USA

As of 2025, the U.S. lacks coherent, binding national green economy planning and a unified, federal level pathway to net zero by 2050. Although during the Biden administration the country had adopted a Long-Term Strategy to reach net zero by 2050 and passed climate legislation (for instance, the Inflation Reduction Act), many of those elements were non-binding and fragmented across sectors, and are currently under serious pushback due to the new Trump administration. The federal government has now withdrawn from the Paris Agreement and is rolling back several climate initiatives, undermining the continuity of any centralized planning effort. At present, the U.S. climate and green growth policymaking is more characterized by state-level action. Many policies under the previous administration (climate standards, vehicle electrification mandates, clean energy infrastructure funding) are being reversed or suspended.

The current federal government has moved away from the inclusive and sustainable business agenda of the previous administration. In March 2025, the U.S. formally rejected the UN Sustainable Development Goals as a federal framework for domestic and foreign policy. This is a significant step backward from a national strategy that could have rewarded businesses for SDG contributions. Furthermore, there is no federal mandate for employee representation on corporate boards, nor gender-balance standards. The Securities and Exchange Commission has taken steps to counter ESG goals. Major firms and investors continue to set their own guidelines. Some of these firms have walked back specific targets for board diversity, and some still establish them. despite the federal retreat, some progress is being driven at the state level and through voluntary frameworks and market-driven mechanisms. Some state and stock exchange rules have tried to impose diversity quotas, though these have faced legal pushback.

While general consultation and economic RIAs (EO 12866/Circular A-4) are still mandatory for most regulations, the core equity-specific mechanisms and institutional mandates that would ensure comprehensive coverage of socially marginalized groups in the impact assessment process have been largely removed or targeted for removal in the federal branch. Executive Orders signed in 2025 have revoked previous administration policies such as Executive Orders 13985 and 14091, which directed federal agencies to pursue a "whole-of-government" approach to racial equity and required them to develop Equity Action Plans to identify and address barriers faced by underserved communities (including people of color, LGBTQI+ and people with disabilities). The new executive orders specifically directed the termination of Diversity, Equity, and Inclusion (DEI) offices, programs, and mandates across the federal government and rescinded executive orders promoting equal opportunity in federal contracting, indicating a systemic move away from mandated assessment of policies on marginalized groups. The current administration also calls for ending the use of "disparate impact" in civil rights enforcement and analysis, which is a key mechanism for assessing whether a policy disproportionately harms marginalized communities. However, federal agencies continue to hold formal Tribal consultation sessions with indigenous governments, a notable exception.

The United States government remains in the early development phase. Absence of a clear national mandate to integrate beyond GDP components into planning. The 2023 National Strategy to Develop Statistics for Environmental-Economic Decisions is a 15-year roadmap for integrating natural capital into the country's economic statistics. Most of the accounts are in pilot stage. The last Economic Report of the President for 2025 is still predominantly focused on traditional economic indicators. The broader shift of redefining prosperity beyond financial and physical capital is still mainly an academic or sub-national discussion in the US.

In 2021, the U.S. began taking initial steps toward integrating climate risks into its financial system under the Biden Administration. However, as of 2025, a change in administration has created a less clear and committed scenario. In terms of financial regulation, the Federal Reserve, which is responsible for stress testing, has shifted its focus; while it had previously joined the Network for Greening the Financial System and conducted some exploratory climate-related scenario analyses, the new administration has de-prioritized these efforts amd the latest 2025 stress tests focused on traditional financial risks and did not include a specific environmental or social component. Overall, the U.S. federal government has limited engagement with green finance and its commitments are now unclear.

