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UBS On-Air: Market Moves

Top of the Morning: US election implications for sustainability

Sep 24, 2024
Amantia Muhedini, UBS's Sustainable & Impact Investing Strategist for the Americas, discusses the intersection of the upcoming U.S. elections and climate sustainability. She highlights key focus items for Climate Week during the UN General Assembly and examines how different election outcomes could influence climate policies. The conversation also covers the rising anti-ESG movement and its implications for investment strategies, plus the historical performance of sustainable investments under various administrations. A compelling look at sustainability in a politically charged landscape!
12:47

Podcast summary created with Snipd AI

Quick takeaways

  • The upcoming U.S. elections could significantly affect sustainability investments and climate policies influenced by the Inflation Reduction Act's substantial funding.
  • Despite political changes, sustainable investments have historically performed similarly across administrations, suggesting macroeconomic factors are more impactful than party affiliation.

Deep dives

Impact of U.S. Elections on Sustainability Investments

The upcoming U.S. elections are expected to significantly influence sustainability investments, particularly in the context of climate policies driven by the Inflation Reduction Act. This act has committed over $500 billion towards climate initiatives, which has spurred billions more in investments, making the U.S. a critical player in renewable energy innovation. Despite the election climate, predictions indicate that regardless of whether a Trump or Harris presidency wins, the core renewable investment environment is likely to remain stable. This stability is attributed to the political incentives tied to Republican-led states that have benefited from current investments, minimizing the potential for any drastic policy changes.

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