Four years ago, one of the major issues that Trump promised to solve was the crisis in the coal industry. Now, as many suspect a Biden win in the November presidential elections, Wall Street investors are starting to focus on clean energy stocks as they suspect a Biden win will mean a change in trend.
Even if we look at the Trump era, we will find that besides the rollback of certain environmental protection acts and further exploration of the gas and oil business, the coal industry has been on a gradual decline. Experts believe that an industry surviving in fossil fuels is marked for inevitable death.
Nonetheless, it looks like a Biden win in the November presidential elections would ensure an early death for the coal industry. As a party, the Democrats in general support clean energy. Surely, this will impact Wall Street trading weeks.
What Will A Biden Win In The November Presidential Elections Mean For Wall Street?
As per BlackRock, if Joe Biden wins the November elections, the Senate will be ruled by the Democrats. This will only accelerate the transfer of the US vital sector toward clean energy.
Even so, the coal industry had been seeing a general decline ever since the 2000s. The US energy electrical grids are not powered by coal anymore.
In the year 2010, the use of clean energy to generate electricity in the US increased to 10 percent. The percentage has only grown since then. In 2019, the percentage rose to 17 percent.
A funding expert from BlackRock Funding Institute states that the Wall Street trend will shift towards clean energy if Joe Biden wins the November presidential elections. The Democrats can increase and extend tax credit towards clean energy sources. They can also do something similar to carbon sequestration, Luke giving credits to various zero-carbon sources.
Biden And Clean Energy: Green New Deal
As it is, Biden remains close to proposing a Green New Deal worth $2 trillion. This deal aims at slashing carbon emissions in the industrial and transport sector by the year 2050.
On top of that, Wall Street investors believe that the democrats would crackdown in pipeline permits and drilling, which has been given a freehand during Trump’s administration.
On Monday, the Oil futures rose by 0.35 percent. It settled at $39.99 per barrel in Wall Street. Moreover, the US oil and gas companies have taken a loan of $100 billion through bonds as federal agents have indicated that they will buy their debts.
As the November presidential elections draw closer, it has been noticed that Wall Street investors are slowly growing friendlier with stocks dealing in clean energy.
On Monday, Tesla shares closed at 408.8 percent.