Donald Trump’s return to the White House is set to prioritize oil and gas production over climate change initiatives. However, analysts predict this shift may not significantly halt the ongoing renewable energy expansion, Reuters news report said.
Impact on Renewable Stocks: Clean-energy stocks saw a downturn after the election, with the MAC Global Solar Energy index dropping by 10 percent, and NextEra Energy’s shares down by 6.2 percent, reflecting investor concerns over a policy reversal under Trump.
Inflation Reduction Act (IRA) Likely Safe: Despite Trump’s criticism of the IRA, which funds clean-energy projects, repealing it is considered challenging due to its bipartisan support, especially from states benefiting from renewable investments. Analysts argue the transition to renewables is “well under way.”
Possible Executive Actions: Trump may influence energy policy by restricting federal agencies from issuing grants or leasing public lands for offshore wind, potentially favoring fossil fuels. However, most renewable projects operate on private land, limiting this impact.
Fossil Fuel Production Continuity: U.S. oil and gas production is unlikely to slow, as it responds to global prices. Trump’s allies argue his previous deregulation encouraged growth, while he could further support fossil fuels by rolling back Biden’s climate initiatives.
Potential Exit from Climate Accords: Trump may consider withdrawing from international climate agreements, as he did in his previous term, citing insufficient efforts from other major emitters like China and India.