Can the BP share price rally if the US follows through with this pivotal agreement?

first_img I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Image source: Getty Images “This Stock Could Be Like Buying Amazon in 1997” Jay Yao | Friday, 26th February, 2021 | More on: BP With the world’s largest economy, the US recently rejoining the Paris climate agreement has big potential implications for the energy industry. Given that BP (LSE: BP) is a leader in energy, here’s more on the Paris climate agreement and how I think the US rejoining the agreement affects the BP share price.Paris climate agreementThe Paris climate agreement is an agreement made by over 190 countries to combat climate change. The agreement has a goal of limiting average global warming to well below 2 degrees Celsius (with the hope that the end result is around 1.5 degrees Celsius) by reducing greenhouse gas emissions over time.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…In terms of combating global climate change, I reckon the task is tougher than sending someone to the moon. No one country gets to decide the global level of carbon emissions by itself. The carbon capture technology needed for one country to economically offset the necessary fossil fuel emissions doesn’t exist yet. As a result, it takes a global effort to fight climate change. I think the US joining the fight increases the odds that the world successfully controls global warming.As it relates to BP, I think the US rejoining the Paris climate agreement improves the growth prospects of BP’s potential green business.Although many US businesses are planning to cut their carbon emissions regardless, I reckon the US rejoining the Paris climate agreement could accelerate the trend of cutting carbon emissions. For example, the US government could potentially legislate more accommodative policies and regulations towards green energy. As a result, various low carbon energy forms such as offshore wind could see more demand and BP’s green business could have an even larger potential target market.As for BP’s other business lines, I don’t think the US rejoining the Paris climate agreement changes BP’s strategy much given that the company already has a goal of cutting carbon emissions substantially over time.How I think the US rejoining the Paris climate accord affects the BP share priceIn terms of its effect on the BP share price, I reckon the market has already priced in much of the effect of the US rejoining the Paris climate agreement. The market is a forward-looking mechanism, after all. President Joe Biden, who supports the fight against climate change, won in November of last year, as well. Although the market may have already priced in much of the effect, I nevertheless think BP shares can still rally given the right conditions. To me, BP shares don’t trade at an expensive valuation given the quality of the company’s assets and R&D potential. I also think BP management will succeed in their green transition. I’d buy and hold BP given the current BP share price as a result.With this said, I reckon BP shares could also decline if oil prices fall or if management fails to deliver the results the market expects. If Covid-19 variants becomes more of a problem, BP could also face additional headwinds.  Simply click below to discover how you can take advantage of this. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Can the BP share price rally if the US follows through with this pivotal agreement?center_img See all posts by Jay Yao I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Our 6 ‘Best Buys Now’ Shares Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. Enter Your Email Address Jay Yao has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. 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