Trump’s Policies Cause Temporary Delay to Net Zero Goals: Survey

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by Jithin Joshey Kulatharayil, Senior Content Writer at KnowESG
KnowESG_Trump’s Policies Cause Temporary Delay to Net Zero Goals: Survey
Legal risks surrounding sustainable investing in the country are also taking a toll on investor confidence, but many investors hope to turn the corner soon. Photo: Sean Gallup/Getty Images
  • Investors are hopeful that climate investments will gain momentum once Trump is out of office.

  • The current US administration's energy policies are dampening investor morale in climate solutions and renewable energy.

  • The survey reveals that the recent setback in global net-zero efforts is only temporary.

Many in the US expect that sustainable investing and net zero will pick up momentum in future US administrations, according to the latest findings from the Robeco Global Climate Investing Survey 2025.

Nevertheless, the number of investors who factor climate change into their investment decisions has dropped from 62% in 2024 to 46%. This shows a temporary setback on the back of the current US-led opposition to climate action.

READ MORE: Investors Turn to ESG Bonds as Trump Steps Back from Green

56% of the respondents say that Donald Trump's recent energy policies, including support for fossil fuels and aversion to clean energy, have a short-term effect on net zero goals. They also believe that once Trump is out of the Oval Office, global efforts towards climate goals will be back on track.

A large number of investors, around 59% or nearly 6 in 10, the survey says, are increasingly growing wary of US climate and energy policies and are also waiting to see how these will play out in the future before deciding to invest in areas affected by all this fluttering.

As a result, many Asia-Pacific and European investors are shifting their focus away from the US and investing in climate solutions and renewable energy elsewhere.

Besides, legal risks surrounding environmental and social investing in the country are taking a toll on investor morale. Now, merely 23% of North Americans consider climate change a core aspect of their investment strategies, down from 35% last year.

Investment in climate solutions has also plummeted from 69% to 57%, showing a broader decline in sustainable investments.

ALSO READ: 95 Clean Energy Projects, 62,000 Jobs at Risk Under Trump

Insurance companies are more committed to climate investments as they invariably face risks from climate-related disasters. 55% of insurance businesses say climate change is a principal factor in their investment policies, a figure higher than the average for other institutional investors.

Lucian Peppelenbos, Climate and Biodiversity Strategist at Robeco, said: "One of the most notable findings from this year’s survey is the disillusionment of investors with the lack of supportive policies enabling investments in the net zero transition.

“Investors are now rebalancing their approach by seeking opportunities outside the US in areas such as transitioning companies and renewable energy, and in focusing more on solutions that are adapting to climate change.”

Finally, the survey concludes that although many investors still consider climate change and care for the environment, fewer are prioritising it in their investment decisions, largely due to Trump's anti-climate policies.

ALSO READ: Amazon Says Net Zero Pledge Unchanged by Trump Policies

For a detailed view of the survey, visit Robeco’s website or click here to download it.

Ends/

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Source: Pension&Investments

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