A conversation with Danielle Arigoni, author of the new book Climate Resilience for an Aging Nation
When we talk about climate solutions, we often hear the word resilience. It’s the catch-all term for all the things we’re doing to prepare for the impacts of climate change — things like building seawalls and hardening homes and switching to renewable energy sources. But planning for the future is a tricky thing, and, argues Danielle Arigoni, author of the new bookClimate Resilience for an Aging Nation (Island Press), there’s one section of American society that is left out of resilience as we think of it today: older adults.
Arigoni spent much of her career working as an urban planner for the Environmental Protection Agency and the Department of Housing and Urban Development, but it was only once she started working at the AARP that she came to see how aging populations were often left out of urban design considerations. Now the managing director for policy and solutions at National Housing Trust, Arigoni spends her time working on climate-friendly affordable housing solutions.
Resilience, she writes in her book, is not just a matter of hardening physical infrastructure to keep the natural world out, but should incorporate the social connections that shape our days. As the country’s population ages, designing climate solutions that take older adults into account will be crucial not only for saving the lives of older adults, but for creating a more just future for everyone.
I spoke with Arigoni about her research, and what a more aging-friendly form of resiliency looks like. Our conversation has been edited for length and clarity.
How does climate change affect older populations in particular?
I mean, in a lot of ways. Certainly in disasters, we see that for a whole bunch of reasons, whether it’s mobility, or frailty, or cognitive decline, older adults are not able to respond in the same ways that younger people do. I think that’s partly a failure of emergency management to anticipate those conditions.
But even outside of disasters, we see that older adults oftentimes are living from a precarious financial standpoint. Fifteen percent of older adults live at or below the poverty line, which means they just do not have any available funds to decamp for a few days to safer ground or to weatherize their home or to stockpile resources.
And all of those things compile to a set of circumstances where older adults are either living in homes that they can’t afford to heat and cool in response to changing conditions, or they’re living in places where their homes are deteriorating because of climate impacts and they’re unable to fix them, which then sets off a kind of snowball effect of health problems as well. Something like 80% of all people over 65 have two or more chronic conditions, and when that gets layered on top of extreme heat and wildfire smoke and indoor mold and all of these other things, that multiplies the effects.
Does heat affect older adults in a different way from the larger population?
Heat is the deadliest extreme weather phenomenon in our country, and 80% of the casualties are older adults. And that is for a lot of reasons. To begin, older adults can’t process heat in the way that young bodies can; our ability to sweat changes as we age. So that’s part of it.
But heat also complicates and sits on top of underlying medical conditions and prescriptions. So there might be symptoms of heat illness that get masked because they resemble the effects of things like heart disease, or COPD, or respiratory challenges, or the effect of the medication, so it goes untreated.
And then when you layer on top of that the number of older adults who live alone, who may not even have someone to recognize that they’re starting to be disoriented and lose their balance, or that they are sitting in a house that’s 80 degrees when it really needs to be set at 72 because that person is too afraid of what their utility bills are going to cost that month.
All those factors compile and really just accelerate the risk for older adults in extreme heat. Extreme heat also isolates people further; they can’t go and knock on a neighbor’s door to ask for help if it’s 110 degrees out.
In your book you pointed out that there’s a link between where older adults live and climate risk.
Yeah, something like 50% of the older adults in the country live in about nine states. And those nine states are, for the most part, the states where climate risks are the greatest. So it’s places like California, Texas, Louisiana, Florida, and Arizona, the last of which just saw six straight weeks of 100 degree temperatures this summer. And yet Phoenix is one of the fastest growing areas for older adults. So you have to, at some point, stop and kind of scratch your head and wonder how we can better inform people so that they aren’t moving into areas where they are taking on greater risk.
Phoenix, to its credit, has already said they’re stopping new development because they’re running out of water. That was a recognition of the intersection between resources and habitability and development patterns. I don’t think we’ve necessarily done that, for the most part, in many communities. I think that’s a decision no local official wants to make. They don’t want to say they’re anti-growth.
There’s an interesting political conundrum here. Some of these places, like Florida and Texas and Louisiana, are places with legislatures that aren’t, shall we say, very climate-forward. And these older adults you’re concerned about might not care much for it either. So how do you navigate that?
