During the first week of his second term, President Trump issued a slew of executive orders (EOs) and presidential memorandums that specifically target the sustainability initiatives advanced by previous administrations. Is federal climate policy pivoting too fast for businesses to keep up?

In a recent webinar, we tackled that question head-on, analyzing how these policy changes—embodied by the Heritage Foundation’s “Project 2025”—threaten to scale back clean energy funding, weaken environmental regulations, and alter climate disclosure requirements.

We then turned to Kerry Duggan, a former climate advisor to President Biden, for firsthand insights on how organizations can steer a steady course regardless of policy uncertainty.

Below is an overview of Kerry’s key insights from our fireside chat.

Poll: Emissions reporting remains a priority

Project 2025: A blueprint for rollbacks

Heritage Foundation’s Project 2025 outlines significant regulatory rollbacks across environmental, energy, and climate sectors. It explicitly seeks to reduce federal climate initiatives, expand fossil fuel development, and withdraw from agreements like the Paris Accord.

Kerry reminded us that Washington isn’t the only game in town. Even with the U.S. retreating from the Paris Agreement again, states like Michigan and California, as well as global frameworks, continue pushing for decarbonization. Kerry cited her time in Detroit—transforming streetlight infrastructure in a near-bankrupt city—as an example of local wins that can happen even when federal support is lacking.

She described how states like Michigan or California often step up, pushing local climate laws that effectively fill federal gaps. She also noted that many global frameworks—like Europe’s climate directives—still shape U.S. corporate behavior. So while Project 2025 might scale back national efforts, subnational and global forces remain powerful.

Higher emissions on the horizon

Under Project 2025, U.S. carbon emissions could jump by an estimated 2.7 billion tons by 2030. Meanwhile, the plan may bring $32 billion in extra household energy costs annually and a potential 1.7 million jobs lost—especially in clean energy industries.

Kerry cautioned that while these numbers are sobering, they also highlight areas for corporate innovation—like energy efficiency or alternative financing structures. She recommended looking for “no-regrets” moves that cut costs and emissions at the same time. Pushing forward with sustainability can hedge future regulatory swings and minimize negative PR.

Kerry encouraged our attendees to “take the long view—policy flips happen, but building resilience in your operations and partnerships always pays off.”

IRA funding freeze: What’s really happening?

President Trump signed an order pausing certain IRA and Infrastructure Act funds, calling it the “Terminating the Green New Deal” agenda. Programs linked to EV infrastructure and large-scale renewable projects are directly targeted. Solar tax credits are still on paper, but new funding remains in limbo.

Impact:

• Major clean energy projects could face delays or pivot to alternative financing.
• 84% of IRA’s clean energy grants were “pre-obligated,” but the future for new initiatives is unclear.
• Multiple legal challenges could eventually restore some funds.

Kerry acknowledged that losing federal grants is tough but stressed the value of local programs—like PACE financing or municipal bonds—as well as forging relationships with universities, NGOs, or philanthropic funds. She urged businesses to “get out of their silo” and build cross-sector alliances that endure beyond federal funding cycles.

During the webinar, one attendee asked about steel/aluminum tariffs impacting construction. Kerry’s advice: “No one’s coming to save you—connect with local stakeholders to find solutions.” She highlighted local financing tools (like PACE or PPAs) and assembling a local coalition to keep projects moving forward.

Another question covered investing in biodiversity or carbon sinks when federal support wanes. Kerry noted philanthropic and private capital can fill some gaps if you team up with NGOs or state agencies. She sees an ongoing shift to “nature-based solutions” that often yield both environmental and reputational benefits.

SEC climate disclosure rollback

Acting SEC Chair Mark Uyeda called the 2024 climate disclosure rule “deeply flawed,” halting its defense in court. Although the rule only covered Scope 1 and 2 emissions, it was a major step toward mandatory climate risk disclosure for publicly traded companies.

Implications:

• The federal rule may vanish, but states (e.g. California’s SB 253) and global markets (EU’s CSRD) still demand climate data.
• Investors and nonprofits note that climate risk is still a financial risk, so companies ignoring it do so at their peril.
• Critics worry it grants polluters room to hide climate risks.

Kerry highlighted that while the SEC’s stance is shifting, investors remain laser-focused on ESG. Large corporate clients and banks continue requiring robust data from suppliers—so don’t assume your climate reporting is optional. She encouraged continuous carbon accounting to stay prepared for potential future federal or global mandates.

EPA data & emissions factors: A looming void?

The Interagency Working Group on Social Cost of Carbon disbanded again, budget cuts threaten the EPA and DOE, and updating key datasets (like eGRID) could stall—affecting how businesses calculate Scope 2 footprints.

What this means:

• Companies reliant on federal updates might see inconsistent or outdated emissions factors.
• Parallel to past moves—NASA’s Carbon Monitoring System was scaled back in Trump’s first term, limiting climate data.
• Potentially hamper accurate carbon accounting and reporting.

Kerry recommended verifying data through alternative channels—state-level metrics, private databases, or NGO platforms. She also flagged that subnational rules often incorporate their own factor sets, so companies operating in places like California or New York might rely on state-validated data. During the webinar, Kerry reiterated to “treat subnational rules as your new baseline; if you comply with California, you’re generally prepared for anything else.”

Why sustainability still matters

Amid these federal rollbacks, our slides showed that 155% more sustainability regulations have emerged globally over the last decade—pointing to unstoppable momentum. The Fortune 500, states, and international bodies are pressing forward:

• EU’s CSRD: Impacts thousands of U.S. multinationals needing to align with European climate directives.
• California’s SB 253 & SB 261: Mandate comprehensive emissions disclosures and climate risk reporting for large businesses.
• Fortune 500: ~45% have net-zero targets, requiring supply chain emissions tracking even when the federal government eases off.

In short, ignoring climate action risks losing key contracts or missing out on new markets. As Kerry emphasized, “The game is global,” and your brand’s resilience and credibility hinge on continued climate commitments.

Next steps

Despite the immediate upheavals—IRA funding on hold, SEC rule rollbacks, and scaled-back EPA resources—sustainability is alive and well. Our poll confirmed that external demands for climate data remain strong, fueled by local regulations, major corporate buyers, and investor scrutiny.

Practical action items for corporate sustainability professionals:

• Map out local/state policies: If you operate in a climate-leader state, examine any newly strengthened requirements.
• Diversify financing: Look into PACE, PPAs, or philanthropic partnerships in case federal clean-energy grants stall long-term.
• Maintain carbon accounting: Even if federal rules ease, private markets and global players still want transparent emissions data.
• Engage or “red-team”: Follow Kerry’s advice—test your strategy for potential blind spots, gather cross-functional input, and pivot if needed.
• Communicate ROI: Emphasize cost savings and risk mitigation so stakeholders see sustainability as an operational necessity, not just a compliance box.

We hope this recap helps you stay proactive. Big thanks to Kerry Duggan for sharing her experiences at the highest levels of federal government and for reminding us: local communities, global frameworks, and long-term ROI all continue to drive sustainability progress—regardless of who’s in the White House.