Photo: Illustration. Courtesy of Maersk

World’s 1st green tech shipping ETF launched

ETF Managers Group LLC (ETFMG), the US-based exchange-traded fund issuer, has launched the ETFMG Breakwave Sea Decarbonization Tech ETF (BSEA), the world’s first green technology shipping ETF.

BSEA began trading on 21 September on the New York Stock Exchange.

As explained, the ETF is designed to provide investors access to a diversified set of global companies involved in actively reducing the environmental impact of the global maritime sector, including those that develop technologies, manufacture equipment or provide services related to marine or ocean decarbonization.

“BSEA is a key step towards capitalizing on the ocean decarbonization transition by providing investors with an easy way to track the performance of publicly-traded sector leaders backed by comprehensive research and analytics,” John Kartsonas, Founder and Managing Partner of Breakwave Advisors, said.

The shipping industry accounts for roughly 3% of global carbon emissions, around 1 billion metric tons of greenhouse gases emitted yearly. Without further action, shipping emissions are expected to surge.

As of early 2021, the total cost of modernizing the global commercial fleet to reach 2050 emissions targets was estimated to be $1.4-$1.9 trillion.

BSEA provides exposure to dynamic and pioneering companies involved in developing and commercializing technologies that could benefit from the growth of new sector initiatives aiming to combat the environmental impact of the global maritime sector. This includes companies involved in cleaner propulsion (alternative fuels, batteries and fuel cells), carbon capture technologies and offshore wind development.

“We are excited to bring yet another first to the market with BSEA, a product that answers investor demand for access to these disruptive technology companies at the forefront of ocean decarbonization,” Sam Masucci, Founder and CEO of ETFMG, commented.

“Shipping will always remain a major part of the global economy, while the decarbonization transition will provide considerable investment opportunities that are still in their infancy,” Hal Malone, Principal of Sea/Switch Partners, pointed out.

BSEA tracks the Marine Money Decarbonization Index (MMDI). The index is designed to reflect the performance of companies involved in developing and commercializing these technologies could benefit significantly from the growth of new sector initiatives aiming to reduce the environmental impact of the global maritime sector, which counts more than 100,000 vessels.