Politics
‘There’s No Good Answers’: State Lawmakers on Climate Policy Under Trump
Talking to legislators from New York, Washington, Massachusetts, and New Jersey about what’s under threat, what’s safe, and the strain of it all.
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Talking to legislators from New York, Washington, Massachusetts, and New Jersey about what’s under threat, what’s safe, and the strain of it all.
That trust was hard won — and it won’t be easily regained.
States filed yet another motion on Monday asking the court to release urgently needed disaster relief.
On environmental justice grants, melting glaciers, and Amazon’s carbon credits
Job and funding cuts to federal emergency programs have the nation’s tsunami response experts, shall we say, concerned.
On energy transition funds, disappearing butterflies, and Tesla’s stock slump
On job cuts, long-term planning, and quarterly profits.
Current conditions:Schools in South Sudan are closing for two weeks due to a heatwave that has caused students to collapse • Unusually heavy snow in Virginia and North Carolina led to hundreds of car accidents • An atmospheric river will bring heavy rain to the Pacific Northwest this weekend.
The Trump administration plans to dramatically cut staff at a key office responsible for dispensing disaster recovery aid. The Office of Community Planning and Development, which is part of the Department of Housing and Urban Development, will be cut to 150 people, down from 936, according to The New York Times. The news follows hundreds of personnel cuts at the Federal Emergency Management Agency, which are expected to hamper disaster relief disbursements and rebuilding efforts around the country. NPR is also reporting that FEMA will no longer weigh in on the development of building codes and has taken its name off recommendations it made under the Biden administration.
A member of the FEMA Urban Search and Rescue Task Force in Asheville, North Carolina after Hurricane Helene.Mario Tama/Getty Images
Occidental CEO Vicki Hollub talked up the opportunity to use carbon captured from the air to get more oil out of the ground during the company’s earnings call this week. Hollub told investors that the use of captured CO2 for enhanced oil recovery would be similar to the shale revolution in unlocking billions of barrels of oil. “There's not enough organic CO2 in the country to be able to flood all the things that we're going to need to flood to get that 50 billion to 70 billion barrels,” she said. “And so taking CO2 out of the atmosphere is a technology that needs to work for the United States.” Hollub didn’t speak to the status of Occidental’s $500 million Department of Energy award to build a direct air capture hub in Texas, but she asserted that “President Trump knows the business case” for subsidizing these projects.
Utility regulators ordered the Chicago utility People’s Gas to scale back its pipeline replacement program on Thursday and only replace the highest-risk infrastructure. The ruling came after a yearlong investigation into the program, which had run over-budget and behind schedule and had yet to reduce pipeline failure rates. At the rate it was going, the program wouldn’t have been completed until 2049, “right around the time that a lot of us think we should be stopping to use the gas system,” Abe Scarr of the Illinois Public Interest Research Group told me in 2023 when the investigation commenced. Scarr applauded Thursday’s ruling, stating that regulators “directed Peoples Gas to run a program that costs less, makes us safer, and facilitates the transition to cleaner energy.”
Xcel Energy, the largest utility in Minnesota, says it will deliver 100% carbon-free electricity to customers in the state five years ahead of the state’s 2040 deadline. The utility’s long-term plan, which Minnesota regulators approved on Thursday, involves shutting down coal plants, extending the life of its two nuclear plants, and building more wind, solar, and batteries, including a pilot program with the heat battery company Rondo Energy. Xcel had originally proposed building six new natural gas plants, but the plan was pared back to building just one that will operate 5% to 10% of the year to meet peak demand. The state’s clean energy law allows Xcel to burn natural gas as long as it also generates enough carbon-free power to cover its customer demand.
The plan is expected to save customers money compared to Xcel’s original proposal, but that calculus includes the tax credits for renewable energy that the Trump administration may or may not kill.
