WASHINGTON -- U.S. President Joe Biden intends to tackle the climate crisis, which he has positioned as one of his highest priorities, in a bid to rebuild an economy devastated by the coronavirus pandemic.
Japanese companies are looking forward to expanding their business opportunities after learning that Biden plans to invest 2 trillion dollars (about 210 trillion yen) in environmental and infrastructure projects over the next four years.
-- Spread of EVs a main pillar
Biden, who took office Wednesday, signed an executive order to return to the Paris Agreement -- the international framework to combat global warming from which former U.S. President Donald Trump withdrew the United States. With the executive order, the United States is set to make a major policy shift.
Making the spread of the electric vehicles a main pillar of measures to combat global warming, Biden plans to set up 500,000 charging stations across the United States and promote the use of EVs by putting about 3 million of the vehicles into service for the government.
He has also been calling for energy-efficient buildings, transportation networks, and the expansion of solar and wind power generation.
In the past, many believed that taking measures to combat global warming would lead to increased costs for businesses, which could depress the economy.
However, U.S. industries have been increasingly supportive of tackling the measures, saying that increased investments in global warming countermeasures will help spur economic recovery after the outbreak is resolved.
"Millions of good-paying jobs that put Americans to work rebuilding our roads, bridges and ports to make them more climate resilient, to make it faster, cheaper and cleaner to transport American-made goods across our country and around the world," Biden said Jan. 14, urging both decarbonization and economic reconstruction.
The challenges for the spread of EVs include lowering their prices and increasing the distance they can travel on a single charge. In rural areas of the United States, there are many pickup truck owners, which, some observers said, will make it difficult to quickly spread EVs throughout the country.
The Democratic Party, to which Biden belongs, is not monolithic, with some members appealing for consideration to the energy industry.
The U.S. financial situation is rapidly deteriorating due to a series of economic stimulus measures amid the spread of the disease, and some are cautious about possible further massive fiscal stimulus. Although Democrats now control of both houses of Congress, it may be difficult to obtain congressional approval for the expansion of public investment.
-- Expectant voices
The Japanese government hopes to deepen cooperation with the Biden administration in order to achieve its goal of reducing greenhouse gas emissions to net-zero by the end of 2050.
As Europe is leading the way in establishing international rules for global warming countermeasures, Tokyo is hoping to prevent the spread of radical climate policies -- which could create headwinds for Japanese companies.
The Japanese business community has voiced its expectations for the Biden administration's economic policies.
Hiroaki Nakanishi, chairman of the Japan Business Federation (Keidanren), commented, "I hope [the new U.S. president] will show leadership in realizing global green growth."
Akio Mimura, president of the Japan Chamber of Commerce and Industry, commented on the U.S. return to the Paris Agreement at a press conference on Thursday, saying, "Only when the United States seriously joins the agreement will it have any real effect."
Japanese companies are said to have an advantage in carbon recycling that involves the collection and reuse of carbon dioxide, and in technologies related to eco-friendly cars.
"We will more strongly promote our business in next-generation energy and other areas," said Tatsuo Yasunaga, president of Mitsui & Co.
However, if the Biden administration gives in to the leftist policies of the Democratic Party, which calls for radical measures to combat global warming, the Japanese government may be required to take immediate action. Japan currently has a high percentage of thermal power generation that uses coal and other materials as fuel.
If the Biden administration imposes stricter regulations on shale gas extraction, Japanese power and gas companies that import shale gas from the United States will be forced to review their procurement sources, which could lead to higher fuel costs.
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