The climate investment landscape is bracing for change as the political winds shift with a potential Donald Trump return to the White House. Leading investors are cautiously optimistic about opportunities for climate startups, even as they anticipate challenges from Trump’s likely rollback of environmental policies. The big question: can the private sector pick up the slack in startup investments?
Climate scientist and environmental resilience consultant Dr. Deborah Brosnan says the moment is ripe for a pragmatic approach. “Regardless of who is in charge, climate change isn’t going away. I anticipate a shift away from ideology and morality toward a focus on financial sense,” Brosnan explained. “Because the investment argument makes sense, there’s opportunity.”
So, what opportunities should investors seize? What pitfalls should they avoid? Here’s a breakdown of where the next big bets in climate investment might lie.
Small Islands: The Ultimate Unicorns
When it comes to agility and scalability, Small Island Developing States (SIDS) might just be the unsung heroes of the climate tech world. These islands can deploy and scale sustainable solutions faster than larger nations burdened by bureaucracy and entrenched interests.
Think of small islands as startups themselves: nimble, innovative, and laser-focused on survival. Brosnan describes them as the “ultimate best startup imaginable” for testing and scaling climate solutions. Whether it’s renewable energy, water desalination, or climate-resilient agriculture, small islands can serve as proof-of-concept zones before scaling to larger markets.
Oceans: A $6 Trillion Opportunity Hiding in Plain Sight
The ocean economy employs 350 million people worldwide, but less than 1% of the ocean’s value has been invested in sustainable projects. This glaring oversight represents both a challenge and a $6 trillion opportunity.
Failure to invest in regenerative ocean solutions costs the global economy an estimated $1 trillion annually in lost coastal protection, forced relocations, and damage from rising sea levels. For investors willing to dive in, the rewards could be substantial. Projects like carbon-sequestering mangroves and coral reefs, which protect coastlines from erosion and storm surges, are not just environmental solutions—they’re economic lifelines.
“Investors wrongly consider ocean investment as conservation charity rather than profitable investment,” Brosnan noted. “Ultimately, this represents a significant loss in capital.”
The message is clear: with proper backing, the blue economy could be as lucrative as it is sustainable.
Nature-Based Solutions: A Green Goldmine
Nature isn’t just beautiful—it’s profitable. Mangroves, coral reefs, and other natural ecosystems can sequester up to 30% of the carbon we produce, all while supporting local and national economies. Yet this sector remains largely untapped due to fears of high risk, poor policies, and the uncharted nature of these investments.
Brosnan suggests a change in mindset. This is the last area where investments have been made, but it’s time to shift that perspective. These ecosystems offer quantifiable returns, not just environmental wins.
Imagine investments that protect biodiversity while driving returns: a mangrove restoration project that offsets carbon emissions while boosting local fisheries or a coral reef initiative that shields coastal cities from storm surges, saving billions in infrastructure costs.
Climate Tech: A Strategic Edge Over China
This past year, the U.S. was the world’s top climate tech financier, overtaking China. However, with Trump’s potential presidency, the question looms: Will the U.S. maintain its lead?
Climate tech isn’t just about sustainability—it’s a geopolitical strategy. Ceding leadership in this sector could give China a significant competitive edge in the global market. Brosnan calls this a pivotal moment: “The playing field is wide open, and policy is no longer the driver. What happens next will define who leads the climate tech race in 2025 and beyond.”
From carbon capture technologies to renewable energy solutions, there’s ample room for investors to make their mark while keeping the U.S. competitive on the global stage.
Cautious Optimism Amid Uncertainty
While the opportunities are vast, the risks are real. A Trump administration could dampen federal support for climate initiatives, making the private sector’s role more critical than ever. Investors will need to navigate uncertain regulatory waters and prioritize projects with proven scalability and economic impact.
Still, Brosnan believes the investment case is strong. “Leaders will increasingly ask, ‘Does it make sense to invest and find solutions?’ The answer will continue to be yes.”
Where Do We Go From Here?
As the world grapples with rising seas, escalating temperatures, and shifting political priorities, one thing is certain: climate change isn’t waiting for permission. For investors, this moment represents a chance to lead where governments may falter.
By focusing on high-impact opportunities like small islands, ocean economies, and nature-based solutions, venture capitalists can turn challenges into wins. And in the race for climate tech dominance, maintaining U.S. leadership isn’t just a matter of national pride—it’s an economic imperative.
The next few years will test the resilience and creativity of climate investors. But for those willing to take the plunge, the rewards could be as transformative as the solutions they back.
Jordi Lippe-McGraw is a News Columnist at Grit Daily. A multi-faceted NYC-based journalist, her work on topics from travel to finance have been featured in the New York Times, WSJ Magazine, TODAY, Conde Nast Traveler, and she has appeared on TODAY and MSNBC for her expertise. Jordi has also traveled to more than 30 countries on all 7 continents and is a certified coach teaching people how to leave the 9-to-5 behind.
