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Rob and Jesse assess the climate geopolitics of Trump’s latest trade moves.

Donald Trump has implemented what is easily the most chaotic set of American economic policies in recent memory. First, the U.S. declared a trade war on the entire world, imposing breathtaking tariffs on many of the country’s biggest trading partners. He’s paused that effort — but scaled up punitive tariffs on China, launching what would be the 21st century’s biggest global economic realignment without any apparent plan. Now Trump says that more levies are coming on semiconductors and pharmaceuticals, no matter where we get them.
All of this is a disaster for the U.S. economy — but it’s also ruinous for any potential American role in decarbonization or the fight against climate change. Even more than Trump’s deregulatory actions, his trade war could spell the end of a long-held U.S. decarbonization dream.
On this week’s episode of Shift Key, Rob and Jesse chat about what Trump’s chaotic economic policy could mean for the global fight against climate change. What happens to global decarbonization if the U.S. no longer participates? If the U.S. kills its research sector, what happens next? And could China seize this moment to expand its clean tech sector? Shift Key is hosted by Jesse Jenkins, a professor of energy systems engineering at Princeton University, and Robinson Meyer, Heatmap’s executive editor.
Subscribe to “Shift Key” and find this episode on Apple Podcasts, Spotify, Amazon, or wherever you get your podcasts.
You can also add the show’s RSS feed to your podcast app to follow us directly.
Here is an excerpt from our conversation:
Jesse Jenkins: Just to put a pin in the second point you raised, too, on finance — this is such, I think, a critical piece of the potential role, as you said, of the United States and others in influencing development paths in emerging economies. In many cases, the sovereign risks of those markets — the risks related to the potential lack of rule of law or presence of corruption or currency risk and uncertainty or fiscal risk, other things that characterize these environments that, in contrast typically, historically, at least, to the United States and its stability — lead to higher financial costs for everything in these countries, whatever you’re trying to build. And since so many components of the clean energy transition are capital intensive assets — investing in a wind farm, or a solar farm, or manufacturing capacity, or new low-carbon steel production, these all require huge amounts of upfront capital investment.
And so if the U.S. and other international partners can help lower the interest rates and costs of financing that are needed for deployment of these technologies abroad, that has a pretty substantial influence on the actual competitiveness or relative competitiveness of this infrastructure and the ability of emerging economies to afford to deploy it. So that’s one of the kind of key levers that I think is often underappreciated in this stor, and I appreciated that you called that out.
Robinson Meyer: And I would say historically, it’s also something we’ve totally underperformed. It’s a hugely important lever, and it’s also something that Republican and Democratic administrations alike — Republican more than Democratic, but both kinds of administrations have really not contributed enough to the financial cause, here. And so the argument is that the Trump administration, with its broad array of policies, but also with this specific reckless, unplanned, and pretty idiotic trade war that it’s begun in the past two weeks, has undermined all of those advantages for the United States and undermined America’s ability to play any of those roles in a global context.
I would add to all of this that I think there’s another part of the story that I hint at, but don’t go into, which is that obviously the U.S. has withdrawn again from the Paris Agreement, or is in the process of withdrawing again from the Paris Agreement. Beyond Paris alone, climate change is a public problem for the world. It’s a problem of the global public. That’s not the only kind of problem it is — it’s also a developmental problem, as we’ve been discussing. But it is generally higher on the Maslow Hierarchy of Needs for governments than other things they might need to attend to. And so addressing climate change is only possible in a world that is peaceful, rule-following, generally ordered by norms and something approaching laws, rather than a simple imperial prerogative. And of course, the Trump administration’s actions — not only in this trade war, but also over the course of a few months — have been disastrous for that. I think that’s worth stipulating going forward.
Part of what I was trying to do with this piece was, we know that Donald Trump is waging war on the regulatory state. We know that he’s waging war on international climate treaties, and people are very used to thinking about that. But I think understanding this most recent imbecilic action, this trade war that he’s launched against the entire world and then kind of focused on China, also massively undercuts any kind of climate action. And we should be unafraid to say that — at least any kind of climate action that the United States would play a role in.
Music for Shift Key is by Adam Kromelow.
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The move would mark a significant escalation in Trump’s hostility toward climate diplomacy.
The United States is departing the United Nations Framework Convention on Climate Change, the overarching treaty that has organized global climate diplomacy for more than 30 years, according to the Associated Press.
