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Ford chairman Bill Ford has welcomed the US re-joining the Paris Agreement on climate change.

It was one of the first acts of new US president Joe Biden, who was inaugurated as 46th US president at a ceremony in Washington yesterday. It reverses the country's withdrawal from the agreement under the previous administration.

Ford chairman Bill Ford issued a statement headed, "From Detroit to Paris, it is time for climate progress".

The statement said the decision is critical to reestablishing the United States' role as a world leader.

"As a global company, and one whose manufacturing and products contribute to carbon emissions, Ford's commitment to the Paris Climate Agreement matters and our position has never wavered," the statement said.

The statement went on:

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"Climate change is everyone's problem. It is already affecting every person on the planet, whether they realize it or not. Therefore, we all need to help change the course of history, and manufacturers like Ford have a particular responsibility.

"That is why Ford was the only full-line American automaker to stand with the Paris Agreement, and the only one to support California and adopt its strongest-in-the-nation greenhouse gas standards. While we cannot eliminate all the carbon producing manufacturing and automobiles overnight, we can choose a path that will eventually take us to a zero-emissions future.

"We believe that real and lasting change will only come from our will and a commitment to our values on a global scale to do better for our children and grandchildren. And, what we do to change our practices and products will have an exponential impact on the future.

"I started working at Ford in 1979 and looking back on my early days at the company now, I imagine my colleagues were not terribly excited by my arrival. I was raising concerns about the environment and the impact our industry was having on it. But even when it was a lonely position in our industry, I knew we had an important role to play.

"While we were not the first company to produce electric vehicles, we are committed to building the best electric vehicles. We are committed to sourcing 100% renewable energy for all our operating sites by 2035, and to be fully carbon neutral worldwide by 2050.

"Our work is nowhere near done, but President Biden's action today is an important step. We are pleased and proud to support the United States re-entry to the Paris Climate Agreement, and we hope that everyone shares our optimism that this is a fresh start for a common cause.

"In a world that grows more fragile and connected every day, we need to work together to bring real change that is good for our planet, our customers and our company."