The United Nations Climate Change Conference, commonly referred to as COP26, has held a spotlight on the development of renewables around the world. Deloitte recently revealed that wind and solar capacity additions of 13.8 GW were up 28% in the first eight months of 2021 compared to the previous year. Positive trends in the renewable energy space are expected to accelerate into 2022.
Earlier this year, Allied Market Research projected that the global renewable energy market would reach $1.97 trillion by 2030. This would represent a CAGR of 8.4% over the forecast period dating back from 2021.
Investors hungry for exposure to the renewable energy space should look to the Harvest Clean Energy ETF (TSX:HCLN). This ETF invests in a portfolio of the 40 largest Clean Energy Issuers selected from the Clean Energy Investable Universe. Shares of this ETF have plunged 19% in 2021 as of close on November 24.
Some of the top holdings in this ETF include Daqo New Energy, a Chinese company that is engaged in the manufacture of monocrystalline silicon and polysilicon primarily for use in solar photovoltaic systems. It also boasts exposure to Canadian firms like Ballard Power Systems (TSX:BLDP). Ballard is a British Columbia-based company that develops and manufactures proton exchange membrane fuel cell products for a variety of markets.
The Harvest Clean Energy ETF is trending towards oversold territory at the time of this writing. It is a solid pick-up for the long term in late 2021.