Grok 3, the latest iteration of the artificial intelligence chatbot developed by Elon Musk’s xAI, appears to have been trained to spew climate denial. Andrew Dessler, a climate scientist at Texas A&M University, posed the same question — “Is climate change an urgent threat?” — to the beta version of Grok 3 and to its predecessor Grok 2. Dessler posted screenshots of the two responses on Bluesky. Grok 2 responded, “Yes, climate change is widely regarded by scientists, governments, and international organizations as an urgent threat to the planet,” and went on to provide evidence of climate change and its impacts. Grok 3, meanwhile, said that climate change was “a complex issue.” While “the mainstream scientific consensus…says it's a big deal," the chatbot said, “some argue the urgency is overhyped,” and that climate change is “more of a manageable shift we’re overreacting to.”
U.S. electric vehicle maker Rivian achieved its first quarterly gross profit of $170 million in Q4 of last year, beating expectations.
The more Hurricanes Helene and Milton we get, the harder it is to ignore the need.
As the southeastern U.S. recovers from hurricanes Helene and Milton, the destruction the storms have left behind serves to underline the obvious: The need for technologies that support climate change adaptation and resilience is both real and urgent. And while nearly all the money in climate finance still flows into mitigation tech, which seeks to lower emissions to alleviate tomorrow’s harm, at long last, there are signs that interest and funding for the adaptation space is picking up.
The emergence and success of climate resilience advisory and investment firms such as Tailwind Climate and The Lightsmith Group are two signs of this shift. Founded just last year, Tailwind recently published a taxonomy of activities and financing across the various sectors of adaptation and resilience solutions to help clients understand opportunity areas in the space. Next year, the firm’s co-founder Katie MacDonald told me, Tailwind will likely begin raising its first fund. It’s already invested in one company, UK-based Cryogenx, which makes a portable cooling vest to rapidly reduce the temperature of patients experiencing heatstroke.
As for Lightsmith, the firm held the final close of its $186 million growth equity fund for climate adaptation solutions in 2022, which co-founder and managing director Jay Koh told me is one of the first, if not the first fund with a climate resilience focus. As Koh sees it, the evolution of climate adaptation and resilience technologies can be broken up into three stages, the first being “reactive and incremental.” That’s largely where we’re at right now, he said — think rebuilding a dam higher after it’s been breached in a flood, or making a firebreak broader after a destructive wildfire. Where he’s seeing interesting companies emerge, though, is in the more proactive second stage, which often involves anticipating and preparing for extreme weather events. “Let’s do a lot more data and analytics ahead of time. Let’s deploy more weather satellites. Let’s look at deploying artificial intelligence and other technologies to do better forecasting,” Koh explained to me.
The third and final stage, he said, could be categorized as “systemic or transcendent adaptation,” which involves systems-level changes as opposed to incremental improvements. Source Global, one of Lightsmith’s portfolio companies which makes solar-powered hydropanels that produce affordable drinking water, is an example of this. As Koh told me, “It’s not simply improving the efficiency of desalination filters by 5% or 10%. It’s saying, listen, we’re going to pull water out of the air in a way that we have never done before.”
But while the activity and interest around adaptation tech may be growing, the money just isn’t there yet. “We’re easily $50 [billion] to $60 billion below where we need to be today,” MacDonald told me. “And you know, we’re on the order of around $150 [billion] to $160 billion below where we need to be by 2030.” Everyone else I spoke with echoed the sentiment. “The latest statistics are that less than 5% of total climate finance tracked on planet Earth is attributable to adaptation and climate resilience,” Koh said. “Of that, less than 2% is private investment.”
There’s a few reasons why early-stage investors especially may be hesitant to throw their weight behind adaptation tech despite the clear need in the market. Amy Francetic, co-founder and managing general partner at Buoyant Ventures, which focuses on early-stage digital solutions for climate risk, told me that the main customer for adaptation solutions is often a government entity. “Municipalities and other government contracts, they’re hard to win, they’re slow to win, and they don’t pay that much, either, which is the problem.” Francetic told me. “So it’s not a great customer to have.”
