ARTICLE OUTLINE:
- Trump’s Stance on Energy
- The Average American
- Positive Impacts and Challenges
- Reasons for Optimism
Trump’s Stance on Energy
Trump’s return to office reignited uncertainty in global cleantech markets with hints at radical shifts in US clean energy policies. In his own words, his stance on fossil fuels is “drill, baby, drill,” and his administration has referred to carbon reduction policies as part of the “Green New Scam.” But for Canadian cleantech leaders, this may be a unique opportunity.
Make no mistake, with 89% of Canadian energy exports going to the US, savvy executives have cause for concern. While Trump won’t directly dictate Canadian government energy policy or tell private investors where to put their funds, his legislative curtailing of renewable and clean energy in America will have a knock-on effect on trade partners and close neighbors. His vocal pessimism and promise to withdraw from the Paris Climate Agreement (again) is also sure to affect global progress in the fight against climate change.
However, while challenging, long term there’s reason to be optimistic. Canadian cleantech firms have shown that with the right leadership and insights, they can not only weather a Trump presidency but capitalize on the situation to seize new market share and drive innovation. And truth is, there’s little appetite for a slash-and-burn on green policies.
The Average American
Despite a 6% drop in Americans who thought the planet was warming in 2024 (versus 2020) the majority (75%) still believe global warming is occurring, similar to Canada. In fact, 80% of Americans surveyed still want the government to take moderate action or more on climate change, and only 51% think the government is actually meeting this expectation.
High inflation has often been blamed by Republicans and fossil fuel companies on the shift toward greener, cleaner energy sources (despite being categorically false), but this message has only marginally deterred the desire for cleantech in America. Those paying attention know that solar panels and wind energy are the most cost-effective options in the US, thanks in part to industry innovation and the ability of C-suite executives to attract private investors.
What is undeniable is that energy demand is growing, and while a fraction of Trump’s base believe oil and gas will bring them the cheaper energy they need, the reality will fall far short of their expectations. The fact is, when meeting the demand for energy and reducing inflation, green and clean will remain part of the solution.
Positive Impacts and Challenges
Canadian cleantech has been booming, with export, GDP, and employment growth outpacing that of the general economy. As a cleantech leader, Canada is proof-positive of the good that clean energy brings for jobs and industry – something also proven in the US.
And the waning of cleantech investment in the US promises a boom for investment for Canada. Cleantech firms have an opportunity here to draw in new partners and capital from green investors wanting to move funds out of America, and into a country with a track record in cleantech success. We saw from Trump’s last win that his anti-green stance caused little change in Canada, and may have contributed to greater investment.
Trump’s attempts to dismantle climate policy will only make Canada a more tempting prospect for investors looking for greener pastures. From a global perspective, Trump’s power is also limited – he can withdraw from the Paris Agreement (again), but separating the US from the United Nations Framework Convention on Climate Change (UNFCCC) would likely take years of legal battles. But this period of uncertainty for the US remains an opportunity for Canadian cleantech. Firms should prioritize positioning themselves as reliable partners for US and global investors seeking stability and growth in green energy markets
Reasons for Optimism
While a Trump presidency is not great news for the global fight against climate change, this isn’t the first rodeo for cleantech stakeholders – they’ve learnt how to push ahead together despite the challenges. They may be looking for the right organizations to lead the charge.
Amid a talent shortage in the energy field as well, America’s situation is likely to encourage flight of skilled workers looking to ply their trade in the nearest green-friendly nation. This may be the time to revise your compensation and incentive strategies to attract and retain the hard-to-find novel talent that will propel innovation, or to identify leaders that can help scale Canadian cleantech firms.
America taking a step back in cleantech opens a space for Canada to step forward and further establish itself as a leader in the field. This is the moment for cleantech firms to swoop in and find new partnerships, pulling in more capital, and pushing Canadian cleantech ever forwards.
Key Takeaways:
- Trump’s stance underscores Canada’s role as a stable, green energy leader.
- The demand for cleantech is growing even in the US, opening doors for Canadian exports and partnerships.
- Cleantech is a proven job creator and inflation fighter, making it a wise investment choice.
- Legal and economic realities continue to support the green sector’s growth potential.
- Canadian cleantech with the right compensation is likely to receive a welcome influx of American talent.