It has to be education, right? There’s something in the lived experience of seeing that hurricane season is becoming longer and more frequent. That is testing even the presumptions of people who’ve been in Florida for a long time thinking they can live through it. When you’re experiencing more and more disasters to the point that it’s truly interfering with your well-being or maybe your financial viability —, like if all of your money is tied up in your home and your home is now in a floodplain, for example —, it prompts some very real and very timely conversations about what to do. So it’s just a matter of time before the real cost of being in some of these places becomes hard to ignore.
There’s a section in your book titled “Climate Planning and Disaster Resilience Tools Generally Fail The Age-Friendly Test.” What does resilience look like today, and how is it falling short for the elderly?
I think one arm of resiliency is the energy efficiency and carbon reduction set of activities, which is where we’re striving to reduce our carbon emissions. And we’re going to put in place a whole bunch of policies and programs to drive down the cost of that initiative. Another pillar is in hazard mitigation planning. FEMA unlocks a lot of hazard mitigation dollars for states and communities that have completed a plan before disaster strikes.
So those are kind of two disparate pillars: One is climate mitigation, and the other is risk mitigation. Neither of those think about age in a concerted way right now. In the requirements that FEMA just updated for state hazard mitigation plans that had been in place for like nine years, there’s one mention of considering demographic change when you’re writing your plan, but they don’t say you should project who your population is and what their needs are.
I think it’s a real missed opportunity, because those mitigation plans set the course for all the FEMA funds that follow. Oftentimes they become a vessel which other public resources are poured into as well. If you’re not identifying the needs of older adults right at the outset, you’re really missing that nuance in terms of what risk mitigation looks like for them.
Similarly, on the climate mitigation side, there’s a whole set of activities around, for example, making New York state a great place to age, but they don’t tie into the climate plan that New York state has put in place. Wouldn’t it make sense if we focus those investments in bringing utility costs down, in incorporating renewable energy and making energy efficiency investments, in those same places where we know older adults are already paying too much for their housing and are unable to afford to keep their utilities running or upgrade their homes? That would reduce their risk too.
I’m curious about the shortfalls of the solutions that we do build. I think a lot about how in places that are hurricane-prone, for example, you see a lot of houses on stilts. And I’m wondering if there’s just a simple mobility problem here.
I think that there’s sometimes a failure to acknowledge mobility challenges, certainly with elevating homes, but also just in terms of accessing transportation options, and relocation or evacuation options. I don’t mean to suggest that there aren’t accessible elevated homes, I’m sure they exist, but I haven’t seen any with my own two eyes. But I don’t necessarily know that that’s a really thoughtful solution. Even when we think about cooling centers that are being established for heat waves, it’s great that those exist, but I’m not sure that planners are always thinking about how people are getting to them. Those kinds of breakdowns that are part of the problem.
The harder conversation, frankly, is how do we relocate people out of harm’s way when elevating maybe is not going to be a very sustainable solution? Relocating is such a thorny topic, I think particularly so for older adults who may have lived their entire lives in one location. The notion of moving and being displaced because of climate change is a very, very difficult kind of identity crisis. It’s a pretty philosophical challenge, in addition to all the logistical challenges of moving your home, your community, and your livelihood.
What does climate resilience geared towards older populations look like? It sounds like you’re advocating for essentially an overhaul of a lot of things, because there are all these interconnected systems.
Yeah, it’s not a simple solution. When I think about what a climate-resilient community looks like, it certainly includes all the hard infrastructure that you would want — sea walls or levees, the sort of infrastructure that we think could mitigate risk. But it would also include a lot more thoughtfulness about how we’re designing our communities to live in every day. So thinking about different ways of designing housing, for example: how do we create communities where there’s more housing choice, so people can live in smaller units that will consume less energy and encourage more organic interaction than you see in suburbs? Hopefully they’ll be fueled by renewable energy as well so you’re eliminating that utility cost burden that is really problematic for low-income older adults.