Post‑2021, the U.S. Green fiscal ambition soared with the IIJA (2021) or Infrastructure Investment and Jobs Act, and the Inflation Reduction Act (2022), driving historic investment in renewable energy, EV infrastructure, grid modernization, agriculture and environmental justice. However, following Trump's inauguration for a second term on January 20, 2025, sweeping reversals emerged: an executive order withdrew the U.S. from the Paris Agreement, paused IRA and IIJA fund disbursements, dismantled EPA climate units and federal climate research, and regulatory rollbacks accelerated across air, water and permitting rules for fossil fuel extraction. Congress passed Trump’s $4.5 trillion “One Big Beautiful Bill” in July 2025, permanently extending 2017 tax cuts while sharply rolling back IRA-era clean energy tax incentives (solar, wind, EV, etc.) and boosting fossil fuel support and military/emergency spending. This marks a decisive shift from green fiscal leadership to rapid dismantling of long-term green policies. Some elements of IIJA and IRA remain in place, as courts protect parts of the spending. Despite federal retreat, subnational and private investments continue. Firms and state governments, especially in red states like Texas and Iowa, still advance clean energy projects. However, private and state activity isn’t enough to sustain federal ambition or create durable structural change.

The US's green trade agenda has been fundamentally altered since the inauguration of the second Trump administration in early 2025, with a severe move away from green policies. On taking office, the new administration immediately began to dismantle core elements of the Inflation Reduction Act (IRA) that incentivized clean energy. By executive order, it has sought to end or reduce tax credits and subsidies for wind, solar, and electric vehicles, arguing that such measures distort the market and hurt domestic fossil fuel industries. This has been a central part of the "Unleashing American Energy" initiative, which prioritizes domestic oil and gas production over a green transition.

Internationally, the U.S. has formally abandoned negotiations for the Global Arrangement on Sustainable Steel and Aluminum (GASSA) with the EU—a framework aimed at building a low-carbon metals market. Instead, under the July 2025 Framework Agreement on Reciprocal, Fair, and Balanced Trade, both sides have agreed to a new trade structure: the EU will eliminate tariffs on all U.S. industrial goods and grant preferential access to a range of agricultural and seafood exports. The U.S. will apply a 15% tariff to most EU goods, including autos, pharmaceuticals, and semiconductors; steel and aluminum tariffs remain at 50%, though the agreement contemplates exploring quota-based mechanisms as a future alternative.

Overall, the current approach is characterized by a reliance on tariffs, a withdrawal from multilateral climate agreements, and a de-emphasis on the interoperability of green taxonomies and carbon pricing with international partners.

The U.S. lacks a national carbon tax or a mandatory cap-and-trade scheme. Federal climate action is driven primarily by the Inflation Reduction Act (2022), which uses technology-specific tax credits and procurement mandates to create "implied" carbon prices across the economy, substituting for a direct carbon price. Sectoral and regional cap-and-trade schemes are operational in states like California and through the Regional Greenhouse Gas Initiative (power sector) in the Northeast. On carbon budgeting, the U.S. has committed to an ambitious NDC (50-52% reduction by 2030) and a net-zero goal by 2050, but is not legally binding by a legislative carbon budget framework. The administration relies on non-binding accounting and modeling to track progress toward the target. The Carbon Scoring Act (2024) was introduced to require the Congressional Budget Office (CBO) to estimate the emissions impact of legislation over the budget window, which is a mild form of integrating carbon accounting into fiscal debate.

After 2021, the U.S. launched coordinated efforts across sectors: Biden’s American Climate Corps, executive orders on federal fleet electrification and 100% renewable-powered buildings, and the Federal Sustainability Plan set carbon-free electricity by 2035. The Infrastructure Investment and Jobs Act and Inflation Reduction Act directed significant funding to clean energy, buildings, transport, agriculture, and industrial decarbonization (e.g., DOE-led industrial projects, DAC hubs, USDA climate adaptation). Key agencies (EPA, DOE, USDA, Interior) aligned behind a cross-sector National Climate Task Force and strategy frameworks. However, President Trump’s second-term triggered important reversals and has dismantled interagency coordination, rolling back clean sector policies and permitting reforms. Federal sectoral coordination remains fragmented, though state/local governments and the private sector continue green initiatives. Major rollbacks on clean energy tax credits, disintegration of federal coordination and halted sectoral investments under Trump’s second term.

