Listed on London Stock Exchange and Deustche Börse XETRA, European Green Deal UCITS ETF (EUGD) tracks Société Générale’s SGI European Green Deal ESG Screened NTR Index.
The European Green Deal is a landmark new economic strategy from the European Commission, which aims to reduce greenhouse gases by 55% by 2030 and achieve carbon neutrality by 2050.
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The plan requires the mobilisation of €1trn in sustainable investments over the next decade, representing 30% of the EU budget (under the Multiannual Financial Framework and NextGeneration EU).
Beyond making Europe the first carbon neutral continent worldwide, the Deal is expected to create new opportunities for innovation, investment and jobs. All 27 EU Member States have committed to the Deal.
HANetf’s European Green Deal UCITS ETF targets stocks selected by Societe Generale’s research department from within four key sectors that could benefit from this agreement.
These include clean energy, where the EU has set a 45% target for renewable energy generation by 2030 (up from 22% in 2021), requiring substantial investment.
Another sector is ‘sustainable mobility’, in which a 90% reduction in transport related emissions by 2050 is needed, with investment in rail, hydrogen, electric vehicles and biofuel key.
Building and renovation, where the EU commission wants to double the current rate of renovation of public and private buildings, improving energy efficiency, is another sector.
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The final sector is the circular economy, which brings the potential for recycling and waste management companies to benefit from the 70% waste recycling target set by the EU by 2030 (up from 55% currently).
Hector McNeil, founder and co-CEO of HANetf, said: “The European Green Deal UCITS ETF (EUGD) will provide investors with a means of accessing the companies that will be central to Europe’s net-zero transition.
“The European Green Deal is set to reshape the European Union’s economy over the coming decades, as member states strive to achieve climate neutrality by 2050. This will require considerable investment and should promote the growth of companies that have a role to play in the transition.”
