iClima Earth partners with HANetf on the UCITS ETF, the first of its kind in the world.

iClima Earth is a London-based research firm that identifies which companies offer solutions that reduce greenhouse gases by avoiding emissions or by sequestering carbon dioxide already in the atmosphere. iClima has partnered with white-label ETF issuer HANetf to launch an ETF that would invest in such “enablers” of decarbonization. (InvestmentWeek)

The iClima Global Decarbonisation Enablers UCITS ETF (CLMA LN)

The iClima Global Decarbonisation Enablers UCITS ETF (CLMA LN) will list on the London Stock Exchange in early December.

It will list on Deutsche Börse Xetra (ECLM GY) and Borsa Italiana (CLMA IM) in euros. In London, it will trade in US dollars (CLMA LN) and pound sterling (CLMP LN).

The ETF will charge a total expense ratio of 0.65%.

The fund will be the first ESG ETF from HANetf, iClima’s white label partner.

The ETF tracks the iClima Global Decarbonisation Enablers Index, developed by iClima Earth. The index is independently calculated and maintained by Frankfurt-based Solactive.

Over the last 12 months, the index has gained 64.5%.

It contains 151 companies that can avoid an estimated 0.6 gigatons of CO2e through 2021. These companies belong to sectors such as green energy, green transportation, and water and waste improvements. Companies offering decarbonization enabling solutions, and sustainable products also find a place in the index.

The coverage includes high growth solutions like green hydrogen & fuel cells, distributed generation, and electric vehicles.

World’s first ETF of its kind

“This is the world’s first climate change UCITS ETF that provides exposure to companies offering products and services that enable CO2e avoidance and quantifies the impact of those companies in meeting decarbonization targets,” said Gabriela Herculano, CEO of iClima Earth.

“The CLMA ETF is unique as it shifts the focus from the companies reducing their own emissions to companies offering products and services that directly enable CO2e avoidance solutions, shining a spotlight on climate change innovators,” she added.

“Climate change and the transition to a low carbon economy are part of one of the largest megatrends of the 21st century. Green investments are being fuelled by regulatory actions such as the 2015 Paris Agreement as well as consumer preferences such as veganism and telepresence. To meet the goals of the Paris Agreement, investment into green investments needs to triple from current levels.”

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