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Solar Stocks Plunge as Trump Reportedly Pulls Out of Paris Climate Deal
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The clean energy industry was rocked on Wednesday morning after a new report suggested that President Trump has made his decision to withdraw from the Paris climate agreement. Shares of some major solar players—including SunPower (SPWR - Free Report) , Canadian Solar (CSIQ - Free Report) , and First Solar (FSLR - Free Report) —dipped suddenly following the news.
Word of the decision was first scooped by Axios, which cited two sources with “direct knowledge of the decision.” According to these sources, the administration is finalizing the details of the withdrawal through a small team that includes EPA chief Scott Pruitt.
Apparently the pullout will come down to one of two options. The first would be the initiation of a formal withdrawal, which could take up to three years, while the other option would see the U.S. exit the underlying United Nations climate change treaty—a decision that would be “faster but more extreme,” according to Axios.
The Paris accord was inked in late 2015, and climate change activists hailed the agreement as a major win for their cause. Nearly 200 governments agreed to limit greenhouse gas emissions and move towards clean energy; the deal promised new investments and worldwide support of renewables like solar.
Trump has been mulling a withdrawal from the deal for some time now, but his recent trip abroad was met by several world leaders urging the U.S. to remain in the deal.
Nevertheless, a letter from 22 Senate Republicans, including Majority Leader Mitch McConnell, calling for a clean exit from the agreement apparently cemented Trump’s decision. The U.S. will join Nicaragua and Syria as the only countries not supporting the deal (yes, even the likes of North Korea are signed on).
Shares of several popular solar stocks were down on the news. SunPower dipped more than 4%, Canadian Solar was down more than 6%, and First Solar dropped nearly 4.5%. Additionally, JinkoSolar (JKS - Free Report) fell about 5.5%, while JA Solar was down nearly 3%. Sunrun (RUN - Free Report) also slipped marginally.
Overall, the Guggenheim Solar ETF (TAN - Free Report) dipped as much as 1% to an intraday low of $18.37 in morning trading Wednesday. This ETF corresponds to the MAC Global Solar Energy Index, which tracks companies in various business segments throughout the global solar power industry.
Want more stock market analysis from this author? Make sure to follow @Ryan_McQueeneyon Twitter!
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Solar Stocks Plunge as Trump Reportedly Pulls Out of Paris Climate Deal
The clean energy industry was rocked on Wednesday morning after a new report suggested that President Trump has made his decision to withdraw from the Paris climate agreement. Shares of some major solar players—including SunPower (SPWR - Free Report) , Canadian Solar (CSIQ - Free Report) , and First Solar (FSLR - Free Report) —dipped suddenly following the news.
Word of the decision was first scooped by Axios, which cited two sources with “direct knowledge of the decision.” According to these sources, the administration is finalizing the details of the withdrawal through a small team that includes EPA chief Scott Pruitt.
Apparently the pullout will come down to one of two options. The first would be the initiation of a formal withdrawal, which could take up to three years, while the other option would see the U.S. exit the underlying United Nations climate change treaty—a decision that would be “faster but more extreme,” according to Axios.
The Paris accord was inked in late 2015, and climate change activists hailed the agreement as a major win for their cause. Nearly 200 governments agreed to limit greenhouse gas emissions and move towards clean energy; the deal promised new investments and worldwide support of renewables like solar.
Trump has been mulling a withdrawal from the deal for some time now, but his recent trip abroad was met by several world leaders urging the U.S. to remain in the deal.
Nevertheless, a letter from 22 Senate Republicans, including Majority Leader Mitch McConnell, calling for a clean exit from the agreement apparently cemented Trump’s decision. The U.S. will join Nicaragua and Syria as the only countries not supporting the deal (yes, even the likes of North Korea are signed on).
Shares of several popular solar stocks were down on the news. SunPower dipped more than 4%, Canadian Solar was down more than 6%, and First Solar dropped nearly 4.5%. Additionally, JinkoSolar (JKS - Free Report) fell about 5.5%, while JA Solar was down nearly 3%. Sunrun (RUN - Free Report) also slipped marginally.
Overall, the Guggenheim Solar ETF (TAN - Free Report) dipped as much as 1% to an intraday low of $18.37 in morning trading Wednesday. This ETF corresponds to the MAC Global Solar Energy Index, which tracks companies in various business segments throughout the global solar power industry.
Want more stock market analysis from this author? Make sure to follow @Ryan_McQueeney on Twitter!
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade, which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>