Full Title: Investing in Energy: U.S. 2024 Elections Loom Over Energy Transition
Author(s): Peter Gardett and Conway Irwin
Publisher(s): S&P Global
Publication Date: November 23, 2023
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Energy investors are increasingly questioning the fate of new U.S. laws designed to accelerate cleantech deployment as the country enters a highly contentious 2024 national election cycle. The response by the U.S. financial sector to the Inflation Reduction Act (IRA) and the clean energy provisions of the Bipartisan Infrastructure Law and the Chips Act has been extraordinary in scale yet lopsided in impact.
The future of sectors such as renewable power, batteries, electric vehicles, advanced nuclear, and low-carbon hydrogen or carbon capture and storage (CCUS) could hinge on what happens to the IRA and the clean energy provisions of the Bipartisan Infrastructure Law and the Chips Act. With as much as $3 trillion of total federal government balance sheet support put behind a swathe of technologies and enabling infrastructure — in turn impacting the valuations and financial options of existing energy assets and companies — the fate of the laws under a new administration is crucial to investors’ capital allocation plans for the coming decade.