Over $6.9 billion in clean energy projects vanished in just three months—proof
that policy shifts carry real costs.

By Esra Talu

A Season of Shifting Currents
As summer 2025 unfolds, the global startup ecosystem faces a transformative period. The recent US presidential election has ushered in significant policy changes, particularly affecting climate initiatives and green technology investments. These shifts influence capital flows and strategic decisions for startups worldwide, including those in Türkiye and the broader MENA region.

US Climate Policy Reversals: A New Direction
In January 2025, President Donald Trump signed Executive Order 14162, marking the US’s immediate withdrawal from the Paris Agreement and other international climate commitments. This move signaled a significant pivot in US climate policy, emphasizing fossil fuel development over renewable energy initiatives.
Further actions included dismantling the State Department’s Office for Global Change, responsible for overseeing global climate policy and aid. These decisions have introduced uncertainties in global climate governance, potentially leading to a lack of coordinated efforts in combating climate change. Moreover, they have implications for international climate finance, potentially reducing the funding available for green tech startups and projects.

Impact on Green Tech Investments
The policy shifts have led to tangible impacts on green technology investments:
◗ Project Cancellations: Over $6.9 billion in clean energy projects were withdrawn in Q1 2025, the highest quarterly value on record.
◗ Job Losses: Since the November 2024 election, approximately 20,000 clean energy jobs have been lost, with an additional 40,000 at risk due to paused or threatened projects.
◗ Funding Reductions: The Trump administration proposed $15 billion in cuts to renewable energy and carbon capture programs and canceled $6 billion allocated for electric vehicle chargers.
These developments have created a challenging environment for green tech startups, particularly those reliant on US federal support or international collaborations.

Opportunities Amidst Challenges
Despite the headwinds, specific areas within the green tech sector continue to show remarkable resilience, offering a glimmer of hope in the evolving landscape:
◗ LNG Investments: Liquefied Natural Gas (LNG) has emerged as a bright spot, with resumed export approvals and deregulation efforts attracting significant investments.
◗ Clean Manufacturing: Quarterly investment in clean manufacturing in the US tripled from $2.5 billion in Q3 2022 to $14.0 billion in Q1 2025, driven primarily by the electric vehicle supply chain.
These sectors may offer alternative avenues for startups seeking to navigate the evolving landscape.

Startup Spotlights: Innovating Through the Heat
◗ Carbon Clean ( UK/US): Growth/Scale-Up Stage—It specializes in modular carbon capture solutions for industrial applications and has recently expanded its operations in the US despite policy shifts.
◗ VoltStorage (Germany): Growth Stage-Develops sustainable battery storage systems, securing new funding rounds to support European grid stability projects.
◗ TeraWatt Infrastructure (USA): Late-Stage/Growth-Focuses on electric vehicle charging infrastructure, adapting strategies to align with changing federal support structures.
◗ Enpal (Germany): Late-Stage/Growth (Pre-IPO)-Offers solar energy solutions with innovative financing models, expanding its market presence across Europe.
◗ Masdar (UAE): Established Enterprise—Despite US policy changes, Masdar continues to invest in renewable energy projects globally, including significant ventures in Asia and Africa.
◗ Solimpeks (Türkiye) (Scale-up): Headquartered in Konya, Solimpeks is a global leader in solar thermal and hybrid photovoltaic-thermal collector technologies. Exporting to over 60 countries, its hybrid solar panels are certified under the EU’s Microgeneration Certification Scheme. With branches in Germany and Spain, Solimpeks exemplifies how Turkish cleantech innovation can scale globally.
◗ Reengen (Türkiye) (Startup): An energy intelligence platform startup leveraging IoT and advanced analytics to optimize energy consumption in buildings, factories, and large retail operations. Reengen is rapidly expanding across Europe and MENA with real-time monitoring and a SaaS-based model.
◗ Enwair (Türkiye) (Startup): A deep-tech startup developing next-generation battery materials, particularly silicon-based anodes that enhance energy density in EVs and storage systems. A spin-off from academic R&D, Enwair represents Türkiye’s rising role in the global energy transition.

Strategic Considerations for Startups
For startups operating in or targeting the US market, the current climate necessitates strategic adjustments, empowering them to take control of their future:
◗ Diversify Funding Sources: Explore alternative funding avenues, including private investments, international grants, and partnerships with organizations less affected by US policy changes.
◗ Focus on Resilient Sectors: Identify and pivot toward sectors within green tech that continue to receive support or show growth potential, such as energy efficiency technologies or sustainable agriculture.
◗ Engage in Policy Advocacy: Participate in industry groups and coalitions to advocate for supportive policies and to stay informed about regulatory developments.

The Bigger Picture: Navigating the Heat
The summer of 2025 presents both challenges and opportunities for green tech startups. While policy shifts in the US have introduced uncertainties, they also underscore the importance of adaptability and strategic foresight.
Across North America, climate change is no longer a distant threat—it is a daily reality. From record-breaking heat waves across the American Southwest to increased wildfires in California and Canada, extreme weather disrupts energy grids, agriculture, and public health systems. According to NOAA, the US experienced 25 billion-dollar weather and climate disasters in 2024 alone—the highest annual count on record.
These escalating impacts serve as a stark reminder that delaying action is costly. Investing in climate resilience, clean technologies, and sustainable infrastructure is about more than environmental stewardship; it is also about economic risk mitigation and long-term competitiveness.
By staying informed and agile, startups can continue to innovate and contribute to global sustainability goals, even amidst shifting political landscapes, instilling a sense of reassurance and confidence in their abilities. ■