Decarbonizing the global economy is a challenge requiring massive funding and coordination across all economic sectors. Energy ETFs play an important role in this transition. We find that investment flows into alternative energy ETFs (A‐ETFs) increase with climate change risk. After the Paris Agreement, A‐ETFs experience significantly stronger net flows than traditional energy ETFs (T‐ETFs): A one‐standard‐deviation increase in fund return results in about 8–12% higher net flows per year to A‐ETFs compared with T‐ETFs. Return‐sensitive investors appear to have joined the early climate‐concerned investors after the global investment community made public its determination to take climate action post 2015.