The world is going greener than ever before. While concerns over environmental damage and demand are nothing new, huge strides in renewable energy and sustainable business practices are extremely evident. As we move further into the 2020s, governments all over the world are committing to greener practices and are working to help reduce the damage we are doing to our planet.
Renewable energy is also a huge driver on the stock exchange. There are many different reasons for this. Plenty of investment apps and platforms allow you to set up ethical, automated portfolios, for example. But why exactly is going green with your investments worth your time and money, as well as your conscience?
Markets and innovations are growing
One of the main reasons why so many traders and investors are getting into renewable energy shares is the simple fact that there’s so much choice now. Online sources such as AskTraders are awash with options for you to get behind the next big environmentally charged innovation.
Green startups are popping up all over the US. Generation Z is perhaps more concerned with ‘saving the planet’ than any other thus far – young startup founders are going public with their new and exciting ways to help us all cut back on coal, oil and other non-renewable energy sources. It’s a very exciting time to go eco, and this bubble is very unlikely to burst any time soon.
Green energy is affordable
A key driver behind eco growth on the markets is the fact that renewable energy innovations are relatively inexpensive in the modern age. A general shift towards greater environmental responsibility means that businesses and entrepreneurs are able to set up eco-friendly solutions for a fraction of the cost they would have expected a few years ago.
As above, trends appear to show that this is unlikely to slow down any time soon. Widespread reports and media campaigns to show the damage that plastic is doing to our oceans, for example, are helping even the biggest of businesses see that things need to change.
Therefore, it’s little wonder why there are so many different green stocks emerging. Even better for the average investor, of course, is the fact that these investments are likely to remain very affordable – provided that the set-up costs stay low.
Green energy has big backing
Eco-friendly stock is no longer a niche cause. There are huge bodies in the fray that are paying into sustainability and renewable energy solutions. Socially responsible investing (SRI) is worth trillions – and it actively bars stocks and services that don’t have a climate change policy or ideal in place.
This is helping to make green stocks all the more lucrative for everyone involved. It’s helping to drive up the value of renewable energy on the markets, while the buy-ins for the average investors remain relatively cheap.
This, again, is unlikely to go bust overnight. The amount of money and time that big companies are investing in eco and renewable energy suggests that you will likely be getting into a niche that’s going to keep growing.
Green energy is the future
You don’t have to look too far beyond the headlines to see that renewable energy is no longer just a buzzword. Governments all over the world are starting to commit to cleaner energy, with some even planning to remove gas and diesel cars from the road by the end of the decade. It is a huge leap for society, considering that there is still so much that we depend on fossil fuels for. Thankfully, this appears to be changing.
High-profile, gas-free vehicles such as those produced by Tesla are also capturing the public’s interest. EV is no longer the non-starter it once was. This has had a knock-on effect not only within the public consciousness, but also within big business. Crucially, environmentally friendly resources are seen to be extremely desirable – and that’s going to continue.
Investment in solar panels down under, and wind farms across the US, indicate that there is little chance for us to move back on renewable energy. That’s only ever a good thing!
Green stocks will increase in value
In line with increasing interest, governmental backing and big business appeal, it is safe to say that green shares and stocks will not only be sticking around, but will also be appreciating in value for years to come. Of course, stocks are never an exact science, and different shares and stocks will vary in terms of mass appeal and genuine value on the markets.
However, an investment in renewable energy now could pay dividends in the short term. Public awareness of renewable benefits, and an ongoing push for households and businesses to go green, will likely keep pushing investors towards more conscionable choices. It is no longer seen as ‘good value’ to invest in pure oil or fossil fuel stocks, and in some cases, it may even be detrimental.
All signs point towards fossil fuels running out in the short term, with some supplies dwindling even in the next half-century. Therefore, any investors backing non-renewable stock in the here and now will be backing the wrong runners.
Is it easy to invest in green stocks?
It has certainly never been easier to invest in green and renewable stocks and shares. As mentioned, there is a variety of apps and investment platforms available that enable you to be more socially responsible with your choices. There are even specially curated funds that can help you to back companies and entrepreneurs that have the environment’s best interests at heart.
Going green on the stock exchange is no longer seen as just a move of conscience. It’s a move that is likely to see considerable financial growth for your portfolio in the years to come. With many world leaders and businesses pushing for a greener future in the short term, investing between now and 2030 could bring fantastic value to your strategies.