There’s also making sure we have a robust transportation system so that you have not just a public transit system that works and gets people where they need to go every day of the year, but is also designed in ways that allow people to still use it when it’s hot. That means shade and seating, maybe even cooling factors at bus stops. Because otherwise, this transit system will not serve people if it is too hot outside. So you really have to think holistically about all of the elements that it takes to make a more climate resilient place.
I would also say communication and social connectedness is a huge part of it too. A good number of older adults do not have in-home internet or smartphones, so they don’t access the internet on a daily basis. So if you’re relying upon these systems to notify people or to get them to sign up for things that are going to reduce their risks, then you’re probably missing a whole bunch of people. So how do you cultivate a multi-pronged approach where you’re using all the levers you have available to you, including people like home health aides, or service organizations like Meals on Wheels, to get information to people in ways that they can access and utilize it?
Your point about home health aides reminds me that you drew a connection between climate and COVID-19 in your book. What lessons can we learn from the pandemic that can be applied to climate change?
Tragically, what we learned is that older adults are viewed as expendable. I think we somehow accepted the fact that a wildly disproportionate number of people who die from COVID-19 were older adults. It didn’t cause the kind of outrage that I think it should have. And I think some of that same thing is happening here with climate-fueled disasters.
COVID taught us the importance of getting information and support to people in their homes. I think there’s this presumption that when we plan for nursing homes we’ve checked the box, we’ve covered older adults’ needs. But that’s only true for a very small number of older adults — the vast majority live in their homes, often alone, particularly older women. And so how do you get services and information to folks in their home in ways that understand and appreciate their mobility challenges?
It’s interesting that so much of what you’re talking about is communication. I feel like when people hear the word resilience, they think of these big plans to transform the built environment.
I think communication is a huge part of why we’re here. And by that I mean the inability of these different siloed technical fields to communicate with one another. Emergency management and hazard mitigation people use a very different language than aging advocates do, who use a very different language than sustainability advocates do. They speak different languages, and they report in different structures, and they’re funded by different agencies. And never the twain shall meet. There are not a lot of opportunities where those things come together like they should.
My hope is that by communicating more effectively with aging advocates in terms that they understand, using programs that they are responsible for administering, they then see climate change as part of their mission. It needs to be the same way when talking to emergency managers about hazard mitigation plans: We can begin to unpack the unique needs of older adults that might be falling through the cracks in terms of their existing planning efforts. We really need to create this middle ground of understanding.
Do you have a favorite solution? Or maybe a favorite place that has implemented these solutions well?
The one that comes to mind — and I’m a little biased because I went to school there — is Portland, Oregon.
During COVID, they developed a framework to get supplies into the homes of an array of people in the city, to ensure they had what they needed, whether it’s food or diapers or adult incontinence supplies. These are things that were really important to get to people. Then they layered that with really effective community-based organizations that could reach committees that were hard to reach. So they had a Latino group reaching Spanish speakers, they had an Asian American group reaching Asian immigrants, and so on.
After the pandemic, Portland was able to use their relationships with those groups during two summers in which terrible heat waves hit the region. They quickly deployed those same organizations to get portable heat pumps into people’s homes, and they prioritized low-income older adults. They were able to do that because they’d already cultivated that tradition of serving people in that community through trusted organizations. And I can’t help but think that it saved lives.
What do you think the federal government should be doing differently around climate resiliency and aging? Are there particular policies you’d like to see that target aging populations?
I think it needs to happen at all levels, from the local to the regional and state levels. And that can be accelerated by work at the federal level. So for example they could require that hazard mitigation plans, and applications for HUD programs, or BRIC, which is a FEMA program, have to include an analysis of demographic change, and what that means for people over 65.
That’s a step forward, because then you’ve got state planners and local leaders thinking about what their aging population needs, because the share of older adults is only going to grow, it’s not going to diminish.
Similarly, the Older Americans Act is going to be reauthorized soon, and that funds all kinds of agency work that supports home and community-based services so that people can age in place. There’s a real need there to acknowledge the fact that climate change is going to interfere with some people’s ability to do that. And that might mean that they need more utility assistance, because now they have to run the air conditioner longer or put the heater on more frequently. Or it might mean that they need different kinds of supports, like making sure these folks can evacuate during a flood.
