Donald J. Trump has been re-elected to be the 47^th President of the United States, heralding the start of the “Trump 2.0” era. During his first term, calling climate change a “hoax,” Donald Trump had relentlessly pursued policies to expand the usage of fossil fuel and roll back environmental regulations. In response, the Natural Resources Defense Council, an environmental advocacy group, had filed lawsuits against the Trump administration almost every week to challenge these deregulatory efforts. More recently, President-elect Trump has been a vocal critic of the Biden administration’s climate policies, labeling the Green New Deal as a “socialist green new scam.” With President-elect Trump’s return to the White House, there is now heightened uncertainty regarding the future direction of climate policies.

Despite such regulatory uncertainty, the reality of climate change remains dire. Last November, the Copernicus Climate Change Service, the EU’s climate observation program, predicted that 2024 is set to be the hottest on record and the first year to breach the critical 1.5℃ threshold. This threshold, widely recognized after the establishment of the Paris Agreement’s long-term goals in 2015, represents a tipping point that could significantly disrupt Earth’s natural systems. It warns of the potential for a cascade of climate disasters and irreversible damage to ecosystems. Having already surpassed this 1.5℃ limit, the international community is expected to face increasing pressure to accelerate climate actions beyond mere declaration of carbon neutrality or establishment of carbon emission reduction goals.

Companies striving to develop specific implementation strategies to reduce carbon emissions are expected to encounter growing challenges next year. As a response to climate change is no longer restricted to the issues of climate justice or environmental protection and becoming a major economic factor in corporate decision-making process, intricately linked with industry and trade, it is absolutely critical to actively respond to climate change. However, with expected uncertainty under President-elect Trump’s second term, this exercise could easily become challenging.

In this Climate Insight, we will analyze the direction of climate policies and sector-specific outlooks based on President-elect Trump’s campaign promises (Agenda 47), his campaign statements, and recent personnel appointments. We will further identify key implications for businesses as they need to navigate their climate response strategies during this pivotal time.

[Korean Version]