Scaling Cleantech: Policy Support for Water & Wildfire Resilience

The cleantech sector is experiencing a period of rapid transformation, driven by advancements in water technology and wildfire mitigation. Yet, these technologies require stronger policy support to scale effectively. At the recent Cleantech Forum, industry leaders highlighted key areas of growth and concern, underscoring the role of policy in shaping the sector’s future. Without clear regulatory frameworks and adequate funding, promising solutions remain underutilized. Policymakers have an opportunity to accelerate the deployment of critical infrastructure by aligning incentives with sustainability goals.

Resource Efficiency and Water Investment

Despite growing urgency, investment in water technologies has not matched the sector’s needs. Water investments in various technologies, like potable water, water harvesting, water supply monitoring, and wastewater treatment, have been declining since 2022 (See Figure 1: Resource Efficiency/Productivity Will Be Back in Vogue). As climate change exacerbates water scarcity, resource efficiency and productivity are becoming increasingly important considerations. Policy incentives, such as increased funding for water infrastructure and streamlined permitting for innovative water projects, could help close this investment gap and enhance resilience.

Policymakers can accelerate the transition toward water-efficient systems by expanding incentives and clarifying or relaxing regulatory requirements. Encouraging public-private partnerships can further support this transition by integrating new solutions into existing systems, enhancing resilience.

Advancing Wildfire-Resilient Energy Infrastructure

Wildfires increasingly threaten energy infrastructure, particularly in the western United States. The average wildfire season in the Western U.S. is now 105 days longer, burns six times as many acres, and experiences three times as many large fires—those exceeding 1,000 acres—compared to the 1970s. Technologies aimed at enhancing power grid resilience and wildfire prevention are gaining traction. However, utility companies face financial and regulatory hurdles in implementing these solutions. In today’s environment, just innovating may not be enough, and wildfire technology startups should also work together with lawmakers and participate in the legislative process.

Policymakers can support resilience technology by streamlining approval processes, offering targeted incentives, and fostering collaboration among utilities, private companies, and federal agencies to improve grid reliability and disaster preparedness.

Additionally, current policies primarily focus on post-disaster response, but a shift toward proactive resilience is necessary. This transition could ensure long-term infrastructure security. By addressing financial and regulatory barriers, policymakers can accelerate the integration of innovative solutions that enhance grid reliability and mitigate climate-related risks.

Policy Recommendations for a Resilient Future

To strengthen energy infrastructure against climate risks and support cleantech innovation, policymakers should:

• Expand tax incentives and funding for innovative water
• Integrate water efficiency standards into federal energy programs and infrastructure funding initiatives.
• Increase federal support for wildfire prevention technologies, including AI-driven fire detection and grid-hardening investments.
• Require utilities to incorporate advanced wildfire mitigation measures into their operational frameworks.

As climate risks intensify, technology alone is not enough—supportive policy frameworks must accelerate adoption and maximize impact. By prioritizing resilience in water management and wildfire mitigation, the United States energy sector can reduce environmental strain while ensuring grid reliability for the future.

Cleantech innovation is progressing rapidly, but policy must keep pace to ensure sustained growth and effectiveness. Strengthening support for water technologies, advancing wildfire-resilient energy infrastructure, and establishing stable regulatory frameworks will be key to unlocking the full potential of cleantech solutions. Through proactive engagement, strategic incentives, and a commitment to long-term sustainability goals, policymakers can drive meaningful progress toward a more resilient and efficient energy future.

Ashley Choi

Master of Environmental Studies Student

Ashley Choi is a second-year graduate student pursuing her Master of Environmental Studies. She is also part of Wharton Impact Ventures Associates (WIVA). She hopes to build a career in sustainable investing.