How a Democratic Senate will shape the future energy economy - Business Insider

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Biden can unleash massive spending on clean energy with a Democratic Congress, but his 2 biggest climate goals are still out of reach

, is set to take office in less than two weeks with a Democratic-controlled Senate, a surprise that's likely to bolster his plans to reshape the American energy economy.

Expect more of that under a Democratic Senate, said Ed Crooks, vice-chairman of the Americas at the research firm Wood Mackenzie. Congress is likely to offer "carrots" — money and tax breaks for clean energy — rather than "sticks," such as restrictions on oil and gas drilling, he said. "We believe a doubling down on EV tax credits and further consumer incentives and government initiatives around the EV sector will be on the horizon which is a major positive for Tesla, GM, Fisker, and other auto players/EV supply chain," the analysts wrote. "The focus on environmental issues and reducing the domestic carbon footprint could have a dramatic impact for EV vehicles in the near-term.

"If and when Biden seeks to raise the corporate income tax to 28%, as he has indicated, there may be an effort to also include IDC repeal," Goldman Sachs analysts wrote in an October note.

 

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