4 Funds To Make The Most Of The Clean Energy Trend

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Clean and green energy investment is one of the hottest trends in the United States at present. In fact, last year, a record amount of renewable energy capacity was built on a huge investment by America and China, per the International Renewable Energy Agency (IREA). Wind and solar power accounted for 82% of the new power installations in 2020. Per the IREA report, renewable capacity grew 10.3% last year.

As the climate clock continues to tick, economies globally are gearing up to make impactful changes in their efforts toward reducing carbon footprint. And policy changes and technological advancements continue to be the main drivers of this change, boosting the clean energy space. President Joe Biden has so far played a crucial role in aggressively pushing the United States to meet sustainability goals. One such change was rejoining the Paris climate agreement signed in 2016.

On Apr 7, the U.S. Treasury Secretary Janet Yellen released details of a tax hike proposal that would replace subsidies for fossil fuel companies with incentives for production of clean energy. Biden’s $2-trillion infrastructure plan is an effort to achieve America’s long-term energy independence and the fight against climate change. This plan will provide a 10-year extension of the production tax credit and investment tax credit for clean energy generation, and includes wind and solar power, and energy storage costs. Along with that, it will restore a tax on polluters, especially Superfund toxic waste sites caused by fossil fuel production.

While the bill plays a huge role in supporting Biden’s plan to make the United States run 100% carbon-free by 2035, it also supports the electric-vehicle (EV) market. The EV market will benefit from installation of 500,000 EV chargers by 2030, which can, in turn, electrify 20% of the nation’s yellow school buses and replace 50,000 diesel transit vehicles. Similarly, the transition into smart homes will boom as the plan aims to make cities more climate-resilient by retrofitting 2 million homes and commercial buildings.

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