The US bipartisan Infrastructure Investment and Jobs Act was first introduced in the summer and swiftly passed.
It includes around $550bn in new federal investment in America’s roads and bridges, water infrastructure, resilience, internet, and more.
It is intended ‘to grow the economy, enhance US competitiveness, create good jobs, and make the US more sustainable, resilient, and just’.
However, there are hopes that there is more to come, as it left some stones unturned.
Will Argent, fund adviser to the VT Gravis Clean Energy Income Fund (CLEAN) said: “In the US, the bipartisan Infrastructure Bill disappointed somewhat on climate change initiatives, but it is a start and includes various elements that will promote clean energy alongside climate resilience measures.”
There has been allocations to rebuild the electricity grid, which includes thousands of miles of new power lines and expanding renewable energy capacity as well as elements designed to promote the electrification of transport and improving the network of EV charging points.
It should be noted, however, that the bipartisan deal is a first step,” says Argent, “There is a proposed Democratic-only Budget Bill of c.$3.5trn in the pipeline, which is meant to address President Biden’s promise to move the country towards a carbon-free economy. Within this there is a proposed $150bn payment program designed to reduce greenhouse gas emissions from the electricity sector.”
Utilities could be rewarded to increase their production of power from low-emissions sources like solar, wind and hydro. There could also be penalties for those that don’t.
“Regardless of the exact monetary figures, investment in the US decarbonisation effort will be a very long-term structural dynamic.”
“Companies with strong strategic positions in the US renewable energy sector will likely benefit with opportunities arising from future renewable energy generation capacity build out in the country – whether the direct result of Federal initiatives, State-level initiatives, or broader corporate sustainability ambitions,” says Argent.
