The recent drop in Orsted A/S $ORSTED.CO shares following political decisions has raised significant questions among experts and analysts. To better understand the impact on investors and the offshore wind energy industry in the U.S., it is essential to delve into the details of what happened.

The Trump administration's recent decision to halt construction of the Empire Wind 1 offshore wind farm, developed by Equinor $EQNR near New York’s coastline, has sent shockwaves through the entire offshore wind industry. This unexpected policy move affected not only existing and upcoming projects but also intensified concerns among investors and industry stakeholders regarding the regulatory certainty of renewable energy in the United States.

Australian financial giant Macquarie has decided to pause the sale of Corio Generation, one of the world’s largest offshore wind farm developers. This decision comes as interest from potential buyers dwindles, partly due to the negative stance towards renewable energy shown by former President Trump’s administration.

Mitsubishi Corporation $8058.T, a leading Japanese energy firm, has announced a revision of its business strategies regarding three offshore wind energy projects. This decision comes in response to macroeconomic changes such as the depreciation of the yen, rising interest rates, and tightening supply chains. These factors significantly impact the economic viability and execution of current projects.