Stocks of %RenewableEnergy companies, also known as green energy stocks, are trading at their lowest level in five years.
The slump in companies behind solar power, wind turbines, and industrial batteries comes as the energy policies of U.S. President Donald Trump turn investors off green energy stocks.
The S&P Global Clean Energy Transition Index (SPGTCLEN) has fallen 13.5% in the past year and is trading at levels last seen when the Covid-19 pandemic struck in spring 2020.
The selloff comes after Trump canceled or reversed most of the U.S. energy and climate policies that had been put in place, signing executive orders to boost oil and gas production.
Trump has also halted offshore wind permits and eliminated America’s electric vehicle (%EV) mandate that provided incentives to get consumers to buy battery-powered cars.
The Trump administration has also frozen the U.S. Department of Energy’s (DOE) activities pending a review, effectively halting the agency’s $50 billion U.S. budget.
The U.S. Interior Department has also issued a freeze on wind and solar project leases on federal lands and waters.
The result is that stocks of %Solar, wind, and other clean energy companies have plummeted since Trump’s inauguration on Jan. 20 of this year.
Analysts say they expect the bearish sentiment towards green energy stocks to continue while the Trump administration is in office.
