· 2 min read
illuminem summarizes for you the essential news of the day. Read the full piece on CNBC or enjoy below:
🗞️ Driving the news: Solar stocks tumbled as investors reacted to Donald Trump’s projected second term, fearing potential repeal of the Inflation Reduction Act (IRA), a key driver of clean energy growth through tax credits
• The Invesco Solar ETF dropped 9% in premarket, with major solar firms like First Solar, Sunrun, and Enphase seeing significant declines
🔭 The context: Trump’s campaign has consistently targeted the IRA, labeling it a "Socialist Green New Deal"
• Enacted under Biden in 2022, the IRA incentivizes renewable energy investments, which have since catalyzed substantial growth in the U.S. clean energy sector
🌍 Why it matters for the planet: The IRA has been instrumental in reducing U.S. emissions by supporting the clean energy industry
• A repeal could significantly hinder progress toward U.S. climate goals, impacting global efforts to address climate change
⏭️ What's next: Trump’s ability to repeal the IRA will depend on the GOP's control of Congress, as Democrats are expected to resist
• Renewed focus on state-level support for clean energy could emerge if federal backing weakens
💬 One quote: “Trump's pledge to dismantle the IRA poses a direct threat to the renewable energy sector's growth trajectory,” said an industry analyst
📈 One stat: The Invesco Solar ETF fell over 9% in premarket trading following news of Trump’s projected win
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