Shares in renewable energy companies, both in the US and Europe, fell sharply on Wednesday following Donald Trump’s victory in the US presidential election. Investors responded to Trump's pledge to "end the green new scam" and roll back climate regulations established under President Joe Biden.
Trump has consistently voiced opposition to climate-focused policies.
Market analysts noted that Trump’s stance could slow down the energy transition and shift investor focus back to fossil fuel investments.
The WilderHill Clean Energy Index, a key measure of the sector’s performance, dropped as much as 6.7%, its steepest intraday decline since early August. It's currently down 4.45%.
In the US, solar companies were hit particularly hard, with Sunnova Energy International plunging nearly 48% and First Solar Inc. falling almost 20%. In Europe, Denmark’s wind turbine maker Vestas Wind Systems A/S slid around 11%, while offshore wind developer Orsted A/S fell as much as 14%. Germany’s RWE AG and Italy’s Enel SpA recorded losses as well.
Despite these setbacks, some analysts believe that existing tax and investment credits supporting clean energy projects may remain intact, given their popularity for job creation in both conservative and swing states.
