Stocks Tumble After Trump Promises To Shut Down Clean Energy Projects
Washington DC, US: Shares in European clean energy groups witnessed a dip on Wednesday after elected president of the United States Donald Trump pledged to end renewable energy projects on “day one” of his potential return to the White House. The news sent shockwaves among investors, triggering renewable energy shares to plummet.
Trump vowed to scrap offshore wind projects and roll back climate regulations implemented under President Joe Biden.
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Speaking of the offshore wind farms, the Republican said, “We are going to make sure that ends on day one.” Reuters reported that it also includes leaving the Paris Agreement, wherein countries pledged to limit global warming. If implemented, this move would potentially undo Biden’s flagship Inflation Reduction Act, which provides huge subsidies and incentives to clean energy techniques. The move could cripple the industry’s growth.
Orsted, the world’s largest offshore wind developer, fell nearly 14 percent, while wind turbine makers Vestas and Nordex witnessed an 11 percent and 7.6 percent dip, respectively.
A Trump presidency could lead to a shift from renewable energy to prioritising fossil fuels. This could lead to drastic consequences with regards to the current climate change crisis.
Additionally, Trump has also vowed to end the electric vehicle mandate, a dramatic turn since earlier he had softened his tone towards the EV industry after talks with Tesla CEO Elon Musk.
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Notably, to implement such changes, Trump would need congressional support and could face potential pushback from states, businesses, and activists.
In his previous campaign as well, Trump claimed that solar panels require massive spaces, such as entire deserts, to generate energy. According to the Solar Energy Industries Association, the actual land requirement for solar panels is, on the contrary, quite small, with most taking up less than 600,000 acres.
