Why Clean Energy Now

Come 2050, electricity generation from renewables is expected to come from a well-diversified mix led by solar, wind, and hydro. Based on these projections, focusing on just one area of renewable energy would leave out significant exposure to the overall industry.

In addition, the clean energy push clearly needs to be a global phenomenon, as the growth in consumption through 2050 will primarily be from non-OECD countries.6 Therefore, having a global perspective when it comes to meeting the expected growth is useful.

With the surge in demand for renewable energy, companies in the clean energy space are poised for similar growth. How does one capture the theme and track the performance of clean energy companies? Launched in 2007,7 S&P DJI offers the S&P Global Clean Energy Index, which provides liquid and tradable exposure to 30 leading clean energy companies. The index attempts to represent the full clean energy ecosystem by including companies both on the production and the technology & equipment sides in the various segments of renewable energy across the globe.


1 https://www.eia.gov/todayinenergy/detail.php?id=42555#

2 https://unfccc.int/process-and-meetings/the-paris-agreement/the-paris-agreement

3 https://www.whitehouse.gov/briefing-room/statements-releases/2021/01/20/paris-climate-agreement/

4 https://www.eia.gov/electricity/monthly/current_month/january2021.pdf

5 IRENA and CPI (2020), Global Landscape of Renewable Energy Finance, 2020, International Renewable Energy Agency, Abu Dhabi.

6 Organisation of Economic Co-operation and Development (OECD).

7 The index was launched on Feb. 22, 2007, with a base date of Nov. 21, 2003.

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Gary Anderson 2 months ago Contributor's comment

This switch to renewable power is a pipe dream. I can't see China doing it. I can't see any country that wants to grow doing it. Oil nations can't do it.