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Joe Biden’s Victory Could Make This 1 TSX Stock Explode

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The next big push to the renewable energy space is coming with the new administration in the White House on January 21, 2021. Joe Biden will take his oath as 46th President of the United States. Investors expect renewable energy stocks to be on center stage when Biden leads the clean energy revolution.

On the Toronto Stock Exchange (TSX), Brookfield Renewable Partners (TSX:BEP.UN)(NYSE:BEP) seems ready to explode some more. The green stock is performing superbly as evidenced by its 59.95% year-to-date gain. If the company can offer solutions to global warming, it could achieve its objective of growing in the U.S. market. Income, value, and growth investors should watch out for this TSX stock.

Campaign promise

During the campaign, one of the promises of the Biden-Harris tandem is to pass the most progressive piece of clean energy legislation in America. Likewise, Biden’s administration plans to invest US$400 billion over ten years in clean energy and innovation.

The work calendar of Joe Biden is hectic. U.S. will rejoin the Paris Climate Agreement on his first day. In his first 100 days in office, he will convene a climate world summit. During the first year, Biden will work with Congress and hopefully enact the clean energy legislation in 2021.

Canada’s net-zero emission plan

After Prime Minister Justin Trudeau’s throne speech in September, his administration promised to “immediately” bring forward its 2030 climate targets plan.  Next week, the climate accountability legislation will be on the table. Canada will formally commit to its target of net-zero greenhouse gas emissions by 2050. The bill will set a mandatory national five-year target to cut emissions starting in 2025.

The federal government will also roll out new standards for cleaner-burning fuels in December. Sector-by-sector consultations will begin too to set reduction targets. Trudeau will offer incentives to increase the use of clean energy and develop the market for electric vehicles.

The federal government also promises a national hydrogen strategy, which is a key component of the net-zero emissions strategy. It should identify potential industrial uses for hydrogen as a fuel source.

Transition to greener future

Brookfield Renewable will surely play a vital role in any clean energy revolution. According to Connor Teskey, CEO of Brookfield Renewable, the focus is growing the business. The target is to deliver 12% to 15% long-term returns. It will leverage scale and operational expertise to help governments and businesses globally transition to a greener future.

This $13.79 billion company is very liquid, roughly $3.3 billion in cash, and the balance sheet is investment-grade. Debt-wise, there are no material maturities over the next five years. The recent additions to Brookfield’s power include Terraform Power in North America and European solar and wind assets in Europe.

Green wave

The renewable energy space will attract more attention with Joe Biden’s victory. Demand for renewable energy will soar when the U.S., Canada, and other major greenhouse gas-emitting nations set in motion their respective carbon reduction goals in 2021.

Meanwhile, expect Brookfield Renewable to benefit and generate massive profits from the green wave. Capital and dividend growth awaits would-be investors. Some analysts even say green energy is viable with or without government support.

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Fool contributor Christopher Liew has no position in any of the stocks mentioned.

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