The withdrawal, if confirmed, marks a significant escalation of President Trump’s war on environmental diplomacy beyond what he waged in his first term.
Trump has twice removed the U.S. from the Paris Agreement, a largely nonbinding pact that commits the world’s countries to report their carbon emissions reduction goals on a multi-year basis. He most recently did so in 2025, after President Biden rejoined the treaty.
But Trump has never previously touched the UNFCCC. That older pact was ratified by the Senate, and it has served as the institutional skeleton for all subsequent international climate diplomacy, including the Paris Agreement.
The United States was a founding member of the UN Framework Convention on Climate Change. It first joined the treaty in 1992, when President George H.W. Bush signed the pact and lawmakers unanimously ratified it.
Every other country in the world belongs to the UNFCCC. By withdrawing from the treaty, the U.S. would likely be locked out of the Conference of the Parties, the annual UN summit on climate change. It could also lose any influence over UN spending to drive climate adaptation in developing countries.
It remains unclear whether another president could rejoin the framework convention without a Senate vote.
As of 6 p.m. Eastern on Wednesday, the AP report cited a U.S. official who spoke on condition of anonymity because the news had not yet been announced.
The Trump administration has yet to confirm the departure. On Wednesday afternoon, the White House posted a notice to its website saying that the U.S. would leave dozens of UN groups, including those that “promote radical climate policies,” without providing specifics. The announcement was taken down from the White House website after a few minutes.
The White House later confirmed the departure from 31 UN entities in a post on the social network X, but did not list the groups in question.
Bloom Energy is riding the data center wave to new heights.
Fuel cells are back — or at least one company’s are.
Bloom Energy, the longtime standard-bearer of the fuel cell industry, has seen its share of ups and downs before. Following its 2018 IPO, its stock price shot up to over $34 before falling to under $3 a share in October 2019, then soared to over $42 in the COVID-era market euphoria before falling again to under $10 in 2024. Its market capitalization has bounced up and down over the years, from an all time low of less than $1 billion in 2019 and further struggles in early 2020 after it was forced to restate years of earnings thanks to an accounting error after already struggling to be profitable, up again to more than $7 billion in 2021 amidst a surge of interest in backup power.
The stock began soaring (again) in the middle of last year as anything and everything plausibly connected to artificial intelligence was going vertical. Today, Bloom Energy is trading at more than $111 a share, with a market cap north of $26 billion — and that’s after a dramatic fall from its all-time high price of over $135 per share, reached in November. By contrast, Southwest Airlines is worth around $22 billion; Edison International, the parent company of Southern California Edison, is worth about $22.5 billion.
This is all despite Bloom recording regular losses according to generally accepted accounting principles, although its quarterly revenue has risen by over 50%, and its reported non-GAAP and adjusted margins and profits have grown considerably. The company has signed deals or deployed its fuel cells with Oracle, the utility AEP, Amazon Web Services, gas providers, the network infrastructure company Equinix, the real estate developer Brookfield, and the artificial intelligence infrastructure company CoreWeave, Bloom’s chief executive and founder, KR Sridhar, said in its October earnings call.
While fuel cells have been pitched for decades as a way to safely use hydrogen for energy, fuel cells can also run on natural gas or biogas, which the company has seized on as a way to ride the data center boom. Bloom leadership has said that the company will double its manufacturing capacity by the end of this year, which it says will “support” a projected four-fold annual revenue increase. “The AI build-outs and their power demands are making on-site power generated by natural gas a necessity,” Sridhar said during the earnings call.
To get a sense of how euphoric perception of Bloom Energy has been, Morgan Stanley bumped its price target from $44 dollars a share to $85 on September 16 — then just over a month later, bumped it again to $155, calling the company “one of our favorite ‘time to power’ stocks given its available capacity and near-term expansion plans.”
Bloom has also won plaudits from semiconductor and data center industry analysts. The research firm SemiAnalysis described Bloom’s fuel cells as a “a fairly niche solution [that] is now taking an increasingly large share of the pie.”
It’s been a long journey from green tech darling to AI infrastructure for Bloom Energy — and fuel cells as a technology.
Bloom was founded in 2001, originally as Ion America, and quickly attracted high profile Silicon Valley investors. By 2010, fuel cells (and Bloom) were still being pitched as the generation source of the future, with The New York Times reporting in 2010 that Bloom had “spent nearly a decade developing a new variety of solid oxide fuel cell, considered the most efficient but most technologically challenging fuel-cell technology.” That product launch followed some $400 million in funding, and Bloom would hit an almost $3 billion valuation in 2011.
