As we move into 2025, the United States stands at a pivotal moment for climate and environmental policy. Shifting federal priorities, steadfast leadership from state governments, and growing private-sector initiatives shape the nation’s approach to these challenges. With the increasing frequency and severity of natural disasters—including hurricanes like Milton, Debby, Francine, and Helene, the annual California wildfires, and catastrophic flooding throughout the nation —the urgency to address climate change has never been greater. Here’s what we might expect.
Federal Climate Policy: A Shift Toward Deregulation
The 2024 election ushered in a federal agenda emphasizing energy independence and fossil fuel production. Policies are expected to prioritize domestic oil and gas development while rolling back emissions-reduction initiatives like vehicle fuel efficiency standards and the Clean Power Plan (source: donaldjtrump.com). These moves signal a shift away from renewable energy investments and could slow progress toward achieving national and international climate goals.
Natural Disasters: Escalating Climate-Related Events
The United States has experienced a notable increase in the frequency and intensity of natural disasters, many of which are linked to climate change. In the first five months of 2024 alone, there were 11 individual billion-dollar weather and climate events, including severe storms and winter storms, resulting in significant economic losses and fatalities. (source: NOAA)
These events highlight the escalating human and economic toll of climate change, emphasizing the need for robust mitigation and adaptation strategies.
State-Led Climate Initiatives: Sustaining Momentum
In response to federal policy shifts, state governments continue to play a crucial role in advancing climate action. The U.S. Climate Alliance, a coalition of 24 governors, remains committed to implementing policies aimed at reducing greenhouse gas emissions and promoting clean energy (source: US Climate Alliance).
States like California and New York have set ambitious targets for renewable energy adoption and carbon neutrality, demonstrating leadership in climate resilience and sustainability.
Private Sector Engagement: Corporate Climate Commitments
The private sector is increasingly recognizing the importance of addressing climate change. Companies are setting science-based targets to reduce emissions and are investing in sustainable practices. For instance, JPMorgan Chase disclosed that in 2023, it provided $1.29 in financing to green energy projects for every dollar invested in high-carbon energy sources, reflecting a shift toward supporting the transition to a low-carbon economy (source: Reuters)
Such corporate commitments are vital in driving innovation and investment in sustainable technologies and practices.
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Public Opinion: Growing Support for Climate Action
Public sentiment in the United States increasingly favors proactive climate policies. Surveys indicate that 61% of Americans acknowledge the impact of climate change on their local communities and support measures to address it (source: Pew Research Center)
This growing awareness and concern among the public can influence policy decisions and encourage both governmental and corporate entities to prioritize climate action.
The Role of Financial Solutions in Climate Action
Financial institutions have a pivotal role in supporting climate resilience and sustainability. By directing deposits toward mission driven financial institutions that support renewable energy projects, climate-resilient infrastructure, and sustainable development initiatives, the financial sector can facilitate the transition to a low-carbon economy.
At CNote, we are committed to aligning financial goals with impactful climate initiatives, and supporting projects that drive positive environmental and social outcomes. As we see uncertainty in other sectors, it becomes more important to double down on what connects us—to invest in our communities, uplift local economies, and support the people and institutions driving change on the ground.
Looking Ahead to 2025
The evolving landscape of U.S. climate and environmental policy in 2025 will be shaped by the interplay of federal directives, state-led initiatives, private-sector commitments, and public advocacy. Despite potential federal deregulation, the combined efforts of states, corporations, and individuals offer a pathway to advancing climate resilience and sustainability.
By fostering collaboration and leveraging financial innovation, we can collectively address the pressing challenges of climate change and work toward a sustainable future.
Disclosure: This information should not be relied upon as research, investment or financial advice, or a recommendation regarding any products, strategies, or any security in particular. This material is strictly for illustrative, educational, or informational purposes and is subject to change. Investing involves risks, including possible loss of principal. The information does not purport to provide any legal, tax or accounting advice.