Is there something you found in your research that people seem to constantly get wrong?
There’s a general impression that older adults are living their best lives, they’ve got their retirement savings and are going on cruises and playing golf. But it’s just not the case for so many older adults. Something like half of all people who are unhoused right now are single people over 50. There’s a whole set of upstream financial challenges many older adults face, including paying way too much of their income for housing because rents have skyrocketed and they often have fixed incomes. Not to mention all the other expenses that go along with getting older, such as prescriptions. So climate Is a risk magnifier financially as well.
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The EV-maker is now a culture war totem, plus some AI.
During Alan Greenspan’s decade-plus run leading the Federal Reserve, investors and the financial media were convinced that there was a “Greenspan put” underlying the stock market. The basic idea was that if the markets fell too much or too sharply, the Fed would intervene and put a floor on prices analogous to a “put” option on a stock, which allows an investor to sell a stock at a specific price, even if it’s currently selling for less. The existence of this put — which was, to be clear, never a stated policy — was thought to push stock prices up, as it gave investors more confidence that their assets could only fall so far.
While current Fed Chair Jerome Powell would be loath to comment on a specific volatile security, we may be seeing the emergence of a kind of sociopolitical put for Tesla, one coming from the White House and conservative media instead of the Federal Reserve.
The company’s high-flying stock shed over $100 billion of value on Monday, falling around 15% and leaving the price down around 50% from its previous all-time high. While the market as a whole also swooned, especially high-value technology companies like Nvidia and Meta, Tesla was the worst hit. Analysts attributed the particularly steep fall to concerns that CEO Elon Musk was spending too much time in Washington, and that the politicization of the brand had made it toxic to buyers in Europe and among liberals in the United States.
Then the cavalry came in. Sean Hannity told his Fox News audience that he had bought a Model S, while President Donald Trump posted on Truth Social that “I’m going to buy a brand new Tesla tomorrow morning as a show of confidence and support for Elon Musk, a truly great American.” By this afternoon, Trump had turned the White House lawn into a sales floor for Musk’s electric vehicles. Tesla shares closed the day up almost 4%, while the market overall closed down after Trump and his advisors’ furious whiplash policy pronouncements on tariffs.
Whether the Tesla put succeeds remains to be seen. The stock is still well, well below its all-time highs, but it may confirm a new way to understand Tesla — not as a company that sells electric vehicles to people concerned about climate change, but rather as a conservative culture war totem that has also made sizable investments in artificial intelligence and robotics.
When Musk bought Twitter and devoted more of his time, energy, money, and public pronouncements to right wing politics, some observers thought that maybe he could lift the dreadful image of electric vehicles among Trump voters. But when Pew did a survey on public attitudes towards electric vehicles back in 2023, it found that “Democrats and Democratic-leaning independents, younger adults, and people living in urban areas are among the most likely to say they would consider purchasing an EV” — hardly a broad swathe of Trump’s America. More than two-thirds of Republicans surveyed said they weren’t interested in buying an electric car, compared to 30% of Democrats.
On the campaign trail, Trump regularly lambasted EVs, although by the end of the campaign, as Musk’s support became more voluminous, he’s lightened up a bit. In any case, the Biden administration’s pro-electric-vehicle policies were an early target for the Trump administration, and the consumer subsidies for EVs passed under the 2022 Inflation Reduction Act are widely considered to be one of the softest targets for repeal.
But newer data shows that the tide may be turning, not so much for electric vehicles, but likely for Tesla itself.
The Wall Street Journalreported survey data last week showing that only 13% of Democrats would consider buying a Tesla, down from 23% from August of 2023, while 26% of Republicans would consider buying a Tesla, up from 15%. Vehicle registration data cited by the Journal suggested a shift in new Tesla purchases from liberal urban areas such as New York, San Francisco, and Los Angeles, towards more conservative-friendly metropolises like Las Vegas, Salt Lake City, and Miami.
At the same time, many Tesla investors appear to be mostly seeing through the gyrations in the famously volatile stock and relatively unconcerned about month-to-month or quarter-to-quarter sales data. After all, even after the epic fall in Tesla’s stock price, the company is still worth over $700 billion, more than Toyota, General Motors, and Ford combined, each of which sells several times more cars per year than Tesla.
