Climate and energy conservation is the hot topic in the town in energy industry. India’s initiative in this continued engagement with international community on the issue of climate change, clearly demonstrates its pro-activeness and leadership. Every country is contributing in decreasing carbon dioxide emissions and Paris pact of 2015 is just an extension to this. The Trump administration has pulled US out of the landmark Paris climate pact marking it as a bad deal for developed countries especially for America. They believe that this deal will front-load costs for US which can cause contraction in economy.
The deal actually relies heavily on the commitment of big polluter nations to reduce emissions of gases to decrease the global warming. While withdrawal of US government in this deal can elevate leadership role of other countries in climate change but exiting the deal would be certain to anger allies as every country negotiated to limit the planetary warming by reducing carbon emissions. US is considered to be world’s second biggest carbon dioxide emitter behind China but Trump administration didn’t fail to mention that US economy is making a great progress with air quality since 1980.
So far the decision of US exiting this Paris deal is not taken negatively by any nation. Canada, the European Union and China have specifically mentioned that they will continue to honor their commitments to the pact! But this decision of US can certainly impact Energy industry as a whole! This is because the globe will miss out on certain advancements and initiatives that US could take up in this process. While the impact of this particular news cannot be evaluated in numeric terms, but the vibe in the industry is not very positive.
This deal is meant to take measures which can lead to robust growth in oil, coal and another segment of energy industry. The Governors of nations including California, Washington, Vermont and others have banded together to meet the targets of global climate accord. This pact is on climate change terms but also opens up the door for global business opportunities and technology sharing that comes with being a leader in this agreement. Thus, this agreement is very beneficial for the notion of industry.
Many companies including Goldman Sachs, Bank of America, JP Morgan, Johnson & Johnson and Walt Disney expressed their strong support to stay part of this Paris pact through a full page ad in Wall street journal. This shows the strength and bend of companies towards climate improvement and serves as a common platform for corporate firms to come together and work in conjunction and agreement with each other. As of now, all those nations which are part of this deal accolade this and the market conditions are embracing growth and improvement. But Momentum will help you in tracking the progress rate to notice where this graph of progress bends.
Paris deal is probably one of the influential and bigger projects of the globe and driving this without the involvement of the most powerful nation can be challenging and rewarding at the same time. We would have to wait and watch how it impacts stocks and pulse of trading market! Whether shareholders of companies having HQ in US lose their interest or take it up as another way to scale!