European renewables down as Trump cracks down on wind and solar energy subsidies

Published 08/07/2025, 09:04
© Reuters.

Investing.com -- Shares in European renewable energy firms slid Tuesday after U.S. President Donald Trump issued an executive order instructing federal agencies to tighten enforcement of provisions in the One Big Beautiful Bill Act that scale back tax credits for wind and solar energy.

Vestas Wind Systems (CSE:VWS) and Orsted (CSE:ORSTED) shares fell 2.3% and 3.8%, respectively, while SMA Solar Technology AG (ETR:S92G) lost 3.4% by 08:01 GMT.

Solaria Energia (BME:SLRS) and EDP Renovaveis (ELI:EDPR) also slid more than 1% each. 

The executive order criticized renewable energy sources as unreliable, costly, and damaging to both the environment and the electric grid. It also argued that these technologies displace more dependable energy options and rely heavily on foreign supply chains.

Trump directed the Treasury Department to implement the phaseout of renewable energy tax credits as outlined in the budget bill he signed into law last week.

The Interior Department was also instructed to reassess and revise any policies that give preference to renewables over other energy sources.

Both departments must report back to the White House within 45 days, detailing the measures they have taken.

Under the new legislation, tax incentives for wind and solar projects will end after 2026 unless construction has already begun. Projects started after that date will need to be completed and operational by the end of 2027.

Previously, developers could qualify for a 30% tax credit on eligible projects through 2032.

Trump signed the Big Beautiful Bill into law on Friday, following a narrow approval by Congress the previous day.

The wide-ranging bill delivers on core elements of Trump’s agenda, including tax reductions, increased defense spending, and stricter immigration measures. Speaking at the White House, Trump said the law would help drive economic growth.

However, the legislation faces public skepticism. Polls indicate many Americans oppose key provisions, and some Republicans expressed concern about its effect on the national debt.

Democrats have criticized the bill for favoring the wealthy while burdening lower-income groups.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.