The Trump Administration and Sustainability

Since his second term in power and inauguration on January 20, US President Trump has been constantly on the agenda with his rhetoric that has raised concerns among the world public and the 10-15 decrees he signs on average every day. Decrees dominated by populist decisions, rhetoric that seems to be based on simplistic assumptions and not based on information/facts seem to have increased concerns about Trump and his administration.

You may have seen many news and articles on these issues in the world and national media. I would like to focus on sustainability, especially on the effects of the withdrawal from the Paris Agreement, which was one of the first decrees he signed. The withdrawal from the Paris Agreement and the statement that it would eliminate the additional costs and difficulties created by the EU against American companies over sustainability has led to the question of whether we have come to the end of the green economy/deal.

There have always been complaints that the EU legislation on sustainability makes it difficult for companies to do business and that the increasing bureaucracy makes them unable to do business. In fact, the EU is aware of this and is taking some steps to improve and facilitate the legislation. However, in the current environment in which the capitalist system in the world has arrived and a sustainable development model has been chosen, it is not easy to go back. The most important reason for this is that sustainable economics has now been adopted and entrenched in all the world’s financial and production circles, in other words by the main market forces. As a result, sustainability has not only been limited to the environment, but has also added digitalization and product/sector dimensions to its management and social aspects. With the low-carbon green economy, production and services have become more profitable. Especially the sustainability efforts of multinational companies have reached an unstoppable stage. Current legal regulations and public opinion also support this.

In the world, production with green technology has become cheaper and more convenient, and public expectations seem to have stabilized in this direction. It has become almost impossible to sell products that are not sensitive to the environment, economy and human rights. No one wants to buy a product from a company that uses child labor, pollutes the environment and disregards employee rights. Because if it becomes known, the sale of such a product will stop and the name of the company will be a big stain.

To understand the direction the world is heading, it is enough to look at some examples. In the US, there has been a huge increase in investments in renewable energy sources. Texas, a staunch Republican state, has surpassed California, a staunch Democrat state, in solar energy investments.

Even the world’s largest fossil fuel producing countries are now investing in renewable energy sources and taking measures to diversify their economies. The recent pandemic has shown how vital supply chains are. China, which has been criticized for its polluting and low-quality production until today, has become a dominant force in the green economy. It has made significant breakthroughs in electric vehicle production and renewable energy. It is obvious that especially non-fossil fuel producing countries will continue to pursue sustainable economic development.

Trump’s withdrawal from the Paris agreement and his withdrawal of federal support for climate change may, at worst, delay the ongoing progress on sustainability. However, it seems difficult for the walls he insists on building to stop the trend towards clean, renewable energy and low-carbon production, which is supported by the main market forces and public opinion in the world.