The End of Green Energy: Industry Companies Around the World Go Bankrupt
Green energy stocks have fallen to levels last seen five years ago. They were at rock bottom then, just ahead of the environmental, social and governance (ESG) frenzy that sent them to record highs. Now the market is back there.
Financial Times experts call this the end of green energy, as uncertainty about political support for the transition from fossil fuels to clean energy is overwhelming the market.
The S&P Global Clean Energy Transition Index, which tracks the performance of major clean energy companies, has fallen 12% over the past 16 months, which is a huge drop.
Some investors thought stocks would begin to recover late last year as interest rates leveled off or fell and energy prices rose. However, U.S. President Donald Trump's decision to freeze funding for green projects under the Inflation Reduction Act and to withdraw from the Paris climate agreement contributed to the negative sentiment.
Support for fossil fuel cuts is also under pressure in some European markets.
Deirdre Cooper, head of sustainable equity at global investment firm Ninety One, said the pessimism hanging over the decarbonisation and green energy sector was “incredible” and had never been seen at this level in market history.
Last year there was optimism and structural growth in most companies, but this year they suddenly go bankrupt, and those who are still trying to survive are faced with colossal problems and capital outflow, which, of course, goes into the sphere of fossil energy sources.
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