In the transition to a low-carbon, climate-protecting economy, some investments face challenges due to regulation, technology and consumer behavior. Because of climate change’s dangerous repercussions, such as increased temperatures and extreme weather events, investors are seeking to capitalize on opportunities that are working to mitigate climate change, says Morningstar’s Investing in Times of Climate Change research report.
Clean energy investments are expected to increase from $1.8 trillion in 2023 to $4.5 trillion by 2030. These investments include clean energy, electric vehicles, carbon storage and flood defenses, with more options consistently entering the energy transition realm. With fewer than 200 mutual funds related to climate in 2018, Morningstar now identifies nearly 1,600.
In addition, global assets in climate funds are increasing steadily, at $572 billion at the end of September. Europe accounted for a majority of these assets at 85 percen
