Despite federal policy headwinds, Todd Khozein highlights that U.S. climate tech startups are doubling down locally, finding success in states with strong demand and clear incentives, but robust domestic support is crucial to prevent startup attrition and keep skilled innovators.
The Trump administration’s proposed overhaul of green energy tax credits is causing significant concern in the climate tech sector, prompting investors and founders to strategize fallback plans. Todd Khozein, CEO of SecondMuse, notes that this legislative shift, particularly a House-passed bill cutting clean energy incentives, is stifling startup growth that had flourished under the Biden-era Inflation Reduction Act. This is forcing companies to scale back, seek new geographies, or even consider closure.
Todd emphasizes that Europe is emerging as an attractive alternative for climate tech startups. He points out that European nations have made significant strides in aligning regulatory frameworks with climate targets, effectively de-risking early-stage technologies and contrasting sharply with the U.S. policy shifts that are chilling investor sentiment.
