Trump Looks To Undo Biden Climate Progress With Burgum As 'Energy Czar': Report

President-elect Donald Trump is considering appointing an “energy czar,” a role that would have the authority to nix environmental regulations and increase U.S. fossil fuel production. 

What Happened: Trump is looking to appoint an overseer of deregulation efforts across various agencies, including the Department of Energy, Department of Interior, Federal Energy Regulatory Commission, and Environmental Protection Agency.

According to the Financial Times, North Dakota Gov. and billionaire Doug Burgum is the frontrunner for this so-called energy czar position. 

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Burgum initially competed in the Republican primary before endorsing Trump. He previously headed Great Plains Software, becoming its president in 1984, and selling the company to Microsoft Corp. MSFT in 2001 for $1.1 billion.

He has also served on the board of Atlassian Corp. TEAM and most recently served as an energy advisor to Trump during his latest presidential campaign. 

Why It Matters: The news coincides with John Podesta, Biden’s lead climate diplomat, appearing at the UN climate summit in Baku, Azerbaijan, Monday. He called the Nov. 5 presidential election outcome “bitterly disappointing.”

Over the past four years, the Biden Administration expanded clean energy initiatives and produced more oil than the previous Trump Administration.

Ali Zaidi, Biden’s national climate adviser, will likely be replaced with an energy czar as president-elect Trump targets current climate and energy regulations (i.e., vehicle emissions rules and lifting restrictions on oil and gas drilling). 

Analysts have said such changes could spell trouble for the clean energy and electric vehicle industry, but could be a boon for oil and gas companies. 

EV-makers including Rivian Automotive, Inc. RIVN and Lucid Group, Inc. LCID could see fewer sales if the Trump administration pulls rebates and tax incentives. However, oil and gas companies like Exxon Mobil Corp. XOM and Chevron Corp. CVX could see increased profits as Trump has vowed to lift restrictions on drilling and traditional energy production. 

Investors can also monitor the effects of potential policy changes in the broader EV sector through the iShares Self-Driving EV and Tech ETF IDRV and oil through the ProShares Ultra Bloomberg Crude Oil ETF UCO. 

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