The U.S. stock market saw its biggest weekly gain in a year just one week following Donald Trump’s re-election. However, clean energy stocks tumbled as investors worried Biden’s pro-renewables agenda would be replaced by Trump’s “drill, baby, drill” policies. And recently, Vivek Ramaswamy, known for his strong opposition to environmental, social, and governance (ESG) investing, was appointed to co-lead Trump’s government efficiency group.
A biotech entrepreneur Ramaswamy has long criticized ESG standards, arguing they hurt economic growth. His new position could mean major changes to environmental regulations and corporate climate reporting.
His role is to help cut regulations, reduce government waste, and overhaul federal agencies. This appointment signals a shift in U.S. climate and investment policies.
ESG Under Fire: What It Means for Corporate Climate Disclosure
The drop in clean energy stocks highlights the challenges for sustainable finance. Over the past two years, Republicans have pushed back against ESG investing, leading several states to boycott ESG-focused asset managers.
A Bloomberg Intelligence report highlights Trump’s potential efforts to restrict shareholders from filing ESG-related proposals. This follows more lenient SEC rules that have driven a 47% increase in ESG proposals since 2021.

Referring to the chart above, two major trends stand out for 2023. First, climate change proposals continue to rise. Second, there’s a surge in resolutions on reproductive health following the U.S. Supreme Court’s Dobbs decision, which has led to widespread restrictions.

Meanwhile, anti-ESG proposals are growing (13% in 2023), though they lack support and primarily aim to block ESG efforts without offering solutions. But with a second Trump administration will likely make big changes.
According to Rob Du Boff, a senior analyst at Bloomberg Intelligence, a Trump presidency could restrict ESG-related shareholder proposals. He particularly noted that:
“The bottom line is the Trump administration is anxious to undermine these ESG-related initiatives.”.
While the SEC’s climate risk disclosure rule faces an uncertain future under Trump’s presidency, U.S. companies still need to prepare for reporting requirements in California and Europe. These regulations demand transparency about emissions and climate risks, regardless of federal policy shifts.
California’s laws require businesses with over $1 billion in revenue, roughly around 5,344 companies, to disclose Scope 1, 2, and 3 emissions starting in 2026. They must also have these emissions verified by third-party organizations.
Additionally, companies with revenue exceeding $500 million, over 10,000 of them, must submit climate risk reports explaining how extreme weather, supply chain issues, and regulations could affect their operations.
These rules apply to thousands of businesses, forcing them to enhance their climate reporting efforts.
Legal Battles and Compliance
Despite legal challenges, California’s climate laws remain on track. Business groups, including the U.S. Chamber of Commerce, sued the state to block these mandates, arguing they place an undue burden on companies.
However, a federal judge recently allowed the case to proceed to trial, delaying any immediate relief for opponents.
Michael Littenberg, a legal expert on ESG, advises companies to prepare now. “Businesses are at different stages of readiness,” he said, “but those operating in California must ensure compliance.”
Global Trends in Climate Reporting
Globally, climate disclosure rules are expanding. The European Union has already implemented strict regulations, and 29 other countries are in various stages of adopting similar policies. Together, these jurisdictions represent 55% of global GDP.
Steven Rothstein from the Ceres Accelerator for Sustainable Capital Markets notes that U.S. companies with international operations are already aligning with global standards. Rothstein also explained that Canada, Australia, and Brazil have their disclosure requirements, too.
Consistency in reporting frameworks is essential for corporate leaders planning decades ahead. This global momentum ensures climate data remains crucial, regardless of U.S. political changes.
What’s Next for ESG and Climate Policy?
The ESG standard faces an uncertain future in the U.S. Many Republican-led states have passed laws banning ESG considerations in public investments, arguing they politicize financial decisions. However, these laws have sparked legal challenges from business groups.
Experts believe the term “ESG” might eventually be replaced. It’s a politically charged term but while alternative terms exist, none have gained widespread acceptance.
Despite political opposition, sustainability data will continue to guide investments. Julie Anderson, formerly of BlackRock, emphasized the importance of climate information. She said that investors seek any data that can impact financial performance and if ESG factors affect profits, they will influence decisions.
The Trump administration is expected to weaken ESG-related policies, including revising a 2022 rule that allows retirement fund managers to consider ESG risks. However, experts believe the push for sustainability will persist in the private sector.
More notably, certain areas of climate policy like carbon removal, nuclear energy, and critical minerals may still see progress due to bipartisan support.
