As the U.S transitions into a new administration emphasizing sustainability, green entrepreneurs will experience change.
With the dawn of a new presidential era in the United States, there is a stark transition in environmental policies. As Joe Biden leads America towards a greener future, here are some of the highlights from Joe Biden’s environmental plan and what they mean for green entrepreneurship.
So far, a little over the month into the presidency most policies haven’t been implemented but some measures have been enacted. These actions have included putting a freeze on oil and gas leases on federal lands and rejoining the Paris climate agreement. Additionally, he has ordered all the government’s fleet of cars to be electric vehicles. These policies are a sneak preview of what’s to come for the future of the government’s sustainable goals. Joe Biden’s policies range from Infrastructure, the auto industry, transit to housing. However, the most important ones are aimed towards sustainability are innovation, infrastructure, the power sector, and the auto industry.
With the goal of placing the U.S as a world leader in clean energy, Biden anticipates investing $400 Billion towards purchasing key clean energy inputs. His commitment includes investing in R&D in clean energy, clean transportation, industrial processes, and materials. Aside from his commitments, investors are becoming increasingly interested in sustainable businesses. Companies such as Orsted, which are dedicated to clean energy solutions, are developing ways to create new hydrogen solutions. Hence, companies like Orsted are poised to grow through their innovation and the increased investments in innovative clean solutions. Furthermore, there is a push to facilitate small business growth as well as ecosystems of innovation. With this additional funding in mind, new green entrepreneurs will have the chance to flourish.
As for Biden’s infrastructure plans, he aims to rebuild with sustainability in mind by investing around $2 trillion dollars. He hopes to rebuild roads, bridges, new green spaces, water systems, electricity grids and universal broadband. According to Jonathan Ponciano, both large and smaller firms could benefit from the investment. Large firms would include, materials and industrial firms that may see an increase in earnings of 3-4 percent. On the other hand, smaller businesses will likely benefit from the increased investments.
The Power Sector
Joe Biden’s plan for the power sector goal by 2035 involves moving towards creating American-made clean electricity. By utilizing American materials, he hopes to electrify transportation, have new battery storage and create transmission infrastructure. So far, solar energy stocks such as, “Invesco Solar has seen its price soar by roughly 150 percent”. Therefore, Biden’s push towards cleaner power has been a catalyst for investment in solar energy. Additionally, agriculture is an important part of the move towards more green energy. According to marketwatch, companies such as Trimble, which help farmers reduce farming waste through the use of satellites, may see growth. Aside from Trimble, Koninklijke, a Dutch company that creates cow food designed to reduce methane emissions can expect further growth too. Industries and startups within the clean energy sector that innovate can benefit from the focus on clean energy.
The Auto Industry
As for Biden’s auto policies, he hopes to dramatically increase the number of electric vehicles and to drive consumers and manufacturers to embrace clean technology. There will be significant incentives to encourage manufacturers to assemble zero-emission vehicles as well as parts and infrastructure to support the process. Such incentives would include a tax credit for middle-class consumers to buy American-made electric vehicles such as Tesla. Moreover, Biden’s $400 billion investment in clean energy can open the doors for new companies specifically focusing on advanced battery technologies.
Author: Zury Garcia Salinas