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Vestas Shares Plummet in Wake of Trump Presidency Announcement

14 Nov 16:00 by Steve Walia

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Shares in Vestas, the biggest producer of wind turbines across the world, have dropped significantly amid concerns that the new Trump administration will spell disaster for renewable energy.

The Danish company saw its shares drop by 14pc initially before seeing some losses regained - to a 6.6pc drop overall at £52.60 equivalent. The company's shares had already begun to drop as the presidential election race drew to a close.

Currently, under the Obama administration, wind turbines are supported with generous financial subsidies from the public purse. America is the biggest polluter per capita in the world and has worked hard to cut its carbon emissions.

However, Donald Trump is known to be aggressively pro-business and against government initiatives that put sustainability and green initiatives ahead of growth.

His election manifesto promised a revolution in energy that would be delivered through shale, natural gas, 'clean coal' and oil usage rather than further support for renewable energy. He has also committed to open up federal land leasing and to encourage the use of natural gas.

He does say that he will remove any barriers that exist against 'responsible' energy production, but with a focus on creating cleaner energy - unlike Obama's initiatives, which were designed to reduce carbon emissions.

Removal or lessening of green energy subsidies would pose a significant blow to Vestas and other firms operating in the sustainable energy space. The concern is that Trump will move the energy focus back towards fossil fuels and undo the good work done to date. Certainly, he has spoken of his hatred of wind turbines in the past, and those with an interest in a more sustainable economy in the USA may well have reason to fear the worst.