Green energy stocks decline due to political uncertainty

Green energy stocks have dropped to levels not seen in five years, with the S&P Global Clean Energy Transition Index falling 16% in the past year. This decline is attributed to uncertainty over political support for clean energy initiatives. Investors had hoped for a recovery as interest rates stabilized, but recent actions by US President Donald Trump, including freezing funding for green projects, have dampened market sentiment. In contrast, oil and gas stocks have benefited from a more favorable political climate. Despite the decline in stock prices, investment in clean energy technology remains strong. S&P Global predicts that spending on clean energy will surpass oil and gas investment by 2025, driven by solar and battery storage advancements.