March 25, 2021–Climate change is driving a massive shift in investment and industry in the United States and around the world, Special Presidential Envoy for Climate John Kerry said today.
‘Massive Transformation’
“We are on the cusp of a massive transformation and ultimately the market is going to make the moves, not the government,” Kerry said, during a virtural conference held by the Washington-based Institute of International Finance.
In a conversation with IIE President and CEO Tim Adams, Kerry said climate change is driving widespread changes in industries and opening up markets in the future.
“This is not something for people to be scared of. This is the biggest economic opportunity we have seen,” Kerry said.
White House Priority
To emphasize the importance he places on climate change, President Joe Biden created the position of a special envoy and tapped former Secretary of State Kerry for the role.
As a result, Kerry now heads up a task force within the administration to implement Biden’s “whole-government approach” to facing the challenge. The task force includes Cabinet members and senior-level officials from across the administration. When the task force meets next on April 22, members are likely to set targets for their agencies, Kerry said.
Market-Driven Changes
Despite the government-wide effort, Kerry indicated that the most significant changes are happening in the private sector where financing, investment and loans occur.
“No government is going to solve this problem,” Kerry said.
Rather, the private sector is delivering up solutions. The government’s role is in providing incentives to fuel the transformation and funding research and development.
Furthermore, perhaps in an effort to depoliticize the issue, Kerry added that, “there’s no ideology in this.”
The Shift
The economic shift impacts everything to coal-fired power plants and their workers to new jobs in renewable energy, geothermal, forestry, automobiles as well as oil and gas.
“A fair amount of money is already moving,” Kerry said. He added that globally, there’s “frankly a race to the new technology.”
The challenge, Kerry said, will be in engaging workers in old industries. For that, he sees the policy changes coming in the Build Back Better legislation. That bill is a massive multi-trillion dollar infrastructure plan sponsored by the Biden administration.
International Engagement
According to Kerry, European countries have been “carrying the standard” on making changes for the past four years. Last December, Europe established ambitious greenhouse-gas emissions targets by 2030. The European Council also called for major investments in energy-efficient buildings and infrastructure for electric cars.
It’s noteworthy that Biden intends to reverse course of the previous administration on climate change. In 2017, former President Donald Trump pulled the United States withdrew from the 191-member Paris Agreement.
The next major international summit takes place in Glasgow, Scotland in November 2021, and the Biden administration plans to be there.
In fact, since taking office, Biden started reengaging with the world on climate change initiatives and targets. His January 27 Executive Order put the issue at the center of national security and foreign policy. The order itself is extensive in breadth and detail.
Meanwhile, Kerry suggested that the international engagement is key to making progress.
“We have to reach for a higher level of ambition,” Kerry said. “It’s the best opportunity we have to get on track.”
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