The atmosphere is changing for climate technology in the U.S.

There are still projects moving forward, but these cancellations definitely aren’t a good sign. Now, with tariffs introduced, we have added layers of expense and, worse, uncertainty to consider. Businesses, especially those that require substantial investment, typically dislike uncertainty. Honestly, I’m still adjusting to an environment that isn’t favorable for climate technology. How concerned should we be? Let’s explore the context.

Sometimes, a single piece of news can highlight a much larger trend. For instance, despite having read numerous studies about extreme weather and global warming, the threat becomes much more tangible whenever a hurricane approaches my mother’s home in Florida. A recent announcement regarding climate tech resonated with me similarly.

In February, Aspen Aerogels announced its decision to abandon plans for a factory in Georgia that would have produced materials capable of suppressing battery fires. This news stood out to me because just a few months earlier, in October, I had reported on the Department of Energy’s $670 million loan commitment for the project. It was an engaging story, both due to the fascinating technology involved and the exclusive access I had to cover it. Now, abruptly, that plan is no longer viable. Aspen indicated it will redirect some of its production to a facility in Rhode Island and relocate some operations overseas. (I reached out to the company with inquiries for my piece last week, but received no response.)

One example doesn’t necessarily indicate a broader trend; for instance, I once got food poisoning at a sushi restaurant, yet I haven’t permanently eliminated sashimi from my diet. The unfortunate reality, however, is that Aspen’s cancellation is just one among many. According to a report by the nonprofit E2, over a dozen significant climate technology projects have been halted this year — a situation that is far from typical.

I received additional insights from Jay Turner, who oversees Big Green Machine, a database that tracks investments in the climate-tech supply chain. This database includes data on project delays or advancements that E2 does not account for. On Monday, the Big Green Machine team released a new update, which Turner described as “concerning.”

Since January 20, when Donald Trump took office, about $10.5 billion worth of investment in climate tech projects has progressed in some capacity. This includes 26 projects that were announced, secured new funding, scaled up, or initiated construction or production. Conversely, $12.2 billion across 14 projects has faced delays in some form. This encompasses projects that were canceled, significantly delayed, lost funding, or resulted in bankruptcies. Thus, according to Turner’s tracking, the overall investment has yielded more negative news in climate tech than positive.