Energy

How Biden’s New Climate Plans Will Further Enrich Wall Street And Hollow Out Main Street

Photo by ROBERTO SCHMIDT/AFP via Getty Images

Taylor Giles Contributor
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A group of 450 financial firms pledged to fund $130 trillion towards the transition to net-zero emissions during the COP 26 United Nation climate conference, according to The Wall Street Journal (WSJ).

The massive pledge is over 135% of the world’s gross domestic product for 2021, reported the WSJ. This pledge, however, leaves less funding for other investments. It might also hollow out middle-class communities due to labor costs and lack of investments, and put downward pressure on Americans already struggling with inflation and rising gas prices.

The demand for renewable energy has grown with government-backed incentives and mandates fueling the switch to clean energy, the WSJ reported. However, private financial groups funding the switch will ultimately reap the reward for the change.

Meanwhile, the rapid change to renewable energy will raise labor costs and investments, the WSJ reported. Utility prices for everyday Americans and businesses will also increase, as the power grid becomes less stable during the transition. (RELATED: World’s Third-Largest Emitter Pledges To Achieve Carbon Neutrality Two Decades Later Than Climate Summit Goal)

OPEC’s monthly report released Thursday expects global demand for oil to grow by 5.7 million barrels a day this year, according to the WSJ. This is already 160,000 barrels per day less than expectations were just one month ago.

OPEC also believes demand for oil in 2022 will exceed pre-pandemic levels, the WSJ reported. The demand for oil is projected to jump to 100.6 million barrels per day, up roughly 500,000 barrels compared to 2019.

The Biden administration already announced on Nov. 2 new regulations that aim to reduce emissions in the U.S. The new regulations are expected to reduce the country’s methane emissions by 41 million tons between 2023 and 2035.

The U.N.’s draft agreement created at the COP26 summit has already come under fire from environmental groups. Critics say the plan has no way to keep nations accountable for their promises.