Donald Trump's promise to halt renewable energy projects on "day one" of his presidency has caused a drop in renewable energy stocks. "We are going to make sure that ends on day one," Trump declared of offshore wind farms.
According to Reuters, Orsted, the world's largest offshore wind developer, plunged up to 14%, while wind turbine producers Vestas and Nordex sank about 11% and 7.5%, respectively.
This is not Trump's first foray into renewable energy; during his previous campaign, he stated that solar panels require vast areas, such as entire deserts, to create energy. However, according to the Solar Energy Industries Association, the actual land need for solar panels is quite minor, with most utility-scale solar operations currently occupying less than 600,000 acres.
If Trump follows through on his threat, it could have serious consequences for the renewable energy sector, as he may seek to abolish or cut tax incentives for renewable energy projects, stifling the industry's growth.
He may reverse environmental laws enacted by the Biden administration, making it easier for fossil fuel firms to operate.
A Trump presidency could result in a shift in energy policy, favouring fossil fuels over renewable energy sources. Trump has pledged to repeal the electric car mandate, which could hurt the EV sector and its supporting infrastructure. Donald Trump's opinion on electric automobiles has shifted dramatically.
Last December, he wrote on Truth Social that EV fans should "rot in hell". However, after speaking with Elon Musk, Tesla's CEO and the world's richest man, Trump abruptly changed his tone. Now, he claims to be "for electric cars" and believes they are appropriate for "a small slice" of the population.At a recent rally, Trump revealed that his change of heart was primarily due to Musk's support. "I'm for electric cars - I have to be, because Elon endorsed me," tweeted Donald Trump. "I have no choice" . This reversal is noteworthy given Trump's history of attacking electric vehicles, even labelling them a "hoax".
It's important to stress that Trump's ability to enact these reforms would be contingent on a variety of conditions, including congressional backing and potential opposition from states, corporations, and activists. Nonetheless, the ambiguity surrounding Trump's energy plans has already raised concerns among renewable energy investors and advocates. Solar stocks are dropping due to concerns that a second Trump presidency may imperil the Inflation Reduction Act, a critical piece of legislation that has fuelled a renewable energy rush in the United States by providing tax breaks to encourage solar production. The act has contributed significantly to the growth of the renewable energy sector.
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