Coalition agreement abandoning 2020 climate target boosts RWE’s shares
German utility RWE could turn out as “one of the winners of the expected grand coalition” between the conservative CDU/CSU alliance and the Social Democrats (SPD), Maximilian Völkl writes in the business magazine Der Aktionär. Researchers like Manuel Frondel from the RWI say that “the abandonment of the 2020 climate target has done away with the idea of a quick coal exit,” which directly benefits the RWE, Völkl writes. While erratic policy makes it more difficult for companies to ensure secure planning, a recent study conducted by investment bank Goldman Sachs shows that RWE’s shares have gained in attractiveness and have now been upgraded to “conviction buy” status, Völkl says.
Find the article in German here.
Check the CLEW dossier Utilities and the energy transition for background.