California’s Proposition 23, which would have suspended the state’s greenhouse gas law, was roundly defeated.
Margot Roosevelt for The Los Angeles Times reports that this was the largest public referendum in history on climate and clean energy policy. Wealthy Californian philanthropists and national conservation groups beat out the Independent Texas based refiners that launched the initiative.[Green ETFs: The Way to Invest In Green Energy.]
Lest you think it’s just a California issue, the law’s defeat could have repercussions for the rest of the country, if not the world.
Had Prop. 23 passed, it would have suspended the law mandating reducing carbon emission output by 25% to 30% by 2020. The Act became California law in 2006 and is scheduled to take effect in 2012, reports David Fessler for Investment U. [Why Solar ETFs Are Getting Warmer.]
The impact is going to be felt on two sides: big oil’s balance sheets might get hit while green energy will get the chance at growth that it has long needed. That’s in terms of both implementation and the creation of clean-tech jobs.
While that might mean pain, at least in the short-term, for oil company ETFs such as iShares Dow Jones U.S. Oil & Gas Exploration & Production (NYSEArca: IEO) and PowerShares Dynamic Oil Services (NYSEArca: PXJ), it may mean good things could be coming to green energy ETFs, including these we found in the ETF Analyzer:
- Market Vectors Solar Energy (NYSEArca: KWT)
- Guggenheim Global Solar Index (NYSEArca: TAN)
- PowerShares Cleantech Portfolio (NYSEArca: PZD)
- Market Vectors Global Alternative Energy (NYSEArca: GEX)
Tisha Guerrero contributed to this article.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Mr. Lydon serves as an independent trustee of certain mutual funds and ETFs that are managed by Guggenheim Investments; however, any opinions or forecasts expressed herein are solely those of Mr. Lydon and not those of Guggenheim Funds, Guggenheim Investments, Guggenheim Specialized Products, LLC or any of their affiliates. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.