A international renewable vitality surge is getting a lift from China, which may entry with the KraneShares MSCI China Clear Know-how Index ETF (KGRN).
The most recent numbers from the Worldwide Vitality Company present an elevated contribution from China in renewable vitality.
“The IEA predicts giant capability good points in renewable vitality will turn out to be the ‘new regular’ in 2021 and 2022, with will increase much like 2020’s document whole,” an NPR article stated.
“An unprecedented quantity of renewable energy got here on-line within the fourth quarter of 2020, the report states,” the article added additional. “China alone added greater than 92 gigawatts of capability – greater than triple the quantity it added within the fourth quarter of 2019. The U.S. added 19 gigawatts, a pointy acquire over the 13.7 it added in the identical quarter of the earlier yr.”
KGRN seeks to trace the efficiency of the MSCI China IMI Atmosphere 10/40 Index. The Index is comprised of securities that derive no less than 50% of their revenues from environmentally useful services.
The Index is predicated on 5 key Clear Know-how environmental themes: Various Vitality, Sustainable Water, Inexperienced Constructing, Air pollution Prevention, and Vitality Effectivity. The Index goals to function a benchmark for traders looking for publicity to Chinese language corporations that concentrate on contributing to a extra environmentally sustainable economic system by making environment friendly use of scarce pure assets or by mitigating the impression of environmental degradation.
General, KGRN offers traders:
- Entry to China’s fast-growing environmental safety trade
- Publicity to corporations that stand to learn from China’s elevated focus and spending on clear vitality applied sciences
- Benchmarking to an MSCI ESG Index
China Powers Up with Wind and Photo voltaic Vitality
China has been particularly upping the ante on wind and solar energy use. The nation just lately met its renewable vitality coverage objectives.
“The IEA’s Renewable Vitality Market Replace identifies a number of international locations as driving the exceptional development in renewable vitality final yr, together with China, the U.S. and Vietnam,” the NPR article stated. “All three international locations had been going through coverage deadlines that spurred renewable vitality initiatives to completion.”
“For the primary time, China accounted for 50% of the world’s development in renewable vitality capability,” the article added. “The nation is anticipated so as to add barely much less renewable energy capability in 2021, because it phases out some subsidies for wind and photo voltaic initiatives.”
For extra information, data, and technique, go to the China Insights Channel.
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