Page 6 - NorthAmOil Week 05 2022

NorthAmOil COMMENTARY NorthAmOil

Pressure builds on Biden to

prioritise climate and energy

provisions of Build Back Better

US President Joe Biden is under increasing pressure from his own party to

prioritise the climate and energy provision of the Build Back Better bill

US PRESSURE is building within US President Joe Time is tight. Congress faces a government
Biden’s own party for the White House to priori- spending deadline in mid-February. The pan-
WHAT: tise the climate and energy provision of the Build demic and Ukraine are burning and time-con-
Biden is under growing Back Better (BBB) bill, stalled for more than a suming issues. Inflation is surging. Biden must
pressure to prioritise month in the US Senate. announce a new Supreme Court justice, who
climate change and Moderate Democrats in swing seats have then must be confirmed. And importantly, in
energy provision in his written to Biden urging him to move ahead with early November most of Congress faces re-elec-
Build Back Better bill. the $555bn in climate investments. Other pro- tion. After the vote, Democrats are no longer
visions in the $1.8 trillion package, such as the expected to control both houses of Congress, a
WHY: child tax credit and a fee on methane emissions, typical shift of power in a midterm election in
Moderate Democrats are more controversial. the US.
are pushing for climate- The news is important because a path forward Analysts are bullish. A “BBB 2.0” is likely to
related investments in a for the crucial bill, which would for example emerge between Feb. 18 –the government fund-
bid to create jobs. extend and broaden Production Tax Credits ing deadline--and Biden’s State of the Union
(PTC) for wind and solar, seems only possible address on March 1, wrote Chris Krueger of
WHAT NEXT: if the White House jettisons the most contested Cowen Washington Research Group, in a note.
Given the Democrats’ elements. Benjamin Salisbury of Height Capital Markets
narrow Senate majority, It is also interesting that moderates in swing wrote in a note. “We continue to see a better
full support will be districts have written to Biden. Their letter than 50% probability that some pieces of the
crucial but remains shows how much support there is for green BBB can become law,”
elusive. energy in moderate districts because of the Biden had said at a press conference in the
domestic jobs it creates. third week of January: “I think we can break the

P6 www. NEWSBASE .com Week 05 03•February•2022