Despite predictions of a dire year with the inauguration of Donald Trump, Toronto’s The Atmospheric Fund (TAF) reports that green investments shone brightly in 2017, citing an analysis by Morningstar Inc.
The Chicago-based analyst’s five top-performing global green funds all grew by more than 25% in a single year, with the Global X Lithium & Battery Tech exchange traded fund (ETF) leading the pack with a torrid 63.36% jump in value. TAF suggests green investors were encouraged by China and India’s announcements of plans to curb carbon emissions, as well as by the global groan elicited by America’s withdrawal from the Paris Climate Accord.
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Noting the irony that U.S. mortgage provider Fannie Mae was the world’s largest issuer of green bonds in 2017, raising almost $25 billion in green mortgage-backed securities, TAF notes that “the green debt market is hot, with a record $155 billion in green bonds issued in 2017 to fund sustainable infrastructure projects around the world.” The conclusion: “Any way you cut it, these are billion-dollar investments that will earn financial returns while reducing carbon emissions.”
TAF says an emerging green economy can also be seen in the number of large corporations that are remaking themselves as green machines: Apple and Google are making tremendous investments in renewable energy, while “ the auto sector plays ‘follow the Tesla’” with a succession of new electric vehicle investments.
“And don’t forget the trucks!” TAF notes. “Pepsi, Walmart, UPS, and Loblaws have all pre-ordered Tesla electric semi-trucks,” indicating that “market signals are all pointing towards electric fleets that are cheaper, cleaner, and better for everyone in the long-term.”