Biden Inauguration D-30... Green Energy Stocks Restarting

Rising Stocks Including CS Wind and Hanwha Solutions Resume Gains Despite Recent Index Slump

President-elect Joe Biden held a press conference on the 4th (local time) in Wilmington, Delaware, where his residence is located. [Image source=Yonhap News]

[Asia Economy Reporter Minwoo Lee] As the inauguration of US President-elect Joe Biden approaches in one month, the stock prices of domestic eco-friendly energy-related companies are showing signs of rising again. This is interpreted as reflecting expectations of future benefits, as the South Korean government is also intensifying policies related to eco-friendly energy.

According to the Korea Exchange on the 8th, the stock price of CS Wind, a wind power specialist company, closed at 124,500 KRW, up 3.75% from the previous trading day. This reversed the downward trend despite the recent KOSPI rising above 2700. The KOSPI closed at 2745.44 the previous day, rising 5.9% since the 30th of last month, but CS Wind fell about 6.7% from the 30th of last month to the previous day. Early in the trading session, it rose to 126,500 KRW, up 1.61% from the previous day. Hanwha Solutions' stock price also closed at 46,700 KRW, up 3.55% the previous day. It broke out of an eight-day consecutive decline and turned to an upward trend. As of 10:38 AM, it rose to 47,400 KRW, up 1.50% from the previous day. Hanwha Solutions is actively entering the eco-friendly energy business, led by its solar business division Hanwha Q CELLS.

With the inauguration of President-elect Biden scheduled for January 20 next year just one month away, investment sentiment is again flowing into the eco-friendly energy sector. Biden has previously announced plans to invest $2 trillion (about 2,168 trillion KRW) in climate change-related policies and $1.3 trillion in related infrastructure. The plan is to promote the transition to a "green economy" by advancing electric vehicles, batteries, 5G, and renewable energy infrastructure construction.

South Korea's government-level eco-friendly energy promotion policies have also acted as positive factors. The government announced a "Carbon Neutrality Realization Promotion Strategy" jointly with related ministries the previous day. The plan is to support companies and workers affected by reducing high carbon-emitting industries such as coal power and internal combustion engine vehicles, and to encourage low-carbon industries by establishing a climate response fund (tentative name). To this end, the introduction of eco-friendly energy taxes such as a carbon tax is being discussed. A carbon tax is levied based on the amount of fossil energy use such as petroleum and coal that emits carbon dioxide. President-elect Biden has also pledged to introduce a carbon tax by 2025. This is expected to have a positive impact on the eco-friendly energy sector in conjunction with the previously announced domestic "Green New Deal" policy.

Researcher Hangyungrae from Daishin Securities predicted, "The global wind power market is expected to grow rapidly, centered on offshore wind power, and the strengthening of eco-friendly policies in major countries is expected to expand the growth of new global solar power installations."

This content was produced with the assistance of AI translation services.