By 2016, however, when the company first filed with the Securities and Exchange Commission to sell shares to the public, it was being described by the Wall Street Journal as “a once-ballyhooed alternative energy startup,” in an article that said the fuel cell industry had been an “elusive target for decades, with a succession of companies unable to realize its business potential.” The company finally went public in 2018 at a valuation of $1.6 billion.
Then came the AI boom.
Fuel cells don’t use combustion to generate power, instead combining oxygen ions with hydrogen from natural gas and generating emissions of carbon dioxide and water, albeit without the particulate pollution of other forms of fossil-fuel-based electricity generation. This makes the process of getting permits from the Environmental Protection Agency “significantly smoother and easier than that of combustion generators,” SemiAnalysis wrote in a report.
In today’s context, Bloom’s fuel cells are yet another on-site, behind-the-meter natural gas power solution for data centers. “The rapid expansion of AI data centers in the U.S. is colliding with grid bottlenecks, driving operators to adopt BTM generation for speed-to-power and resilience to their modularity, fast deployment, and ability to handle volatile AI workloads,” Jefferies analyst Dushyant Ailani wrote in a note to clients. “Natural gas reciprocating engines, Batteries, and Bloom fuel cells are emerging as a preferred solution due to their modularity, fast deployment, and ability to handle volatile AI workloads.”
SemiAnalysis estimates that capital expenditure for Bloom fuel cells are substantially higher than those for gas turbines on a kilowatt-hour basis — $3,000 to $4,000 for fuel cells, compared to between $1,500 and $2,500 for turbines. But where the company excels is in speed. “The big turbines are sold out for four or five years,” Maheep Mandloi, an analyst at Mizuho Securities, told me. “The smaller ones for behind the meter for one to two years. These guys can deliver, if needed, within 90 days.”
Like other data center-related companies, Bloom has faced some local opposition, though not a debilitating amount. In Hilliard, Ohio, the state siting board overrode concerns about the deployment of more than 200 fuel cells at an AWS facility.
Bloom is also far from the only company that has realigned itself to ride the AI wave. Caterpillar, which makes simple turbine systems largely for the oil and gas industry, has become a data center darling, while the major turbine manufacturers Mitsubishi, Siemens Energy, and GE Vernova have all seen dramatic increases in their stock price in the last year. Korean industrial conglomerate Doosan is now developing a new large-scale turbine. Even the supersonic jet startup Boom is developing a gas turbine for data centers.
While artificial intelligence — or at least artificial intelligence companies — promises unforeseen technological and scientific advancements, so far it’s being powered by the technological and scientific advancements of the past.
On AI forecasts, California bills, and Trump’s fusion push
Current conditions: The intense rain pummeling Southern California since the start of the new year has subsided, but not before boosting Los Angeles’ total rainfall for the wet season that started in October a whopping 343% above the historical average • The polar vortex freezing the Great Lakes and Northeast is moving northward, allowing temperatures in Chicago to rise nearly 20 degrees Fahrenheit • The heat wave in southern Australia is set to send temperatures soaring above 113 degrees.

It’s not the kind of thing anyone a decade ago would have imagined: a communique signed by most of Western Europe’s preeminent powers condemning Washington’s efforts to seize territory from a fellow NATO ally. But in the days since the United States launched a surprise raid on Venezuela and arrested its long-time leader Nicolás Maduro, President Donald Trump has stepped up his public lobbying of Denmark to cede sovereignty over Greenland to the U.S. Senator Thom Tillis, the North Carolina Republican, and Senator Jeanne Shaheen, the Democrat from New Hampshire, put out a rare bipartisan statement criticizing the White House’s pressure campaign on Denmark, “one of our oldest and most reliable allies.” While Stephen Miller, Trump’s hard-line deputy chief of staff, declined to rule out an invasion of Greenland during a TV appearance this week, The Wall Street Journal reported Tuesday that Secretary of State Marco Rubio told lawmakers that the goal of the administration’s recent threats against the autonomously-governed Arctic island were to press Denmark into a sale.
