Environmentalists around the world had special reason to enjoy the triumph of Barack Obama last week. The election of the new president has put the wind back into the sails of the renewable energy sector. His landslide victory should see the introduction of a major climate change bill in an attempt to kickstart the new US environment policy.

Where investor confidence in green energy alternatives had been badly damaged by the credit crunch, clean technology and green energy stocks have now soared as financial analysts predict a significant boost from the incoming president. Obama’s financial plan aims to cut America’s greenhouse gas emissions in 2050, by 80% below the level of 1990. In doing this, Obama promised to invest $150bn over ten years in renewables as part of a wider plan to overhaul America’s energy system and increase the country’s energy security. One of the many new environmentally friendly policies introduced include tougher regulations on greenhouse gas emissions from vehicles in order to try and achieve the target of one million plug-in-electric hybrid vehicles on the road by 2015

In highlighting the obstacles that need to be overcome in order to transform the US into a green crusader, The Economist points out that the Republican’s still possess enough power in the Senate to indefinitely delay bills they don’t agree with. In addition to this, the moderate nature of most Democrats means that priorities other than halting climate may take centre stage, especially the state of the US economy. As the notion that government spending on the green agenda will help lift America out of recession is widely accepted, there is little evidence to support it.

However, despite the economy’s meltdown restraining alternative energy companies by cutting off their access to capital, the increasing concerns over growing energy prices, uncertainties over fuel supply and worries over climate change may mean that diverse sources of clean and renewable energy are the only viable solution. Furthermore, alternative energy advocates contend that Obama’s plans for renewable power will function as an economic stimulus as building wind farms, solar arrays and biofuel factories generates construction jobs, accounting for at least some of the five million ‘green collar jobs’ that he has pledged to create.

Researched research: Wind Power Generation in United States (2008)