Nº 22-49: The impact of the Russia-Ukraine Conflict on the Green Energy Transition – A Capital Market Perspective

We investigate whether the Russia-Ukraine conflict has affected investors' assessment concerning a green energy transition. Based on a global energy sector sample, we apply an event study around the invasion on February 24, 2022. We find that energy firms' CAAR are positive around the event. Renewable energy firms generated comparably low abnormal returns than coal, oil and gas, and uranium. This pattern prevails except in North America, where they show the second-highest CAAR in 41 days around the event. Therefore, the Russia-Ukraine conflict appears not to entirely change the investors' assessment of a possible acceleration of a green energy transition.