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A Beginner’s Guide to Green Energy Investing

A Beginner’s Guide to Green Energy Investing

Global warming, extreme weather, heatwaves, wildfires, droughts, melting polar ice, and rising sea levels are the direct consequences of overloading our atmosphere with carbon. 

The prime reason for our increasing carbon footprint is burning fossil fuels to drive cars and generate electricity to run machinery, household gadgets, and industrial infrastructure. It is time we transitioned from conventional energy sources to renewable sources.

Here we share why and how you should invest in green energy.    

What is green energy investing?

As defined by the EPA (Environmental Protection Agency), green energy stands for all energy resources that provide the highest environmental gains. It includes solar, wind, geothermal, and biogas energy and the electricity generated through low-impact hydroelectric projects such as run-of-the-river hydroelectricity. 

Green energy is vital for reducing CO2 emissions and tackling climate change. Investing in projects that support the generation and supply of green energy is known as green energy investing.

Why should you invest in green energy?

  1. Rising market share: Green energy is making waves in capital markets across the globe. According to a Bloomberg New Energy Finance report, renewable energy will account for up to 60% of power generation by 2030, and the investment in fossil fuels will fall to 46% from 64% in 2013. Wind and solar energy generation will go up from 3% to 16% by 2030. So, there is a lot of scope for investing in green energy stocks. 
  1. Yields more returns: According to the International Renewable Energy Agency (IRENA), investing in green energy will generate 3 to 8 times higher returns than usual investments. Studies conducted by WRI’s Aqueduct platform show that by 2030, 2.5 million people and $42 billion in the urban property will be affected by coastal flooding caused due to climate change. Investing in green energy can help mitigate climate change.
  1. Generates new jobs: As per IRENA’s Transforming Energy Scenario, the number of jobs in the renewable energy sector will triple by 2050, which means this industry will generate more than 42 million jobs in 2030. Simultaneously, the fossil fuel industry is predicted to lose about 6 million jobs.

How to invest in green energy?

  1. Hydropower: Hydropower generates 7% of the total 17% green energy in the United States. One of the best ways to invest in green energy and reap its rewards in the future is to invest in hydropower. Some major companies in the hydropower sector that you can invest in are Brookfield Renewable Partners (BEP), Innergex Renewable Energy (INGXF), and Hydro One Limited (HRNNF).
  1. Wind power: It is also a good option. You can look for companies that run wind farms or manufacture wind turbines. Some companies that you can invest in are NextEra Energy Partners LP (NEP), Siemens Gamesa (GCTAY), and Vestas Wind Systems (VWDRY).
  1. Solar power: It is another primary source of green energy in the United States. You can promote solar energy generation by investing in companies that install, manufacture, or research the technology and products related to solar energy. Some companies that you can invest in are First Solar (FSLR), JinkoSolar Holding Co. Ltd. (JKS), and Sunpower Corp. (SPWR).
  1. Other methods: If you don’t want to invest in companies directly, you can always consider investing in green energy funds and ETFs. Please make use of our opportunities page to stay current on the latest green energy investment opportunities.

About Impact Capital Partners

If you are looking to earn green returns, Impact Capital Partners should be your one-stop destination. We will help you find impact investments that generate returns and promote the causes you believe in. If you have any queries, fill out our online contact form, and we will get in touch.

About Impact Capital Partners

At Impact Capital Partners, our mission is to connect institutional capital with the growing impact investment market to address the world’s most pressing challenges. By utilizing impact investments, institutional investors are able to generate positive, measurable social and environmental impact alongside a financial return. We are constantly finding new impact investment opportunities in both emerging and developed markets, targeting market-rate returns. Schedule a call with us HERE if you’re interested in learning more about our impact investing strategies.