Biden presidency looks to innovation to combat climate change.
Former Vice President Joe Biden’s victory in the U.S. presidential election brings the Green New Deal, a broad-reaching proposal that seeks sweeping solutions to combat global climate change, to the forefront of the American consciousness. Biden’s $2 trillion proposal will target:
Developing a clean energy economy—With an ambitious goal of having net-zero greenhouse gas emissions by 2050 and 100% clean electricity by 2035, Biden’s pragmatic plan offers both new regulations that could reduce the value of fossil fuel companies and incentives that would help companies switch to clean energy. The U.S. certainly is not the first country to set an ambitious clean-energy goal. The European Union did so in late 2019, and China followed earlier this year. Biden’s proposal is perhaps more significant for investors because China’s clean-energy efforts likely will be driven by state-owned enterprises, while efforts in the U.S. will be led by publicly traded companies.
Jobs—In the wake of World War II, public investment in research stimulated American innovation and led to both job and economic growth. Biden’s plan would take a similar approach to enable companies to develop break-through technologies to decarbonize the economy and at the same time create as many as 10 million new jobs. He will lean in the direction of environmental justice, allocating 40% of his clean-energy plan investment toward minority and lower-income communities.
Engaging the rest of the world—After four years of policies that isolated the U.S. by reversing many of the country’s commitments to mitigate climate change, including the Paris Agreement, Biden plans to engage with other nations to ramp up domestic climate targets. Biden announced he will integrate climate change into U.S. foreign policy, national security and the country’s approach to trade.
After four years of climate change skepticism from the Trump administration, Biden’s proposals to combat climate change will help the American economy grow, allow businesses to be more sustainable and offer investors opportunity.