The White House’s outgoing climate czar weighs in on Trump
Nov 19, 2024
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Ali Zaidi, President Biden’s National Climate Advisor, shares insights on why discarding energy transition efforts would be “economic malpractice.” Jonathan Pershing, an esteemed climate diplomat, discusses how global competition can drive faster green policy adoption. They tackle the implications of a potential Trump presidency on U.S. climate diplomacy, the critical role of state and local initiatives, and the challenges of climate finance amidst a shifting political landscape. Join them as they navigate the complexities of climate action and international collaboration.
The upcoming Trump administration poses a risk to the momentum of U.S. climate action, challenging the progress made by recent policies.
Despite potential federal setbacks, state governments and the private sector are emerging as vital players in advancing climate initiatives and investments.
Deep dives
Challenges of Climate Action under Trump
The upcoming Trump presidency raises significant concerns regarding the momentum built around climate action in the United States. While the Inflation Reduction Act and bipartisan infrastructure law initially spurred progress, experts fear that the reversal of supportive policies could hinder industrial growth and clean energy advancements. Key sectors such as electric vehicles and clean electricity production may experience cuts to incentives or tax credits, which could stall progress. Despite these challenges, there is a belief that the private sector, bolstered by prior investments, may continue to drive innovation and momentum despite potential federal setbacks.
Global Climate Agreements and U.S. Credibility
The U.S.’s potential withdrawal from the Paris Agreement under Trump could lead to a credibility gap in global climate negotiations, which is exacerbated by a lack of consistent leadership. Experts note that, while the U.S. may withdraw, the global commitment to climate action continues, as other countries remain engaged regardless of U.S. participation. However, the absence of U.S. influence could lessen the overall ambition of climate initiatives, making it challenging for global leaders to mobilize resources effectively. Effective financing and fostering broader coalitions are recognized as essential for maintaining momentum in climate resilience efforts.
The Role of Private Sector and State Governments
Despite the challenges posed by potential federal policy reversals, state governments and the private sector have emerged as crucial players in advancing climate initiatives. Many Democratic-led states along with proactive Republican governors are promoting clean energy investments, showcasing a growing bipartisan commitment to sustainability. This trend indicates that local and private initiatives may help fill the gap left by diminished federal support. The collaboration between state policymakers and private investors is seen as vital in maintaining momentum towards a clean energy future, even amidst federal policy uncertainties.
Financial Mechanisms for Climate Action
The complexities of financing global climate initiatives are highlighted by the various funds established to support developing countries, yet challenges remain in accessing and deploying those resources effectively. There is a pressing need for innovative financial strategies that can ensure a smooth flow of capital to the regions and projects that require it most. The shift towards blended finance, which minimizes risks and attracts private capital, is crucial for promoting international investment in climate solutions. Overcoming bureaucratic hurdles and aligning financial investments with local needs will be key to successfully addressing climate change in the coming years.
At COP29 in Baku, Akshat Rathi is joined on stage at Bloomberg Green’s live event by Ali Zaidi, President Biden’s National Climate Advisor. Zaidi argues that it would be “economic malpractice” for the Trump administration to abandon the energy transition. Plus, veteran climate diplomat Jonathan Pershing explains why he believes global competition will result in an “acceleration of action” on green policy.
Zero is a production of Bloomberg Green. Our producer is Mythili Rao. Special thanks this week to Jen Dlouhy, Sharon Chen, Siobhan Wagner, Ethan Steinberg, Blake Maples, and Jessica Beck. Thoughts or suggestions? Email us at zeropod@bloomberg.net. For more coverage of climate change and solutions, visit https://www.bloomberg.com/green.