Trump Policies Stall Climate Investment Momentum, Survey Finds

Investment sentiment for climate solutions and net-zero investments in the US has taken a sharp downturn after energy policies supported by the current US administration. According to the 2025 Robeco Global Climate Investing Survey, the percentage of investors incorporating climate change as a consideration within their investment process fell sharply—from 62% in 2024 to just 46% this year. This decline is due to the policy trajectory of the previous administration of former President Donald Trump, which puts a focus on fossil fuel assistance and retreats from clean energy programs.

The report indicates a short-term loss of momentum in global climate finance, as investors believe that the current trend will come back on track once new leadership in the US assumes office. The survey observes that 56% of investors perceive the current policy environment as a short-term hindrance and are hopeful that global momentum toward net-zero will resume once new leadership has taken effect.

Policy uncertainty and US legal risk have also contributed to investor confidence. Climate change is now seen as only central to North American investment planning by 23% of investors, down from 35% of investors in the previous year. Investment in climate solutions has also dropped from 69% to 57%, further confirming a withdrawal from sustainability-driven financial plans across the region overall.

The effects of such policy realignments seep across US borders. Around 59% of investors, especially from the Asia-Pacific and European regions, surveyed are diverting their investments away from the US towards more climate-resilient and stable platforms provided by nations. These investors are instead concentrating on clean energy initiatives and other climate-compatible activities in jurisdictions whose policy landscapes are perceived as more stable and favorable.

Insurance companies are the single exception to otherwise declining trend. About 55% of insurers continue to put climate change at the very center of their investment strategy. This is likely because such companies have direct exposure to climate risk, such as increased and more intense natural hazards. The statistics point out that insurers are holding firm to their commitment because of the financial burden of meeting long-term environmental risk, even if overall investor interest is in decline.

Despite the setbacks in the US, investors are positive about the long-term future of climate finance. The survey indicates that while immediate action is delayed, the determination to become net-zero is still intact for the majority of stakeholders. But they are shifting strategy by looking towards opportunities outside the US market, for instance, investing in sustainable transformational ventures and sectors transforming to battle climate change.

The larger downturn in climate investment and interest is thought to be a reaction to the overall policy environment and not a changed investor bottom lines. Several flagship clean energy projects and related jobs are said to be threatened by the policy environment in the US. With 95 projects and approximately 62,000 jobs threatened, the climate and energy stance is having actual economic and jobs impacts.

The query concludes that there has been no significant disappearance of interest in the environment among investors but active prioritisation has decreased. Trump policies have provided a challenging environment for investors to align their portfolios with climate objectives, resulting in realignment geographically as well as strategically.

In the years ahead, the result of future US elections and resultant policy shift will be determinative in determining if this slowdown in sustainable investing is just an ephemeral reaction or a reflection of a longer-term trend. Meanwhile, foreign and institutional investors are observing events in the US with considerable interest while further powering climate-conservant strategies elsewhere in more mature jurisdictions.

Source: Pension & Investments