Dec 1, 2020
COVID-19 has apparently put combating climate change on hold. Earlier this year, Donald Trump took the US out of the UN Paris Climate Agreement, causing an uproar. Trump does not believe in climate change.
It snowed over 4 inches this past weekend in New York City. It is still October. So much for Global Warming.
— Donald J. Trump (@realDonaldTrump) November 1, 2011
However, now that Joe Biden is President-elect, there seems to be hope on the horizon. Biden has promised to roll out his carbon plans if he is to become president. Along with China’s climate promises, and the president’s carbon plans, the rise in global temperatures could be reduced.
Paris Climate Agreement to the Rescue
In 2015, the Paris agreement was created to “strengthen the global response to the threat of climate change by keeping a global temperature rise this century well below 2 degrees Celsius above pre-industrial levels and to pursue efforts to limit the temperature increase even further to 1.5 degrees Celsius. Additionally, the agreement aims to strengthen the ability of countries to deal with the impacts of climate change.”
While COVID-19 wreaked havoc in global economies, it managed to positively impact climate change. Due to closed borders and reduced travel, CO2 emissions are reduced significantly around the world. Scientists have confirmed that air quality improved in some countries.
“The pandemic opened a window to not only get countries to outline their long-term goal, but to actually move onto the right path so that they can actually achieve the long term goal,” said the Director of the Center for Climate and Resilience Research at the University of Chile in Santiago, Dr. Maisa Rojas.
“Are we going to harness that opportunity? My impression is that many, including the EU, are harnessing it.” She added.
The last three months were especially great for climate change. China’s President Xi Jinping mentioned that his goal is for his country to reach zero emissions by 2060. This could help reduce global warming by a significant amount by the end of the century.
Subsequently, Joe Biden getting elected has turned the tables for climate change. Tackling climate change has been a major part of his administration agenda, and he plans to bring the US to zero emissions by 2050.
Green Investing Opportunities
Positive climate change is beneficial to investors. It opens opportunities for portfolio diversification. Green energy sources include:
- Hydroelectric power
- Solar energy
- Wind power
- Pollution controls
- Green transportation
- Waste reduction
- Organic food
Investors can green up their portfolio by adding exchange-traded funds, stocks, and bonds of companies that focus on benefiting the environment.