In line with the green wave sweeping the financial markets, BlackRock and Temasek, a Singapore-based investment fund, have created a $600 million joint venture to invest in companies and proven technologies that reduce or have the potential to eliminate greenhouse gas emissions. The partnership between the two financial firms is part of investors’ strong return to clean-tech companies.

After experiencing a boom in the late 2000s—particularly among companies in the renewable energy sector—the industry suffered a crash that began in 2011 and caused investors to lose approximately US$25,000 million. Market interest in the sector remained at rock bottom from then on, until last year, when it began to take off again with a vengeance. The iShares Global Clean Energy ETF, for example, has posted a return of more than 111% over the past year. The exuberance in prices has led some analysts to fear a bubble in the sector. Bloomberg columnist Noah Smith, however, does not see a bubble. The reality, he says, is very different from what it was 10 years ago.

The leading clean technologies have matured and become more cost-effective, and they no longer rely as heavily on government subsidies. Furthermore, the sector has already undergone a significant correction this year. However, among clean technology investment assets, there is a growing number of startups and innovative companies targeting the sector’s next frontier—such as energy storage, electromobility, green hydrogen, and carbon dioxide sequestration—where the risks—and opportunities—are greater and, according to analysts, there will be much more volatility. You can view the price chart for the iShares Global Clean Energy ETF here: https://yhoo.it/3eWKiSL