Donald Trump’s pledge to stop renewable energy projects on “day one” of his potential presidency has sent shockwaves through the industry, causing renewable energy shares to plummet. “We are going to make sure that that ends on day one,” Trump said about offshore wind farms.
According to a Reuters report, the world’s largest offshore wind developer Orsted fell as much as 14 per cent while wind turbine makers Vestas and Nordex traded down around 11 per cent and 7.5 per cent respectively.

This isn’t Trump’s first rodeo with renewable energy; in his previous campaign, he claimed that solar panels require massive spaces, like entire deserts, to generate energy. However, according to the Solar Energy Industries Association, the actual land requirement for solar panels is relatively small, with most utility-scale solar operating today taking up less than 600,000 acres.

If Trump follows through on his promise, it could have significant implications for the renewable energy sector as he might try to eliminate or reduce tax credits for renewable energy projects, which could cripple the industry’s growth.

He could dismantle environmental regulations put in place by the Biden administration, making it easier for fossil fuel companies to operate.

A Trump presidency could lead to a shift in energy policy, prioritising fossil fuels over renewable energy sources.

Trump has vowed to end the electric vehicle mandate, which could harm the EV industry and its related infrastructure. Donald Trump’s stance on electric vehicles has taken a dramatic turn.

Just last December, he posted on Truth Social that EV supporters should “rot in hell”. However, after talks with Elon Musk, Tesla’s CEO and the world’s richest man, Trump suddenly softened his tone. Now, he claims to be “for electric cars” and thinks they’re suitable for “a small slice” of the population.

At a recent rally, Trump admitted that his change of heart was largely due to Musk’s endorsement. “I’m for electric cars – I have to be, because Elon endorsed me,” Trump said. “I have no choice”. This shift is quite surprising, considering Trump’s history of criticising electric vehicles, even calling them a “hoax”.

It’s essential to note that Trump’s ability to implement these changes would depend on various factors, including congressional support and potential pushback from states, businesses, and activists. Nevertheless, the uncertainty surrounding Trump’s energy policies has already caused concern among renewable energy investors and proponents.

Solar stocks are plummeting due to concerns that a second Trump presidency could jeopardise the Inflation Reduction Act, a crucial legislation that has driven a clean energy surge in the US by offering tax incentives to boost solar power. The act has been instrumental in fuelling growth in the renewable energy sector.

Prime Minister Narendra Modi dialled President-elect Donald Trump to congratulate the American leader on winning the fiercely contested US presidential election. Both leaders agreed to work together for world peace, sources said.

Mr Trump in his victory speech today said one of the first things he would do is to stop wars. India, too, is a trusted mediator of both the West and Russia in calling for peaceful negotiations to end the war in Ukraine.

President-elect Trump conveyed in the phone call that “the whole world loves PM Modi”, and that India is “a magnificent country” and PM Modi is a “magnificent man”, sources said.

Mr Trump told PM Modi that he considers him and India a true friend, sources said, adding PM Modi was one of the first world leaders Mr Trump spoke to after his victory.

India is no stranger to Mr Trump’s style of working. Both nations have seen ups and downs during Mr Trump’s last reign as US President from 2016 to 2020. While Mr Trump had been supportive of India on the fight against global terrorism, the billionaire businessman had been extremely tough on tariffs on American goods.

Mr Trump’s new presidency is likely to open new opportunities for India though certain sectors, especially pharma and IT, may face the heat if he decides to impose restrictions on imports and H1B visa regulations.

PM Modi’s friendly ties with Mr Trump will have a positive bearing on Indo-US relations, but India may have to adapt its strategies to maintain cooperation in areas of mutual interest, experts told news agency PTI.

“Trump’s presidency can be a new opportunity for India. Trump will impose tariffs and import restrictions on countries that he thinks are not friendly to the US, like China and even some European countries, and this can open markets for Indian exports,” former Vice Chairman of the government’s think tank NITI Aayog Rajiv Kumar said.

Barclays, in a research report on Wednesday, said trade policy is where Mr Trump is likely to be “most consequential” for emerging Asia, which includes India and China.

However, some experts say Mr Trump’s trade protectionist views could have some negative impact on India’s exports and might exert some pressure on the rupee in the short term. Since Mr Trump’s protectionist philosophy of economics is well-known, the process of globalisation may become more strategic and less fair to emerging economies, including India, National Institute of Public Finance and Policy visiting Professor Pinaki Chakraborty said.

Mr Trump defeated the Democratic presidential candiate Kamala Harris in a stunning political comeback. World leaders swiftly pledged to work with Mr Trump, led by Israel and Ukraine where the course of wars could depend on the new US President’s isolationist “America First” foreign policy.

With inputs from agencies

Indian Prime Minister Narendra Modi congratulated Donald Trump on winning a second term as US President. Modi, one of the first world leaders Trump spoke with, expressed enthusiasm for continued collaboration between the two nations. Trump referred to India as a “magnificent country” and praised PM Modi’s global standing.