Donald Trump’s pledge to halt renewable energy projects on his first day in office has sent shockwaves through the industry, causing renewable energy stocks to fall sharply. Trump promised to end offshore wind farms, stating, “We are going to make sure that that ends on day one.”

As a result, shares of major players like Orsted, the world’s largest offshore wind developer, plunged by as much as 14%, while wind turbine makers Vestas and Nordex saw declines of 11% and 7.5%, respectively.

This is not Trump’s first confrontation with renewable energy. During his previous campaign, he argued that solar panels require vast spaces, such as entire deserts, to generate energy. However, according to the Solar Energy Industries Association, utility-scale solar projects today typically occupy less than 600,000 acres—far less than Trump suggested.

If Trump follows through on his pledge, the renewable energy sector could face severe challenges. He may seek to eliminate or scale back tax credits for renewable projects, which could hinder the industry’s growth.

Additionally, Trump could dismantle environmental regulations set by the Biden administration, potentially easing the regulatory burden on fossil fuel companies.

A Trump presidency could shift energy policy, favouring fossil fuels over renewable sources. Trump has also vowed to end the electric vehicle mandate, which would impact the EV industry and its infrastructure.

His stance on electric vehicles has shifted dramatically after initially calling them a “hoax,” he recently softened his position, partly due to support from Tesla CEO Elon Musk. Trump now claims to be “for electric cars,” though his support is qualified, seeing them as suitable for a “small slice” of the population.

While Trump’s ability to make these changes would depend on congressional backing and potential pushback from businesses and activists, his proposed energy policies have already sparked uncertainty, causing concern among renewable energy investors.

Renewable energy stocks, particularly in the solar sector, have taken a hit, with fears that a second Trump presidency could threaten the Inflation Reduction Act, which is an essential piece of legislation that has driven growth in clean energy by providing tax incentives for solar power