The U.S. unsuccessfully tried acquiring Greenland multiple times during the 20th century, and invaded the island during World War II to prevent the Nazis from gaining a North American foothold after Denmark fell in the blitzkrieg. Indeed, Washington purchased the U.S. Virgin Islands, its second largest Caribbean territory, shortly after the 1898 Spanish-American war that brought Puerto Rico under American control. But the national-security logic of taking Greenland now, when the U.S. already maintains a military base there, is difficult to parse. “Greenland already is in the U.S. sphere of influence,” Columbia University political scientist Elizabeth N. Saunders wrote in a post on Bluesky. “It’s far cheaper for the U.S., in material, security, and reputational terms, to have Denmark continue administering Greenland and work within NATO on security.” One potential reason Trump might want the territory, as Heatmap’s Jael Holzman wrote last fall, is to access Greenland’s mineral wealth. But the logistics of getting rare earths out of both the ground and the Arctic to refineries in the U.S. are challenging. Meanwhile, in other imperialistic activities, Trump said Tuesday evening in a post on Truth Social that Venezuela would cede between 30 million and 50 million barrels of oil to the U.S., though the legal mechanism for such a transfer remains murky, according to The New York Times.
I told you last month about the in-house market monitor at the PJM Interconnection, the country’s largest power grid, urging federal regulators to prevent more data centers coming online within its territory until it can sort out how to reliably supply them with electricity. As Heatmap’s Matthew Zeitlin wrote days later, “everyone wants to know PJM’s data center plan.” On Tuesday, E&E News reported that PJM is expected to ratchet down its forecasts for how much power demand artificial intelligence will add on the East Coast. When the grid operator’s latest analysis of future needs comes out later this month, PJM Chief Operating Officer Stu Bresler said during a call last month that the projections for mid-2027 will be “appreciably lower” than the current forecast.
The merger of the parent company of Trump’s TruthSocial website and the nuclear fusion developer TAE Technologies, as I reported in this newsletter last month, is “flabbergasting” to analysts. And yet the pair’s partnership is advancing. On Tuesday, the companies announced that site selection was underway for a pilot-scale power plant set to begin construction later this year. The first facility would generate just 50 megawatts of electricity. But the companies said future plants are expected to pump out as much as 500 megawatts of power.
Meanwhile, the rival startup widely seen as the frontrunner to build America’s first fusion plant unveiled new deals of its own. Over at the CES 2026 electronics show in Las Vegas on Tuesday, Commonwealth Fusion Systems — which analysts say is taking a more simplified and straightforward pathway to commercializing fusion power than TAE — touted a new deal with microchip giant Nvidia and told the crowd at the conference that it had installed the first magnet at its pilot reactor, TechCrunch reported.
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Scott Wiener, the California state senator making a bid for Representative Nancy Pelosi’s long-held House seat, introduced two new bills he said were designed to ease rising energy costs. The first bill is meant to “get rid of a bunch of that red tape” that makes installing a heat pump expensive and challenging in the state, the Democrat explained in a video posted on Bluesky. The second piece of legislation would clear the way for renters to install small, plug-in solar panels on apartment balconies. “Right now, in California, it is way, way, way too hard, if not impossible, to install these kinds of units,” Wiener said. “We have to make energy more affordable for people.”
Sunrun is forming a new joint venture with the green infrastructure investor HASI to finance deployment of at least 300 megawatts of solar across what the companies billed as “more than 40,000 home power plants across the country.” As part of the deal, which closed last month, HASI will invest $500 million over an 18-month period into the new company, allowing the nation’s largest solar installer to “retain a significant long-term ownership position” in the projects. As I reported for exclusively Heatmap in October, a recent analysis by the nonprofit Permit Power, which advocates for easing red tape on rooftop solar, found that the cost of solar panels in the U.S. was far higher than in Australia or Germany due to bureaucratic rules. The HASI investment will help bring down the costs for Sunrun directly as it installs more panels.
Total U.S. utility-scale solar installations for 2025 were on track last month to beat the previous year, as I reported in this newsletter. But the phaseout of federal tax credits next year is set to dim the industry somewhat as projects race to start construction before the expiration date.
In another session at CES 2026, the electric transportation company Donut Labs claimed it’s made an affordable, energy-dense solid state battery that’s powering a new motorcycle and charges in just five minutes. The startup hasn’t yet produced any independent verification of those promises. But the company is known for what InsideEVs called its “sci-fi wheel-in electric motor” for its bikes.