Will Summit on Climate Change Revitalize Green ETFs?

by: Tom Lydon

The Kyoto Protocol is coming up on its expiration date and world leaders are eager to ratify a new global agreement on climate change. An upcoming conference may provide the push toward invigorating the green industry and related ETFs.

The Copenhagen Climate Conference on Dec. 7 in Denmark is expected to finalize terms of an agreement to reduce greenhouse gas emissions that will be effective after the Kyoto Protocol expires at the end of 2012, writes Haider Rizvi for Environment News Service.

Richer countries are urged to donate a minimum of $10 billion to “kick-start immediate action” to mitigate the consequences of climate change and to aid developing countries in combating the effects of severe weather. Additionally, industrialized countries are also encouraged to offer targets for greenhouse gas reductions after 2012.

Danish Prime Minister Lars Loekke Rasmussen believes that the international summit on climate change in Copenhagen will likely deliver a binding political agreement that would pave the way for an international treaty to be agreed upon, reports Alessandro Torello for The Wall Street Journal.

The European Union has set a goal of constraining global warming at two degrees Celsius compared with pre-industrial temperatures.

The Cap and Trade ETN or other green energy ETFs may stand to benefit from the increased awareness in global climate change.

  • iPath Global Carbon ETN (NYSEArca: GRN): down 16.7% year-to-date

  • PowerShares WilderHill Clean Energy (NYSEArca: PBW): up 17.4% year-to-date

  • PowerShares Global Clean Energy (NYSEArca: PBD): up 26.6% year-to-date

  • First Trust NASDAQ Clean Edge Green Energy (NYSEArca: QCLN): up 25.7% year-to-date

  • iShares S&P Global Clean Energy Index (NYSEArca: ICLN): up 1.2% year-to-date

Max Chen contributed to this article.