The Skywriter

The Renewables Revolution


The Renewables Revolution

We have all heard of the benefits of investing at a young age and having your money work for you, but do you ever feel as if the only stocks that perform well are the corrupt, environmentally unfriendly corporations? Well, the tables may be turning as companies around the world slowly begin to end their dependency on fossil fuels and start shifting towards the economic prosperity of a green economy. And now there are reasons to believe that investing in clean energy systems may not only help to reduce green house gas emissions, but also deepen your own pockets.

Mindy Lubber, the President of Ceres and a 1Sky ally just published a post in the Harvard Business Review’s blog examining how businesses and technologies are beginning to increase their investments in climate change opportunities. In this post Lubber reports:

One Wall Street firm is calling climate change the "next global mega-trend," after the opening of the Iron Curtain and the Internet revolution. Despite losses from the subprime debacle, European and US investment firms are ramping up their global warming research, trading desks, investments strategies and capital.

Deutsche and HSBC are just two of the many mainstream EU firms that have ramped up their climate-related investments and begun offering carbon-sensitive investment products for large and small customers alike.

Not only is Europe far more advanced than the U.S. when it comes to energy efficiency and their use of renewable energy sources, but many European companies are already actively investing in companies and technologies that reduce global warming pollution. Although the risks may be high, Lubber reports that many Wall Street analysts believe the financial opportunities are great.

U.S. investment firms are catching on to the European trend quickly. We're now seeing a steady stream of Wall Street reports analyzing the business implication of climate change -- nearly 100 research reports in the last year alone. Virtually all have the same message: climate change will have far-reaching financial implications, creating both enormous risks and opportunities.

Although many industry groups in the US fear ending our dependency on fossil fuels, claiming that any shift away from fossil fuels will disrupt our economy and further increase energy costs, this post provides evidence supporting the transition into clean energy systems. Developing a clean, reliable and cost-effective energy system takes investment and society-wide support, but now there is even more analysis suggesting that renewable energy may provide stable economic growth into the future.

Although Exxon Mobil did post the largest quarterly profits of any U.S. company ever, before you invest in stocks that support more drilling and use of dirty fossil fuels, think about making an investment in clean energy sources that will provide solutions for the future. Not only will future generations thank you, but who knows, it could also provide you with large capital gains.

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