Market Turmoil as Trump's Win Shakes European Clean Energy

The election of Donald Trump as U.S. President led to a steep decline in European clean energy company shares, driven by fears of policy reversals against renewables. Investor concern centers on potential withdrawal from the Paris Agreement and rollback of climate regulations. Despite uncertainty, demand growth for green energy is expected.

Shares of European clean energy companies experienced a sharp decline on Wednesday after Donald Trump's victory in the U.S. presidential election. The downturn is attributed to investor apprehensions about Trump's promises to dismantle climate and renewable energy policies, including potentially leaving the Paris Agreement.

Significantly impacted were companies such as Orsted, Vestas, and Nordex, which saw decreases in their share prices amid fears of policy uncertainty. These firms are major players in the U.S. renewables market, a sector previously bolstered by President Biden's Inflation Reduction Act providing incentives for clean technologies.

Analysts, however, suggest that while the uncertainty might delay some projects, the demand for green energy in the U.S. is expected to continue rising. European utility giants remain cautiously optimistic about the future, anticipating growth in the renewable sector irrespective of presidential outcomes.

(With inputs from agencies.)