BlackRock, on a call to analysts to discuss better-than-expected performance in the first quarter, highlighted the focus on the renewable transition by investors happening now and going forward, reports Financial Times.
CEO of BlackRock, Larry Fink, believes that the Ukraine-Russia war has forced countries to move away from their energy dependence on Russia and to focus on the shift to renewable sources of energy that produce less emissions.
There is “a significant long-term opportunity for investors in infrastructure, renewables and clean technology,” Fink said on the call, and declared the current market where sustainability and infrastructure meet to be an “investment boom.”
As countries work to divest themselves of dependence on Russian oil and natural gas, particularly those in Europe, there is an opportunity to really extend into the green energy transition. This is of particular importance given the recent report from the Intergovernmental Panel on Climate Change that declared that carbon emissions must peak by 2025 globally to maintain as close to a 1.5° C increase in temperature as possible in the coming decades.
This transition “may mean increasing production of traditional energy sources in the near term, but . . . recent events will accelerate the shift towards greener sources of energy and many parts of the world over the long term,” Fink said.
Investing in Sustainability With KraneShares
There is a strong opportunity to harness the potentials of the sustainability transition both within the U.S. and globally, as it “is going to be large and it’s going to be multiple years of investing,” according to Fink. Advisors and investors can capitalize on this in a variety of ways.
KraneShares offers a bevy of climate-related products that seek to capture the transition to a zero-emission world by 2050, whether through a focus on carbon emissions or on the transition of industries.
KraneShares offers a carbon allowances suite of funds which includes the KraneShares Global Carbon Strategy ETF (KRBN), an ETF that invests in carbon allowances futures globally from the EU, California markets, RGGI, and the U.K.; the more targeted KraneShares European Carbon Allowance Strategy ETF (KEUA); and the KraneShares California Carbon Allowance Strategy ETF (KCCA).
For investors seeking to capture the potential within industries that are transitioning to a more sustainable world, the KraneShares Electric Vehicles and Future Mobility ETF (NYSE: KARS) offers exposure to the global growth of the electric vehicle industry. For a more unique approach to sustainability investing, the recently launched KraneShares Global Carbon Transformation ETF (KGHG) seeks to capture the true potential within the carbon transition by focusing on companies from within industries that are traditionally some of the highest emission offenders but that are on the precipice of transitioning to renewable technologies and will likely be industry leaders in reducing carbon footprints.
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