Policymakers and researchers worry that the capital-intensive investments required for a green transition may be inordinately curtailed by higher global interest rates and an increased cost of credit. To examine the claim that green technologies and investments are especially sensitive to interest rate increases, we consider the effect of unanticipated monetary policy changes on the equity prices of green and brown European firms. We find that brown firms, measured either in terms of CO2 emission levels or intensities, are affected more negatively than green firms by tighter monetary policy. Accordingly, higher interest rates do not appear to skew investment away from a sustainable transition.