EU & US Climate Targets “Gold” for Renewable Energy Industry
The Danish Sydbank has given the green light to the renewable energy industry as one of the key areas where huge profits (“gold”) can be made:
Vestas is flying on the stock exchange in Copenhagen in Thursday’s trading, where the presentation of new climate targets from the US government helps to pull up sharply.
And it is worth its weight in gold for a company like Vestas that there is firm political support for the development of renewable energy, says Sydbank.
– It may not do anything for Vestas ‘2021 forecast, but political support for green transition is the foundation for Vestas’ growth journey in the coming years, writes Jacob Pedersen, head of equity analysis at Sydbank, on Thursday in an analysis.
According to announcements from President Joe Biden on Thursday, the United States will halve its greenhouse gas emissions by 2030. The comparison year is 2005.
This follows right after the EU countries on Wednesday agreed to reduce CO2 emissions by 55 per cent. by 2030. Previously, the target was 40 per cent.
– The two ambitious policy goals are extremely important signals in the environmental agenda that is currently emerging around the world. There is a long way to go to meet the ambitious goals, and not all the goals have been approved yet, but the direction is clear, writes Jacob Pedersen.
– And the direction is worth gold for Vestas. The company is in an enviable position as the world’s largest wind turbine manufacturer and thus a supplier of solutions that are central to promoting the sustainability agenda and ultimately also fulfilling the politicians’ ambitious goals, he continues.
What applies to Vestas, applies to most other companies in the renewable energy realm. Never before in history has a branch of energy production been so heavily promoted, nay, tied to the survival of mankind itself, than renewable energy. There will be zero problems in finding funds to finance the transition. Expect pension funds to go at each other’s throat for the privilege of throwing billions at new offshore wind parks.