Sustainable Technology’s Path Forward in an Uncertain Political Climate

The sustainable technology sector is a cornerstone of environmental progress and economic growth. However, anticipated shifts in federal priorities under a new administration underscore the need for eco-tech and green proptech industries to remain agile, strategically adaptive, and steadfast in their commitment to innovation. 

The evolving federal landscape demands proactive strategies from sustainable tech companies to mitigate risks and capitalize on long-term opportunities, regardless of short-term regulatory changes.

Economic viability will play a crucial role in achieving bipartisan support for sustainable technology under the incoming administration. President Trump has pledged to cut energy bills in half within his first 12 months in office — a promise that underscores the political appeal of reducing costs for businesses and consumers alike. For the green tech sector, this presents an opportunity to further align its solutions with economic goals, demonstrating how innovations like energy-efficient building retrofits and renewable energy projects can directly lower utility costs while driving job creation and economic growth.

Over the past decade, green innovation has flourished, supported by federal incentives, state and local initiatives, and an undeniable market demand for solutions that prioritize sustainability without sacrificing profitability. The U.S. renewable energy sector has expanded by over 60 percent since 2010, significantly advancing national carbon-reduction goals. The global green building sector continues to double every three years, and green buildings now account for over 40 percent of new commercial construction. Supportive policies and consumer demand show how the sector thrives and builds a compelling economic case that rises above partisan divides.

Programs like the Inflation Reduction Act have fostered an environment ripe for sustainable innovation, with mechanisms such as investment tax credits that lower capital barriers to scaling. The procedural momentum behind these credits ensures that their benefits are likely to persist, offering stability even in a shifting policy environment. The bipartisan benefits of these incentives — enhanced grid reliability, job creation and economic growth — make their continued implementation likely. 

Regional and local policies bolster the industry’s resilience by creating stable frameworks for growth. Initiatives such as New York’s Local Law 97, with its ambitious climate goals and durable incentives, highlight how urban centers can lead the way in expanding climate-related programs, even amid federal retrenchment. However, more states and municipalities must step up to build on this momentum, adopting legislation that not only accelerates decarbonization but also prioritizes economic opportunity for local communities. 

These efforts (Local Law 97 included) need to focus on establishing clear emissions targets, provide robust financial incentives, and foster public-private partnerships to drive innovation and investment. With uncertainty in continuing federal support, we’re going to need regional and state initiatives to firm up the foundation for this industry over the next four years.

While tax cuts and incentives benefiting real estate and transportation may persist — especially given influential advocates like Elon Musk — businesses must prepare for potential shifts in regulatory oversight or funding priorities. Diversifying funding sources, leveraging local incentives, and securing demand-side contracts can mitigate risks and ensure continuity. 

Despite potential challenges, the broader trajectory of the sustainable technology industry remains positive. While political climates may shift every four years, the global commitment to decarbonization and environmental responsibility endures. Recent data from Deloitte shows that renewable energy demand is outpacing supply. Sustainable technology is no longer a niche market — it is a cornerstone of modern industry. The sector can thrive in any political environment with adaptability, innovation and strategic foresight, proving that green solutions are not just environmentally sound but also economically indispensable.

Marshall Cox is co-founder and CEO of Kelvin, a building decarbonization technology company.