The demand for clean, green energy and the inevitable transition away from scarce non-renewable fuels is a global mega-trend offering investment potential.
In an Australian first, investors will soon be able to invest in an ETF of global companies that are positioned to benefit from this structural shift that has the potential to transform industries, society and the world.
The VanEck Vectors Global Clean Energy ETF, which will trade under the ASX ticker ‘CLNE’, will be the only ETF of its kind listed on ASX.
We believe the growth of clean energy is a trend, not a fad. It reflects a long-term structural dynamic and is supported by four long term drivers: Regulatory:It has been estimated nearly US$1.7 trillion of total investment is needed by 2030 to meet government renewable targets1… and that is before you take into account President Joe Biden recently recommitting the US to the Paris Accord.
Societal: A cornerstone of President Biden’s campaign was a commitment to the environment. In the US 80% of consumers aged 18-34 are willing to pay more for electric vehicles (EV)/hybrids2. Globally, it is these consumers that are demanding a shift in the way the world consumes energy.
Economic: The cost of renewable energy has been declining rapidly over the past 10 years. Since 2010, utility-scale solar photovoltaic power has shown the sharpest cost decline at 82%, followed by concentrating solar power at 47%, onshore wind at 39% and offshore wind at 29%3.
Inevitability: Fossil fuels are finite, they will run out. Royal Dutch Shell4and BP5have both indicated that they have passed peak oil production. Alternate energy sources are infinite.
The CLNE opportunity
Long-term growth opportunity An investment in the global energy supply of the future, and the transition to infinite, clean energy away from finite, non-renewable sources.
Targeted exposure Targeted exposure to 30 of the largest global companies involved in the production of clean energy and related technology businesses.
Diversification A diversified portfolio across countries and companies which offers opportunities across a range of subsectors.
CLNE is in the final stages of regulatory approval and is expected to commence trading on ASX in coming weeks.
1 International Renewable Energy Agency, Untapped potential for climate action: Renewable energy in Nationally Determined Contributions, November 2017. 2 WardsAuto, February 2019, Steven Finlay. 3 International Renewable Energy Agency, Renewable Power Generation Costs in 2019, June 2020. 4 New York Times, Shell, in a Turning Point, Says Its Oil Production Has Peaked, 11 February 2021. 5 BP Energy Outlook 2020, September 2020.
Important Notice: This information is prepared in good faith by VanEck Investments Limited ABN 22 146 596 116 AFSL 416755 (‘VanEck’) as the responsible entity and issuer of VanEck Vectors Global Clean Energy ETF (‘the Fund’). Units in the Fund are not currently available and a PDS has not yet been issued. A PDS will be made available at www.vaneck.com.au prior to the commencement of trading. Investors should consider the PDS in deciding whether to acquire units in the Fund. This information is general in nature and not financial advice. It does not take into account any person’s individual objectives, financial situation or needs. Before making an investment decision investors should read the PDS, and with the assistance of a financial adviser consider if it is appropriate for their circumstances.