November 2024 climate policy update

What the US election means for corporate sustainability

forest

Following the US election, we're sharing some initial thoughts on the implications of the election results for climate policy and corporate sustainability.

We’ll also host a series of virtual events to go deeper on these topics. On November 13, we’re hosting a virtual conversation with California State Senator Scott Wiener, architect of California’s Climate Corporate Data Accountability Act (CCDAA), which mandates carbon disclosure for large US companies. Join Senator Wiener for a conversation on what to expect from the CCDAA, and the trajectory of California climate policies in a Trump administration. Sign up here.

In the meantime, here are three key observations for corporate sustainability leaders:

Corporate climate disclosure is mandated for large global companies, regardless of who is in the White House


Mandatory climate disclosure is locked in for most large U.S. firms, independent of U.S. federal policy. Regulatory pressure is global, and increasingly a condition of market access:

All eyes are on the IRA, where the outlook is unclear


The Inflation Reduction Act (IRA) was the Biden administration’s signature climate policy, injecting hundreds of billions of dollars into private sector deployment of clean energy and low-carbon industry and manufacturing. See here for a summary of the IRA’s impact over the last two years and here for a tracker of clean energy investment by quarter.

President Trump has opposed the IRA, and all eyes are now on whether his administration will slow or stop IRA funding. This will be a key lever for the impact of federal policy on total U.S. carbon emissions. One thing of note: 18 House Republicans have already advocated for maintaining IRA investments, citing job creation from energy tax credits.

We’ll keep you posted as discussions about the future of the IRA unfold next year.

The underlying economics of the transition to net zero will continue to drive corporate action on sustainability


Beyond regulation, economic incentives—from cheap clean energy, customers, and investors—are motivating corporate action on climate. We expect this to continue to accelerate. Specifically:

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