President-elect Donald Trump will take office again in January, and the United States is expected to face a shift in its climate and environmental policy landscape. His second presidency leaves people wondering whether his support of fossil fuels will slow the trajectory of federal climate initiatives and enable green building practices to continue at the same level.
Unlike previous leaderships that leaned heavily on federal mandates, the return of a Trump-led administration appears more committed to promoting economic growth by reducing regulatory burdens. This shift will undoubtedly impact what sustainability looks like for the construction industry in the coming years and what green building will be in 2025.
The Administration’s Perspective on Green Building
The Trump administration has had a history of prioritizing market-driven solutions — a businessman philosophy predicted to continue in 2025. Trump’s first term rolled back over 100 environmental protection rules that governed air, water and wildlife protection. His second term is looking familiar. As outlined in Agenda 47, the administration focuses on advancing fossil fuel policies to lower energy costs in the United States.
Early communications from the president-elect suggest scaling back federal regulations that businesses consider restrictive, including energy efficiency standards and environmental codes tied to construction. The goal is to empower businesses’ growth without what Trump sees as unnecessary government outreach.
While critics worry the reversal could hinder decades of progress on climate-related goals, proponents argue that freeing the market from regulatory shackles will bring solutions that better suit the diverse needs of businesses.
Policies and Potential Changes
One of the most impactful shifts concerning construction in the new administration could involve a more liberated and speedy permitting process. Supporters highlight that the National Environmental Policy Act (NEPA) environment review process has slowed down significant infrastructure and development and expanded the monetary costs for completing the necessary documentation, even for projects deemed to be categorically excluded — projects without substantial environmental effects. The administration has also hinted at reevaluating emission-reduction mandates that many developers criticize for driving up costs.
Red tape for large construction projects will also be reduced to streamline the permitting process further. These changes could accelerate development timelines but lead to reduced environmental oversight. Additionally, Trump’s campaign has indicated support for public-private partnerships, allowing support from the private sector to drive public infrastructure development.
Unfortunately, with fossil fuels being the administration’s primary focus, tax credits and subsidies on green buildings may face cuts to redirect funds to broader projects like roads and bridges.
The president-elect has labeled these subsidies as a “Green New Scam,” negatively affecting international companies keen on environmental investments in the U.S. Since Trump is also highly critical of electric vehicles (EVs), policies will likely shift away from green features.
Impacts on the Construction Industry
The construction sector could welcome both challenges and opportunities. On the one hand, relaxed regulations will significantly lower compliance costs and provide more freedom in project design and execution. On the other, the absence of federal incentives for green building could place tremendous pressure on companies to justify sustainable practices to clients and investors.
Despite the government retreating from pro-environment efforts, many firms are likely to continue prioritizing green construction — besides being good for the planet, it remains increasingly good for business. Net-zero buildings remain ideal for developers and consumers as they significantly decrease operating costs.
Construction can also encourage sustainability in other ways. For instance, electric forklifts are eco-friendly alternatives to traditional gas-powered machines. Beyond producing less noise and reducing emissions, they enhance productivity and efficiency by offering greater maneuvering power and faster acceleration than conventional models. Similarly, hybrid hydraulics excavators minimize fuel consumption by at least 36.69% by combining oil and electric power. Battery-operated concrete mixers are also emerging tools, reducing harmful emissions without sacrificing performance.
At the sub-national level, over 4,000 mayors, governors and other community leaders signed the We Are Still In declaration after Trump announced his withdrawal from the Paris Agreement in 2017. Presently, many states continue to enact their climate commitments of net-zero emissions. For developers, green credentials significantly differentiate the less environmentally conscious and their competitors.
Efforts Toward Green Building in 2025 Continue
While Trump’s second term marks another shift away from federal sustainability efforts, it doesn’t necessarily spell the end for green building in the construction industry. Instead, the U.S. may pivot toward market-driven endeavors where the private sector leads the balance between profitability and environmental responsibility. Sustainability remains a necessity — whether driven by policy, profit or principle — and the pursuit of greener practices remains critical to ensure the future of the planet.
