How the 2024 US Elections Could Shape Our Environmental Future?
As the 2024 US election results look certain, businesses are holding their breath. They are waiting to see how the results will affect climate policy and, ultimately, their bottom line.
Have you noticed how every quarterly earnings report these days seems to spotlight sustainability? I’ve been paying attention, and it’s clear that businesses are more focused than ever on how they’re tackling climate issues.
With the US as one of the largest economies and a leading contributor to global greenhouse gas emissions, the result will have far-reaching implications.
Beyond national borders, the outcome will influence climate policy trajectories, impact international relations, and shape sustainability standards globally.
Voter Sentiment: A Growing Climate Priority
In recent years, climate change has become a priority for many American voters. According to the Yale Program on Climate Change Communication, 62% of registered voters support candidates who advocate for climate action, underscoring a shift toward sustainability across party lines. This sentiment has even grown among younger voters and independents, with polling by the Pew Research Center revealing that over 70% of millennials and Gen Z favor expanding renewable energy over fossil fuel development.
However, voter views on climate policy vary across the political spectrum. While 70% of liberal Democrats consider climate action a top priority, only 17% of conservative Republicans express the same urgency. This divide highlights the complexities of addressing climate change in a bipartisan framework, underscoring the need for policies that resonate with a diverse electorate while achieving measurable environmental impact.
Finding Your Way Through The Climate Policy Maze
If there’s one constant in business, it’s that keeping up with climate policies is like chasing a moving target. Just as you adapt, the landscape shifts again, especially as sustainability becomes essential.
In the US, policies like carbon pricing and green energy incentives are pushing businesses to adopt advanced tools to stay ahead.
Similarly, carbon accounting systems allow for precise emissions tracking, strengthening both regulatory alignment and investor confidence. A PwC study found that 80% of CEOs see carbon accounting as key to competitiveness.
Globally, it’s not just US policies that matter. With expanding carbon markets, aligning with initiatives like the EU’s Emissions Trading System (ETS) is crucial. The voluntary carbon market was valued at nearly $2 billion in 2022, underscoring the need for proactive companies to lead in this space.
The takeaway?
Companies embracing AI for energy efficiency and carbon accounting tools are best positioned to navigate policy shifts.
What’s on the Horizon? Potential Shifts in Climate Policy
While current policies have driven much of the progress we’ve seen so far, the election results could bring a wave of changes. In fact, we could see shifts in three critical areas: carbon pricing, green energy incentives, and the overall momentum of climate regulations.
Carbon Pricing 2.0: Voluntary Markets & Blockchain Breakthroughs
With voluntary carbon markets growing rapidly, many businesses are using these markets to offset their emissions. But a newer development is the use of blockchain technology to ensure transparency and accuracy in carbon credit tracking.
This added layer of accountability is likely to become even more important if carbon pricing policies expand after the President is sworn in.
Green Energy Deals: Powering the Future with PPAs
In the renewable energy space, Power Purchase Agreements (PPAs) are becoming a go-to solution for businesses looking to lock in long-term clean energy at stable prices. The Rocky Mountain Institute reports that corporate PPAs accounted for 23 gigawatts of renewable energy in 2021.
The Push and Pull of Regulation: How Public-Private Partnerships Lead the Way
Whether we see a push for stricter climate regulations or a slowdown, public-private partnerships will remain a critical tool for advancing sustainability. These partnerships enable companies to collaborate with government agencies and drive innovation in areas like clean energy and smart grids, even when federal regulations stall.
Business Priorities for a Climate-Resilient Future
Think of navigating climate policy changes like steering a ship through unpredictable waters. While you can’t control the tides, you can adjust your sails and prepare for what lies ahead.
Here are three strategies to help future-proof your company and stay on track, no matter what comes your way after the results.
Green Tech Investments: Your Ticket to a Sustainable Future
Take Microsoft, for example. They’re steering ahead by committing to carbon negativity by 2030, with major investments in carbon capture and renewable energy.
By focusing on technologies like direct air capture, Microsoft is positioning itself to not only comply with future regulations but to lead the way in sustainable innovation. Businesses that follow suit will be better equipped to adapt to new policies and capitalize on emerging opportunities.
Shielding Against Uncertainty: Political Risk Insurance & RegTech
In times of political uncertainty, political risk insurance is like a safety net, protecting businesses from sudden regulatory shifts. Alongside this, RegTech solutions help companies navigate the complex web of compliance requirements.
These tools automate regulatory processes, making it easier to stay ahead of changing laws without the administrative burden. Staying nimble with these resources will be key in an evolving regulatory landscape.
Diversify to Decarbonize: How Blockchain is Changing Carbon Credits
Carbon management is evolving, and one standout approach is using blockchain technology to track and trade carbon credits. Blockchain ensures transparency and accountability, reducing the risk of double-counting emissions offsets.
As carbon markets expand, adopting this technology will help businesses stay compliant and credible, regardless of future shifts in carbon pricing.
Don’t Wait for the Shift — Be Ready
The 2024 US elections will undoubtedly shape the future of climate policy, but the businesses that prepare now will be the ones that thrive. Whether it’s navigating potential shifts in carbon pricing, taking advantage of green energy incentives, or leveraging advanced tools like blockchain and RegTech, the key is to stay proactive and adaptable.
As business leaders, it’s time to take a hard look at your sustainability strategies and make the necessary investments to future-proof your operations.
