Dear Clients,

We talk a lot here at Green Investment Strategies about ways to invest that help solve the climate change problem. But there is only so much that investments can do. The climate crisis is a collective action problem and like any collective action problem it is best solved by acting collectively, i.e. politically. Which brings us to the upcoming election. With Biden stepping aside and Kamala Harris stepping up, bolstered by endorsements from the likes of Newsome and Shapiro, the stage is set for a showdown in 2024. Let’s break down why Harris, a progressive from San Francisco, is better suited to tackle climate change than Trump, the conservative businessman from Queens.

Tale of the Tape: Harris

Senator

Before becoming Joe Biden's Vice-President four years ago, Harris was a Senator from California for four years. And as a Senator, she sponsored and/or voted for several climate change bills.

• Green New Deal. Harris co-sponsored the Green New Deal. This isn’t some lofty ideal. It’s a plan to transition the U.S. to 100% clean and renewable energy within a decade. It promises millions of new jobs and ensures that everyone, especially those often left behind, gets a fair shake.
• Climate Equity Act. In 2019, Harris teamed up with Alexandria Ocasio-Cortez to introduce the Climate Equity Act. This legislation ensures that disadvantaged communities aren’t left behind when climate policies are crafted. Every new law gets an equity check to see how it impacts people who aren't already wealthy.
• Zero-Emission Vehicles Act. Harris co-sponsored the Zero-Emission Vehicles Act, which aims for all new passenger cars to be zero-emission by 2040, i.e. within 16 years.
• Living Shorelines Act. Harris voted for the Living Shorelines Act to help coastal communities deal with rising sea levels. This law would fund projects that use natural barriers to protect shorelines, making them more resilient to climate change.
• Environmental Justice for All Act. Harris co-sponsored this act to address environmental health disparities affecting marginalized communities. The bill supports community-led research and pollution reduction and ensures more voices are heard in environmental decision-making.

Vice President

The Biden-Harris administration was the best so far on climate change. Harris deserves some credit for that because she was a willing participant as VP, even if she wasn't in charge. The Inflation Reduction Act, which the administration negotiated through Congress despite the opposition of all Republicans, has been a pivotal tool in the fight against global warming. It includes a suite of measures aimed at reducing greenhouse gas emissions and promoting clean energy. By providing significant tax incentives for renewable energy projects, the act has spurred investment in wind, solar, and other green technologies. (One of our portfolio funds, Calvert Impact, recently received a massive $6.97 billion award from the National Clean Investment Fund (NCIF) under the EPA’s Greenhouse Gas Reduction Fund (GGRF). This money will back clean energy projects across the U.S., focusing on underserved areas. Calvert Impact and its partners in the Climate United coalition aim to deliver cleaner air, better jobs, lower energy bills, and stronger energy security, propelling us closer to a green future​.) Additionally, it supports energy efficiency improvements in homes and businesses, reducing overall energy consumption. The act also funds research and development for advanced climate technologies, ensuring that the U.S. stays at the forefront of innovation in combating climate change. And it created the Civilian Climate Corps. Think of it as a modern-day Public Works Administration, but for the environment. They’ve got young Americans out there, boots on the ground, tackling projects to make our lands more resilient to climate change, restoring public spaces, and pushing for environmental justice. It's not just about cleaning up parks; it's about giving these kids jobs and training in clean energy and conservation. They’re building a workforce that’s ready to take on the climate crisis head-on. It’s a bold move, blending economic recovery with a fierce commitment to saving our planet.These combined efforts are projected to cut U.S. carbon emissions by nearly 40% by 2030, setting a strong example for global climate action.

The Last Trump Administration

Trump’s climate record? It’s a different story altogether. His tenure was marked by rollbacks of key environmental protections and a general dismissal of climate science.

1. Withdrawal from the Paris Agreement

Trump pulled the U.S. out of the Paris Agreement, a global pact aimed at keeping global warming below 2 degrees Celsius. This move isolated the U.S. from international climate efforts and hampered global progress.

