Clean Energy Investment
Overview of investing in Clean Energy
Human demand for energy is growing at a faster rate than new facilities are opening to generate this power. Fossil fuels often come from politically unstable regions and problems of extraction and global demand are set to push up prices at a faster rate than inflation. At the same time scientists are warning that burning fossil fuels is causing the climate to warm with huge implications to society. Governments around the world are all responding to these pressures and legislation is shifting to favour renewable energy companies over their competitors.
The UK target is for 20% of energy consumption to come from renewable sources by 2020, this includes wind, solar, biomass, hydroelectric and geothermal power. This approach is being taken by many governments, including China.
How clean energy funds are managed
Investment funds invest directly in companies generating renewable energy, as well as those involved in the production of plants, and distribution of energy. Companies providing energy efficiency, both for buildings and industry, are an important part of this theme.
Investment funds within the clean energy theme take a different approach on what can be included within a ‘clean’ energy fund. Some investment funds include technologies which reduce carbon emissions today, but are not without environmental challenges in the future such as natural gas and nuclear.
Investor approach to investing in Clean Energy
The clean energy theme is high in people’s minds and dominates the news. The demand for energy is likely to far outstrip supply and thus it would seem obvious that investment in clean energy must result in above market returns. But this has not been the case to date.
Indeed clean energy invetment has severely underperformed equity markets and been extremely difficult to make money in. Investors therefore need to be careful. Looking to the future, this could be the Cinderella of the themes, but to date Cinderella has not met the fairy godmother.
Clean energy companies have been high growth companies but their profits have been squeezed by competition from developing economies, particularly Chinese manufacturers and in some cases reductions in government tariffs. It is the very policy which drives the clean energy markets which also caps and limits listed company profits.
Clean Energy Investment funds
| Fund name | Type | Yield | 1yr TRR | Class | Facts | Mgr | Fav |
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Theme Performance
Worldwise Themes
Clean Energy Investment articlesall articles
news Is there a tailwind in alternative energy?
By Simon Webber, on 19 June 2013 Thematic News
blogs Al Gore's Most Important Talk Ever
By Tim Dieppe, on 20 March 2013 Market Blog
blogs Subsidies muddle: Full-fat for nuclear, semi-skimmed for the rest
By Edward Franks, on 20 February 2013 Market Blog
blogs O wad some Power the gift tae gie us, To see oursels as ithers see us!
By Seb Beloe, on 7 February 2013 Thematic Blog
blogs How king coal kills
By Jade Summer on 24 January 2013
blogs Tilting at Windmills
By Seb Beloe, on 19 November 2012 Thematic Blog | Market Blog
news Solar companies demand compensation for feed-in tariff cuts
By Carol Wong on 18 July 2012 Thematic News
news LSE report informs onshore wind energy debate
By Carol Wong on 13 June 2012 Thematic News
news Goldman Sachs to invest $40bn in clean energy
By Carol Wong on 6 June 2012
blogs What the shale oil counter-revolution means for clean energy
By Edward Franks, on 10 May 2012 Market Blog
news Cameron fails to convince business and environmental groups with green energy speech
By Carol Wong on 29 April 2012 Thematic News
news Government divisions put wind energy investment at risk
By Carol Wong on 24 April 2012
blogs Market background still positive for energy efficiency
By Ty Lee, on 17 April 2012 Market Blog | Fund Blog
blogs Solar shakeout: sun rise in the East, set in the West
By Hyewon Kong, on 4 April 2012 Thematic Blog
blogs Solar energy commitment underlines value of investor engagement
By Seb Beloe, on 26 March 2012 Thematic Blog | Market Blog
news Obama announces $1bn plan for supporting green cars
By Louise Fallon on 12 March 2012 Thematic News
news Obama promotes Clean Energy, but also Oil and Shale Gas
By Louise Fallon on 30 January 2012 Thematic News
blogs Germans show green investors and politicians how to build Solar
By Mark Hoskin on 21 January 2012 Thematic Blog
news Wind Energy should remain a long term hold for green funds
By Louise Fallon on 11 January 2012 Thematic News
blogs Unbalanced news shows the environmental message is not getting through
By Mark Hoskin on 6 January 2012 Thematic Blog
news Climate Change pact reached in Durban
By Louise Fallon on 12 December 2011 Thematic News
news What does the Carbon Plan mean for Gas and Clean Energy Investment?