Bipartisan Climate Wins: Carbon, Nuclear, and Critical Minerals
Carbon removal technologies, such as direct air capture and enhanced carbon storage, are critical to reducing greenhouse gas emissions. Bipartisan bills like the CREST Act and the CREATE Act aim to advance research and development in this space, benefiting both the economy and the environment.
Nuclear energy is another area with widespread bipartisan backing. With its potential to provide large-scale, low-carbon power, nuclear energy is seen as a key component of the clean energy transition. Recent legislative efforts, such as the ADVANCE Act, focus on modernizing reactor technologies and increasing domestic nuclear capacity.
The critical minerals sector is another focal point due to its importance for renewable energy technologies like wind turbines, solar panels, and electric vehicle batteries.
Legislation such as the Critical Minerals Security Act and the Critical Mineral Access Act seeks to enhance mining and processing capabilities while supporting global projects that align with U.S. national security interests. These efforts reflect a shared commitment to ensuring the availability of materials crucial for the clean energy transition.
Even with political shifts, the importance of ESG and climate data isn’t going away. Investors and corporations alike are recognizing that sustainability plays a crucial role in long-term success and U.S. businesses must adapt to stay competitive as the world moves toward greater climate accountability.
The post Trump’s Second Term Sparks a Turning Point in ESG and Climate Disclosure Policies appeared first on Carbon Credits.
Carbon Footprint
The Strategic Case for Nature-Based Carbon Investments
Nature-based carbon investments deserve consideration when they address a specific business dependency and produce outcomes you can measure. Imagine Moonbucks, a global coffee roaster planning next season’s espresso blend. It is considering natural Grade 4 coffee from Jimma, in southwestern Oromia, Ethiopia. Its sourcing decisions affect the roasting schedule and the cash tied up in coffee purchases. Moonbucks needs to understand which measures could protect that supply, what they would cost and how it would judge the results.
1. Define the sourcing problem before choosing a project
Moonbucks needs a dependable component for its espresso blend. Its procurement team wants continuity of volume and an agreed cup profile. Replacing a shipment at short notice could require new sample approval and changes to the blend, and given the schedules for cultivation, processing, and freight delivery, is practically impossible. Moonbucks needs to get this right, and its initial concern is inconsistent deliveries. It commissions an assessment of the supplying farms and post-harvest chain. The questions cover land condition, harvest availability and whether drying or storage problems are affecting saleable lots.
This distinction changes the investment brief. A tree-planting proposal cannot be assumed to fix drying problems. Better storage cannot restore eroded land. The team must establish which problem exists before selecting the response.
CCC’s guide to finding nature-based solutions in your supply chain explains where to look. Here, the next task is to turn a broad concern into a testable proposal.
2. Develop nature-based carbon investments around the actual supply chain
The assessment would trace Moonbucks’ purchases back through the exporter and supplying producer groups. Which farms supply the contracted lots? Who controls land-management decisions? How long does the buyer expect to maintain the purchasing relationship?
Furthermore, Jimma natural Grade 4 cannot be treated as interchangeable with every Ethiopian coffee. Moonbucks would need to test any substitute against its own blend and quality requirements.
Suppose Moonbucks’ assessment identifies an opportunity to maintain shade trees and restore vegetation along exposed streambanks. The IPCC describes agroforestry as a way to store carbon in vegetation and soil, with potential benefits for erosion control and water quality.1 Moonbucks would need local advice on species, growing conditions and maintenance before deciding how these measures fit its sourcing plan.
The proposal now has a defined sourcing connection and a candidate intervention. The next steps are to test its effect on production, assess carbon eligibility and build the financial case.
3. Compare the proposal with other ways to protect supply
WBCSD’s Nature-based Solutions Blueprint recommends comparing nature-based options with other responses across their benefits and costs.2 For Moonbucks, that means evaluating the landscape proposal alongside drying improvements, storage controls and alternative sourcing arrangements.
The product’s natural-process designation matters. Moonbucks should examine the drying and dry-milling chain alongside land conditions. Its team would check storage practices, contamination risks and incoming-lot quality to see whether problems arise before or after the coffee leaves the farms.
The revised proposal might combine land stewardship with separate post-harvest controls. Each component needs its own purpose and budget. A sustainability label should not obscure which activity is expected to solve which problem.
The project develops as the evidence improves. Its scope should follow the diagnosis rather than preserve the first idea unchanged.
