The firm's second UCITS launch, the fund will focus on companies behind the rise of distributed renewable energy generation, including solar panels, smart meters, and vehicle-to-grid energy charging systems.

Carrying a total expense ratio of 0.69 per cent, it will track the iClima distributed renewable energy index, which provides exposure to 50 companies in seven segments directly related to the growing distributed generation or “DER” business model. The model allows green energy to be created and managed close to the point of use, such as at home.

The firm hopes to capitalise on the rise of distributed energy and move away from ageing centralised grid-based models powered by large fossil fuel installations. It says the market is on target to attract $846 billion in investments over the next decade.

iClima’s first ETF, the iClima Global Decarbonisation Enablers, offers performance exposure to companies creating products and services that enable CO2e avoidance.

“Our aim is to redefine climate change investments by shifting the focus from companies’ emission reduction actions to organisations offering products and services that enable CO2e avoidance solutions," chief executive Gabriela Herculano, said.