Many investors simply do not view Tesla as a luxury or mass market automaker, instead seeing it as an artificial intelligence and robotics company. When I speak to individual Tesla shareholders, they’re always telling me how great Full Self-Driving is, not how many cars they expect the company to sell in August. In many cases, Musk has made Tesla stockholders a lot of money, so they’re willing to cut him tremendous slack and generally believe that he has the future figured out.
Longtime Tesla investor Ron Baron, who bought hundreds of millions of dollars worth of shares from 2014 to 2016, told CNBC Tuesday morning, that Musk “believes that digitization [and] autonomy is going to be driving the future. And he thinks we’re … on the verge of having an era of incredible abundance.”Baron also committed that he hasn’t, won’t, and will never sell. “I’m the last in, I’ll be the last out. So I won’t sell a single share personally until I sell all the shares for clients, and that’s what I’ve done.”
Wedbush Securities’ Dan Ives, one of the biggest Tesla bulls on the street, has told clients that he expects Tesla’s valuation to exceed $2 trillion, and that its self-driving and robotics business “will represent 90% of the valuation.”
Another longtime Tesla bull, Morgan Stanley’s Adam Jonas, told clients in a note Monday that Tesla remained a “Top Pick,” and that his price target was still $430, compared to the stock’s $230.58 close price on the day. His bull case, he said, was $800, which would give the company a valuation over $2.5 trillion.
When the stock lags, Jonas wrote, investors see Tesla as a car company. “In December with the stock testing $500/share, the prevailing sentiment was that the company is an AI ‘winner’ with untapped exposure to embodied AI expressions such as humanoid robotics,” Jonas wrote. “Today with the stock down 50% our investor conversations are focused on management distraction, brand degradation and lost auto sales.”
In a note to clients Tuesday, Ives beseeched Musk to “step up as CEO,” and lamented that there has been “little to no sign of Musk at any Tesla factory or manufacturing facility the last two months.” But his bullishness for Tesla was undaunted. He argued that the scheduled launch of unsupervised Full Self-Driving in June “kicks off the autonomous era at Tesla that we value at $1 trillion alone on a sum-of-the-parts valuation.”
“Autonomous will be the biggest transformation to the auto industry in modern day history,” Ives wrote, “and in our view Tesla will own the autonomous market in the U.S. and globally.”
The most effective put of all may not be anything Trump says or does, but rather investors’ optimism about the future — as long as it’s Elon Musk’s future.
The uncertainty created by Trump’s erratic policymaking could not have come at a worse time for the industry.
This is the second story in a Heatmap series on the “green freeze” under Trump.
Climate tech investment rode to record highs during the Biden administration, supercharged by a surge in ESG investing and net-zero commitments, the passage of the Infrastructure Investment and Jobs Act and Inflation Reduction Act, and at least initially, low interest rates. Though the market had already dropped somewhat from its recent peak, climate tech investors told me that the Trump administration is now shepherding in a detrimental overcorrection. The president’s fossil fuel-friendly rhetoric, dubiously legal IIJA and IRA funding freezes, and aggressive tariffs, have left climate tech startups in the worst possible place: a state of deep uncertainty.
“Uncertainty is the enemy of economic progress,” Andrew Beebe, managing director at Obvious Ventures, told me.
The lack of clarity is understandably causing investors to throw on the brakes. “We’ve talked internally about, let’s be a little bit more cautious, let’s be a little more judicious with our dollars right now,” Gabriel Kra, co-founder at the climate tech firm Prelude Ventures, told me. “We’re not out in the market, but I would think this would be a really tough time to try and go out and raise a new fund.”
This reluctance comes at a particularly bad time for climate tech startups, many of which are now reaching a point where they are ready to scale up and build first-of-a-kind infrastructure projects and factories. That takes serious capital, the kind that wasn’t as necessary during Trump’s first term, or even much of Biden’s, when many of these companies were in a more nascent research and development or proof-of-concept stage.