One of Buoyant’s portfolio companies, the now defunct StormSensor, reinforced this lesson for Francetic. The company used sensors to track water flow within storm and sewage systems to prevent flooding and was able to arrange pilot projects with plenty of water agencies — but few of them converted into paying contracts. “The municipalities were willing to spend money on an experiment, but not so many of them had a larger budget.” Francetic told me. The same dynamic, she said, is also at play in the utility industry, where you often hear about new tech succumbing to “death by pilot.”
It’s not all doom and gloom, though, when it comes to working with larger, risk-averse agencies. AiDash, another of Lightsmith’s portfolio companies that uses artificial intelligence to help utilities assess and address wildfire risk, has five utility partnerships, and earlier this year raised $58.5 million in an oversubscribed Series C round. Francetic and MacDonald both told me they’re seeing the conversation around climate adaptation evolve to include more industry stakeholders. In the past, Francetic said, discussing resilience and adaptation was almost seen as a form of climate doomerism. “They said, oh, why are you doing that? It shows that you’re giving up.” But now, MacDonald told me that her experience at this year’s climate week in New York was defined by productive conversations with representatives from the insurance industry, banking sector, and venture capital arena about injecting more capital into the space.
Bill Clerico, the founder and managing partner of the venture firm Convective Capital, is also deeply familiar with the tricky dynamics of climate adaptation funding. Convective, founded in 2022, is solely dedicated to wildfire tech solutions. The firm’s portfolio companies span a range of technologies that address suppression, early identification, prevention, and insurance against damages, and are mainly looking to work with utilities, governments, and insurance companies. When I talked to Clerico back in August, he (understatedly) categorized these establishments as “not necessarily the most fast-moving or innovative.” But the bleak silver lining, he told me, is that extreme weather is forcing them to up their tempo. “There is so much destruction happening so frequently that it’s forcing a lot of these institutions to think about it totally differently and to embrace newer, more novel solutions — and to do it quickly.”
People, it seems, are starting to get real. But investors and startups alike are also just beginning to define exactly what adaptation tech encompasses and what metrics for success look like when they’re less measurable than, say, the tons of carbon sucked out of the atmosphere via direct air capture, or the amount of energy produced by a fusion reactor.
“Nobody wakes up in the morning and buys a loaf of adaptation. You don’t drive around in an adaptation or live in an adaptation,” Koh noted. “What you want is food, transport, shelter, water that is resilient and adapted to the effects of climate change.” What Koh and the team at Lightsmith have found is that many of the companies working on these solutions are hiding in plain sight. “They call themselves business continuity or water efficiency or agricultural precision technologies or supply chain management in the face of weather volatility,” Koh explained.
In this way, the scope of adaptation technology balloons far beyond what is traditionally climate-coded. Lightsmith recently invested in a Brazil-based digital health company called Beep Saude, which enables patients to get rapid, in-home diagnostics, vaccination services, and infusion therapies. It falls under the umbrella of climate adaptation tech, Koh told me, because rising temperatures, increased rainfall, and deforestation in the country have led to a rapid increase in mosquitoes spreading diseases such as dengue fever and the Zika virus.
Naturally, measuring the efficacy of solutions that span such a vast problem space means a lot of customization. “Your metric might be, how many people have asked for water in a drought-prone area?” MacDonald told me. “And with health, it might be, how many children are safe from wildfire smoke during fire season? And for ecosystems, it might be, how many hectares of ecosystem have been saved as a means to reduce storm surge?” Insurance also brings up a host of additional metrics. As Francetic told me, “we measure things like lives and livelihoods covered or addressed. We measure things like losses covered or underwriting dollars spent on this.”
No matter how you categorize it or measure it, the need for these technologies is not going away. “The drivers of adaptation and climate resilience demand are physics and time,” Koh told me. “Whoever develops climate resilience and adaptation technology will have a competitive advantage over any other company, any other society, and the faster that we can scale it up, and the smarter and more equitable we are about deploying it, the better off we will all be.”