Global impact of biden’s green deal

Global impact of biden’s green deal

Accepting the Democratic Party’s nomination as presidential candidate for the 2020 elections, vice-president Joe Biden described climate change among the four historic crises, an existential threat, to overcome which America could lead the world and, in the process, ‘create millions of good paying jobs’. Biden had earlier unveiled his climate and environment plan that includes a proposal for federal spending of nearly $2 trillion over four years, and leveraging additional private sector and State and local investments to total to more than $5 trillion.

Should Biden win the presidency in November, it will mean the US would rejoin the Paris Agreement, step up to contribute to the Green Climate Fund, and lead climate and clean energy initiatives. Much has changed since 2017. Clean energy is now a viable option, a jobs generator, and there is growing awareness of climate change and its impact. Biden’s promise of ‘historic investment’ and achieving net-zero emissions by 2050 will fundamentally change geopolitics, technology and much else. For one, it will alter the Middle East, particularly Saudi Arabia’s, ‘special relationship’ with Washington and US engagement with the region. The energy axis changing, it will open up options for partnership.

Oil- and gas-dependent Russia will hurt, and force it to rediscover its capacity for innovation. The US would impede China’s fossil fuel-based investments as part of the Belt and Road Initiative. On the other hand, China is in a position to capitalise given its domestic investments in clean energy. How that pans out will depend on the manner in which trade issues are resolved. Biden’s plan will strengthen the EU’s Green Deal and this will fundamentally alter trade — with environmental considerations gaining primacy.

For India, the best course is to create an infrastructure and framework that recognises the economic opportunity that a green recovery and clean energy presents. It must step up and be a partner in this transformation — through its trained and skilled manpower, and initiatives such as International Solar Alliance.