Coinciding with the United States’ formal withdrawal from the international agreement aimed at lowering emissions contributing to climate change, leading presidential candidate Joe Biden declared his intention to rejoin the Paris Agreement if elected to office.

Biden communicated this commitment via a tweet issued late Wednesday, stating, “The Trump Administration has officially exited the Paris Climate Agreement today. However, a Biden Administration will rejoin it in precisely 77 days.”

The Trump administration initially announced its intention to withdraw from the agreement three years prior, a decision that drew criticism from investors in the venture capital space at the time.

Hemant Taneja, a managing director at General Catalyst, remarked at the time, “I’ve consistently maintained that regardless of differing views on the scientific basis of climate change, we should all recognize that advancements in energy technologies present substantial economic prospects.” He continued, “Renouncing this opportunity jeopardizes American economic strength… American businesses will face a significant competitive disadvantage on a global scale without a reliable domestic market.”

Given the $2 trillion climate stimulus plan that formed a central component of the former vice president’s campaign, Biden’s pledge to rejoin the agreement is unsurprising.

For the Trump administration, the official departure from the climate agreement represented the fulfillment of a key campaign promise, potentially marking the final stages of its time in power.

A definitive and permanent U.S. withdrawal from the climate accord would significantly hinder the international community’s efforts to prevent a climate crisis driven by rising temperatures and greenhouse gas emissions. Recent years have demonstrated the devastating impact of changing temperatures through widespread wildfires, flooding, and other climate-related disasters. As the world’s second-largest producer of carbon dioxide, the U.S. has a disproportionately large influence on the success of any climate change mitigation strategy.

The agreement, a signature achievement of the preceding Obama administration during which Biden served as vice president, was created to limit emissions that cause global warming, aiming to keep temperature increases below an additional 2 degrees Celsius.

Todd Stern, who served as the chief U.S. climate negotiator during the Obama administration, explained to the Financial Times, “Should Biden be victorious, the finalization of the withdrawal on November 4th will ultimately be inconsequential.” He added, “However, if Trump secures a second term, the consequences will be far more enduring.”

To this point, the U.S. remains the sole nation to have formally exited the agreement.

Even if a Trump administration were to secure another term through a narrow electoral college win, prevailing market forces could lessen the impact of any support or incentives directed towards the fossil fuel industry.

In essence, renewable energy sources are becoming more economically viable within the U.S. compared to their fossil fuel counterparts. Both wind and solar power are now generally cost-competitive with, or even cheaper than, fossil fuels in numerous markets. Furthermore, the cost of battery storage is decreasing rapidly.

A report published by Consumer Reports in March highlighted the financial benefits of solar power for consumers. The publication stated, “Although initial costs are higher, investing in solar power leads to long-term savings.” It further noted, “Electricity generated from fossil fuels ranges from 5 cents to 17 cents per kilowatt-hour, while solar energy averages between 3 cents and 6 cents per kilowatt-hour and continues to decline, according to the National Renewable Energy Laboratory.”

Beyond market dynamics, a resistant Trump administration could face pressure to implement more stringent emissions reduction policies through the imposition of international tariffs and potential sanctions, as explained to the Financial Times by Sarah Ladislaw, a director of the climate change program at the Center for International and Strategic Studies at Tufts University.

“It is highly probable that nations with ambitious emissions reduction goals, such as the EU and China, will attempt to influence U.S. policy through cross-border carbon tariffs and efforts to integrate climate considerations into the global financial system,” she stated.