The renewable energy sector has continued to lag in the current year, with high interest rates and a weaker global economy acting as headwinds for clean energy equities. The iShares Global Clean Energy ETF (NASDAQ:ICLN) is deeply in the red, with a -18.2% return in the year-to-date, compared to a 6.6% gain by its fossil-fuel equivalent, the Energy Select Sector SPDR Fund (NYSEARCA:XLE) and 12.1% return by the S&P 500. Still, the clean energy sector continues to be a money magnet: last month, the International Energy Association (IEA) reported that global spending on clean energy technology infrastructure is on track to hit $2 trillion in 2024, double the amount going into fossil fuels.
The energy transition is a fast-moving domino that has companies across a wide spectrum scrambling to maintain the same momentum with constant technology and infrastructure upgrades. But security is the outlier.
According to DNV’s…