The US's federal approach to a circular economy has been significantly altered in 2025. The Environmental Protection Agency (EPA) has seen a change in leadership and a shift in focus. The new administration has expressed skepticism about a federal-led, top-down approach to waste and recycling, preferring to leave such matters to states and the private sector. However, the National Recycling Strategy (50% by 2030 goal) remains, as well as the National Strategy to Prevent Plastic Pollution.

Executive Order 14036, which supported right-to-repair efforts, has been revoked by President Trump on August 13, 2025. Trump has also revoked the prior administration commitment to phasing out plastics straws. Also, the prior administration had committed to phasing out single‑use plastics (by 2027 for food service and 2035 for all federal operations), but it is unclear if the Trump administration continues to prioritize or fund this.

While the federal government has not advanced a national strategy, there are some circular economy policy developments in the US at the state level. A growing number of states have or are in the process of implementing Extended Producer Responsibility laws for packaging. Similarly, state-level "right to repair" legislation and bans on single-use plastics are proliferating, creating a fragmented regulatory environment.

While the U.S. had several strong circular economy initiatives under the previous administration, Trump's second term has meant a reversal. The result is a reduction in federal leadership on circular economy.

The new administration has rolled back many of the previous policies that aimed to electrify the US transport sector. For example the early termination of the federal EV tax credits, originally from the Inflation Reduction Act. The "One Big Beautiful Bill," a new tax and spending bill, accelerated the phase-out of these tax credits. This action is expected to significantly reduce private EV uptake by eliminating the financial incentive for consumers. Furthermore, the Environmental Protection Agency (EPA) has taken steps to reconsider the 2009 "endangerment finding" for greenhouse gases, a foundational legal document that underpins the EPA's authority to regulate tailpipe emissions. This move signals a clear intent to relax or eliminate federal vehicle emissions standards.

On the infrastructure front, the administration initially froze funding for the National Electric Vehicle Infrastructure program. While a federal court ordered the release of the funds, the new guidance from the Department of Transportation has fundamentally changed the program. It has removed previous requirements for stations to be located at 50-mile intervals along highways and has eliminated social equity and environmental planning requirements. In the public transport sector, federal support has also been significantly reduced. Overall, investment persists but is more fragmented, and public transport electrification continues mainly via state/municipal action.

During Trump's second term, we are seeing a systematic dismantling of clean energy policy. The once held moderate renewable energy ambition under Biden, leveraging IRA and IIJA to advance clean energy is under reversal: revoking power plant emissions standards, halting offshore wind leasing, suspending IRA/IIJA funding, and repealing solar, wind, EV, and storage tax credits through the 2025 ‘One Big Beautiful Bill.’ Federal leadership in clean energy vanished, leaving the transition dependent on private and state actions without a credible national strategy. Despite federal reversals, private and state-led investments in renewables persist, providing resilience but insufficient to offset the eradicated federal plan.

The Biden administration set a goal to deploy 30 GW of offshore wind by 2030, and an informal goal of a carbon-pollution-free power sector by 2035, built around the Federal Sustainability Plan, FERC transmission reforms, and NOAA/DOE coordination. Since 2025, the Trump Administration has approved executive actions to froze or reverse key commitments, cut clean energy incentives dramatically. and support fossil fuels. Any implicit federal path to 2030/2035 targets is effectively dismantled. Decisions are left to sub-national actors, mainly in Democratic-led states.

Although the federal government has dismantled much green policy post-Jan 20, 2025, substantial momentum persists from earlier clean economy investments, as meaningful green job creation occurred between 2022–2024. The IRA fueled over 400,000 clean energy jobs from tax credits and grants in 2024, including manufacturing, EV supply chains, grid resilience, and agriculture adaptation training. The plan also prioritized job access for disadvantaged workers via environmental justice funds and apprenticeship programs. Private and state-led efforts continued driving job creation even as Trump’s second term has reduced federal backing.

