In the past two weeks, the new administration has signaled that tackling climate change head-on will be one of their highest priorities, with no move demonstrating that as clearly as President Biden’s decision to rejoin the Paris Agreement on his first day in office.
If you care about reducing carbon emissions, it’s an encouraging gesture, but does it mean anything more? Let’s talk about what the Paris Agreement is and what it means for the pursuit of a carbon-free future.
What Is the Paris Agreement?
Put simply, the Paris Agreement is an international plan to reduce carbon emissions. Through the United Nations (U.N.) Framework Convention on Climate Change—the U.N. organization specifically charged with addressing climate change—countries around the world have agreed to make coordinated efforts to reduce carbon emissions and hold each other accountable to meet those goals.
Since its inception in 2015, 190 countries have joined the accord, representing more than 96 percent of global emissions. Every participating country has submitted a carbon reduction goal and a detailed plan for achieving it, called a “nationally determined contribution.” In 2024—and every five years afterward—each country will report its progress, receive feedback and set more ambitious goals for the next round.
The United States was initially a part of the agreement when it was formed, but the Trump administration decided to withdraw in 2017 and completed the process in late 2020 before Biden began the process of rejoining on Inauguration Day.
How Will the Paris Agreement Affect Carbon-Free Energy?
This move signals that climate change will be a major priority for the U.S. Within the federal government, it communicates what Biden wants to see from federal agencies. Sam Ricketts, co-founder of climate advocacy group Evergreen Action, put it plainly:
"Every agency is a climate agency now.”
The new U.S. nationally determined contribution has not been determined yet, but if other executive orders from Biden’s “Climate Day” are any indication, it could be more ambitious than the previous U.S. target of a 28 percent reduction in emissions from 2005 levels. This new target—which according to the Paris Agreement will continue to be re-evaluated to spur further emission reductions—will drive energy decisions in the U.S. Rejoining the Paris Agreement is more than just a symbol that climate change is important; it will also result in real policy.
In addition, a strong policy direction will give investors more confidence in carbon-free technology, which should further boost investment in a sector that has seen massive growth recently.
“We need strong policy signals,” said Emilie Mazzacurati, founder and chief executive officer of climate risk measurement firm Four Twenty Seven, in a recent episode of "Off the Menu with Monica Trauzzi."
“That's not the only thing that we need, but that has been the bane of everybody working in renewable, or clean energy, and carbon-free energy in the U.S. is the back and forth on policy decisions.”
Rejoining the Paris Agreement Is an Important Step Towards a Carbon-Free Future
“By rejoining the Paris Agreement—and issuing several climate-focused executive orders since then— President Biden provided a north star for climate and energy policy in the U.S. moving forward,” said John Kotek, NEI’s vice president of policy development and public affairs. “It’s an important first step, but we can’t let up. We must ensure all carbon-free technologies are valued and deployed in this effort.”
Reaching any climate goals will require all carbon-free energy sources, including wind, solar and nuclear energy. As the largest provider of clean electricity in the U.S., nuclear will play a key role in the country’s nationally determined contribution—whether through the 94 operating plants or the advanced reactors speeding towards development.
Carbon-free is the direction the world is headed, and thanks to the Biden administration’s actions, the U.S. is preparing to lead this effort again.
