Continuing with the green wave in financial markets, Blackrock and Temasek, a Singapore investment fund, have created a US$600 million joint venture to invest in companies and technologies proven to reduce or potentially eliminate greenhouse gas emissions. The alliance between the two financial firms is part of the vigorous return of investors to clean technology companies.

After experiencing a boom in the late 2000s, especially in companies related to renewable energy, the sector suffered a crash that began in 2011 and caused investors to lose around US$25 billion. Market interest in the sector remained low until last year, when it began to take off again. The iShares Global Clean Energy ETF, for example, has shown a return of more than 111% in the last year. Exuberant prices have 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 10 years ago.

The main clean technologies have matured and become less expensive, and no longer depend so much on government subsidies. In addition, the sector has already undergone a significant correction this year. However, among clean technology investment assets, there is a growing number of start-ups and innovative companies targeting the next frontier in the sector, 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 see the iShares Global Clean Energy price chart here https://yhoo.it/3eWKiSL