- The European Green Deal is a set of policy initiatives suggested by the European Commission which aims to reduce greenhouse gas emissions by 55% by 2030, and achieve net-zero by 2050.
- EUGD is classified as SFDR 8 and is the only European Green Deal focused ETF globally.
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September 2023, London
HANetf, Europe’s first and only independent white-label UCITS ETF and ETC platform, and leading provider of digital asset ETPs, is delighted to announce that European Green Deal UCITS ETF (ticker: EUGD) has reached $52 million (€49.9m) AUM only two months after its launch.
Launched in association with Societe Generale in July, EUGD seeks to provide exposure to the companies that should benefit from the European Green Deal – a landmark economic strategy set forth by the European Commission which aims to reduce greenhouse gases by 55% by 2030 and turn Europe into the world’s first carbon neutral continent by 2050.
The plan requires the mobilisation of €1 trillion in sustainable investments over the next decade – something EU Commission President Ursula von der Leyen outlined in a speech this month, where she advocated for “economic realism” rather than “regulation alone”.
Von der Leyen also made clear that the next stage of the Green Deal will need to focus on industrial policy, namely through a series of “Clean Transition Dialogues” with industry.
Beyond making Europe the first climate neutral continent worldwide, the Deal is expected to create new opportunities for innovation, investment, and jobs. Additionally, all 27 EU Member States have committed to the Deal. EUGD is the only ETF available globally that is focused on the European Green Deal.
The European Green Deal UCITS ETF targets stocks, selected by Societe Generale’s research department, from within 4 key sectors that could benefit from this agreement:
- Clean Energy: The EU has set a 45% target for renewable energy generation by 2030 (up from 22% in 2021), requiring substantial investment.
- Sustainable Mobility: 90% reduction in transport related emissions by 2050 is needed, with investment in rail, hydrogen, electric vehicles and biofuel key.
- Building & Renovation: EU commission want to double the current rate renovation of public & private buildings, improving energy efficiency.
- Circular Economy: Potential for recycling & waste management companies to benefit from the 70% waste recycling target set by the EU by 2030 (up from 55% currently).
Hector McNeil, Co-CEO and Co-Founder of HANetf, comments: “We are delighted to see European Green Deal UCITS ETF (EUGD) reach $52 million AUM in such a short span of time. The European Green Deal is set to transform Europe over the coming decade, and will require significant investment. With this, we expect to see considerable growth among the companies central to the energy transition.
“EUGD is well placed to capture this growth, tracking the SGI European Green Deal ESG Screened NTR Index with stocks selected by Societe Generale’s expert research team. EUGD is one of many ETFs offered on the HANetf differentiated platform that allow investors to invest in carbon reduction and sustainable sectors.”
All performance figures are showing net data. Past performance is not indicative of future performance and when you trade ETFs, your capital is at risk.