Biden Climate Plan Would Supercharge EVs And Renewable Power

At the moment, the average national polls are forecasting that former Vice President Joseph Biden will win the presidency. And while there is still some skepticism after President Trump defied electoral polls and won in 2016, we have to consider the following question: what would the Biden Plan for Climate Change and Environmental Justice mean for clean tech investors?  

Let’s start by establishing that the Biden Plan for Climate Change and Environmental Justice is one of the most ambitious plans ever introduced by a presidential candidate that would deliver $1.7 trillion of federal investment over 10 years, with leverage yields of more than $5 trillion. In addition, $400 billion would be spent over ten years on research & development and innovation, powering the United States forward in global competition on clean technology.

Biden’s Climate Plan

On a domestic U.S. level, Biden’s plan lays out net zero emissions by 2050 and real enforcement targets by 2025. In the second and final presidential debate, Biden said that American industries must transition from the oil industry to renewable energy sources in order to achieve this goal. When President Trump questioned him, Biden stood firm, stating “I would transition from the oil industry, yes,” adding that “the oil industry pollutes, significantly” and “has to be replaced by renewable energy, over time.” 

In addition to providing government investment for research and development (R&D) and clean infrastructure, the Federal government procurement system will be a purchaser of clean energy and zero-emission vehicles. It would fuel the widespread adoption of renewable energy and electric vehicles and would help to foster growth in America’s clean tech and manufacturing sectors. Biden says he will work with U.S. governors and mayors to support the deployment of more than 500,000 new public charging outlets by the end of 2030, while financially incentivizing the deployment of electric vehicles and clean technology throughout the economy. Consumers would also get subsidies for trading in their gas-powered auto for an EV, prompting a switch from old to new vehicles.

On an international level, there would be a welcome return to a focus on international partnerships and exports. Biden has promised to rejoin the Paris Agreement in the event that he wins the presidency, which would re-establish the United States’ role as a global leader in tackling climate change and supporting clean technology. His foreign policy approach would place pressure on America’s allies to similarly invest in clean tech and low carbon initiatives. 

The technologies that could benefit from Biden’s Climate Plan include pipeline innovations that would likely require the financial and political backing of the government to reach commercial viability, as well as grid-scale storage, small modular reactors, net-zero buildings, carbon-free hydrogen, carbon neutral construction and carbon capture technologies.

While that may seem like a moonshot, it was not that long ago that renewable energy required government subsidies to be competitive, and now these projects are independently profitable as widespread adoption has brought down costs. significantly. The cost of solar photovoltaics has fallen by 82% over the last 10 years, according to findings from the International Renewable Energy Agency (IRENA). And based on 17,000 renewable power projects and 10,000 power deals from 2019, renewable energy projects are now cheaper than coal-fired power plants.  

The growing demand for environmental, social and governance investments is fueling private investment into clean tech as well. The widespread adoption and acceptance of clean tech has accelerated in the past four years, and so with the addition of government support, there will likely be some pent-up demand post-pandemic in the event of a Biden victory.

None of this is promising for the fossil fuel sector. Biden decarbonization plan would aim to phase out natural gas within 15 years. A Biden win would bifurcate energy stocks – those that stick to oil and gas will continue to be under pressure. However, for those energy stocks, such as Exxon and Shell, who plan to aggressively move into renewable energy and low carbon technologies, the outlook is actually quite positive with significant growth potential.

This article originally appeared on Forbes.

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