As Donald Trump edges closer to a possible White House return, European sustainability companies are freezing expansion plans, fearing his climate policies could undo progress and threaten $1 trillion in green investments
The spectre of Donald Trump returning to the White House, a residence he left kicking and screaming four years back, is giving an attack of nerves to several European companies in the sustainability space. Bracing for lower sales and dwindling sales, these companies are rolling back their expansion plans, according to a Reuters report.
Their apprehension is not unfounded. The former POTUS, now the red-hot Republican nominee, has consistently dismissed the global concerns about climate change, backed by irrefutable scientific evidence, as 'fake news' or, in his own words, 'a green new scam.' If he returns to power, Trump is expected to dismantle the progress made by President Joe Biden in the fight against global warming, including the Inflation Reduction Act (IRA) that provides tax incentives and subsidies to American companies in the sustainability sector.
The law passed in 2022 has acted as a powerful incentive for European companies from the sector to expand or establish their US presence. However, the spectre of a second Trump presidency is prompting them to jam on the brakes.
In a classic understatement, Peter Roessner, chief executive of Luxembourg-based hydrogen firm H2Apex, described the former President as opportunistic, polemic and fairly unpredictable. In short, betting on Trump is simply not a 'sustainable practice' for businesses. In sheer numbers, it could put an investment of $1 trillion in low-carbon energy investments at risk by 2050, according to Wood Mackenzie energy data and analytics company.
The company was planning to build a hydrogen tank production plant in the US under the IRA, which would have cost around a third of the $15 million. In February, Roessner decided to cancel the plan due to concerns that Trump could be reelected despite the company already having initial talks with potential customers.
Although the replacement of Biden with Kamala Harris has somewhat lowered the odds, Trump remains the favourite to win the November presidential race. A fact that continues to fan anxieties all around a world, increasingly fearful of the catastrophic consequences of climate inaction.