The upcoming U.S. election could significantly impact clean energy funding, putting as much as $1 trillion at risk. This week's Current Climate highlights the latest sustainability news, focusing on how political shifts might influence the future of green investments.
Signature legislation from the Biden Administration, such as the Bipartisan Infrastructure Law and the Inflation Reduction Act, has spurred massive investments in clean energy. These efforts aim to reduce carbon emissions across various sectors by scaling up renewable energy projects, fostering a domestic battery manufacturing industry, and promoting advanced clean energy technologies like geothermal and next-generation nuclear.
A victory by former President Donald Trump in the November election could drastically change this trajectory. According to energy researcher Wood Mackenzie, up to $1 trillion in clean energy investments could be jeopardized if Trump, a known climate skeptic, prioritizes expanding fossil fuel production. David Brown, director of Wood Mackenzie’s energy transition research, emphasizes that this election will significantly affect energy investments for decades.
The U.S. recorded unprecedented growth in clean power generation and electric vehicle (EV) sales in 2023. However, Biden’s plan to increase tariffs on Chinese EVs, batteries, and related materials might raise costs for U.S. consumers, potentially slowing the shift to zero-emission vehicles.
The outcome of the upcoming election will be crucial in determining the pace and scale of future clean energy investments. While current policies have set ambitious decarbonization targets, political changes could either accelerate or hinder progress towards a carbon-neutral economy.
Source: forbes.com