CDN NEWS | 
US NEWS 
Courtesy of The Economist
The Republicans look ready to join the Houston Astros in celebration following tonight’s elections. Both the House of Representatives and the Senate are both up for grabs in the US midterms, with polls showing the GOP poised to win the House but with the Senate remaining a toss up between the two parties.
Background on midterm elections: Roughly two years after a president has been elected, the US goes back to the polls to with all seats in the House of Representatives up for re-election, along roughly one third of seats in the Senate. The president stays put.
What it could mean for policy: Regardless of whether they win the Senate, if the GOP wins the House, the chances of either party passing major policies over the next two years is unlikely.
Even with control of both the House and Senate by the GOP, President Biden still has veto power that can be used to prevent a Republican bill from becoming law.
There are some more likely energy-related impacts
- Increased corporate scrutiny over ESG: The tit-for-tat politics of dragging political opponents in front of congressional hearings looks to turn its ire towards ESG investing. According to the Financial Times, large US companies are preparing for a wave of Republican hearings to investigate businesses’ environmental and social positions.
- Fast-tracking energy project permitting: Republicans have been calling for measures to ease the permitting regulations for new energy projects – this includes oil & gas and green energy projects like renewable power, small modular reactors, and hydrogen, something both parties actually agree on.
The IRA is probably safe: The huge Inflation Reduction Act passed by the Biden Administration will likely stay put, as the bill supports the development of projects in red states and would be unpopular to revoke.
Big picture: Energy and energy prices are major drivers in this year’s election. The social and political impacts of the energy transition aren’t often acknowledged despite the public’s divergent views, something GOP candidates are capitalizing on.
In the International Energy Agency’s recently published 524-page World Energy Outlook, social impacts are mentioned only 7 times and only off-handedly, which seems out of touch with the modern political climate.
Share This:
