"Europe needs to step up": Impact sector fights back after Trump-Zelenskyy meeting

What was meant to be a productive diplomatic meeting took an unexpected turn at the White House last Friday.

Ukraine's President Zelensky arrived hoping to secure a minerals deal but left without an agreement after tensions arose with President Trump and Vice President Vance over Ukraine's approach to peace negotiations with Russia. Zelensky was asked to leave the White House and a scheduled press conference between the two leaders was cancelled.

For Europe's impact scene, this diplomatic setback raises questions about Western unity on Ukraine and what it might mean for their business landscape going forward. We asked impact investors, businesses and incubators how they are reading the room.

Narina Mnatsakanian, Regeneration VC: "Europe needs to step up"

What did you make of the interactions between President Trump and Ukrainian President Zelensky on Friday?

"I watched the exchange, and honestly, it was unsettling. You don’t expect to see a foreign leader in a confrontational situation with the US President and Vice-President—it was difficult to watch. The situation is complex for both sides, but one thing is clear: Europe needs to step up because, right now, no one has its back."

How might this affect the impact space?

"The growing rift between the US. and Europe (Ukraine) is concerning, especially given the recent shifts in policy. However, this could also be a wake-up call for Europe. If the region steps up, takes ownership of its security, increases its competitiveness while maintaining its sustainability agenda, it could emerge more resilient.

On that front, last week’s announcement on simplifying sustainability regulations in Europe is something to watch. While streamlining rules for smaller companies makes sense, Europe must strike the right balance to maintain its leadership in sustainability. If policymakers act decisively, Europe still has the opportunity to set the global standard.

It’s a highly dynamic environment, and the pace of change is accelerating. Our focus now is on staying ahead of these shifts and helping our portfolios navigate the uncertainty."

Sarita Runeberg, Maria 01: "Nature is really important to us, so we need to hold on to this"

What did you make of the interactions between President Trump and Ukrainian President Zelensky on Friday?

"I think seeing what went on there [at the news conference] was very surreal, in the sense that we here in Finland have a very different perspective on the world.

From a sustainability perspective, I feel it is very worrying. I am afraid that the crazier the world gets when it comes to the reactions to the war in Europe, the less focus there will be on sustainability. It was very interesting to see the European leaders coming together though, and that Europe has woken up to the understanding that we need to rely on ourselves, we perhaps can’t rely on the US."

How could the recent events in the US affect impact startups?

"I think the business community has a big role to play in what happens next. Within the impact scene and the Nordics especially we have this perspective that nature is really important to us, so we need to hold on to this and make sure that we keep highlighting that we are developing technologies that can make a difference, so these will be supported by investors. We have a growing defence tech sector in the Nordics which is important, but we can’t forget sustainability as well."

Stefan Jansson, Polarium: "It will undoubtedly affect all impact companies and the entire green transition"

What are your thoughts after the meeting at the White House last Friday?

“I saw the meeting and yes, what can I say? It feels a bit surreal. It feels more embarrassing than anything else. But it's not entirely unexpected when you look at Trump's other statements. Overall, apart from the meeting, there is reason to be concerned about world trade. It will probably be worse than we can imagine. It will have an impact, and one can hope that other parts of the world can compensate for it. We thought climate deniers were on their way out, but Trump changes that picture."

How might impact issues be affected going forward?

"It will undoubtedly affect all impact companies and the entire green transition, which is already a slow process. Right now, it's only the US that is slowing things down, while both China and Europe are pushing forward… Even though the U.S. hasn't been at the forefront for a long time, they now have an even more distorted view of reality. It gets even worse with an outspoken climate denier in power. One can hope that these four years pass quickly and that a new leader emerges. Hopefully, it won't spill over too much to the rest of the world. Europeans, with Sweden at the forefront, are often late to react – bureaucracy and inertia put obstacles in the way. China and the US often have a more reactive strategy. But if you look at our model, it's still moving steadily in the right direction. I believe in the EU, but it will need a strong leader. France and Germany should shoulder that role more clearly. Europe would benefit from someone who takes the baton and drives development forward."

Kerstin Cooley, Course Corrected: "We need to stand much stronger together"

What are your thoughts following Friday's White House meeting?

"I'm devastated; it's almost incomprehensible. What's happening now in the US – not just Friday's interview, but the series of events over the past month – represents a frightening dismantling of democracy. It's deeply disturbing that the US is turning away from agreements and collaborations that have been in place for such a long time and have been a crucial part of security policy. I personally hold a green card and follow many Americans on social media, and compared to Sweden and Europe, the US is incredibly polarised right now."

How might this affect impact-focused companies?

"I haven't even reflected on that yet. What we're witnessing is an extremely uncomfortable security situation worldwide, where the US is moving away from the very open and democratic society it has maintained, and NATO countries can no longer rely on US support. It's an incredibly tense and worrying situation for the entire world, and unfortunately, Europe isn't the strongest power here.

In such a transformative macro environment, the impact question naturally moves down the agenda, but I don't think it will change as much at the micro level. For our part, we [Course Corrected] invest in technology that can make industries better, cheaper and more efficient, which the world will absolutely continue to need. But right now, it's more about macro issues."

What discussions are you having with your portfolio companies and investment colleagues at the moment?

"Many people believe in building a strong Europe. We need to stand much stronger together than we have previously. Europe can and needs to build strong companies independently and have its own technology here. This is becoming increasingly important. At the same time, we cannot ignore the US dominance in economics, research and the entertainment industry that influences the entire world. Just look at all the cloud services used in the digital economy – they come almost exclusively from American companies."