SHANGHAI (Reuters – Chinese fund manager are rushing towards setting up wind power funds as a way to cash in on the investors’ green fever. The move comes at a time when global climate negotiations in Glasgow rekindle concern about China’s commitment to carbon neutrality.

More than 10 fund managers have applied to set up China’s first batch of exchange-traded funds (ETF) tracking the wind power industry since last Friday, according to the country’s securities regulator.

China last week confirmed to United Nations that its emission levels would peak by 2030, and then decline to net zero by 2060. This was a promise President Xi Jinping made back in 2020.

China has also pledged to increase total wind and solar power generation to 1,200 gigawatts before 2030, in order to achieve its goals.

The mutual fund houses which have submitted applications include China Asset Management, GF Fund Management, Harvest Fund, the China Securities Regulatory Commission’s (CSRC) website showed.

The funds, if allowed, will add more capital to an already hot sector. China is making greater efforts to go green. The index for energy has nearly doubled in the past year.

Although there are many ETF products that track sub-sectors of the new industry such as photovoltaic and new energy vehicles, the ETFs for the wind energy sector would be the ones to start tracking this sub-sector.

ETFs will follow the CSI Wind Power Industry Index. This index tracks businesses from upstream providers to downstream operators and constructors.

The index’s volatility has risen to 80% in the year since its launch, which fuels fears about a bubble. Analysts warn that too many funds of the same type will lead to fierce competition.