The new ETF, to be listed in London, is a world first.

iClima Earth, a fintech with a mission to decarbonize the planet, will launch an ETF, the world’s first, focusing on companies promoting the decentralisation of energy generation. The term refers to industries that enable the creation and management of clean energy close to the point of use, for example at home. (ETF Express)

The new ESG UCITS vehicle, titled the iClima Distributed Renewable Energy UCITS ETF (DGEN), will be launched on the HANetf platform and is expected to list on London Stock Exchange in June 2021.

The iClima Distributed Renewable Energy UCITS ETF

The ETF will invest in 50 companies across seven segments directly related to distributed generation such as residential solar panels, energy storage, smart meters, vehicle-to-grid energy, electric vehicle charging, smart inverters and software solutions using artificial intelligence to manage the systems.

Between 2020 and 2030, it is estimated that as much as US $846 billion will be invested in distributed (renewable) energy sources, presenting a market opportunity for firms in these businesses.

The ETF will track the iClima Distributed Renewable Energy index TR and has an expense ratio of 0.69%.

The index has returned 144.43% over the past 12 months and 322% since inception in 2017.

Enabling avoidance of emissions

Gabriela Herculano, CEO of iClima Earth said founder of the iClima Distributed Renewable Energy UCITS ETF, says: “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 avoidance solutions. These “climate champions” are companies delivering impactful solutions measured by potential avoided emissions of their products.”

“Flexible technologies in distributed renewable generation collect energy from many sources, lowering environmental impact and increasing security of supply,” she added.

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