The Biden government has publicly promised to give priority to solving environmental and health problems. The actions it has taken have also emphasized this point. The risks have become very high for private chemical suppliers, especially chemical industry companies. Climate action is the top priority of President Biden. Less than a week after taking office, he signed an executive order renewing his commitment to the United States' compliance with the Paris Agreement. recent. He used Earth Day to emphasize the importance of policies to achieve the promise of reducing greenhouse gas (GHG) emissions by 50-52% by 2030. Therefore, the pressures and challenges facing the chemical industry include:
This runs counter to the Trump administration’s loose environmental regulations
Increasing attention to corporate carbon emissions
Investors demand environmental and social governance (ESG) commitments
NGOs with growing influence
Higher consumer demand for climate commitments and civic activism, and
Stronger call for action around environmental justice and fairness
Under the leadership of the Biden administration, chemical companies should foresee a new and constantly evolving situation. Although the chemical industry is facing scrutiny from grassroots advocates, NGOs, and other stakeholders, it has also quickly mobilized to respond to COVID-19, adjust supply lines and business needs to produce disinfectants, antimicrobials, syringes, The much-needed personal protective equipment and packaging were praised. All of these have enabled the expansion of the global vaccine sales drug cold chain. The environment is complex, and we have the opportunity to actively shape public policies, show how chemical products and operations are increasingly sustainable, and contribute to better environmental outcomes.
Players of the new government
The Biden administration has established a "huge" climate team composed of experienced professionals dedicated to climate action. The most important is the appointment of Ambassador John Kerry as the President’s special climate envoy, and former Environmental Protection Agency Administrator Gina McCarthy as the national climate adviser. Other important cabinet members include Rhode Island Governor Gina Raimondo as Secretary of Commerce, Tom Vilsack as Secretary of Agriculture, and Jennifer Granholm as Energy Ministers, they will all help implement plans to support climate change in the federal bureaucracy.
President Biden also established a new "Office of Climate Change and Health Equity" in the Department of Health and Human Services (HHS), and established a working group to reduce the impact of climate change on children, the elderly, the disabled, and other vulnerable groups. Group risk. As President Biden’s team strives to make climate action a core component of the US’s infrastructure reconstruction, these efforts are only the beginning of the government’s more progressive agenda. In addition to the chemical and energy sectors, the plan also has significant potential to change all industrial sectors.
In addition, the new composition of the U.S. Senate increases the possibility of bold legislative actions. The Democrats hold the majority of seats in the Senate by a narrow margin. This will promote a climate-centric agenda, such as the 981-page bill proposed by senior members of the Energy and Commerce Democratic Party of the House of Representatives, which will allocate $565 billion in 10 years to support American decarbonization efforts.
Environmental Action Policy Agenda
The following are key points that industry sectors related to environmental policy should keep in mind.
Environmental justice will be an important theme. The Biden government has issued a directive requiring agencies to address environmental injustices affecting communities of color, low-income communities, and indigenous communities that face “above-average levels of chemical exposure”, which may cause health effects. Negative impact. The choice of Representative Deb Haaland (DN.M) led the Department of the Interior (the first Indian to serve as cabinet secretary), and the North Carolina Department of Environmental Management Director Michael Reagan EPA (the first African-American role) ), emphasizing that environmental justice will indeed be more than just a priority and campaign promise. Chemical companies must be prepared to respond to calls for accountability and take action.
Companies need to prepare for changes in trade and foreign policy. The Biden administration’s trade agreement may change the supply chain and resource management system. In recent years, due to tariffs and trade wars, the US chemical industry has had to adjust the shipments of chemicals and polymers. This situation may happen again. Efforts to rejoin the nuclear agreement with Iran, continued tensions with China, and possible tougher stances against Russia may have an impact on chemical industry production, exports, and relations.