In a new report this week, Wood Mackenzie says that if Donald Trump wins November’s presidential election, the United States could see a slowdown in clean energy deployment, saving up to $1 trillion from investments in low-carbon energy. He said there was a risk of losing dollars.
A Republican victory in the presidential election could slow the momentum of President Joe Biden’s energy transition, as President Trump is expected to roll back some of the Biden administration’s key green energy policies. investment may decline.
If elected, President Trump is not expected to completely repeal President Biden’s Inflation Control Act (IRA) in 2022, but he has made major changes, including a pledge to decarbonize the power grid by 2035. Clean energy policies are likely to be scrapped. He also plans to reduce emissions. According to WoodMac, reduction goals and regulations.
The energy consultancy projects investment in the U.S. energy sector will be $7.7 trillion between now and 2050. But less policy support for clean energy and infrastructure improvements would reduce this base-case investment forecast by about $1 trillion, Wood Mackenzie analysts said.
“This election cycle will have a significant impact on the pace of energy investment over the next five years and through 2050,” said David Brown, director of energy transition research at Wood Mackenzie.
“Achieving long-term decarbonization goals will require short-term investments in low-carbon supplies. U.S. carbon emissions could increase, or in a late-transition scenario, reach net zero.” may not be achieved.”
If Trump wins in November, he could reverse many of President Biden’s energy and climate change policies, including methane regulations, a moratorium on new LNG export licenses, EV mandates, federal oil and gas leases, and even parts. At least they’ll try to dismantle it. Inflation control law.
The IRA is under intense scrutiny over the potential repeal of tax cuts, according to Trump advisers and people who directly discuss energy policy issues.
However, dismantling the IRA would first require a Congress with Republican majorities in both houses. And even then, the incentives could be difficult to scale back or eliminate because they primarily benefit projects and jobs in Republican states, analysts say.
Written by Tsvetana Paraskova, Oilprice.com
Other top articles on Oilprice.com:
