Trump effect in clean tech sector deepens angst in Europe's boardrooms

FE Team | Published: July 30, 2024 00:10:53

FRANKFURT/GDANSK, July 29 (Reuters): European companies focused on clean energy are abandoning expansion plans, bracing for lower sales or see funding of US projects in doubt because of fears over what a potential election victory for Donald Trump could mean for their sector.
Trump has dismissed President Joe Biden's policies to fight climate change as a "green new scam" and is expected to try to undo much of his administration's work, including the Inflation Reduction Act (IRA) that offers tax breaks and subsidies to US and foreign companies investing in sustainable energy.
The law passed in 2022 has acted as a powerful incentive for European companies from the sector to expand or establish their US presence, but a spectre of a second Trump presidency is giving them a pause.
"With a Donald Trump who A) is very opportunistic, B) is also very polemic and C) is also fairly unpredictable, you have to ask yourself whether it makes sense to make such a bet," Peter Roessner, chief executive of Luxembourg-based hydrogen firm H2Apex, told Reuters.
Under the IRA, the company could have built a hydrogen tank production plant in the United States for around a third of the $15 million in costs. In February, however, Roessner decided to cancel the plan over concerns that Trump could be reelected even though the company already had held initial talks with potential customers.
Market bets that Trump would win back the White House in November have intensified this month after he was shot at during an election rally and days later secured the Republican Party nomination.