US President Joe Biden has been actuating his new green policy by establishing the environmental protection cabinet, as well as investing US$200 million into the environmental protection and energy field within 4 years, in the hopes of laying down an excellent foundation for the country that will enable it to achieve its target of 100% clean energy and zero carbon emission before 2050. The policies and investments will help the US to transform into a major country that exports clean energy, which is expected to once again derive enormous commercial opportunities in renewable energy.
The investment consulting and fund management firm Taishin Securities Investment Trust (TSIT) has recently pointed out that the recent floods in Western Europe, Zhengzhou of China, and India are all severe consequences of climate change. Energy conservation, carbon reduction, and environmental protection have become priorities for governments and major businesses around the world. The green policy actuated by US President Joe Biden has transformed the related funds of ESG into hot commodities.
Su Sheng-feng, the Manager of the Taishin ESG Global Environmental Growth Equity Fund, commented that the attainment of zero carbon emission for all electricity by 2035 that is stipulated in the renewable energy policy proposed by Biden will be able to expand the power generation schemes of wind and solar energy, as well as encourage citizens to install solar panels, while the significant support from the policy itself will also generate a demand for solar power in the US.
Su pointed out that the US had achieved more than 5GW of installed capacity in PV systems during the first quarter of 2021, which equals a YoY increase of 46%, while an increase of 24.4GW is expected to be seen in the annual installed capacity during 2021 that is almost a YoY increment of 24%. Hence, the market forecasts that the US will be experiencing a new high in the growth of solar installed capacity for the next 3 years.
Su explained that environmental protection and climate issues have accelerated the transition of the world to renewable energy, while on the other hand, the cost of power generation from renewable energy is now approaching that of traditional energy, which offers fundamental and cost advantages. IEA estimates renewable energy will occupy 80% of the global power demand by 2030 thanks to the continuous reduction in the cost of solar and wind power, as well as the extensive support from governments all around the world.
Su emphasized that analysts have estimated an investment of almost US$3 trillion that will be put into the relevant industries of renewable energy in the next 20 years under the irreversible trend of energy conservation and carbon reduction in the long run, and suggests investors to take this opportunity to arrange the relevant ESG funds
(Cover photo source: pixabay)