Financial Advisors’ Role: Strategies for Integrating Clean Energy Funds into Portfolios

Abstract

Financial advisors in Canada play a vital role in advancing sustainability by integrating clean energy funds into portfolios. As Canada targets net-zero emissions by 2050, advisors guide clients in aligning investments with green goals, reducing emissions, and capitalizing on eco-friendly opportunities. In this regards, the study explores the relationship between clean energy investments, research and development (R&D), economic growth, and traditional energy consumption on carbon dioxide (CO?) emissions in Canada from 1990-Q1 to 2022-Q2. Using a wavelet quantile regression approach, the study investigates how these factors influence emissions across different time horizons. The findings reveal a significant positive relationship between traditional energy use and CO? emissions, particularly in the short and medium term. While clean energy investments and R&D show a positive correlation with emissions initially, their long-term impact is beneficial, contributing to a reduction in CO? emissions as technologies scale. Economic growth also positively influences emissions, emphasizing the need for decoupling growth from carbon-intensive energy sources. Based on the findings, the study highlights the role of financial advisors in guiding sustainable investment strategies and the importance of government policies in supporting clean energy innovation and reducing emissions. © 2025 Taylor & Francis.