I also heard from investors that the pace of Trump’s actions and the extent of the economic upheaval across every sector feels unique this time around. “We’re entering a pretty different economic construct,” Beebe told me, citing the swirling unknowns around how Trump’s policies will impact economic indicators such as inflation and interest rates. “We haven’t seen this kind of economic warfare in decades,” he said.
Even before Trump took office, it was notoriously difficult for climate companies to raise funding in the so-called “missing middle,” when startups are too mature for early-stage venture capital but not mature enough for traditional infrastructure investors to take a bet on them. This is exactly the point at which government support — say, a loan guarantee from the Department of Energy’s Loan Programs Office or a grant from the DOE’s Office of Clean Energy Demonstrations — could be most useful in helping a company prove its commercial viability.
But now that Trump has frozen funding — even some that’s been contractually obligated — companies are left with fewer options than ever to reach scale.
One investor who wished to remain anonymous in order to speak more openly told me that “a lot of the missing middle companies are living in a dicier world.” A 2023 white paper on “capital imbalances in the energy transition” from S2G Investments, a firm that supports both early-stage and growth-stage companies, found that from 2017 to 2022, only 20% of climate capital flowed toward companies at this critical inflection point, while 43% went to early-stage companies and 37% towards established technologies. For companies at this precarious growth stage, a funding delay on the order of months could be the difference between life and death, the investor added. Many of these companies may also be reliant on debt financing, they explained. “Unless they’ve been extremely disciplined, they could run into a situation where they’re just not able to service that debt.”
The months or even years that it could take for Trump’s rash funding rescission to wind through the courts will end up killing some companies, Beebe told me. “And unfortunately, that’s what people on the other side of this debate would like, is just to litigate and escalate. And even if they ultimately lose, they’ve won, because startups just don’t have the balance sheets that big companies would,” he explained.
Kra’s Prelude Ventures has a number of prominent companies in its portfolio that have benefitted from DOE grants. This includes Electric Hydrogen, which received a $43.3 million DOE grant to scale electrolyzer manufacturing; Form Energy, which received $150 million to help build a long-duration battery storage manufacturing plant; Boston Metal, which was awarded $50 million for a green steel facility; and Heirloom, which is a part of the $600 million Project Cypress Direct Air Capture hub. DOE funding is often doled out in tranches, with some usually provided upfront and further payments tied to specific project milestones. So even if a grant has officially been awarded, that doesn’t mean all of the funding has been disbursed, giving the Trump administration an opening to break government contracts and claw it back.
Kra told me that a few of his firm’s companies were on the verge of securing government funding before Trump took office, or have a project in the works that is now on hold. “We and the board are working closely with those companies to figure out what to do,” he told me. “If the mandates or supports aren’t there for that company, you’ve got to figure out how to make that cash last a bunch longer so you can still meet some commercially meaningful milestones.”
In this environment, Kra said his firm will be taking a closer look at companies that claim they will be able to attract federal funds. “Let’s make sure we understand what they can do without that non-dilutive capital, without those grants, without that project level support,” he told me, noting that “several” companies in his portfolio will also be impacted by Trump’s ever-changing tariffs on imports from Canada, Mexico, and China. Prelude Ventures is working with its portfolio companies to figure how to “smooth out the hit,” Kra told me later via email, but inevitably the tariffs “will affect the prices consumers pay in the short and long run.”
While investors can’t avoid the impacts of all government policies and impulses, the growth-stage firm G2 Venture Partners has long tried to inoculate itself against the vicissitudes of government financing. “None of our companies actually have any exposure to DOE loans,” Brook Porter, a partner and co-founder at G2, told me in an email, nor have they received government grants. If you add up the revenue from all of the companies in G2’s portfolio, which is made up mainly of sustainability-focused startups, only about 3% “has any exposure to the IRA,” Porter told me. So even if the law’s generous clean energy tax credits are slashed or the programs it supports are left to languish, G2’s companies will likely soldier on.
Then there are the venture capitalists themselves. Many of the investors I spoke with emphasized that not all firms will have the ability or will to weather this storm. “I definitely believe many generalist funds who dabbled in climate will pull back,” Beebe told me. Porter agreed. “The generalists are much more interested in AI, then I think in climate,” he said. It’s not as if there’s been a rash of generalist investors announcing pullbacks, though Kra told me he knows of “a couple of firms” that are rethinking their climate investment strategies, potentially opting to fold these investments under an umbrella category such as “hard tech” instead of highlighting a sectoral focus on energy or climate, specifically.