Even though the U.S. is still generating green jobs at scale, without a coherent or credible federal framework to guide, monitor or align this growth with social equity, transition support for brown sectors, or long-term planning, this momentum cannot be mantained in the future. The dismantling of coordination and planning tools in 2025 is incompatible with previous scoring for this policy. Some limited legacy structures remain, and state/private actors fill some gaps, but it’s uncoordinated and partial. A strong performance would require a federal strategy that integrates job creation, skills, and justice dimensions of green transition. That coordination at the federal level no longer exists.

The United States' commitment to a just transition was the Justice40 Initiative, launched under Executive Order 14008 (2021), which aimed to deliver 40% of the overall benefits from certain federal investments, including those from the IRA, to disadvantaged communities. The Climate and Economic Justice Screening Tool was meant to identify these communities. As of 2023, a list of 518 programs were covered under the Justice40 Initiative. Furthermore, the IRA contained specific incentives for communities from coal, oil or natural gas production areas, as a form of sectoral/regional support. In 2025, President Trump has rescinded numerous Executive Orders issued by the Biden administration, including Executive Order 14008 (Tackling the Climate Crisis at Home and Abroad). The rescission effectively terminates the Justice40 Initiative and the Climate and Economic Justice Screening Tool. Despite this serious rollback, the U.S. Climate Alliance (a coalition of states) promotes just transition and equity frameworks at subnational level, with policies supporting workforce development and inclusivity.

The United States still provides substantial support for MSMEs through the Small Business Administration and targeted programmes under the Inflation Reduction Act, including tax credits, grants and loan guarantees for clean energy, EV infrastructure, and building retrofits. However, since January 2025, the second Trump administration has begun to scale back federal green investment programmes, including moves to return or reallocate billions in clean energy funding and to roll back Biden-era climate and ESG initiatives.

At the regulatory level, the SEC’s climate risk disclosure rule is under review, and federal agencies have been directed to withdraw or suspend many ESG- and climate-related requirements. Despite this federal rollback, state-level programs and private-sector ESG demand continue to provide incentives for greening MSMEs. There is still no separate legal form for social enterprises at the federal level.

Federal leadership for innovative social protection linked to green transition remains weak. Pilot programs exist, but there’s no coherent national strategy involving basic income, community ownership, or broad-based participation. Post-2025, Trump’s administration has rolled back or drained funding from even modest federal initiatives aimed at environmental justice and community resilience. The U.S. lacks a national strategy for integrating social protection with green economy transition. Biden-era pilots linking job access and community participation around environmental challenges (like EPA brownfield programs, Justice40 grants, and the Working Lands Climate Corps) have been dismantled, with Trump disbanding EJ offices, cancelling over 780 environmental justice grants, revoking Justice40, and ending community grant programs. While local actors persist, they do so without cohesive federal support.

• EPA Brownfields & Justice40 Grants (2022–2024)
• USDA Working Lands Climate Corps (Feb 2024)
• Trump-era rollback on environmental justice grants (2025) - EPA under Trump cancelled 780+ environmental justice grants (~$100 million regionally), shut down DEI/EJ offices, and suspended EJ tools like EJScreen

The US is not a Party to the Convention on Biological Diversity (CBD), having signed but never ratified the treaty due to concerns over national sovereignty and economic impacts, though it actively participates in negotiations as a non-party observer. Therefore, it has not developed a National Biodiversity Strategy and Action Plan (NBSAP) aligned with the Kunming-Montreal Global Biodiversity Framework (GBF) targets. However, the previous administration's "America the Beautiful" initiative established a national goal to conserve at least 30% of U.S. lands and waters by 2030 (30x30 goal), which corresponds to GBF Target 3. The 2024 annual report on the matter showed progress in some areas. But the 2025 republican One Big Beautiful Bill includes provisions that mandate increased oil and gas leasing on public lands and offshore areas (including in the Arctic), require rapid increases in logging on public lands, and rescind funding for IRA programmes that support climate and nature-based solutions. Executive Order "Making America Beautiful Again by Improving Our National Parks (2025) focuses mainly on increasing entry fees for foreign tourists and affordability for U.S. residents, rather than announcing new conservation areas or significant new protective measures for land or marine biodiversity.

