By America Hernandez
PARIS (Reuters) – In a recent statement, TotalEnergies’ strategy director, Aurelien Hamelle, expressed confidence that a potential return of Donald Trump to the U.S. presidency would not lead to a withdrawal from the Paris Agreement on climate change or the undoing of the Inflation Reduction Act (IRA) legislation. Hamelle made these remarks while presenting Total’s energy outlook forecasting global demand scenarios up to 2050.
The company’s current trends scenario also does not foresee a lifting of the current U.S. ban on new liquefied natural gas (LNG) export facilities.
WHY IT’S IMPORTANT
Prior to the recent election, former President Trump campaigned on a platform that included rolling back climate regulations implemented under President Joe Biden. This could potentially involve exiting the Paris Agreement and reversing Biden’s flagship IRA, which supports clean energy technologies with subsidies and incentives.
CONTEXT
TotalEnergies is a significant purchaser of U.S. natural gas for export, with multiple upstream U.S. shale field holdings and a pipeline of future projects. The company also has a 25 gigawatt portfolio of solar, wind, and battery projects in the U.S., along with considerations for renewable fuel production sites.
KEY QUOTES
“We take into account existing legislation in our current trends scenario, and for the IRA to be called into question you would need a Republican-controlled Congress, which the polls say is unlikely,” Hamelle stated.
“What we also see with the IRA, which has provided a framework of support for private finance in all low-carbon technologies, is that Republican states and districts have also benefited from the job creation …
“What is clear is that the United States will set the pace of the global energy transition … We have not forecast a ‘worse than current trends’ scenario.”
Expert Analysis:
In summary, TotalEnergies’ strategy director believes that the potential return of Donald Trump to the U.S. presidency would not result in a withdrawal from the Paris Agreement or the reversal of the Inflation Reduction Act. This could have implications for climate change policies, energy markets, and the global energy transition. It is important to monitor these developments for potential impacts on investment opportunities and financial markets.