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Sustainability remains a pressing concern for global industry, driven by growing environmental awareness, production costs, ESG-focused investors, and more. In early 2024, U.S. manufacturers were bracing for a wave of new regulations — from stricter air quality standards to sweeping climate disclosure rules — while capitalizing on green incentives like those under the Inflation Reduction Act (IRA).
But things have changed dramatically since then. With the return of the Trump administration in 2025, the federal government has pivoted away from aggressive climate action and toward deregulation, domestic energy production, and support for traditional manufacturing. While this shift may ease compliance burdens for some, it creates a complex balancing act for manufacturers operating in a global market that still demands sustainability.
To understand where we’re headed, it’s important to recall the regulatory environment just a year ago:
• EPA Air Quality Standards: The Biden-era EPA reduced allowable levels of PM2.5 (fine particulate matter) from 12.0 μg/m³ to 9.0 μg/m³, making U.S. standards some of the most stringent in the world. This raised concern from manufacturers and trade groups who feared it would hinder job creation and new facility development.
• SEC Climate Disclosure Rules: Finalized in March 2024, these rules were set to require public companies to disclose material climate risks. Although they stopped short of mandating Scope 3 emissions, they marked a major step toward transparency in corporate environmental impacts.
• ESG Regulation Momentum: Both U.S. and EU regulators were pushing for standardized ESG disclosures, with growing pressure on companies to collect and report meaningful sustainability data.
• Green Incentives: The IRA offered generous tax credits and grants for renewable energy, energy efficiency, and EV infrastructure. Programs like the Investment Tax Credit (ITC), EV charging station credits, and the Federal Buy Clean Initiative encouraged manufacturers to embrace clean technologies and smart manufacturing.
In short, U.S. manufacturers were being nudged — or pushed — toward greener practices through a mix of mandates and incentives.
Since retaking office, the Trump administration has begun dismantling many of these initiatives, reshaping the regulatory framework for manufacturers. Let’s take a look at what's changed:
In March 2025, the EPA under the Trump administration announced plans to revisit the PM2.5 standard established just a year prior. Industry groups and states like Louisiana had already filed legal challenges, arguing that the stricter rule imposed unreasonable burdens on manufacturers and hindered permitting for new facilities.
The EPA has since asked the D.C. Circuit to pause the case while it reviews the rule. The administration also plans to introduce guidance aimed at increasing flexibility in implementation and reforming the New Source Review process — a clear sign of deregulatory intent. While welcomed by many in industry, this could raise concerns about air quality and public health among environmental advocates.
Another major reversal came from the SEC, which announced in March 2025 it would no longer defend its own climate disclosure rule finalized in 2024. That rule required companies to include detailed climate risk information in investor reports, but it quickly faced legal pushback and was stayed pending litigation.
Now, under Trump’s SEC leadership, the rule appears unlikely to move forward. Still, companies should remain cautious — California has its own disclosure laws (SB 253 and SB 261), and global frameworks like the EU’s CSRD and ISSB standards are still in play. Investor and customer demand for climate transparency hasn’t gone away.
The Trump administration has also pulled back from broader ESG regulation. The House Financial Services Committee has requested the withdrawal of several proposed SEC rules related to ESG disclosures, and Trump-appointed leadership has shown little interest in advancing policies perceived as prioritizing social or environmental goals over business performance.
That said, companies can’t ignore ESG entirely. Issues like labor practices, board diversity, and ethics remain top-of-mind for investors and consumers. Even with reduced federal pressure, strong ESG performance remains a reputational and financial priority for many firms.
In January 2025, President Trump issued an executive order pausing all Inflation Reduction Act funding under the banner of “Terminating the Green New Deal.” This includes tax credits for solar, wind, EV charging stations, and more. While not a full repeal, the order introduced major uncertainty around programs many manufacturers had relied on to fund clean energy investments.
For now, key credits like the Investment Tax Credit (ITC) remain in effect. Final Treasury rules for the Section 48 Energy Credit were released in early 2025, and some Republican lawmakers have expressed support for specific IRA programs. Still, an accelerated phase-out of incentives — or further restrictions — remains a strong possibility under the current administration.
The Trump administration has signaled a continued effort to roll back regulations introduced under the Biden administration—especially those related to emissions, climate disclosure, and ESG requirements. For many manufacturers, this could mean fewer compliance costs and more room in the budget for capital expenditures and partnerships.
Opportunity for sales and BD teams: Companies may redirect those savings into areas like equipment upgrades, technology integration, or facility expansion. Vendors who can position their products or services as efficiency-boosting, cost-saving, or supportive of internal sustainability efforts—even if not federally mandated—could see increased interest.
Even if federal mandates weaken, many manufacturers still feel pressure from customers, investors, and international partners to maintain or expand ESG programs. Corporate buyers, especially in global supply chains, continue to demand transparency and sustainability across all tiers.
Marketing takeaway: Messaging that ties into your client’s reputation, brand image, or ability to win contracts can be powerful. Products or services that help with traceability, carbon reporting, waste reduction, or responsible sourcing will still be highly relevant—especially for suppliers working with OEMs in automotive, electronics, aerospace, and consumer goods.
While the Trump administration is expected to re-evaluate the Inflation Reduction Act and related green investment incentives, state-level initiatives and private sector investment in clean tech are likely to persist. Blue states and multinationals are still moving forward on climate goals, regardless of federal policy.
Sales strategy insight: If you're selling into manufacturing hubs in states like California, New York, or Illinois, keep sustainability-focused messaging front and center. And for national campaigns, consider tailoring your pitch regionally—aligning your value prop with the local policy environment.
A key theme under a Trump administration will be pragmatism over ideology. Manufacturers will continue to pursue sustainability, but often through the lens of cost savings, efficiency, and market competitiveness, rather than compliance alone.
Pitch tip: Frame your offering around measurable results—energy savings, emissions reductions, fewer scrap materials, faster throughput, reduced downtime. Focus on ROI, not regulations. Sustainability sells when it supports the bottom line.
Regardless of how federal regulations evolve, the manufacturing world is not walking away from sustainability—it’s just reframing it. Your role as a supplier, vendor, or service provider is to understand those nuances and align your pitch accordingly.
Use these shifts as a way to spark new conversations with leads and existing clients:
• “How are your ESG goals changing in 2025?”
• “Are you planning any investments now that compliance costs are easing?”
• “Would you benefit from a solution that supports sustainability and cuts costs?”
When you lead with insight, you'll stand out—especially in uncertain times.
Looking to connect with manufacturers navigating these changes? Whether you're in sales, marketing, or business development, IndustrySelect is your gateway to the U.S. manufacturing sector. Discover detailed profiles and key decision-makers across 360,000 U.S. industrial companies. Start your free demo account today and tap into a powerful database built for professionals who do business with manufacturers.
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