By Louise Fallon on 6 December 2011 Thematic News
news Positioning a sustainability fund in today's market
By Claudia Quiroz, on 2 December 2011 Thematic News | Fund News
news Energy Efficiency is the theme to focus on
By Claudia Quiroz, on 1 December 2011 Market News | Fund News
news IFAs feel that Investors need to increase exposure to Renewable Energy
By Mark Hoskin on 1 December 2011 Market News
news Number of Electric Vehicles to increase despite Chevrolet Volt incident
By Louise Fallon on 30 November 2011 Thematic News
news Leaders Meet to Discuss Responses to Global Climate Change
By Louise Fallon on 28 November 2011 Thematic News
news Citywire make Pictet Clean Energy 'Fund of the Week'
By Mark Hoskin on 28 November 2011 Market News | Fund News
news How firms profit from going 'green'
By Thomas Maskrey on 25 November 2011 Thematic News
news China eyes 'green' growth
By Thomas Maskrey on 24 November 2011 Thematic News | Market News
news Carbon Nation produce a climate change solutions movie
By Mark Hoskin on 24 November 2011 Thematic News
news Sarasin engage with shale gas industry
By Mark Hoskin on 18 November 2011 Thematic News | Fund News
news Grid parity for Onshore Wind, is it time for investment?
By Louise Fallon on 14 November 2011 Thematic News
news The 2011 Climate Change Investment Awards Conference
By Louise Fallon on 10 November 2011 Thematic News | Market News
news China's ban on incandescent bulbs shows opportunities for investment in energy efficiency.
By Louise Fallon on 9 November 2011 Thematic News
blogs Ecobond two is positive for renewables, but sparks a need for legal change
By Mark Hoskin on 8 November 2011 Thematic Blog | Market Blog
By Arabella Murphy on 8 November 2011 Thematic News | Market News
news Ecotricity wins - but do investors?
By Louise Fallon on 7 November 2011 Thematic News
news 7 billion people on the planet creates investment opportunities
By Louise Fallon on 31 October 2011 Thematic News
blogs Investors do not despair, but Mr Barker, 'What are you committed to?'
By Mark Hoskin on 31 October 2011 Thematic Blog | Market Blog
news Drastic cuts to UK solar subsidies
By Louise Fallon on 31 October 2011 Thematic News | Market News
news National Grid provide the background to the energy challenge
By Louise Fallon on 24 October 2011 Thematic News
blogs Do Pictet have the new breed of 'Responsible' funds
By Mark Hoskin on 16 October 2011 Market Blog
news The ET50 and the financial crisis
By Mark Hoskin on 19 September 2011 Market News
blogs A tale of two themes - Agriculture and Clean Energy
By Mark Hoskin on 19 September 2011 Thematic Blog | Market Blog
blogs Carbon emissions are out of control
By Mark Hoskin on 28 August 2011
news BT to Move Pensions into Low Carbon Fund
By Louise Fallon on 9 August 2011 Thematic News
news Prospects for Nuclear Energy Investment
By Louise Fallon on 29 July 2011 Thematic News
news UK Energy Statistics Published
By Louise Fallon on 28 July 2011 Thematic News
news Is There a Carbon Bubble And Are Your Funds at Risk?
By Louise Fallon on 22 July 2011 Thematic News
news Electricity Market Reform
By Louise Fallon on 15 July 2011 Thematic News
news Pictet Asset Management wins Climate Change Investment Award 2010
By Admin Guy on 11 May 2011 Fund News
news How much is climate change increasing portfolio risk?
By Claudia Quiroz, on 26 February 2011 Thematic News
news Changing demographics awaken sustainable investment trends
By Claudia Quiroz on 1 January 2011 Thematic News
The value of ethical and green investments can go down in value as well as up, so you could get back less than you invest. It is therefore important that you understand the risks of investing. Our aim is to provide you with the best information we can to help you make decisions about ethical and green investments. It is not to advise you on the suitability of an investment to your personal circumstances. Nothing written on the site should be considered personal advice, nor do Holden & Partners accept liability for any inaccurate information on the site. If you are unsure about the suitability of an ethical and green investment please contact Holden & Partners or your financial adviser.