Solar stocks soar after Biden unveils plan to cut carbon emissions in half by 2030
- Solar stocks surged on Thursday after President Biden unveiled plans to cut US carbon emissions in half by 2030.
- Investors view solar energy as an essential tool that will be used to reach those carbon targets.
- The Invesco Solar ETF surged 5%, with Enphase Energy up as much as 8% in Thursday trades.
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President Joe Biden's plan to cut US carbon emissions in half by 2030 sent solar stocks soaring in Thursday trades, with the Invesco Solar ETF up as much as 5%.
The goal more than doubles what the US agreed to when Biden re-joined the Paris Climate Accord, and is based off of US' 2005 carbon emissions.
Biden's carbon emission reduction proposals came as he opened a climate summit among world leaders. Investors believe solar power will likely be a key technology that helps the administration meet its ambitious goals.
Shares of Enphase Energy, SunPower Corp., and SolarEdge Technologies jumped as much as 8%, 6%, and 10% respectively.
This isn't the first time an ambitious green-energy agenda helped boost a subset of clean energy stocks. Biden's $2.2 trillion infrastructure plan helped spur a rally in electric vehicle stocks last month, as the plan called for investing $174 billion in the sector to better compete with China.
The Biden administration said its new carbon reduction goals would "create millions of good-paying, middle class, union jobs."
