The Global Clean Energy fund on offer with CIRCA5000 had its best day in 2022 yesterday, as it touched its highest levels in the year. The fund’s value jumped by 6.9% in hopes of bigger spending on climate change in the US.
US senator Joe Manchin had so far stubbornly opposed President Biden’s bill, which includes tackling the climate crisis and improving public infrastructure. Yesterday, he suddenly took a U-turn, finally giving his consent, allowing it to move forward.
This is big news because the climate package alone amounts to $369 billion. To put it in perspective, it is more than half the size of the entire impact investing industry of $715 billion at the last count (2019).
This is also a big deal for the Global Clean Energy fund since 45% of it is invested in US-based stocks. The US has the biggest share in the fund among all countries and is ahead of the second biggest, China, by a huge margin, which has only a 16% share. This explains the big jump in the fund yesterday.
The package is expected to boost a host of initiatives including clean energy production, pollution reduction and encouragement for electric vehicle usage. This has the potential not just to create positive climate impacts, but could also help returns on climate investments with CIRCA5000 over the long-term.
Remember investing is for the long term and your capital is at risk, past performance is not a reliable indicator of future returns.