Strategy

The Global Transition to Clean Energy is Gaining Momentum

Aug. 15, 2022

Details:

ZCLN - BMO Clean Energy Index ETF (ticker: ZCLN)

GRNI - BMO Brookfield Global Renewable Infrastructure Fund ETF Series (ticker: GRNI)

The Inflation Reduction Act was passed recently and nearly $370 billion is dedicated to clean energy and combatting climate change. This package is the largest climate investment in U.S. history and will pave the way for the U.S. to reach their 2030 goal of reducing carbon emissions by 40%. Having the U.S on board with this type of stimulus is good news for the battle against climate change as the United States is the second largest carbon emitter in the world.

Governments around the world have introduced plans to reduce the effects of climate change including carbon tariffs, and a variety of policies aimed at achieving net-zero emissions by the year 2050. These efforts are rapidly changing the global power industry, with renewables presenting an opportunity for investors, as carbon-free and sustainable energy sources are positioned well to increase output over the coming decades. ** As it currently stands energy creation around the world from renewable sources stands at approximately 10% as the majority of energy production is still coming from traditional fossil fuels including oil, coal, and natural gas. As governments around the world put an emphasis on the transition away from fossil fuels the share from renewable sources is expected to contribute a much larger share of energy production.

For investors looking to capture growth and the transition to renewable energy sources consider allocating towards ZCLN - BMO Clean Energy Index ETF and GRNI - BMO Brookfield Global Renewables Infrastructure Fund ETF Series.

Why now?

  • Most recently clean energy stocks have been gaining momentum vs traditional fossil fuel stocks
  • Clean Energy has been gaining momentum on the 50-day, 100-day and 200-Day moving average* 
  • Short term momentum indicators such as the Relative Strength Index and the Moving Average Convergence Divergence show ZCLN has been gaining momentum
  • Clean energy is a long-term trend with global governments having aggressive emission targets for the near future 
  • Month to date, there has been institutional interest with the momentum in ZCLN and has resulted with an increase in net new unit creations
  • Now could also be a great time to invest in Renewables Infrastructure as the sector is at an inflection point as the world transitions to cleaner, more affordable, and more efficient sources of power generation, allocating capital towards GRNI - BMO Brookfield Global Renewables Infrastructure Fund ETF Series allows investors to gain exposure towards a concentrated group of industry leaders
Now could also be a great time to invest in Renewables Infrastructure as the sector is at an inflection point as the world transitions to cleaner, more affordable, and more efficient sources of power generation
*Source: Bloomberg August 92022.

Shares of primary energy sources in event of a rapid transition

Shares of primary energy sources in event of a Rapid Transition
**Source: BP Energy 2022 Outlook.


BMO Brookfield Global
Renewables Infrastructure Fund


GRNI


Distribution Yield: N/A | Q
Mgmt. Fee: 0.8%
Risk Rating: Medium

BMO Clean Energy
Index Fund


ZCLN


Distribution Yield: 0.8% | A
Mgmt. Fee: 0.35%
Risk Rating: High

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