The Wall Street Journal reports that shares of green energy companies jumped on Thursday on news that West Virginia Senator Joe Manchin would back a Democratic budget measure allocating several billion dollars to renewable energy and climate change mitigation.
The Wall Street Journal reports that the recent Democratic agreement on a spending package, which contains $370 billion for green energy projects, has led to a rise in the value of many exchange-traded funds (ETFs) that follow sectors and commodities related to green energy. Market leaders in renewable energy, such as the iShares Global Clean Energy exchange-traded fund and NextEra Energy, saw their share prices jump by 5.2% and 5.8%, respectively, on Thursday.
The Wall Street Journal reports an increase of roughly 12 percent for ChargePoint Holdings, a company that facilitates the charging of electric vehicles. In spite of the S&P 500 falling by 3.8%, the Invesco Solar ETF and the First Trust NASDAQ Clean Edge Green Energy Index Fund both rose by 20% during the same time period, easing investors' concerns about the sector's resilience in the face of recession.
But clean energy ETFs were still about 40% off their early 2021 highs as a result of supply-chain difficulties, chip shortages, and overall economic pessimism.
Direct subsidies and tax credits were included in the measure to encourage the production of electric vehicles and renewable energy sources. According to the WSJ, new tax credits and incentives for solar energy and hydrogen power caused shares of Sunnova Energy International and Plug Power to climb by more than 20 percent.
While Manchin had previously resisted attempts to incorporate climate provisions in the economic deal, the renewable energy industry was pleased by the Democrats' sudden agreement. The Democrats were urged on Tuesday by green energy groups to negotiate a climate agreement before the August 5 recess.
The Daily Caller News Foundation has attempted to reach Invesco Solar for comment, but has received no immediate response.
The preceding is a summary of an article that originally appeared on DailyCaller.