Marine Money Decarbonization Index
The Marine Money Decarbonization Index (MMDI or “the Index”) tracks the performance of the equity securities of a diversified set of global companies that develop technologies, manufacture equipment or provide services related to marine or ocean decarbonization.
The maritime industry currently accounts for ~3% of global carbon emissions according to the International Maritime Organization (IMO). Recently, the IMO, the European Union (EU) and other authorities have intensified regulatory efforts to initially limit and ultimately reduce maritime carbon emissions.
As a result, new technologies need to be developed and commercialized to achieve the stated emissions reduction targets. Companies that are 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. As of early 2021, the total cost of modernizing the global commercial fleet in order to reach the 2050 emissions targets was estimated to be as high as $USD1.9 trillion by industry analysts.
INVESTMENT SECTORS
Sector 01
Vessel Technology
Sector 02
Clean Energy Infrastructure
Sector 03
Fuel
Cells
Sector 04
Green
Fuels
Sector 05
Offshore Energy
Sector 06
Other Renewable
The Index
The Index is an adjusted equal-weighted Index broken down into two tiers: Core (80% weighting in the overall Index) and Tracking (20% weighting in the overall Index).
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The Core component of the Index comprises 20 companies that are leaders in the respective business sectors. The 20 constituents will be equally weighted in the Core component of the Index.
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The Tracking component of the Index comprises companies with promising developments or significant investment in the relevant business sectors that have not yet reached the development stage or scale targets as it relates to decarbonization efforts or sufficient materiality to the company’s overall business. The constituents will be equally weighted in the Tracking component of the Index.
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The weight of each security should not exceed 10% irrespective of the category.
Core 20
80% weighting in the overall Index
About The Team
The Marine Money Decarbonization Index was developed and is maintained by Maritime Transformation Partners, a collaboration between Marine Money, Breakwave Advisors and Sea/Switch Partners.
Relied upon by maritime companies, financiers, equity investors and transaction professionals for more than 30 years, Marine Money is committed to bridging the gap between ocean industries and the international capital markets through its publications, 22 global forums, books and advisory services.
Breakwave Advisors LLC offers asset management and advisory services to the shipping and commodities industries. Its associates have more than 35 years of combined experience in sell side and buy side roles, spanning from corporate finance and equity research to portfolio management and company-side operations & risk management. Breakwave Advisors LLC is the Commodity Trading Advisor (CTA) for the Breakwave Dry Bulk Shipping ETF (NYSE: BDRY).
Sea/Switch’s mission is to bring together the technology innovators, capital providers, shipowners, cargo movers, regulators and other parties needed to drive maritime decarbonization through thought leadership and delivering practical solutions to complex challenges.