Last month, the investment firm Coatue, which has about $70 billion in assets under management, raised around $250 million for a climate-focused fund, showing it’s not all doom and gloom for the generalists’ climate ambitions. But Porter told me this is exactly the type of large firm he wouldexpect to back out soon, citing Tiger Global Management and Softbank as others that started investing heavily during climate tech’s boom years from 2020 to 2022 that he could imagine winding down that line of business.
Strategic investors such as oil companies have also been quick to dial back their clean energy ambitions and refocus their sights on the fossil fuels championed by the Trump administration. “Corporate venture is very cyclical,” Beebe told me, explaining that large companies tend to make venture investments when they have excess budget or when a sector looks hot, but tighten the purse strings during periods of uncertainty.
But Cody Simms, a managing partner at the climate tech investment firm MCJ, told me that at the moment, he actually sees the corporate venture ecosystem as “quite strong and quite active.” The firm’s investments include the low-carbon cement company Sublime Systems, which last year got strategic backing from two of the world’s largest building materials companies, and the methane capture company Windfall Bio, which has received strategic funding from Amazon’s Climate Pledge Fund. Simms noted that this momentum could represent an overexuberance among corporations who just recently stood up their climate-focused venture arms, and “we’ll see if it continues into the next few years.”
Notably, Sublime and Windfall Bio both also have millions in DOE grants, and another of MCJ’s portfolio companies, bio-based chemicals maker Solugen, has a “conditional commitment” from the LPO for a loan guarantee of over $200 million. Since that money isn’t yet obligated, there’s a good chance it might never actually materialize, which could stall construction on the company’s in-progress biomanufacturing facility.
Simms told me that the main thing he’s encouraging MCJ’s portfolio companies to do at this stage is to contact their local representatives — not to advocate for climate action in general, but rather “to push on the very specific tax credit that they are planning to use and to talk about how it creates jobs locally in their districts.”
Getting startups to shift the narrative away from decarbonization and climate and toward their multitudinous co-benefits — from energy security to supply chain resilience — is of course a strategy many are already deploying to one degree or another. And investors were quick to remind me that the landscape may not be quite as bleak as it appears.
“We’ve made more investments, and we have a pipeline of more attractive investments now than we have in the last couple of years,” Porter told me. That’s because in spite of whatever havoc the Trump administration is wreaking, a lot of climate tech companies are reaching a critical juncture that could position the sector overall for “a record number of IPOs this year and next,” Porter said. The question is, “will these macro uncertainties — political, economic, financial uncertainty — hold companies back from going public?”
As with so many economic downturns and periods of instability, investors also see this as a moment for the true blue startups and venture capitalists to prove their worth and business acumen in an environment that’s working against them. “Now we have the hardcore founders, the people who really are driven by building economically viable, long-term, massively impactful companies, and the investors who understand the markets very well, coming together around clean business models that aren’t dependent on swinging from one subsidy vine to the next subsidy vine,” Beebe told me.
“There is no opportunity that’s an absolute no, even in this current situation, across the entire space,” the anonymous climate tech investor told me. “And so this might be one of the most important points — I won’t say a high point, necessarily — but it might be a moment of truth that the energy transition needs to embrace.”
On the energy secretary’s keynote, Ontario’s electricity surcharge, and record solar power
Current conditions: Critical fire weather returns to New Mexico and Texas and will remain through Saturday • Sharks have been spotted in flooded canals along Australia’s Gold Coast after Cyclone Alfred dropped more than two feet of rain • A tanker carrying jet fuel is still burning after it collided with a cargo ship in the North Sea yesterday. The ship was transporting toxic chemicals that could devastate ecosystems along England’s northeast coast.
