On Wednesday, following Donald Trump’s victory in the US presidential election, shares of renewable energy companies, both in the US and Europe, fell sharply. Investors responded to Trump’s promise to “end the new green scam” and roll back climate rules set by President Joe Biden.
Trump has consistently expressed his opposition to climate-focused policies.
Market analysts have noted that Trump’s stance could slow the energy transition and bring investors’ attention back to fossil fuel investments.
The WilderHill Clean Energy Index, a key measure of sector performance, fell as much as 6.7%, the steepest intraday decline since early August. It is currently down 4.45%.
In the U.S., solar companies were hit especially hard, with Sunnova Energy International plunging nearly 48% and First Solar Inc. plunging nearly 20%. In Europe, Danish wind turbine maker Vestas Wind Systems A/S fell about 11%, while offshore wind developer Orsted A/S fell as much as 14%. German RWE AG and Italian Enel SpA also reported losses.
Despite these setbacks, some analysts believe that existing tax and investment credits supporting clean energy projects could remain intact, given their popularity for job creation in both conservative and swing states.