Solar stocks skyrocket after Biden unveils plan to halve carbon emissions by 2030

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President-elect Joe Biden walks past Plymouth Area Renewable Energy Initiative solar panels in Plymouth, New Hampshire

President Joe Biden plans to halve U.S. carbon emissions by 2030 pushed solar stocks higher in Thursday’s trades as the Invesco Solar ETF rose 5%.

The target more than doubles what the US agreed to when Biden joined the Paris Climate Agreement and is based on US carbon emissions in 2005.

Biden’s carbon reduction proposals came as he opened a climate summit between world leaders. Investors believe solar power will likely be a key technology that will help the administration meet its lofty goals.

The shares of Enphase Energy, SunPower Corp. and SolarEdge Technologies jumped 8%, 6% and 10% respectively.

This is not the first time that an ambitious green energy program has 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 has said its new carbon reduction targets “will create millions of well-paying union jobs for the middle class.”

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