In a keynote speech at the energy industry’s annual CERAWeek conference, Energy Secretary Chris Wright told executives and policymakers that the Trump administration sees climate change as “a side effect of building the modern world,” and said that “everything in life involves trade-offs." He pledged to “end the Biden administration’s irrational, quasi-religious policies on climate change” and insisted he’s not a climate change denier, but rather a “climate realist.” According toThe New York Times, “Mr. Wright’s speech was greeted with enthusiastic applause.” Wright also reportedly told fossil fuel bosses he intended to speed up permitting for their projects.
Other things overheard at Day 1 of CERAWeek:
The premier of Canada’s Ontario province announced he is hiking fees on electricity exported to the U.S. by 25%, escalating the trade war kicked off by President Trump’s tariffs on Canadian goods, including a 10% tariff on Canadian energy resources. The decision could affect prices in Minnesota, New York, and Michigan, which get some of their electricity from the province. Ontario Premier Doug Ford estimated the surcharge will add about $70 to the monthly bills of affected customers. “I will not hesitate to increase this charge,” Ford said. “If the United States escalates, I will not hesitate to shut the electricity off completely.” The U.S. tariffs went into effect on March 4. Trump issued another 30-day pause just days later, but Ford said Ontario “will not relent” until the threat of tariffs is gone for good.
There was a lot of news from the White House yesterday that relates to climate and the energy transition. Here’s a quick rundown:
The EPA cancelled hundreds of environmental justice grants: EPA Administrator Lee Zeldin and Elon Musk’s so-called Department of Government Efficiency nixed 400 grants across environmental justice programs and diversity, equity, and inclusion programs worth $1.7 billion. Zeldin said this round of cuts “was our biggest yet.”
Transportation Secretary Sean Duffy rescinded Biden memos about infrastructure projects: The two memos encouraged states to prioritize climate change resilience in infrastructure projects funded by the Bipartisan Infrastructure Law, and to include under-represented groups when planning projects.
The military ended funding for climate studies: This one technically broke on Friday. The Department of Defense is scrapping its funding for social science research, which covers climate change studies. In a post on X, Defense Secretary Pete Hegseth said DOD “does not do climate change crap. We do training and war fighting.”
Meanwhile, a second nonprofit – the Coalition for Green Capital – filed a lawsuit against Citibank over climate grant money awarded under the Inflation Reduction Act but frozen by Zeldin’s EPA. Climate United filed a similar lawsuit (but targeting the EPA, as well as Citibank) on Saturday.
A new report from the Princeton ZERO Lab’s REPEAT Project examines the potential consequences of the Trump administration’s plans to kill existing EV tax credits and repeal EPA tailpipe regulations. It finds that, compared to a scenario in which the current policies are kept in place:
“In other words, killing the IRA tax credits for EVs will decimate the nascent renaissance in vehicle and battery manufacturing investment and employment we’re currently seeing play out across the United States,” said Jesse Jenkins, an assistant professor and expert in energy systems engineering and policy at Princeton University and head of the REPEAT Project. (Jenkins is also the co-host of Heatmap’s Shift Key podcast.)
REPEAT Project
The U.S. installed nearly 50 gigawatts of new solar power capacity last year, up 21% from 2023, according to a new report from the Solar Energy Industries Association (SEIA) and Wood Mackenzie. That’s a record, and the largest annual grid capacity increase from any energy technology in the U.S. in more than 20 years. Combined with storage, solar represents 84% of all new grid capacity added in 2024.
SEIA and Wood Mackenzie
Last year was “the year of materialization of the IRA,” with supply chains becoming more resilient and interest from utilities and corporate buyers growing. Installations are expected to remain steady this year, with little growth, because of policy uncertainty. Total U.S. solar capacity is expected to reach 739 GW by 2035, but this depends on policy. The worst case scenario shows a 130 GW decline in deployment through 2035, which would represent $250 billion in lost investments.
“Last year’s record-level of installations was aided by several solar policies and credits within the Inflation Reduction Act that helped drive interest in the solar market,” said Sylvia Levya Martinez, a principal analyst of North America utility-scale solar for Wood Mackenzie. “We still have many challenges ahead, including unprecedented load growth on the power grid. If many of these policies were eliminated or significantly altered, it would be very detrimental to the industry’s continued growth.”
Tesla shares plunged yesterday by 15%, marking the company’s worst day on the market since 2020 and erasing its post-election stock bump.