As we enter 2025, moderate shifts have already been witnessed in the carbon capture as well as climate action spheres owing to political policies, technological innovations, and industry trends. In January 2025, U.S. President Donald Trump signed over 26 Executive Orders that will impact environmental policies for years to come. Simultaneously, global sustainability initiatives are gaining momentum due to public demand, regulatory frameworks and developments in carbon removal and similar emission reduction technologies.
This article consolidates key carbon capture and climate action trends that have surfaced recently and analyzes them along with current available data and references.
Climate Change Policies in America That Were Reversed
Trump’s actions on climate change did have some focus, albeit not as effective as those of the Biden Administration. The first sign of an effort to change the narrative included repealing a number of EOs (Executive Orders) placed by Biden as well as withdrawing from the Paris Agreement altogether.
EPA was directed to reassess the 2009 Endangerment Finding for greenhouse gases (GHGs) under the Clean Air Act. Revoking this “Endangerment Finding” could nullify EPA’s regulatory authority over carbon emissions.
Another key action was mandating a review of the “Social Cost of Carbon” (SCC), which quantifies the economic damage caused by carbon emissions. Biden Administration set the SCC at $51 per ton of CO2, while Trump seeks to lower or eliminate it entirely.
Trump also terminated Environmental Justice (EJ) offices, effectively removing EJ considerations from federal policies.
Also, the Inflation Reduction Act (IRA) and the Infrastructure Investment and Jobs Act (IIJA) or Bipartisan Infrastructure Law (BIL), key pillars of Biden’s climate strategy, are now under review. Trump directed agencies to pause fund disbursement until alignment with his administration’s goals is ensured.
Cross-border carbon credit transfer agreement finalized at COP29 in Azerbaijan
At COP29 Baku, agreements have been finalized to allow cross-border carbon credit transfers under Article 6 of Paris Agreement. Baku Carbon Credit Deal includes mechanisms like Article 6.2’s Internationally Transferred Mitigation Outcomes (ITMOs) and Article 6.4’s Paris Agreement Crediting Mechanism (PACM). These frameworks allow countries to trade emissions reductions internationally.
COP29 Baku also resolved long-standing issues regarding the transition of Clean Development Mechanism (CDM) credits into the PACM framework. This means a way has been figured out how to use older carbon credits in the new system.
2025 Carbon Capture and Climate Change Landscape
While some U.S. policies pivot under Trump, the global sustainability trends keep on evolving. Here is a projection for the 2025 major carbon capture and sustainability sector dynamics:
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Increased Transparency, More Regulations.
It appears that Gen Z consumers are more skeptical as a 2021 McKinsey & Company report shows that 88% of American Gen Z do not trust brands’ ESG claims. To increase transparency and accountability, European Union (EU) is bringing in the Carbon Border Adjustment Mechanism (CBAM). Effective in 2026, this will require businesses to report carbon emissions on imports and pay taxes on them. Also, the Corporate Sustainability Reporting Directive (CSRD) require large companies to disclose sustainability actions, risks, and opportunities.
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Advancements in Carbon Removal Technologies.
Nature-based solutions like reforestation and macroalgae farming are also gaining traction, complementing technological approaches to carbon capture. 2024 State of CDR report highlights that $3.5 billion in federal funding has been allocated for direct air capture (DAC) hubs in the U.S.
Key Players in Carbon Capture in 2025
Carbon Capture trends for 2025 reveal the participation of both large enterprises and startups. Climeworks, Aker, Carbon Clean, Soletair Power, Mission Zero Technologies, Skytree, Global Thermostat, Occidental Petroleum’s 1 Point Five, Carbon Engineering are some of the leading companies in carbon capture sector with proven technology and deployment of commercial-scale CO2 capture and utilization projects. Given the energy intensity of many carbon removal pathways, continued innovation in carbon reduction will be especially important in 2025 as demand for electricity continues to increase.
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Consumers don’t make policy, but their preferences drive companies’ decisions to do more.
Consumer behavior is constantly changing. Buying green goes more and more mainstream; 27% of consumers are now willing to pay more for sustainable products. To stregthen consumer trust, EU is preparing to launch the Digital Product Passport that will trace the lifecycle of products throughout the supply chain. Once companies offer this kind of transparency at the retail level, consumers around the world will almost certainly expect all companies to provide them with this sort of transparency data. Minimizing emission across the supply chain and logistics will be a major focus in 2025.
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AI Might Play a Double-Edged Role in Sustainability Efforts.
Generative AI requires a lot of power to function. In the short term, growing use of Artificial Intelligence engines could result in a spike in emissions. Nonetheless, with the entry of DeepSeek, analysts suggest that AI and data centers might need less energy than previously estimated.
AI-enabled sensing and monitoring systems have the potential to make virtually every process more efficient. In 2025, AI is expected to help accelerate demand for grid optimization, sensor optimization, and renewable energy usage in industries and commercial buildings. AI tools will also help organizations assess their readiness for compliance, assemble documents required to comply, and analyze supply chains for opportunities to optimize. The use and protection of important natural resources will be made easier with more advanced analytics in place.
Looking forward
In 2025, companies have to be more careful in balancing regulatory compliance and consumer expectations. Technological innovations will help reduce emissions and advance circularity. Whether through AI-driven optimization or adherence to policies and international frameworks, the path ahead demands a commitment to transparency and cross-sector collaboration.
