U.S. Return To Paris Climate Agreement Is Good For The Development Of New Energy Industry

U.S. Return To Paris Climate Agreement Is Good For The Development Of New Energy Industry

Jan 21, 2021

US President Biden signed an executive order in the Oval Office of the White House on the afternoon of January 20, 2021, announcing that the United States will rejoin the Paris Agreement. Before signing the document, Biden stated that the United States will respond to climate change in a way that has not been adopted so far.

What is the "Paris Agreement"?

The "Paris Agreement" was reached at the Paris Climate Change Conference in December 2015. The "Paris Agreement" pointed out that all parties will strengthen global responses to the threat of climate change and control the global average temperature above the pre-industrial level at 2°C. And strive to control the temperature rise within 1.5℃.

According to the agreement, all parties will participate in the global response to climate change in the form of "independent contributions." Developed countries will continue to take the lead in reducing emissions and strengthen funding, technology, and capacity-building support for developing countries to help the latter mitigate and adapt to climate change.

Rebuilding trust with the world

The United States is the world's second-largest emitter of greenhouse gases after China and is seen as the key to reducing the impact of climate change globally.

After rejoining, the climate targets that the United States is expected to provide are updated by the Obama administration’s goals and specific plans to reduce domestic emissions from the electricity and energy sectors.

More broadly, the United States will have to rebuild trust in the agreement with other countries, especially after Trump’s legacy of climate change and his formal withdrawal from the agreement.

Globally, the United States still has a lot of work to do if it wants to catch up with other countries that have launched bold climate initiatives. China is the world's largest carbon emitter and has pledged to achieve carbon neutrality by 2060, while the European Union has pledged to achieve carbon neutrality by 2050. Biden has said that the United States will recommit to achieve its emission reduction targets under the agreement and work hard to make other countries improve their climate targets. At the same time, it said that it will invest US$2 trillion in renewable energy and infrastructure during the four years of the presidency so that the United States will achieve a 100% clean energy economy and achieve net-zero carbon emissions by 2050.

New energy industry usher in new development opportunities

In Biden's campaign platform, there is a complete set of new energy reform plans from short to medium and long term.

Short Term

1. On the first day after taking office, announce to rejoin the "Paris Agreement";

2. There are plans to use the federal government's procurement system ($500 billion per year) to achieve 100% clean energy and zero vehicle emissions;

3. Develop more stringent new fuel emission standards to ensure that 100% of newly sold light/medium vehicles are electrified.

Medium and Long Term

1. In the next ten years, invest US$400 billion in energy and climate research and innovation, as well as clean energy infrastructure (wind power + photovoltaic), and set up an inter-agency high-level research institution focused on climate;

2. Speed up the promotion of electric vehicles, deploy more than 500,000 public charging outlets by the end of 2030, and restore full electric vehicle tax credits;

3. Develop a targeted plan with the goal of doubling offshore wind energy by 2030.

According to the latest data from the U.S. Energy Information Administration (EIA), it is expected that U.S. utility photovoltaic projects that will be integrated into the grid in 2021 will hit a record high, of which Texas will account for more than a quarter of new installed capacity.

Developers and power station owners predict that new utility photovoltaic projects connected to the grid in 2021 will reach 15.4GW, exceeding the figure in 2020 (nearly 12GW), which will increase the proportion of solar energy in new capacity to a high of 39%.

More than half of the new utility photovoltaic projects are planned to be built in four states: Texas (28%), Nevada (9%), California (9%), and North Carolina (7%).

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