This chapter is part of a report written in collaboration between the Center for American Progress and the Foundation for European Progressive Studies (FEPS).
As the United States pivots away from climate leadership under a second Trump administration, the transatlantic alliance finds itself at a critical juncture. The stakes are high: Decisions made now will shape the future of climate action, industrial policy, and democratic resilience on both sides of the Atlantic. This chapter examines the implications of the Trump administration’s sharp turn from the Biden-era climate agenda and explores how U.S. states, European institutions, and progressive actors can sustain momentum for a just and green transition. It argues that even amid U.S. retrenchment at the federal level, there remains broad public support in the United States for ambitious climate action and ample space for transatlantic cooperation—rooted in innovation, worker protection, and a shared vision of economic renewal.
Strategic context
Upon assuming office for his second term, U.S. President Donald Trump set out to dismantle the Biden administration’s ambitious legacy on climate, energy, and industrial policy. Under Trump’s leadership, the United States is ushering in a fossil fuels resurgence––an approach outlined by U.S. Energy Secretary Chris Wright in March 2025 at CERAWeek, the world’s premier annual oil and gas industry gathering. This policy shift is expected to result in significant cuts to public investments in green energy, green technologies, and environmental standards, aiming instead at increasing shortsighted U.S. energy dominance and cutting back critical regulation.
This shift is misguided. Despite the Trump administration’s pivot away from climate-focused policies, the old ways are dying. There is broad public support for climate action in the United States and Europe, and progressive U.S. states remain committed to the realization of a transatlantic Green New Deal. By maintaining their focus on sustainable energy, technological innovation, environmental protection, and democratic resilience, states can continue to lead the global effort to combat climate change, even in the face of the federal government’s retreat from these priorities.
Policy continuity and change: Broad public backing
A representative survey conducted in January 2025 by Das Progressive Zentrum, in collaboration with the Progressive Policy Institute and Georgetown University’s Center for German and European Studies, shows that there is little appetite for a fossil fuel resurgence. For the majority of U.S. citizens—including 42 percent of Trump voters—economic growth and climate protection are not viewed as mutually exclusive goals. In the United States, around half of respondents believe now is the time for “massive investments” in the green transition and that the government is not doing enough to combat climate change. Moreover, a majority—56 percent—agree that the benefits of ambitious climate policies outweigh the risks. They see that investments can lead to green job creation, economic growth, and more exports. A similar picture emerges in Europe. In Germany, for instance, public backing for green investment remains robust despite growing economic pessimism. Nearly half of respondents—47 percent—agree that now is the time for “massive investments” in the green transformation of the economy, while 48 percent believe ambitious climate policies offer more economic opportunities, such as job creation and export growth, than risks. In short, Trump’s reelection and continued economic uncertainty in the United States have not triggered a backlash against the country’s green transition. However, Trump’s policies will certainly have consequences that will, in the immediate term, significantly influence the investment climate for green technologies—both domestically and in Europe, as well as in other parts of the world. Moreover, polling suggests that skepticism toward ambitious climate policies is more prevalent in rural areas—whether in the United States or in Europe—and that, while climate change remains a concern, issues such as the health of the economy and the cost of living take precedence in people’s daily lives.
Diverging interests and approaches between the European Union and the United States
Climate action in Europe
With the United States’ retreat from global climate leadership, Europe faces both an opportunity and an obligation to redefine its role. The political landscape in Brussels has shifted significantly since 2019, when Ursula von der Leyen first assumed the presidency of the European Commission. Her first term was defined by the moral imperative of climate action—an “existential issue,” as von der Leyen herself put it—and by Europe’s commitment to environmental, social, and technological progress. Today, her second term is being shaped by a different set of priorities: the need to enhance European competitiveness—as outlined in former European Central Bank President Mario Draghi’s landmark report—and to address the existential crisis posed by Russian aggression against Ukraine amid the simultaneous loss of a viable American security guarantee for the continent. The Draghi report recasts Europe’s competitiveness crisis as yet another existential test: this time, of Europe’s ability to lead in green technologies. Climate action is not just compatible with industrial strategy; it is foundational to it. By treating decarbonization as the driver of investment, innovation, and energy sovereignty, the report implicitly challenges the false choice between growth and sustainability, which has stalled climate action across all levels of government and left it vulnerable to attacks from the fossil fuel industry and the far right.
