Climate investors cautiously optimistic about a second Trump term - here's why

President-elect Donald Trump has been vocal about his stance on climate change, but the impact on the climate tech sector remains uncertain. Some investors believe that deregulation and a focus on drilling could actually benefit climate tech, despite Trump’s criticisms of renewable energy sources. The long-term nature of climate trends means that entrepreneurs will continue to innovate in this sector, regardless of political changes.

Lessons learned from past clean tech failures have influenced investors to focus on companies that provide tangible value to customers, rather than relying on government subsidies. While some companies may struggle without federal support, others could thrive under policies that favor drilling and grid-related startups.

Despite potential challenges, sectors like geothermal, small modular reactors, and AI infrastructure are expected to benefit from policies that support oil and gas extraction. Climate tech startups will likely adapt to changing political landscapes, with some finding opportunities for growth in unexpected places.

“He’s all about oil and gas, but he’s actually a pretty sharp guy,” according to Posamentier, who has had the opportunity to spend time with Wright in the field. During their time together, Wright mentioned to Posamentier that he was implementing electrification in his company’s fracking equipment because it represented superior technology. “Despite the criticism he receives for supposedly being against climate change, he’s neither against nor in favor of it. He simply prioritizes economic efficiency,” Posamentier added.

Investors and their companies will have to wait and see which of their predictions will hold true under a new administration, and which ones will not come to fruition.

“The only thing we can count on in the next four years is constant change and instability,” Posamentier concluded.