Environment –
In September 2017, David Simon, the creator of "The Wire," shared a striking image on Twitter. It showed golfers in Oregon focusing on their game, seemingly oblivious to the fierce wildfires blazing nearby. “In the pantheon of visual metaphors for America today, this is the money shot,” he said.1 The entire scenario – the backdrop, the timing, and human ambivalence toward the natural world – feels almost too bizarre to be real. Yet, it is.
Wildfires are not limited to “the wild,” and the effects of climate change are not relegated to faraway places. Environmental degradation and the effects of climate change are felt everywhere, including Americans’ backyards, and continue to pose major challenges to global stability and economic security. As a result, the United States is at a crossroads in its strategic response to climate change – and to environmental degradation more generally.
This report explores the crosscutting effects of environmental degradation and climate change on U.S. security and its capacity to respond industrially. It emphasizes the urgent need for the nation to mobilize political will to address but leverage the changes and opportunities brought about by the shifting environmental context.
The report reflects the in-depth analysis conducted by the Eisenhower School’s Academic Year 2024 Environment and Climate Industry Study and addresses such key questions as “Why should we consider Environment as an industry?” “How do U.S. environmental firms compare with environmental firms from other countries?” “How does the United States compare to other countries regarding environmental and sustainability performance?”
Key takeaways include the following:
• The Environmental Industry is defined as “all revenue generation associated with environmental protection, assessment, compliance with environmental regulations, pollution control, waste management, remediation of contaminated property, and the provision and delivery of environmental resources.” Depending on the source, it is organized into between seven and 13 major market segments, including everything from Environmental Management Services to Wastewater Treatment and Clean Energy to Resource Recovery. It accounts for $400 billion annually in the U.S. from 1.7 million jobs across 30,000 private sector companies and 80,000 public sector entities.
• Climate change and environmental degradation more generally act as “threat multipliers,” exacerbating national security vulnerabilities through globally destabilizing trends like sea level rise, desertification, famine, water availability, increasing natural disasters, and resulting migration. It impacts the operations and missions of defense, diplomacy, and development agencies critical to U.S. national security.
• The interconnections between environmental sustainability and economic vitality are becoming increasingly apparent, necessitating a strategic pivot towards sustainability in core U.S. business practices.
• There is a strong business case to be made for sustainability. By harnessing its innovative capacities, the U.S. can develop new markets and create jobs in green technologies, renewable energy, and sustainable practices.
• Historically, American industrial and economic strategies have emphasized robust growth and innovation, often at the expense of environmental considerations. America’s innovation and entrepreneurial spirit are now pivotal in steering the national agenda toward sustainability that enhances rather than inhibits economic competitiveness.
• Available performance indicators tend to show U.S. environmental firms at or near the top vis-à-vis their corporate competitors, while as a country, U.S. environmental performance tends to be notably less competitive vis-à-vis other advanced countries.
• The U.S. has both a responsibility for and a strategic interest in leading international efforts to combat climate change and environmental degradation while ensuring that developing nations are not left behind. This includes strengthening alliances, participating in global climate accords, and supporting developing countries in transitioning to green technologies.