Who will benefit from Biden’s colossal $2+ T American Jobs Plan
What lies ahead for the US on the climate change issue?
Who will benefit from Biden’s colossal $2+ T American Jobs Plan
What lies ahead for the US on the climate change issue?
The US is about to undergo a massive change in terms of CleanTech and Clean Energy. This is due to the ambitious goals that President Biden has lined up for the country. His plans are focused on catching up to the rest of the world by transitioning to more modern energy production methods - and becoming 100% carbon-free by 2035, producing net-zero carbon emissions by 2050.
In order to achieve these goals, the following investments need to be made:
- expand electrification and energy efficiency in buildings, homes, schools, and hospitals
- develop the market for electric vehicles
- invest in the CleanTech value chain
In terms of investing in the CleanTech value chain, this refers to:
- Modernizing the energy sector by adopting innovative grid technologies; building at least 20 gigawatts of high-voltage power lines; and creating clean energy generation and storage incentives. This includes the entire purchase of clean energy for federal buildings and creating jobs in the energy sector to plug orphaned oil and gas wells ($100 billion).
- Making the U.S. a leader in climate science and innovation by investing in clean energy R&D, industrial-scale storage, hydrogen, carbon capture and storage, and other technologies ($35 billion).
- Catalyzing CleanTech manufacturing by procuring electric vehicles, charging ports, and electric heat pumps with federal funds ($46 billion).
The plan also covers water systems in physical and “at home” infrastructure:
- Replace 100% of all lead pipes and lines used for drinking water ($45 billion).
- Rebuild and upgrade wastewater treatment plants and treatment systems for drinking water, sewage, and stormwater ($56 billion).
In addition, some upgrades will also be made to the digital infrastructure, specifically to cover 100% of the country's fast and future-proof broadband Internet ($100B).
What benefits will all this bring?
Investing in CleanTech and clean energy may deliver huge economic benefits. CleanTech includes the infrastructure and technology that enables the deployment and adoption of clean energy. Without modern power grids, industrial-scale energy storage, and the technologies that are part of clean energy, the ability to scale next-generation energy production would be severely limited. The energy infrastructure is already at capacity - the U.S. economy loses up to $70 billion annually due to power outages.
Investments in CleanTech would support the transition to clean energy while also dampening the economic losses from current inadequacies. This transition could also create employment opportunities in installation, maintenance, and manufacturing and lead to long-term opportunities in clean energy research and development. The plan includes tens of billions of dollars dedicated to creating jobs for those working in the energy sector, especially those with underdeveloped infrastructure.
The United States lags behind China and other countries when it comes to investing in these areas. More aggressive funding in digital infrastructure and clean technology could help the US become a leader in next-generation industry and innovation.
By doing so, any companies involved in clean energy and CleanTech value chains would be well-positioned to benefit from the plan. This includes renewable energy producers and component manufacturers, as well as businesses engaged in electricity grids, energy storage, electrification, and energy efficiency. Other efforts to reduce emissions should benefit companies involved in carbon capture, use and storage, and those working in renewable hydrogen.
In addition, companies that manufacture or produce telecommunications equipment and semiconductors related to communications and electrical transmission could also benefit from increased spendings on digital infrastructure. Construction and engineering companies would also benefit from this aspect of the plan.
Furthermore, additional investment in areas such as innovation and research, production, and workforce development, among others, would help the US maintain its economic competitiveness through the rest of the century. Bolstered manufacturing and restored supply chains would increase domestic output and productivity, while R&D funding would help the country keep pace with global technological advancement. These areas would also provide jobs in the short term while creating new opportunities in high-skill industries.
Sources:
