Investing in renewable energy is becoming increasingly popular as the world moves towards a greener future. With so many green energy investment options, it can be difficult to know which one is the best for you. The iShares Global Clean Energy ETF (ICLN) is one of the largest and oldest green funds on the market today. It is an alternative to investing directly in a mutual fund or ETF, since it allows you to invest in individual stocks, ETFs and other investments through a single kit.
This ETF has an equally weighty strategy and invests a similar amount in a wide range of clean energy companies, focusing more on the electrification of transport and the energy sector. The Global Climate Fund (GCF) is another large green investment fund that was established with low management fees. It is mandated to invest 50% of its resources in mitigation and 50% in adaptation in equivalent grants. This fund could support investments of up to 100 billion Danish kroner, which would cover offshore and onshore wind, photovoltaic and other projects related to the energy transition in “North America, Western Europe and developed countries in Asia and Australia”. At least half of their adaptation resources must be invested in the countries most vulnerable to the climate (small island developing States, LDCs and African States).The International Energy Agency (IEA) has forecasted that governments and other entities should significantly increase their investments in clean energy, such as wind, solar, hydrogen, battery storage and electric vehicles (EVs).
With so many investments in renewable energy to choose from, this sector can quickly become overwhelming for investors. Some take a broad approach by investing across the industry, while others focus on a single aspect of investing in green energy. Some focus on a specific type of alternative energy, such as wind or solar energy, while others offer broader exposure to the entire clean energy investment landscape. The iShares Global Clean Energy ETF (ICLN) is one of the largest green funds available today. It offers investors diversified exposure to the clean energy sector with low management fees.
The Global Climate Fund (GCF) is another large green investment fund that could support investments of up to 100 billion Danish kroner. The International Energy Agency (IEA) has forecasted that governments and other entities should significantly increase their investments in clean energy. With so many investments in renewable energy to choose from, investors have a variety of options when it comes to investing in green energy.
