VanEck has announced the launch of its new clean energy exchange traded fund (ETF), the VanEck Vectors Global Clean Energy ETF (CLNE), aimed at companies in clean energy sector poised to benefit from the global mega-trend around clean energy.
The new fund, which was in the final stages of preparation and expected to commence trading on Australian Securities Exchange (ASX) in the coming weeks, would track the world’s leading clean energy index, the S&P Global Clean Energy Index.
CLNE would offer 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.
- Relevant business activities included but were 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; and
- Wind energy production, turbines & other equipment.
Arian Neiron, VanEck's managing director and head of Asia Pacific, reminded that US President Joe Biden brought renewed hope that the world would work harder to meet the Paris climate agreement, to which the US has re-committed. The new US administration had also promised to spend US$2 trillion on clean energy projects over the next four years.
“The demand for clean, green energy and the inevitable transition away from scarce non-renewable fuels was 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.
“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.”