Joe Biden’s clean energy plan has recently been a point of focus. And the prospect of a Biden victory in the presidential election has spurred a rise in stocks set to benefit from his proposed $2 trillion package, which is meant to kick-start the nation’s economy toward net-zero carbon emissions by 2050. By contrast, returns for oil and gas producers are down for the year, not only because of weaker demand that followed the economic slowdown, but also because of the prospect of regulatory headwinds for fossil fuels under a new administration.
Beyond the prospect of a Biden victory, though, investors have already been signaling a shift toward clean energy. Tesla’s market capitalization, for example, surged past established incumbents this year to make the company the most valuable automaker in the world. And a number of startup electric vehicle companies made successful debuts in the public market through this year’s favored vehicle – the special purpose acquisition company. Other green energy sectors like solar and wind are also set to benefit as the tilt toward renewable energy gains momentum globally.
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