Legal & General launches first ‘green’ hydrogen fund

Fund manager creates avenue for investing in emerging hydrogen economy

Green hydrogen fuels are increasingly seen as part of the shift to a low-carbon economy. Photograph: Bloomberg via Getty

Green hydrogen fuels are increasingly seen as part of the shift to a low-carbon economy. Photograph: Bloomberg via Getty

 

Legal & General Investment Management (LGIM), the investment arm of the UK insurance giant, has created the first exchange-traded fund (ETF), which taps directly into the fast-evolving “green” hydrogen economy.

Green hydrogen fuels, those produced from renewable energy and electrolysis to split water , are increasingly seen as part of the shift to a low-carbon economy.

Used widely in manufacturing and transportation industries, they are forecast to provide 15-20 per cent of the world’s energy needs that will not be met by battery, wind or solar power.

LGIM, one of the world’s largest fund managers, has championed the climate change agenda, using its investor muscle to push companies in a more sustainable direction.

It said its new hydrogen economy ETF provides “investors with exposure to the long-term investment opportunity offered by the transition to a low-carbon, hydrogen economy.”

Production

“This includes the technologies and firms that are enabling the production of cheaper, clean forms of hydrogen and those that are expected to play an integral role in the hydrogen economy,” it said.

The fund will be listed on the London Stock Exchange, Deutsche Boerse, Borsa Italiana, Six Swiss Exchange and the NYSE Euronext.

“Access to clean hydrogen will be key to lowering emissions in harder to abate industries where electrification alone is not enough,” Howie Li, head of ETFs at LGIM said.