The financial sphere is in turmoil following the shocking statement by Donald Trump who promises to halt renewable energy projects on the first day of his possible return to the presidency. This announcement triggered an immediate reaction, with shares in the renewable energy sector plummeting dangerously. The temporary loss of confidence is manifested by a notable decline in companies such as Orsted, Vestas, and Nordex. This volatility strikes investors, who are worried about the prospect of an American energy policy refocused on fossil fuels, potentially hindering the current dynamism that fuels green energy on the global market.
Washington: Donald Trump’s promise to end renewable energy projects on the first day of his potential presidency is creating a real earthquake in the sector. Shares in renewable energies have experienced a spectacular drop. The company Orsted, the world’s largest developer of offshore wind farms, saw its value decline by 14%, while turbine manufacturers Vestas and Nordex fell by 11% and 7.5% respectively. The uncertainty surrounding Trump’s energy policies is already worrying investors and supporters of renewable energy, particularly threatening the Inflation Reduction Act that supports green growth in the United States through tax incentives. This presidential prospect could also favor fossil fuels and alter the landscape of the energy market.
Immediate Impact of Trump’s Announcement on Markets
Donald Trump’s bold announcement to end renewable energy projects as soon as he takes office has immediately caused ripple effects on stock markets. Indeed, many companies in this sector have seen their shares drop significantly. For example, the wind energy giant Orsted recorded a decrease of 14%, prompting investors to worry about the possible consequences for the global economy. Moreover, Vestas and Nordex, major wind turbine manufacturers, have seen drops of 11% and 7.5% respectively, thus showing a concerning domino effect.
Potential Repercussions on the Clean Energy Industry
Trump’s return to the White House could upend the clean energy industry. A shift in energy policy is expected, with a stated priority for fossil fuels. This orientation could threaten the tax benefits currently enjoyed by renewable energy projects, potentially leading to a slowdown in sector growth. While this industry is essential for the energy transition and the fight against climate change, reducing or eliminating tax credits could significantly hinder them.
Reactions from International Markets
Internationally, the prospect of an anti-renewable Trump administration has also raised concerns. Some analysts believe this could affect trade relations and international agreements in the field of clean energy, with potential implications for Europe and Asia. Countries like China, which are massively investing in renewable energies, could leverage this position to strengthen their global leadership in sustainable energy. See more about China’s position in the clean energy sector.
