Last month in San Diego, amid cloudy skies and policy fog, carbon capture leaders gathered to chart a new course for the industry. The California Carbon Capture, Utilization, and Storage Forum brought together developers, legal experts, startups, and investors to talk shop—and politics. With a Trump administration back in power, many were bracing for what this means for the future of carbon management in the U.S.
But what emerged was not panic. It was pragmatism.
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San Diego-based Carbon Blade's blue modular unit—designed for carbon removal — is shown here at the University of California-San Diego’s Clean Energy Center on February 5, 2025. The demo system runs off-grid, powered entirely by the solar panels installed on its roof. Photo credit: Amena H. Saiyid.
While climate tech like wind and electric vehicles has drawn sharp criticism from the Trump camp, carbon capture hasn’t been a target—yet. Many attendees saw that as a strategic opening. The industry’s widespread bipartisan support was a recurring theme throughout the summit.
Ellen Friedman, attorney at Baker Botts, summed it up well: “I don’t think this administration is going to turn back the tax credits that have already been established. People have already made investment decisions based on those tax credits.”
Carbon capture has strong roots in red states like North Dakota and Wyoming. It's viewed as both a climate and economic engine, capable of turning waste into wealth and keeping traditional energy workers employed.
Several organizations are refusing to wait for clarity from Washington. San Diego-based Carbon Blade showcased a modular removal unit that runs independently of the grid. Its system, powered by rooftop solar panels, draws carbon dioxide directly from the air and stores it safely underground.
Then there’s Heirloom, one of the more vocal players in the space. With funding from Breakthrough Energy Ventures, they’re moving forward on a $600 million project in Louisiana alongside Climeworks and Battelle. That deal is protected by a binding federal contract—a much-needed point of stability.
Vikrum Aiyer, Heirloom’s head of climate policy, acknowledged the risk: “It is certainly not surprising that this administration would review spending from a prior administration... but the freeze does not take or end that contract from underneath our feet.”
Vikram Aiyer, head of global policy at carbon removal company Heirloom, shares his concerns over the Trump administration’s freeze on federal carbon management funding during a deployment panel at the Future of CCUS Summit in San Diego on February 7, 2025. Photo credit: CA CCUS Forum.
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At the heart of the summit was a call to arms: the industry needs to redefine its identity. The phrase "climate technology" no longer cuts it in today’s political climate. Instead, companies like Carbon Capture Machine are presenting themselves as innovators in industrial efficiency.
Lance Scott, CEO of Carbon Capture Machine, said it best: “We’ve got to rebrand this industry away from the perception of a costly environmental solution toward the reality that we’re a more cost-effective, job-creating, economic engine for American leadership and national security.”
This shift matters. Public support for environmental solutions can fluctuate, but job creation and energy independence resonate across party lines.
The investment surge speaks to the sector’s momentum. According to the Clean Investment Monitor, carbon management attracted $1.76 billion in funding in 2024—more than double the year before. Currently, 19 commercial-scale facilities are operational in the U.S., with 276 more on the way.
Below is a visual snapshot from the Clean Investment Monitor, highlighting where carbon management, hydrogen production, and energy storage projects are being deployed across the U.S.:
These include a range of technologies: direct air capture, point-source capture at industrial sites, and carbon-to-product pathways like sustainable aviation fuels and mineralization.
The U.S. remains the global leader in carbon management. The only risk? Losing that lead if permitting, policy, and funding hit too many roadblocks.
Trump’s executive order to accelerate permitting was welcomed by many at the summit. It could unlock new carbon storage sites faster. However, some questioned whether slashed federal budgets would delay implementation.
A potential workaround is already gaining traction. Under the Trump EPA, West Virginia became the first state to gain full permitting authority over carbon storage. North Dakota and others are pushing for the same.
Handing permitting to the states could be a win-win: less red tape, more projects, and localized decision-making.
Despite the headwinds, optimism remains high. Developers want the public to see carbon management not as an "offset" or an indulgence for polluters, but as a path to progress. This includes capturing emissions for making low-carbon concrete, net-zero fuels, and even consumer products.
Companies like Occidental Petroleum are doubling down on carbon utilization, turning captured CO2 into enhanced oil recovery or cleaner fuels. CEO Vicki Hollub has called this "key to our future business model."
At the same time, Republican lawmakers like Senator John Barrasso continue to advocate for expanded tax incentives. His proposed bill would reward both sequestration and reuse of carbon dioxide in products and fuel.
To maintain momentum, the sector must lean into what it already does well: build, scale, innovate. Whether it's startups like Heirloom or giants like Occidental, these companies are showing that decarbonization and economic growth are not mutually exclusive.
Policy clarity will come. Funding freezes may thaw. But in the meantime, carbon management is pushing forward.
Its message is simple: this is about jobs, innovation, and American leadership. Not just climate.
Follow the money flow of climate, technology, and energy investments to uncover new opportunities and jobs.
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Follow the money flow of climate, technology, and energy investments to uncover new opportunities and jobs.