Joe Biden: 'When I look at climate change I see jobs'


Jamie Prentis
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US President Joe Biden has said that building up the world's climate infrastructure “can and should” drive a sustainable economic recovery from the Covid-19 pandemic.

Addressing a side event on infrastructure development and climate action at Cop26 in Glasgow, Mr Biden said there was enormous economic potential in building a greener world while fighting global warming and leaving behind a more liveable planet.

“When I look at climate and dealing with climate change, I see jobs. Good jobs, economic development. That’s what I see,” he said on Tuesday.

“It can spur the creation of good jobs in the developing world just like it can in the developed world. Our global transition to a net-zero economy is predicated on 30 million new jobs worldwide by 2030.”

The International Energy Agency says the transition to net-zero could lead to 30 million jobs in the energy sector.

“This climate crisis is an enormous opportunity. It's about jobs, it's about building the industries of the future, it’s about making sure everyone shares the benefits of an equitable and sustainable green recovery,” Mr Biden said.

On Tuesday, the Biden administration was also announcing a plan to slash emissions of the greenhouse gas methane across the US, starting with oil and gas wells, pipelines and other infrastructure as part of its broader strategy to crack down on climate change.

At Cop26, Mr Biden also backed a major, multinational declaration to halt and reverse deforestation and land degradation by 2030.

On Monday, he highlighted the urgency of the matter, calling for action now and without delay. He called for “a decade of transformative action” to preserve the planet and boost the quality of life for people everywhere.

But he also underlined the potential economic benefits, arguing: “Within the growing catastrophe I believe there's an incredible opportunity — not just for the United States, but for all of us.”

He said there was an opportunity “to invest in ourselves and build an equitable, clean-energy future and in the process create millions of good paying jobs and opportunities around the world".

He acknowledged that America and other developed nations bear much of the responsibility for climate change, and apologised for his predecessor Donald Trump's withdrawal from the Paris climate agreement.

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Will the pound fall to parity with the dollar?

The idea of pound parity now seems less far-fetched as the risk grows that Britain may split away from the European Union without a deal.

Rupert Harrison, a fund manager at BlackRock, sees the risk of it falling to trade level with the dollar on a no-deal Brexit. The view echoes Morgan Stanley’s recent forecast that the currency can plunge toward $1 (Dh3.67) on such an outcome. That isn’t the majority view yet – a Bloomberg survey this month estimated the pound will slide to $1.10 should the UK exit the bloc without an agreement.

New Prime Minister Boris Johnson has repeatedly said that Britain will leave the EU on the October 31 deadline with or without an agreement, fuelling concern the nation is headed for a disorderly departure and fanning pessimism toward the pound. Sterling has fallen more than 7 per cent in the past three months, the worst performance among major developed-market currencies.

“The pound is at a much lower level now but I still think a no-deal exit would lead to significant volatility and we could be testing parity on a really bad outcome,” said Mr Harrison, who manages more than $10 billion in assets at BlackRock. “We will see this game of chicken continue through August and that’s likely negative for sterling,” he said about the deadlocked Brexit talks.

The pound fell 0.8 per cent to $1.2033 on Friday, its weakest closing level since the 1980s, after a report on the second quarter showed the UK economy shrank for the first time in six years. The data means it is likely the Bank of England will cut interest rates, according to Mizuho Bank.

The BOE said in November that the currency could fall even below $1 in an analysis on possible worst-case Brexit scenarios. Options-based calculations showed around a 6.4 per cent chance of pound-dollar parity in the next one year, markedly higher than 0.2 per cent in early March when prospects of a no-deal outcome were seemingly off the table.

Bloomberg

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Updated: November 02, 2021, 4:14 PM