Renewable Energy Stocks in Europe Surge in Response to U.S. Policy Bill

Today’s ESG Updates

• Renewable energy shares see jump in European market: A Senate revision extending clean energy subsidies through 2030 sparks a surge in European energy stocks.
• EU releases updated 2040 climate plan: The European Commission unveils a proposal to cut emissions by 90% from 1990 levels by 2040.
• Climeworks secures record carbon capture funding: Swiss DAC leader Climeworks raises $162 million to expand operations.
• NOAA braces for deep budget and job cuts: A proposed $1.5 billion reduction threatens key U.S. climate and disaster programs.

Europe’s renewable energy companies see positive jump

President Donald Trump’s “Big Beautiful Bill” will effectively cut wind and solar projects in the U.S. However, in the Senate’s revised version, companies beginning projects before 2027 will still receive federal subsidies, essentially extending these incentives through 2030. This revision led to a surge in European energy stocks. Companies like Vestas, Nordex, Orsted, and EDP Renováveis heavily rely on the U.S. market. Vestas, a Danish wind turbine manufacturer, saw stocks jump by 10%, while EDP Renováveis, a Portuguese renewable energy firm, saw a 3.6% increase. SMA Solar, a German supplier of solar power parts, saw the most significant jump at 12%. The policy revision marks a win for the renewable sector, signaling continued growth opportunities for European firms in the U.S.

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Further reading: European renewable energy companies’ shares rise after revised US senate bill

European Commission releases updated 2040 climate plan

The European Commission published an amended Climate Law on Wednesday. This amended law has set a 2040 goal of a 90% reduction in greenhouse gas emissions from 1990 levels. This goal, aligned with the EU’s net-zero by 2050 aim, builds on the current 2030 target of 55%. The Commission has emphasized that the EU is on track to reach the 55% goal by 2030. The updated Climate Law aims to motivate other governments to continue their efforts toward carbon neutrality and establishes a more flexible and accessible approach to achieving future targets. It complements initiatives like the Clean Industrial Deal and the Affordable Energy Action Plan, aiming to drive innovation, enhance energy security, and maintain industrial competitiveness. The proposal now heads to the European Parliament and Council for adoption.

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Further reading: EU’s Climate Law presents a new way to get to 2040

Carbon capture company, Climeworks, secures $162 million in funding 

Climeworks, a Swiss company specializing in direct air capture (DAC), has received $162 million in funding for new carbon capture projects. This additional $162 million brings the total funding to over $1 billion, making it the largest carbon removal investment of 2025. The funding will accelerate Climeworks’ efforts to reduce DAC costs while scaling up its technology. The company is on track to become the first ever profitable direct air capture plant, with a portfolio of over 6 million tons of secured supply. The company’s co-CEO and co-founder, Christoph Gebald, said, “Direct Air Capture has gone from experiment to essential—and we’re focused on scaling it by driving down costs and pushing innovation.”

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Further reading: Climeworks raises USD 162M to scale up technology

NOAA to cut jobs and research amid new U.S. policies

The National Oceanic and Atmospheric Administration (NOAA) faces a proposed $1.5 billion budget cut and an 18% reduction in workforce, threatening over 2,200 jobs. These severe cuts are a result of the Trump administration’s cutback on climate funding and research. Key programs, including hurricane forecasting, coastal protection, and climate change research, are being threatened. Since 2007, forecasting research has saved the U.S. economy $5 billion per storm. Critics warn the cuts will severely degrade weather prediction and natural disaster preparedness, affecting both public safety and economic resilience. James Franklin, a retired atmospheric scientist at the U.S. National Hurricane Center, warns that the decision to make these cuts would take the organisation “years or decades to recover.”

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Further reading: NOAA Budget Cuts to Gut Climate Research, Slash Jobs

Editor’s Note: The opinions expressed here by the authors are their own, not those of impakter.com — Cover Photo Credit:  Gustavo Quepóns