4. Establish what the carbon outcome could count toward
Moonbucks’ sustainability team now tests the proposed carbon case separately from the sourcing case. Is the objective a measurable change in Moonbucks’ value-chain emissions, verified credits for separate voluntary use, or distinct outcomes under carefully defined arrangements?
Scope 3 covers value-chain emissions. A purchasing relationship alone does not prove that a farm intervention can be included in Moonbucks’ inventory. The team needs an applicable accounting method, defensible boundaries and evidence supporting attribution.
SBTi’s FLAG Guidance (forest, land and agriculture), version 1.2, says purchased credits used as offsets cannot meet near-term FLAG or energy and industry targets. Eligible land-based removals are subject to accounting requirements.3 Moonbucks needs to test its proposal against those rules before including an outcome in its targets.
For Moonbucks’ Jimma proposal, maintaining existing trees and establishing new vegetation could involve different carbon questions. Specialists must examine the baseline and additionality, meaning what changes because the project proceeds. They must also assess measurement and the risk that stored carbon is lost. CCC’s MRV and additionality article introduces those tests.
Until that work is complete, Moonbucks should not budget an assumed Scope 3 reduction or credit-sale receipt. Direct emissions reductions remain the priority.
5. Build a financial case that survives weaker assumptions
Moonbucks’ finance team would now build a multi-year budget. UNEP’s State of Finance for Nature 2023 compares current finance with the investment needed to meet climate, biodiversity and land-restoration goals.4 The company would cost its proposed activities, farmer participation and ongoing monitoring. Verification, where required, is a separate expense. Maintenance and responsibility for replacing failed plantings must remain visible after the initial establishment budget ends.
Operational benefits need equally careful treatment. If fewer rejected lots reduce emergency purchasing, count that saving once. Do not add “supply resilience” as another financial benefit when it represents the same avoided cost.
Moonbucks should compare a base case with slower benefits, higher implementation costs and no carbon revenue. It should also distinguish production outcomes from quality and shipment outcomes. A single good harvest would not prove that the landscape intervention caused better delivery performance.
A project can remain worth funding even when its carbon case needs more work. That decision must rest on the operational evidence and the company’s objectives, without unsupported environmental claims.
6. Fund a pilot with a clear expansion decision
Moonbucks’ first approval would fund a bounded pilot, rather than commit the entire sourcing program. Before spending, Moonbucks would agree on participating farms, responsibilities and the evidence needed at review.
Its scorecard could track farmer participation, implementation costs and plant survival, alongside accepted coffee volumes and lot-quality results. Carbon measurements would follow the selected method. Farm-level traceability must connect the intervention to the actual sourcing relationship.
Suppose Moonbucks’ review later finds that storage changes explain most quality improvements, while the land measures need longer observation. Those findings would shape the next decision: expand the proven component, adjust the landscape work or pause further spending. They would not justify crediting all improvements to tree planting.
This gives nature-based carbon investments a practical place in a multi-year strategy. Funding increases as the evidence supports it, and the project can change direction before a larger commitment.
Discuss a sourcing opportunity with CCC
Carbon Credit Capital’s nature-based supply-chain investment service uses its Dual-Value Model to examine supply-chain economics alongside potential sustainability outcomes.
Schedule a consultation to discuss your sourcing exposure and the questions to resolve before allocating capital.
Sources
- Intergovernmental Panel on Climate Change (IPCC), Climate Change 2022: Mitigation of Climate Change, Chapter 7, Agriculture, Forestry and Other Land Uses, section 7.4.3.3 (Agroforestry).
- World Business Council for Sustainable Development (WBCSD), Nature-based Solutions Blueprint, 5 June 2024.
- Science Based Targets initiative (SBTi), Forest, Land and Agriculture Science-Based Target-Setting Guidance, version 1.2, March 2026, section 3.1.4, pp. 37–38.
- United Nations Environment Programme (UNEP), State of Finance for Nature 2023, 2023.
Carbon Footprint
How to buy plastic credits, and what to check before you do
A plastic credit funds the collection of plastic waste in places where no formal system exists to collect it. Each credit represents a measured, independently audited quantity of plastic taken out of the environment or returned to use, tracked on a public registry.
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Carbon Footprint
EU carbon credit claims after 27 September 2026
EU carbon credit claims changed on 27 September 2026, the day the Directive (EU) 2024/825 began to apply across the European Union. The change is narrow. It changes how a company can talk about the credits it buys. A product can no longer be called neutral on the strength of compensation alone; however, every specific, evidenced statement about what a company measured, reduced, and funded stays fully available.
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