VanEck to launch Australia’s first clean energy ETF
VanEck is launching a new clean energy ETF, designed to meet the growing demand for renewable energy, with companies in the clean energy sector poised to benefit from the global mega-trend propelling increasing use of clean energy and associated technology.
Sydney, 16 Feb 2021 – VanEck is launching a new clean energy ETF, designed to meet the growing demand for renewable energy, with companies in the clean energy sector poised to benefit from the global mega-trend propelling increasing use of clean energy and associated technology.
The VanEck Vectors Global Clean Energy ETF (ASX: CLNE) is in the final stages of preparation and, subject to regulatory approval, is expected to commence trading on ASX in coming weeks. CLNE will track the S&P Global Clean Energy Index, which has delivered a one-year total return of 116.0% as of 29 January 2021 and is the world’s leading clean energy index.
The US Energy Information Administration (EIA) forecasts that power generation coming from renewable sources, such as wind, solar, hydro, and geothermal, should provide almost half of the world’s electricity generation by 2050. Governments around the globe are adopting renewable energy policies aimed at lowering the global carbon footprint and meeting the Paris climate agreement, which targets a climate-neutral world by 2050 and to cap the rise in global average temperature to below 2°C above pre-industrial levels.
Arian Neiron, VanEck's Managing Director and Head of Asia Pacific, said: “The demand for clean, green energy and the inevitable transition away from scarce non-renewable fuels is a global mega-trend offering huge investment potential. In an Australian first, investors will soon be able to invest in an ETF of global clean energy and technology companies that are positioned to benefit from this structural shift that has the potential to transform industries, society and the world,” Neiron said.
“US President Joe Biden has brought renewed hope that the world will work harder to meet the Paris climate agreement, to which the US has re-committed. Biden has promised to spend US$2 trillion on clean energy projects over the next four years. Elsewhere around the globe, money is pouring into the sector to invest in renewable energy projects.
“This is creating significant demand for renewable energy. As the momentum builds, so too will demand for renewable energy and investment in those companies that produce it and the technologies that drive it. Investors are demanding action on climate change and increasingly they are demanding investment products that facilitate a lower carbon future. CLNE responds to this need.”
CLNE offers targeted exposure to the largest global companies with low carbon footprints involved in clean energy production or businesses that produce technology related to clean energy production, from both developed and emerging markets.
The Index attempts to represent the full clean energy ecosystem by capturing companies involved in renewable energy production and related technology.
Relevant business activities include but are not limited to:
• biofuel & biomass energy production , technology & equipment
• ethanol & fuel alcohol production
• fuel cells technology & equipment
• geothermal energy production
• hydro electricity production, turbines & other equipment
• solar energy production, photo voltaic cells & equipment
• wind energy production, turbines & other equipment.
“We are focused on providing premier investment solutions which leverage enduring investment themes. Our new clean energy ETF is another example of this commitment. Fossil fuels are finite, they will run out. CLNE gives investors an opportunity to invest in the infinite global clean energy supply of the future, and to participate in the transition from fossil fuels to renewable sources.
“CLNE gives investors access to a long-term structural growth opportunity, adding to the 25 ETFs we already have listed on the ASX. Our ASX-listed smart beta ETFs have attracted a range of investor types which is testament to the high quality, well researched and relevant strategies we offer,” Neiron said.