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U.S. midterm outcome in certain states could affect approach to energy

26 October 2022 09:10 (UTC +04:00)

Oregon’s cap-and-trade program, Maryland’s net-zero emissions targets, and Arizona’s solar subsidies all hang in the balance in upcoming midterm elections, and their fate could have affect U.S. climate performance, APA reports citing Reuters.

States have taken the lead on climate in recent years in the absence of federal policy. Numerous states have already pledged net zero greenhouse gas emissions by 2050, and investors concerned with environmental, social and governance (ESG) issues have purchased municipal bonds to fund those efforts. But voters in some states are now worried about rising energy costs, while other states must reckon with poor air quality and higher emissions.

President Joe Biden's administration, through passage of the federal Inflation Reduction Act, is trying to reduce U.S. reliance on fossil fuels to cut emissions along with reliance on volatile global oil-and-gas markets, where supplies have tightened since Russia's invasion of Ukraine and as Moscow has restricted supply to Europe.

Fossil fuel advocates have urged more U.S. oil and gas production, while opponents advocate more development of renewable resources to untether domestic energy costs from decisions made by Russia and Saudi Arabia.

Oregon's tight gubernatorial race could decide whether the state will keep its cap and trade program, enacted this year through an executive order by Governor Kate Brown, a Democrat.