What’s Happening

President Joe Biden signed a new executive order on Wednesday, directing the federal government to reduce its own emissions and reach net-zero by 2050. 

The order seeks to reach that target by:

  • Electrifying the government’s vehicle fleet

  • Using 100% clean electricity at federal buildings and facilities by 2030

  • Requiring these federal buildings to achieve net-zero carbon emissions by 2045

  • Pushing agencies to use construction materials produced with a lower carbon footprint, as well as avoid substances containing PFAS, a known harmful chemical

Why does it matter?

The Executive Order states, “As the single largest landowner, energy consumer, and employer in the nation, the Federal Government can catalyze private sector investment and expand the economy and American industry by transforming how we build, buy, and manage electricity, vehicles, buildings, and other operations to be clean and sustainable.” The underlying logic is that the government has huge power, and responsibility, in reducing its own environmental footprint and incentivizing the rest of the economy to do the same. 

My Take

Biden is trying to stimulate the clean energy revolution by starting with the federal government. He has previously set out targets of increasing electric vehicle sales to 50% of the market by 2030, having 100% clean electricity by 2035, as well as making the entire U.S. economy net-zero by 2050. 

However, the President must remember that executive orders are short-sighted and lack the durability of actual legislation. Many of President Trump’s Executive Orders were overturned when Biden assumed office – what makes the President think that his would be any different?

Furthermore, the order fails to take into account underlying issues to the clean energy transition. Many of the critical minerals and emerging technologies crucial to clean energy are currently controlled almost entirely by China. Real leadership from America is required to build domestic and allied supply chains for these critical resources.

Finally, some government operations will prove more difficult to decarbonize – or prioritizing decarbonization could risk key functions, such as national security. The Executive Order makes no mention of carbon credits or offsets, which are a useful tool for decarbonization often used by the private sector. 

Quote me on it

“As the United States’ largest landowner and energy consumer, the Federal Government should set a strong example in addressing climate change. Yet, President Biden’s Executive Order creates more questions than it answers. Will the Department of Defense be expected to meet the 2050 target? How will President Biden secure the critical minerals supply chain? Can these goals be achieved without carbon offsets? Goals are easy. Substantive progress is difficult.” — VP of Government Affairs Quill Robinson