Climate startup pace slows as Trump cuts loom

Plus, a year after Claudia Sheinbaum's election, Mexico's troubled environmental outlook

In today’s edition:

— The threat of Trump’s climate cuts is causing climate startups to delay and, in some cases, dismantle

— A year into her term, Claudia Sheinbaum is raising alarms in Mexico, even in the environment

— Antarctica’s hidden volcanos become risk as temperatures rise — documentary

— Youths in multiple states file climate lawsuit against Trump administration

— Temps climbed more than three times historical average since 1982

Months of anxiety among climate startups across the U.S. turned into panic over the weekend after the Trump administration announced $3.7 billion in funding cuts to solar power, wind projects, and even carbon removal schemes favored by Big Oil.

While tiny compared to the more than $300 billion in investment the Biden government made in green energy through funding, tax subsidies, and research grants, at a time when all businesses are in a fragile, uncertain state with the new president’s team — they’ve been enough to sound an alarm.

Several news reports have documented cuts and delays at startups across the U.S. and overseas, including layoffs at the most well-known carbon removal startup Climeworks, which we wrote about a few weeks ago. College graduates hoping to jump into summer internships or first-time jobs are being told those programs have been frozen indefinitely.

Clean energy stocks have also suffered, sitting out the tech-inspired rally in the Nasdaq and S&P 500 in recent weeks as investors wait for more clarity.

The concern is understandable, but likely overblown as clean energy growth in the U.S. continues despite the actions coming out of Washington.

As we saw with the tariff chaos, things can change from day to day. Today’s plans to slash anything green might change as the summer heat begins to punish energy grids and demand for energy spikes. The Trump-favored nuclear energy plans are still a long time in coming and the demand for more energy is right now.

Sitting tight and preparing for headline risk is probably all investors can do at this stage, at least until we get some resolution out of Washington on the tax bill. But in the longer term, in months not years, the picture for green energy in the current presidential era will begin to take shape and sustainable shareholders who have pushed against these cuts will see some interesting opportunities in the carnage.

Don’t forget to contact me directly if you have suggestions or ideas dcallaway@callawayclimateinsights.com.

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Claudia Sheinbaum, president of Mexico, seen at a news conference earlier this year announcing the Trump administration walked back tariffs for goods coming into the U.S. from Mexico. Photo: Eneas De Troya/flickr.

A year into Sheinbaum’s term, Mexico’s climate chops weakening