From Guest Blogger Tosin Yussuf: Will Trump’s Neglect on Environmental Issues Have an Impact Upon Green Investments?

“Make America Great Again” has been one of the catch phrases of the Trump campaign and in some ways, he seems to be following through on some of his promises. (Can you name one? -ed ) As this is a man who once called climate change a “hoax” and promised to roll back many of the green energy initiatives created through the Obama presidency, many investors are concerned as to whether or not such a stance will have a negative impact upon green investments as a whole. Let us take a closer look.

The Medium-Term Perspective

We first need to look at medium term projections in relation to both wind and solar power. These capacities are predicted to be markedly reduced in comparison to if Clinton had won. This will likely have some investors worried, as even larger domestic firms may not be able to drum up the necessary capital to continue research and development. In addition, companies heavily focused within the fossil fuel sector will likely benefit. This was predicted by many expert analysts including Colin Cieszynksi during the electoral campaign:

“A Trump win could change or undo some of these policies and could be seen as a positive for energy producers and pipelines and a potential negative for alternative energy companies”

However, is it all doom and gloom or do investors need to focus upon other key metrics in order to appreciate the big picture?

The Global Trend Towards Green

The United States is one of the largest producers and consumers of fossil fuels. Industries such as fracking may receive a welcome boost thanks to the Trump campaign. However, it is critical to appreciate that green technologies will continue to become more economically viable.

In the very same way, diminishing investment from the United States will likely cause other major market producers such as Asia and Europe to grow in size. It might simply be a question of investors shifting funds away from the United States marketplace. When we also take into account that global demand for traditional fossil fuels such as oil is continuing to slide, it is only logical to reason that Trump’s “America First” policy is not likely to have any dramatic long-term effects upon the green energy sector.

The Vacillating Trump Campaign

We also need to consider that many of Trump’s original promises have been watered own and in some cases, abandoned altogether. The president faces a great deal of internal opposition; particularly within Congress. Some consider that it is extremely unlikely for his current plan to come to fruition. It is much more plausible that he will be forced to take the middle road in order to gain bipartisan support in both houses.

There is no doubt that the short-term outlook for green firms out of the United States looks a bit rocky. It is nonetheless an undeniable fact that as renewable energy becomes cheaper to produce, this paradigm shift will continue unabated well into the future.