The 2023 National Strategy to Develop Statistics for Environmental-Economic Decisions is a 15-year roadmap for integrating natural capital into the country's economic statistics. The strategy calls to develop accounts for water, land, marine and other areas, with the first nationwide accounts expected in 2029. Most of the accounts are in pilot stage. An inter-agency working group involving various federal agencies, like the Office of Management and Budget, the Office of Science and Technology Policy and the Department of Commerce, is currently implementing this strategy. This working group serves as a formal advisory body, but it does not possess statutory powers to mandate changes in budgets or planning.

Since the inauguration of the second Trump administration in January 2025 there have been signals and actions that suggest the natural capital accounting effort is being de-prioritized, even though no executive order has explicitly repealed the National Strategy or disbanded the inter-agency group. A clear example is the suspension of funding for programmes initiated by the previous administration's Inflation Reduction Act, which had supported data collection and analysis relevant to natural capital accounts. The focus of the current federal government is leveraging natural resources for immediate economic gain rather than on a long-term accounting of their value.

The US's agriculture policy is now defined by the "One Big Beautiful Bill Act", which was passed in July 2025. This legislation, while providing enhanced support for farmers, fundamentally reorients agricultural policy toward traditional production and risk management, with little regard for a sustainable food systems approach. A primary focus is on expanding and making crop insurance more affordable and accessible, rather than on incentivizing climate-resilient or regenerative farming methods. Furthermore, the administration has taken steps to dismantle programs that were previously a foundation for climate-friendly agriculture. By executive order, it has frozen or redirected funding from key conservation programs, including the Conservation Stewardship Program and the Environmental Quality Incentives Program, which offered financial and technical support for farmers implementing conservation practices like cover crops and reduced tillage. This action has left thousands of farmers with unfulfilled financial commitments and a broken promise of federal support for environmental improvements. On another matter, the National Farm Security Action Plan focuses on protecting the food supply from foreign adversaries, which does not align with a green economy vision.

Overall, while some policies remain in effect, they are not part of an overarching federal strategy with clear targets and implementation.

The previous administration's conservation investments, primarily through the IRA, were allocating substantial funds for conservation practices, climate-smart agriculture, and tribal and community-focused projects. However, the current administration has reversed many of these nature-positive financial instruments and promotes activities that damage nature. For instance, Executive Order "Unleashing American Energy" issued in 2025 rescinds regulations and orders promoting clean energy. The new administration's focus is on "unleashing" domestic energy through increased oil, gas, and coal production on federal lands and waters. This will mean an expansion of fiscal policies that subsidize environmental damage.

The landmark climate and clean energy incentives established by the IRA and the Infrastructure Investment and Jobs Act provided a multi-year green stimulus that drove structural change towards a cleaner economy. However, in 2025, the adoption of the "One Big Beautiful Bill" under the Trump administration made significant repeals and cuts to the IRA's clean energy incentives, drastically altering the landscape for green investment. This Bill has slashed incentives for solar, wind, and electric vehicles, which are projected to cut the number of green energy projects. It has also rescinded billions of dollars in IRA funding for conservation programs like the Environmental Quality Incentives Program and the Agricultural Conservation Easement Program. Some tax credits for zero-emission technologies (nuclear, geothermal, storage) remain, but the overall policy direction has shifted away from green transition. By declaring a "national energy emergency", the new administration has rescinded funding for green energy projects and is working to eliminate climate-focused offices and programs. Instead of green conditionality, the administration has focused on dismantling government efforts to address climate change, while expanding subsidies for fossil fuels and biofuels and pushing for the expedited permitting of oil and gas projects. The country is now operating with a few remaining green stimulus policies that have limited budgets and are operating in a climate of active policy opposition to a wider green recovery focus.