2. Deregulation of Environmental Protections

Trump’s administration dismantled numerous environmental rules aimed at cutting greenhouse gases and protecting nature. He weakened the Clean Power Plan, rolled back fuel economy standards, and opened protected lands for drilling, prioritizing short-term economic gains over long-term sustainability.

3. Promotion of Fossil Fuels

Trump’s energy policy was all about fossil fuels, pushing coal, oil, and gas production at the expense of renewables. This increased emissions and delayed the clean energy transition.

4. Disregard for Climate Science

Trump consistently downplayed climate change and ignored scientific recommendations. He questioned the validity of climate science, undermining public trust and stalling urgent action.

Comparative Analysis: Harris vs. Trump

1. Policy Vision and Framework

Kamala Harris’s approach to climate policy is comprehensive and forward-thinking. Her support for the Green New Deal and other climate proposals reflects a commitment to systemic change and sustainability. In contrast, Trump’s policies were regressive, prioritizing short-term economic interests and the fossil fuel industry over environmental protection and long-term climate stability.

2. Focus on Environmental Justice

Harris has consistently emphasized the importance of environmental justice, recognizing that marginalized communities are often the most affected by climate change. Her legislative efforts aim to ensure that these communities are not only protected but also play a central role in shaping climate policies. Trump’s policies, on the other hand, often neglected the needs of vulnerable populations and prioritized corporate interests.

3. International Leadership

As a co-sponsor of the Green New Deal and other climate initiatives, Harris is positioned to restore the United States' leadership in global climate efforts. Her commitment to international cooperation contrasts sharply with Trump’s isolationist stance, exemplified by his withdrawal from the Paris Agreement.

4. Support for Clean Energy Transition

Harris’s legislative record shows strong support for renewable energy and zero-emission technologies. Her co-sponsorship of the Zero-Emission Vehicles Act and other clean energy initiatives demonstrates a clear commitment to reducing the nation’s carbon footprint. Trump’s administration, in contrast, sought to bolster the fossil fuel industry, delaying the necessary transition to a sustainable energy future.

5. Investment in Climate Solutions

The Biden-Harris administration’s initiatives, such as the Greenhouse Gas Reduction Fund and policies promoting sustainable investments, highlight Harris’s dedication to fostering innovation and supporting start-ups in the clean energy sector. These efforts contrast sharply with Trump’s focus on fossil fuels and environmental deregulation.

The Future

If re-elected, Trump literally promised to be a dictator on day one because “I want to close the border, and I want to drill, drill, drill.”

Harris, on the other hand, could if elected build on the climate accomplishments of the current administration. Here are three ideas I got from the great podcast Volts, by David Roberts (the one where he interviews Todd Tucker from the Roosevelt Institute).

First, a National Development Bank. Every major trading partner has one, and it would solve problems like the offshore wind issue by offering super low interest loans for important climate projects. It’s not a radical idea; it was even part of some Build Back Better proposals. It’s a solid institution on pure market economics.

Second, labor law reform, specifically something like the PRO Act. If you're skeptical that existing programs will fix the issues facing American workers, you're not alone. The solution? Ensure all firms operating in the U.S. respect unions, not just those receiving government grants. Imagine Intel having to deal with unions because U.S. production demands it. It’s a way to streamline industrial policy and address dense social issues simultaneously. Plus, watching Elon Musk squirm? Sweet bonus.

Third, let’s talk about public returns on successful facilities and factories. There’s no reason we can’t replenish government program coffers by having the government take equity stakes in these investments. Our trading partners do it, and it’s smart—it ensures a return on investment and gives the government a seat at the table. It’s a way to prevent companies from just pocketing the money and running, ensuring a steady hand in their governance.

So, those are the top three ideas for a Harris administration: a National Development Bank, labor law reform, and public equity stakes. Simple, impactful, and in the realm of possibility. But none of that will happen unless we all vote for her. Make no mistake -- Harris is not an activist or a saint. She's a conventional politician. But on climate (and some other issues, but that's a topic for another day) she's a pretty good one. Way better than the alternative. So vote for her. I will.

Warm regards,

Joe