Bringing you live news and features since 2006 

Tabula calls for expanded Paris-aligned investment opportunities

RELATED TOPICS​

Investors urgently need greater access to diversified investment strategies aligned with the Paris Agreement on climate change if the world is to avoid temperature rises well above 1.5 degrees Celsius, Tabula warns.

The first UN stocktake on progress made by countries that have made pledges to cut carbon emissions shows that most are not on course to reach net zero by 2050 and are in need of trillions of dollars in both public and private capital to achieve the green transition, the firm says. 

Tabula writes that it wants to emphasise the necessity for more specialist funds directing capital towards renewables, infrastructure, energy efficiency and carbon capture. In addition, investors need diversified strategies suitable for broad, core allocations.

The Paris-aligned benchmarks (PABs), introduced as part of the EU Green Deal, help investors avoid greenwashing, and align with Paris Agreement target to keep global warming at 1.5 degrees Celsius or below.

To qualify for inclusion on PABs, an index must meet specific greenhouse gas emission targets. Additionally, it must include screening processes ensuring investments do not reach the most harmful industries. 

Paris-aligned ETFs offer investors an opportunity to align their broad bond portfolios with the goals of the Paris Agreement, the firm says, thereby addressing the growing need for transparent and clear climate-friendly solutions.

Jason Smith, Chief Investment Officer at Tabula, says: “The world requires an annual investment redirection of USD2.7 trillion to achieve the net-zero 2050 ambition for climate transition. Investors desperately need ways to allocate their capital to projects that genuinely support the green transition while offering attractive returns. Paris-aligned ETFs avoid the companies most harmful to the planet while maintaining liquidity and diversification.”

Tabula CEO, Michael John Lytle says: “Tabula’s PAB ETFs cover a growing share of the fixed income market, from ultrashort to broad spectrum investment grade, high yield and fallen angels thereby offering convenient tools for investors looking to shift traditional passive allocations into more climate-friendly investments.”

Latest News

As the ETF industry reaches a milestone of USD12.71 trillion in global assets, Brown Brothers Harriman writes that its 2024..
Matteo Greco, Research Analyst at Fineqia International writes that bitcoin closed last week at approximately USD66,300, marking a 7.8 per..
HSBC Asset Management’s (HSBC AM) ETF and Indexing business has passed USD100 billion in assets under management (AUM), reflecting its..
Amundi’s ETF Market Flows Analysis for April reveals that investors added EUR54.1 billion to global ETFs in April with equities..

Related Articles

Dan Miller, IQ-EQ
With just over a week to go till T+1 settlement begins in North America, Canada and Mexico, time is of...
Emily Spurling, Nasdaq
Last October’s ETF Express US Awards 2023 found Nasdaq winning Best Index Provider – ESG ETFs and Best Index Provider...
Vinit Srivistava, MerQube
Index provider, MerQube, launched in 2019, with the aim of providing a “technology-driven answer to the most complex, rules-based investment...
Sean O' Hara
Pacer ETFs has announced the launch of three Cash Cows UCITS ETFs. The firm writes that this will give European...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by