Renewable Energy Stocks Rebound on Biden Optimism

President Biden Signs Executive Order Rejoining Paris Climate Agreement on Inauguration Day
Green Policies Expected to Gain Momentum... CS Wind and Other Renewable Energy Stocks Rally

U.S. President Joe Biden is signing three executive orders on the 20th (local time) in the Oval Office at the White House in Washington, D.C., as his first official acts after taking office. These orders concern rejoining the Paris Climate Agreement, mandating mask-wearing in federal facilities, and ensuring racial equality.
[Image source=Yonhap News]

[Asia Economy Reporter Minwoo Lee] With the inauguration of U.S. President Joe Biden, who campaigned on eco-friendly policy pledges, investment sentiment is focusing on domestic eco-friendly renewable energy stocks. By signing an executive order to rejoin the Paris Climate Agreement on his first day in office, momentum is building, raising expectations for future performance improvements.

According to the Korea Exchange on the 21st, wind power company CS Wind rose 13.3% from the 18th through the previous day, significantly outperforming the KOSPI's 3.3% increase during the same period. Although it dipped 0.28% to 180,000 KRW as of 9:30 a.m. that day, it still maintained a better trend than the index.

Earlier, on the 20th (local time), President Biden signed an executive order to rejoin the Paris Climate Agreement on his inauguration day. The Paris Climate Agreement aims to limit greenhouse gas emissions by countries to overcome the climate change crisis. Former U.S. President Donald Trump officially withdrew last November, but President Biden moved to rejoin immediately after taking office.

Hydrogen fuel cell company Doosan Fuel Cell is also on the rise. Starting to climb from the 18th, just before Biden's inauguration, it recorded 56,600 KRW as of 9:30 a.m. that day, up 1.9% from the previous day. It rose nearly 7% during this period. With the government's hydrogen economy activation policy, the market is expected to grow significantly, accelerating performance improvements. Last October, the government announced plans to introduce the Hydrogen Power Obligation System (HPS) by 2022 and achieve 8 gigawatts (GW) supply from fuel cells by 2040. This scale is 80 times the 100 MW order volume Doosan Fuel Cell secured last year.

Additionally, Hanwha Solutions, which focuses on solar power generation, has continued its recent upward trend. It rose about 10.2% from the 18th through the previous day. Although slightly subdued that morning, with the full-scale implementation of eco-friendly policies this year, domestic and international growth is expected.