Although President Trump hasn’t made an official statement, the world is now waiting for him to make the announcement. He might surprise us and not take a completely reckless decision, but the odds are against it — after all, he’s publicly stated he wants to do it several times, and until now, he’s done everything in his power to support the fossil industry big boys, regardless of the costs. But the market has spoken otherwise.
Right after the rumor went out that Trump would back away from the Paris deal, U.S. renewable shares started dipping. After all, the president and his administration are leading an all-out war on renewable energy, so that’s expected. But unexpectedly, coal company shares also started dipping. Basically, the international backlash is expected to be so severe that it will dramatically affect coal companies, even if they’re supported from within, by the government. Peabody Energy, the largest publicly traded U.S. coal company dropped 2.2 percent, while Arch Coal fell 0.4 percent.
A spokesman for Peabody said the company supports Trump in his bid to withdraw from the pact. But here’s the thing — fossil fuel companies are pretty much the only ones against the Paris Agreement. If anything, many people believe the pact should be even more ambitious (including yours truly). According to the agreement, all countries have a national responsibility to reduce their emissions, and in the vast majority of cases, this involves replacing as much fossil fuel as possible with renewables. Naturally, some companies would lose money, and this is why they’re against it.
But even so, many fossil fuel companies support the Paris Agreement.
“For us, our position on the Paris agreement… we need a framework like that to address the risks of climate change,” Exxon Mobil Chief Executive Officer Darren Woods told reporters on the sidelines of the company’s annual general meeting on Wednesday.
The good thing is that no matter what the US President decides to do, the renewable industry will continue to grow. It will be a hit, yes, and a significant setback, but renewable energy is getting cheaper, and it’s more beneficial to the economy than the fossil fuel industry — let alone the environment.
“Regardless of what the President decides on the accord, we expect America’s solar industry to continue to thrive and create jobs, boost the economy and reduce greenhouse gas emissions,” the Solar Energy Industries Association said in a statement.
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