Clean Energy ETFs Slide Post Trump’s Remark at UN: A Bumpy Road Ahead?

U.S. President Donald Trump is once again in the headlines following his latest comment, labeling green energy as “stupid”, during yesterday’s speech at the United Nations. His remarks, which included calling renewable initiatives a ‘scam’ and vowing to halt new solar and wind projects, naturally caused an upheaval strong enough to rattle clean energy investors. Consequently, they responded skeptically, which caused the clean energy ETFs to tumble. Invesco Solar ETF (TAN) lost about 3.5% on Sept. 23, 2025, while Invesco WilderHill Clean Energy ETF (PBW) retreated about 2.5%.

The market’s reaction highlights how political rhetoric can swiftly impact investor sentiment, resulting in short-term volatility in industries like renewable energy that are sensitive to government policy and subsidies.

The current U.S. President has consistently been a supporter of fossil fuels, and his second term, which began at the start of this year, has led to several policy changes that pose a serious threat to the U.S. clean energy industry. In particular, the U.S. administration under Trump introduced legislation, such as the One Big Beautiful Bill Act (“OBBBA”), to repeal or limit various clean energy tax credits and subsidies available under the Inflation Reduction Act (IRA).

It also made efforts to pause or halt the disbursement of funds for initiatives such as electric vehicle charging infrastructure and other clean energy projects like the Orsted wind project. Along with this, heightened tariffs on imported goods bear the risk of increasing installation costs for clean energy projects.

Resultantly, investors have become wary of the U.S. clean energy industry’s prospects in recent times. U.S. investment in renewables slumped 36% in the first half of 2025 compared to the second half of last year (as per BlombergNEF’s September Report).

However, no one can deny the fact that the long-term viability of the renewable energy industry, even in the United States, remains solid. Otherwise, why would the U.S. Energy Information Administration expect solar power to supply the largest share of the increase in the nation’s electricity generation in 2025 and 2026 (as stated in its September 2025 Short-Term Energy Outlook)?

Such projections suggest that the underlying economic and technological drivers of the U.S. clean energy industry are too powerful to be halted by political headwinds. Moreover, the recent interest rate cut by the Federal Reserve came as a major policy stance favorable for the nation’s clean energy industry. Thus, we may expect a strong, albeit potentially bumpy, path for the U.S. clean energy ETFs ahead.