By Nick Frasse
Associate Product Manager
Green infrastructure is the range of systems and technologies that enable and provide for a more sustainable way of living. In this blog series, we will outline seven specific areas: green transportation, green energy, green fuel, waste management, green infrastructure & equipment, pollution control, and green constructions. We will define these themes, how they contribute to green infrastructure and how they are instrumental to the space as a whole moving forward.
Green Transportation
Green transportation involves using environmentally friendly vehicles that produce minimal to no pollution. Its objective is to reduce the environmental impact of vehicles and promote sustainability. Further, green transportation infrastructure involves the development and use of clean technologies, such as electric vehicles and subsequent downstream innovation to help reduce the overall carbon footprint.
In recent years, there has been a significant increase in the adoption of green transportation, particularly in the commercial and retail sectors. Companies are recognizing the need to reduce their carbon footprints and contribute to a sustainable future. Additionally, recent legislation domestically, such as the Inflation Reduction Act, is incentivizing the adoption and development of this infrastructure moving forward.
The number of electric vehicles on the road has increased dramatically in the past few years. According to the International Energy Agency (IEA), the global electric vehicle fleet reached 16.5 million triple the amount in 2018. The IEA also projects that the global electric vehicle fleet could reach as many as 220 million by 2030. This rapid growth in the adoption of electric vehicles demonstrates the growing interest in more sustainable modes of transportation.
Projection of U.S. Registered EVs into 2030
Source: McKinsey and Co., April 2022. Past performance is no guarantee of future results. Not intended as a forecast or prediction of future results.
One of the key benefits of green transportation is the reduction in greenhouse gas emissions. Companies such as EV manufacturers are committed to reducing their environmental impact by using clean technologies and alternative fuels.
A prime example of a green transportation company is Tesla. Tesla is a leading manufacturer of electric vehicles and has been instrumental in promoting the adoption of green transportation. Their vehicles are powered by clean, renewable energy, and have been designed to maximize energy efficiency. Tesla is also a leader in developing sustainable energy solutions, including charging stations and solar panels.
Another example of a commercial application is Hyzon Motors Inc., a global leader in the development of hydrogen fuel cell commercial vehicles. The company produces a range of fuel cell-powered vehicles, including heavy-duty trucks, buses, and vans. Hyzon is dedicated to promoting clean transportation solutions and reducing greenhouse gas emissions in the commercial sector. Their vehicles offer a range of benefits, including extended range, fast refueling times, and low operating costs compared to traditional internal combustion engines.
Green transportation continues to be a crucial aspect of the green infrastructure narrative. The electric vehicle movement in the commercial and retail sectors as well as the systems that power them are a positive step towards reducing greenhouse gas emissions. Domestically, the continued adoption of green transportation will contribute to a cleaner, greener future for generations to come.
Investors can access these and other key green infrastructure companies with the VanEck Green Infrastructure ETF (RNEW). The ETF provides diversified exposure to companies across the seven green infrastructure sub-themes.
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Important Disclosures
This is not an offer to buy or sell, or a recommendation to buy or sell any of the securities/financial instruments mentioned herein. The information presented does not involve the rendering of personalized investment, financial, legal, or tax advice. Certain statements contained herein may constitute projections, forecasts and other forward looking statements, which do not reflect actual results, are valid as of the date of this communication and subject to change without notice. Information provided by third party sources are believed to be reliable and have not been independently verified for accuracy or completeness and cannot be guaranteed. VanEck does not guarantee the accuracy of third party data. The information herein represents the opinion of the author(s), but not necessarily those of VanEck or its employees.
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