In a sustained effort to reduce its carbon footprint, China is looking to put more fuel cell vehicles on its roads, which can help bolster the Global X Hydrogen ETF (HYDR).

“China’s top economic planner has unveiled its latest blueprint for the hydrogen sector, which is expected to push the growth of the fuel cell vehicle industry in the world’s largest vehicle market,” a China.org article notes.

“By 2025, China is expected to have mastered the core technologies and manufacturing processes, said the National Development and Reform Commission in the development plan that runs to 2035,” the article adds.

As opposed to drawing energy from a battery, fuel cell vehicles use hydrogen as their main energy source. While an electric battery could take up to six hours to charge, a hydrogen fuel cell could take as little as five minutes and could potentially offer a higher range in terms of mileage.

China's Push For Fuel Cell Vehicles Can Bolster This ETF 1

Building Off China’s Momentum

A focus on renewable energy is not relegated to just China. If other nations see success in the second-largest economy in the world, that could have a spillover effect into other countries that also want to try increasing the number of fuel cell vehicles on their own roads.

As such, HYDR offers an ideal growth opportunity. The fund seeks to invest in companies that stand to benefit from the advancement of the global hydrogen industry, which includes companies involved in hydrogen production, the integration of hydrogen into energy systems, and the development and manufacturing of hydrogen fuel cells, electrolyzers, and other technologies related to the utilization of hydrogen as an energy source.

HYDR offers the following fund benefits:

  • High growth potential: Forecasts suggest that the global hydrogen fuel cell vehicle market could grow more than 75% from 2021 to 2026, approaching $31 billion in value and highlighting just one of many growth opportunities for the theme.
  • Advancing clean technologies: Hydrogen-powered fuel cells produce zero direct emissions, meaning that broader adoption could result in reduced greenhouse gas emissions and improved air quality.
  • Global tailwinds: The shift to green energy isn’t confined to a single sector or region. HYDR invests accordingly, with global exposure across multiple industries.

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