The war in Ukraine invites us to reassess our foreign relations and has created a platform for the revitalization of energy policies. With the link between energy security and renewables entering the mainstream, investors have turned their attention to related exchange-traded funds.
In March this year, investors allocated about $642 million to renewable energy, with Invesco Solar ETF and Invesco WilderHill Clean Energy ETF taking the lion’s share with $400 million.
“The activity does not exactly match broad activity in exchange-traded funds, indicating that Russia’s invasion of Ukraine is a catalyst for renewed interest in space,” reports Pippa Stevens. for CNBC. “Funds that track the S&P 500 attracted about $6.9 billion in inflows in March. Capital also flowed into these funds in February and December, just as investors exited renewable energy funds.
Solar stocks are indeed on the rise since the evolution of the global energy landscape. Shares of Tata Power, an Indian utility company focused primarily on renewable energy, including solar, rose 21% in four days as news about solar investments came under heavy scrutiny. reports in recent months.
According to a new report from Imperial College Business School’s Center for Climate Finance & Investment, such clean energy investments make both financial and environmental sense, especially when diversified.
“Flows from governments, businesses and investors are needed to finance the transition to a low-carbon economy in advanced and emerging markets.” Mili Fomicov, a research fellow at Imperial College Business School’s Center for Climate Finance & Investment, said in a statement.
Several nations have already declared that they are accelerating their green energy transition in the interest of achieving energy security. Europe has signaled plans to accelerate the shift away from fossil fuels, though harmful bridge fuels will be tapped in the meantime, while the Biden administration recently submitted a budget proposal that addresses climate goals , equity and the advancement of clean energy. More recently, Japan has been forced to face the reality of its energy shortfalls. On April 1, Prime Minister Fumio Kishida announced that he would not stop his energy projects in Russia. This caused an international outcry, and climate data provider TransitionZero reminded Japan of its immense potential in offshore wind farms.
“Recent disturbing geopolitical events highlight the need to accelerate the energy transition, and these renewables are a more viable source of energy supply,” Fomicov continues. “Our study demonstrates that this investment could provide financial and diversification benefits.” Sign this petition to tell Massachusetts to go all-in on renewable energy
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