Socially responsible exchange traded funds have been pummeled this year as governments curbed spending and reduced subsidy handouts to clean energy companies. However, green investments may see brighter days ahead if United Nations members honor a new climate deal.
Recently, over 190 U.N. countries came to an agreement on the global warming issue, committing to reduce greenhouse gas emissions, reports Nina Chestney for Reuters. Negotiations on the finer details will begin next year and should be signed by 2015 at the latest. An international accord would clarify national policies and boost investments into the industry.
While renewable energy investments, like wind and solar, will be affected by short-term economic factors, green technology will have a solid backboard to recover.
“EU and national policies will remain the primary driver for investment in clean tech, at least until the detail and strength of international political commitment behind the deal becomes clearer,” Richard Salomone, energy adviser at EEF, said.
“It is better than nothing but will not open floodgates and allow vast amounts to be invested in next few years,” Richard Nourse, managing partner at Novusmodus, said in the article.