Author: Joseph Dignam
Senior Portfolio Assistant & Investment Committee Support
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Published: October 2025
As world leaders prepare to gather in Brazil for COP30 (the 30th United Nations Conference of the Parties) this November, one of the clearest reminders that climate progress isn’t guaranteed comes from across the Atlantic. The Trump administration’s decision to slash billions of dollars in funding for US mass transit and cycling infrastructure is more than just a domestic transport story, it’s a warning about how political shifts can derail the green transition.
Public transport, cycling and e-bikes may not make headlines like AI or energy transition do, but they represent some of the most immediate and cost-effective tools to cut emissions. US public transport users made more than two billion trips in the second quarter of this year alone, saving vast amounts of carbon compared to car travel. Transport accounts for c.28% of US emissions, which is more than any other sector, making investment in alternatives to private vehicles essential to meeting climate targets.
Yet recent funding cuts tell a different story. In July, $4 billion of federal funding was pulled from California’s high-speed rail project. Thousands of clean transport grants were frozen, while bike lane funding was cancelled because it was viewed as “hostile” to cars. Electric vehicle incentives have been rolled back. These moves could make it significantly harder to achieve meaningful emissions reductions, and they come just weeks before COP30, when nations will be expected to show credible pathways to net zero.
The UK is by no means immune to similar tensions. The decision to scale back HS2, persistent uncertainty over bus route funding, and delays to EV charging infrastructure all risk slowing progress towards the UK’s own net-zero goals. As in the US, these are not merely infrastructure debates, they’re climate decisions in disguise.
Transport infrastructure and policy sit at the intersection of climate risk, political risk and investment opportunity. Sudden reversals can impact companies developing clean mobility solutions, infrastructure providers and green bond issuers, all of which are held in some form in our Ethical strategies. They also affect broader climate trajectories, shaping the pace of transition and therefore the long-term investment landscape.
The lesson is clear: investing in the transition means paying close attention not only to technology and markets, but also to politics and policy stability. As COP30 approaches, the contrast between nations doubling down on climate ambition and those applying the brakes will become increasingly stark.
The ethical investment environment is constantly going through change, and it is important that as Ethical investors, we remain abreast of these shifts, positioning accordingly.
We are always here to help you with any questions or concerns you may have. If you would like to talk to one of our Chartered Financial Planners, please contact us on 01223 233331 or email info@mmwealth.co.uk.
Disclaimer
Opinions constitute our judgment as of this date and are subject to change without warning. The value of investments and the income from them can go down as well as up, and you may not recover the amount of your original investment. Past performance is not a reliable indicator of future performance.
The information in this article is not intended as an offer or solicitation to buy or sell securities or any other investment, nor does it constitute a personal recommendation.
The information contained within this blog is based on our understanding of legislation, whether proposed or in force, and market practice at the time of writing. Levels, bases and reliefs from taxation may be subject to change.
