iClima Earth, an environmental impact fintech, is set to launch the world’s first distributed renewable energy exchange traded fund (ETF) on the London Stock Exchange.
The iClima Distributed Renewable Energy UCITS ETF will provide exposure to companies promoting distributed energy renewable generation including solar panels, electric vehicle charging and smart meters.
“Our aim is to redefine climate change investments by shifting the focus from companies’ emission reduction actions, to organisations offering products and services that enable CO2e [CO2 equivalent] avoidance solutions,” said Gabriela Herculano, chief executive of iClima Earth.
“Our new decentralised renewable energy ETF, DGEN, offers investors the opportunity to do this by investing in companies at the forefront of the huge and rapidly growing distributed generation renewable energy market,” she said.
The ETF will be launched on the HANetf platform and is expected to list on the LSE this month.
“iClima has a unique and exciting, positive approach to investing in companies that are at the forefront of fighting climate change, and we are delighted that they are working with us to develop their ETFs,” said Hector McNeil, co-chief executive of HANetf. “iClima is well positioned to capitalise on the growing focus from investors on ESG.”
London-based iClima noted that the electrification of transportation and heating will increase the need to add more renewable-based solutions.
The ETF will track the iClima Distributed Renewable Energy Index TR, which provides exposure to 50 companies in seven segments directly related to the growing Distributed Generation business model. The index has risen 144% over the last 12 months.
As much as US$846bn will be invested in distributed (renewable) energy sources between 2020 and 2030, according to ResearchAndMarkets.com.