The evolution under von der Leyen’s second term in office has transformed the European Green Deal into the Green Deal Industrial Plan—a strategic pivot that treats decarbonization not just as an environmental imperative, but as the foundation for Europe’s economic sovereignty and security. The challenge now is to reconcile these dual objectives: maintaining climate ambition while ensuring that the transition strengthens, rather than weakens, Europe’s industrial base and geopolitical resilience. Teresa Ribera, executive vice president of the European Commission for a Clean, Just and Competitive Transition, offers a template for von der Leyen’s “Clean Industrial Deal” with a focus on competitiveness and fairness. As Brussels navigates trade tensions with the United States and China, Ribera’s pragmatic idealism—rooted in Spain’s renewables boom—can help reconcile climate leadership with economic realism and social equity. Ribera is a vocal proponent of just transition policies, insisting that Europe’s green deal must strengthen circularity—by designing waste out of the system and keeping materials in use for as long as possible—and protect workers and regions reliant on fossil fuels—a counterweight to populist backlash.
Transatlantic climate action driven in cooperation with U.S. states
Cheap oil and gas may offer a limited renaissance of the fossil fuel age, but what can European progressives build to ensure an abundant and secure climate future that benefits people and workers on both sides of the Atlantic? This question is fundamentally about innovation and democratic resilience in the face of a growing green backlash. While Europe’s political ambition may be tempered by security concerns, it remains committed to being a global leader in climate protection. A pragmatic blueprint for action and cooperation on both sides of the Atlantic between individual U.S. states and Europe can emerge along the following four priorities:
- Strategic technological alignment. U.S. states and European governments must identify and prioritize key green technologies—including offshore wind, thermal power energy, green hydrogen, grid modernization, and battery storage—where transatlantic cooperation can accelerate breakthroughs.
- Mobilization of public capital. Pension funds, sovereign wealth funds, and public investment banks should redirect capital toward climate-critical sectors. This can leverage combined financial firepower and crowd in private investment to help derisk the energy transition.
- Policy cross-pollination. From Germany’s Energiewende to California’s renewable energy mandates, proven models for building local support—such as worker retraining programs, community energy ownership, and just transition funds—must be shared and adapted to counter opposition and lock in durable progress.
- Trust in citizens. Communities must offer real “buy-in” for local stakeholders—including farmers, citizens, trade unions, and community leaders—and give them the opportunity to engage in policy-led discussions about the pros and cons of climate policies and how they affect their neighborhoods. This democratic decision-making process may be incremental and slow, but it can work to avoid a “greenlash.”
Should state-level climate leaders in the United States successfully leverage international partnerships to secure investments in green technologies, protect workers, and address the “geography of discontent,” they could achieve two vital objectives: safeguarding climate and their economic interests vis-à-vis states that are less politically favorable to climate action and exposing federal dysfunction from the shortcomings of anti-climate governance.
Advancing shared agendas
The European Union and its member states, along with forward-thinking U.S. states, have already demonstrated their ability to implement robust climate policies and invest in renewable energy infrastructure. By leveraging their collective economic and political influence, they can ensure that the principles of the Green New Deal remain a central part of the global agenda, fostering international cooperation and setting an example for other nations to follow. This approach not only addresses the urgent need for climate action but also underscores the importance of transatlantic unity in tackling one of the most pressing challenges of our time. Transatlantic efforts to transform climate policy must not become a flashpoint in history but an engine of shared prosperity. By anchoring the transition in jobs, innovation, and democratic buy-in, this alliance can render the “drill, baby, drill” mentality obsolete.