European clean energy stocks fall amid Trump’s victory and policy concerns

European clean energy stocks declined sharply following Donald Trump’s US presidential election victory, triggering investor concerns over potential setbacks in US renewable energy support and climate policy. 

Trump has signaled intentions to halt offshore wind projects and undo several climate regulations established by Joe Biden, including the Paris Agreement and the Inflation Reduction Act’s clean energy incentives.

Following the election, shares of offshore wind developer Ørsted fell by up to 14%, while wind turbine makers Vestas and Nordex saw their stocks drop by around 11% and 7.6%, respectively. Analysts note that US policy changes could particularly impact offshore wind projects, some of which are projected to come online post-2029.

Deutsche Bank analysts remarked that the US renewable energy sector represents a key growth opportunity for European utilities like Ørsted, RWE, and EDP Renováveis, but warned that significant changes to US clean energy incentives could be possible. Even so, companies such as Vestas and Ørsted remain optimistic about US demand for renewable energy, with industry representatives from Nordex affirming confidence in the US onshore wind market despite acknowledging potential delays.