Introduction
Over the past five years, environmental equities have weathered a complex array of headwinds: the Trump presidency, the COVID-19 pandemic, the war in Ukraine, an unprecedented rate-hiking cycle and renewed Middle Eastern tensions.
These equities have also withstood challenges including global supply chain disruptions and volatile costs for critical materials such as rare earth metals and lithium, vital for renewable energy technologies. They have managed to navigate a shifting regulatory landscape across various countries, dealing with intricate and evolving policies related to clean energy incentives and carbon emissions.
Furthermore, environmental equities have managed to maintain stability amidst varying public sentiment around the energy transition, ranging from strong support to skepticism, which mirrors the diverse global stance on climate change and energy policy. This steadfastness not only underscores the sector’s general resilience, but also highlights its significant role in the global economy’s gradual shift towards sustainability.
In this article, we will delve into the clean energy sector’s sustained growth, a secular megatrend underpinned by market demand, technological progress and global commitments to sustainability. Additionally, we examine the increasing bipartisan support for renewable energy, a factor that tempers the likelihood of significant policy shifts post-elections.
![USA clean energy, wind power](https://europe.ark-funds.com/wp-content/uploads/2024/01/USA-clean-energy-wind-power.jpg)