Donald Trump’s recent pledge to halt renewable energy projects on the first day of a potential new presidency has alarmed the clean energy sector, leading to significant drops in renewable energy stocks. Notably, shares of Orsted, Vestas, and Nordex have seen declines of up to 14% and 11%, respectively. Trump’s previous comments about renewable energy, such as misconceptions regarding solar land requirements, highlight his controversial stance on the industry.
If Trump proceeds with his promise, it could severely impact the renewable sector by eliminating tax credits and dismantling environmental regulations, favoring fossil fuel companies instead. His shifting views on electric vehicles also raise eyebrows; while he once criticized the sector, he has recently stated support for electric cars, attributing the change to endorsements from Tesla CEO Elon Musk.
The uncertainty surrounding Trump’s energy policies has sparked concerns among investors, particularly regarding the future of the Inflation Reduction Act, which provides vital tax incentives for solar power and has been critical for the growth of the renewable energy industry in the U.S. Ultimately, the degree to which Trump could enact these changes would depend on congressional support and potential resistance from states and advocacy groups. [1]
