How one climate tech company is hanging on in the Trump era

illuminem summarises for you the essential news of the day. Read the full piece on POLITICO or enjoy below:

🗞️ Driving the news: Despite Republican efforts to dismantle federal climate incentives, carbon removal firm Heirloom Carbon has managed to preserve funding and political support for its direct air capture (DAC) projects
• Notably absent from the Trump-aligned “kill list” of climate initiatives, Heirloom’s commercial-scale plants in California and Louisiana have survived funding cuts — thanks to a bipartisan strategy that appeals to both industrial revitalisation and climate action

🔭 The context: The Inflation Reduction Act’s tax credits for carbon capture remain largely intact, even as Republican lawmakers aim to strip similar incentives for renewables
• Heirloom, one of the few startups to receive funding before the 2024 election, distinguishes its technology as “carbon removal” (drawing CO₂ from the air), rather than traditional “carbon capture” (capturing emissions at the source)
• This distinction, along with its promise of local jobs and industrial investment, has earned it rare bipartisan backing

🌍 Why it matters for the planet: Heirloom’s survival is significant amid broader uncertainty in U.S. climate finance. As the cost of DAC remains high — around $600 per ton — the sector is at risk of stagnation without consistent policy support
• Yet carbon removal is considered essential for achieving net-zero goals, with models suggesting a need to remove 6–10 billion tonnes of CO₂ annually by 2050
• The company's success highlights the growing importance of technological neutrality and political strategy in sustaining climate innovation.

⏭️ What's next: Heirloom is seeking to scale operations by leveraging both public and private funding streams, including California’s proposed $50 million carbon removal credit program and potential revisions to the state's pipeline moratorium
• The Senate will play a critical role in determining the final contours of climate incentives

💬 One quote: “We have to earn your trust. I get that,” — Vikrum Aiyer, Heirloom’s head of global public policy, acknowledging skepticism from environmental justice advocates

📈 One stat: Heirloom’s current technology costs $600 per ton of CO₂ removed; it aims to lower this to $100 per ton to serve compliance markets like California’s cap-and-trade program and the EU ETS

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