Briefing: Biden’s climate policy: global follower or leader?

President Biden vows an ambitious climate policy, leading the US transition to 100 percent clean electricity by 2035, and demanding – in his first year – that Congress legislate for reaching zero emissions by 2050.   These efforts, however, might be constrained by differences within the Democratic camp and mid-term elections in critical, fossil fuel-dependent […]

President Biden vows an ambitious climate policy, leading the US transition to 100 percent clean electricity by 2035, and demanding – in his first year – that Congress legislate for reaching zero emissions by 2050.

 

These efforts, however, might be constrained by differences within the Democratic camp and mid-term elections in critical, fossil fuel-dependent states like Pennsylvania.

 

Yet, even under a cautious scenario, Biden will bring about significant change: on Environmental, Social and Corporate Governance (ESG) reporting standards; re-instating Federal regulations and increasing Federal funding; and – to a lesser extent – on carbon taxation. Under this middle-of-the road scenario, the US and Europe will see a greater level of convergence even if in parallel ‘climate competition’ between great economic powers will intensify. Investment in green technologies will gather pace in the US.

 

Download our full briefing on Biden’s climate plans, what they mean for Europe and for business here.

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