With the shocking election of Donald Trump to the United States presidency, how will energy policy change in America? Perhaps indicative of dark emission-filled days ahead, shares in the world’s largest wind turbine producer slumped after Trump won. Danish company Vestas Wind Systems A/S did plenty of business in the Americas last year, but after the election they traded 6.6 percent less than before the disheartening election results.
Trump has fought against wind energy in the past. He sued Scotland back in 2011 after they wanted to build an offshore wind farm near one of his precious golf courses. A lengthy legal battle ensued, with the highest court in Britain finally dismissing Trump’s appeal in late 2015.
As if actively working against a wind farm just because it marred his view wasn’t a red flag, Trump is also well-known for his persistent denial of climate change, including naive tweets spewing his dangerous opinion that climate change is a Chinese hoax. He praised “clean coal” – whatever that is – in his second debate against Hillary Clinton, and has already brought on fossil fuel advocate Kevin Cramer (R-N.D.) to advise him on energy policy. But Cramer’s backwards vision includes pilfering money from a carbon tax to “help fund clean fossil fuel research and development.”
Already the global market appears worried Trump will pursue fossil fuels over renewable energy, even though advanced technology for clean energies like solar and wind is already utilized worldwide. Formuepleje equity strategist Otto Friedrichsen told Bloomberg, “The Vestas share reaction is a result of concerns that Trump will focus more on fossil fuels. Now there’s concern how Vestas will perform in the U.S. under a president who’ll be more interested in looking out for the country’s coal industry.”
Vestas has been successful in America in the past; Bloomberg estimates the Americas generated about 41.3 percent of the Danish company’s revenues in 2015. Even so, Bloomberg reported after the election that Vesta shares fell by around 14 percent.
Images courtesy of Vestas Wind Systems A/S