Joe Biden and Kamala Harris will be the next president and vice president of the United States. And President-elect Biden is wasting no time in making his agenda known.

It’s very similar to what he’s been speaking about during his campaign stops. Personally, I’m most interested in how he plans to handle climate change, renewable energy, energy efficiency and electric vehicles.

Together, these are referred to as clean technology, “greentech” or “cleantech.”

Cleantech touches many industries. But it’s defined primarily by sectors such as energy efficiency, energy generation, energy infrastructure and energy storage.

Lucky for us, these are sectors we’ve been following for years here at Profit Trends. And they’re set to soar under a new administration.

Undoing the Damage

One of the first things Biden plans to do is roll back dozens of executive orders put in place by the outgoing president, such as the removal of the 2007 Bush-era rule designed to slowly phase out the old incandescent lightbulb.

Back in December 2019, U.S. Secretary of Energy Dan Brouillette said that revoking this rule “protected consumer choice.”

This does not make sense to me. Nearly every lightbulb style and shape is now available in an energy-saving LED format. Customers have more lightbulb styles and shapes available today than they did a year ago when this was signed.

That’s just one example of dozens of Obama-era and earlier legislation that Biden plans to reinstate. He also plans to quickly rejoin the Paris climate accord.

It looks as though the House will remain under Democratic control. The Senate, on the other hand, looks like it will continue to be controlled by the Republicans.

That’s actually good news from an investor’s point of view. President-elect Biden is a good dealmaker. He’s had plenty of experience both in Congress and as vice president.

I expect we’ll see plenty of cleantech legislation proposed and acted upon.

The Promise of Wind Power

Offshore wind, especially on the east coast of the U.S., will also be high on Biden’s list. This is good news, as the Bureau of Ocean Energy Management (BOEM) has been dragging its feet on project reviews.

Massachusetts’ Vineyard Wind project was originally scheduled to receive its final environmental impact statement in June 2019.

This still has not happened. The project is several years behind schedule and is looking at a start date of 2022. And it’s all because of BOEM permitting delays.

We have offshore wind potential of 2,000 gigawatts. That’s more than twice the amount of electricity that the U.S. currently uses. Why delay our energy independence any longer?

From an investor’s point of view, offshore wind holds a lot of promise. But the industry is just getting underway here in the U.S.

So I would focus on exchange-traded funds (ETFs) that will capitalize on wind power.

Wind Energy ETFs Performance

One of my favorites is the First Trust Global Wind Energy ETF (NYSE: FAN). Since the beginning of the year, the wind energy ETF is up 37%, and it sports a dividend yield of 1.5%.

If you want to capture a broader swath of cleantech, you might consider the Invesco Cleantech ETF (NYSE: PZD). It’s up 28% year to date.

I also like the ALPS Clean Energy ETF (CBOE: ACES). It’s up a whopping 79% since the year began. And over the last 12 months, it’s up 92%.

I expect great returns like these to continue. The cleantech sector is quickly becoming a more mainstream choice for investors, especially with the promise of four years under Biden.

Good investing,

Dave