Major European clean energy stocks fell sharply after Donald Trump’s election win. Investors reacted to fears of weakened U.S. support for renewable energy, with Orsted dropping 14 percent, Vestas down 11 percent, and Nordex falling 7.6 percent.
Trump has pledged to roll back climate policies, including leaving the Paris Agreement and potentially undoing Biden’s Inflation Reduction Act (IRA), which funds renewable energy projects. He also promised to scrap U.S. offshore wind projects, Reuters news report said.
The U.S. renewables market is a significant growth area for companies like Portugal’s EDP Renovaveis, Denmark’s Orsted, and Germany’s RWE. Trump’s policies could delay long-term projects, especially offshore wind slated for post-2029.
Despite the downturn, some analysts like Angelo Meda from Banor SIM view the reaction as an “overreaction,” affirming confidence in the long-term trend of green energy. Vestas and Orsted also maintained optimism for U.S. green energy demand, despite the uncertainty.
The iShares Global Clean Energy ETF dropped by 6 percent, reaching its lowest point since mid-2020, while key players like EDP and RWE also saw significant declines on the STOXX 600 index.