Next Government In U.S. May Affect Clean Energy Transition

By Shubhendra Anand , 09 August, 2024

The clean energy transition is gaining momentum in the energy market globally. The compelling cause of the transition is climatic change due to the harmful emissions from different sources. Therefore, it is vital to incorporate renewables in the production of energy. Nations worldwide are tactfully utilizing renewables to get better, greener outcomes. To be precise, the energy market is currently overwhelming with renewables. Developed countries like the United States are in the race for clean energy transition at a faster pace. However, experts cite that the next new government in the United States may affect this transformation financially. Regarding market trends, the transition to renewables requires heavy funding, and it is expected to be at a stack with the new U.S. government.

According to the analysis of different firms 2204, the United States currently spends around USD 7.7 trillion overall for clean energy. This expenditure in the United States is currently being deployed in the various policies of the nations through 2050. The green energy transformation is targeted to be achieved by the end of 2050. Hence, this funding for renewables can potentially cover the transition in the energy market. However, the expert's concern centers around new policies with the new government. It is highly expected that the United States will cut back on USD 1 trillion in finances with less government support for low-carbon energy infrastructure. It is anticipated again that the carbon emissions will peak by 1 billion tonnes. Moreover, this scenario in the energy market will slow down the clean energy transitions by ten years.

Based on a survey, if the investment of low carbon energy resources is cut down, it will lead to high demand for natural gas. Analysts foresights that less expenditure on renewables could lead to a demand for natural gas by 6 percent by the end of 2030. Consequently, green energy transformation would be a failure. All nations must enact equal renewable production for global development towards climatic changes. If developed countries like the United States fail to meet the net zero emissions target by 2050, achieving the goal of 80 percent green energy worldwide is hard.

United States Capital Investment For Clean Energy Transition Could Go Low With The New Government