Alternative green energy, also known as clean energy, was once the territory of bargain investors. Now with significant growth in the market, there are opportunities for mainstream portfolios.
There are several factors driving growth in clean energy, and they all point to a revolution in America and around the world in the coming years.
Here’s why every investor should consider clean energy in 2020.
Nations are Pushing to Become Carbon Neutral
Internationally, there’s a push by governments to reduce emissions and become carbon neutral within the next fifty years.
Members of the European Union have advanced clean energy projects in place. Countries like France, Germany, and the United Kingdom are diversifying their energy generation infrastructure with solar, hydro, and wind sources.
Even emerging economies are involved in efforts to become carbon neutral. China, which produces almost 30% of all global emissions, is aiming to become carbon neutral by 2060. The Chinese government believes that it will hit peak emissions in the next ten years, before beginning to offset its pollutant output with the deployment of clean energy generation facilities.
Brazil is also pushing heavily for clean energy with solar generation capacity. It is expecting to add capacity of more than 8,000MW to its grid in the next ten years.
As countries continue to adopt clean energy programs, the producers of turbines, solar equipment, and battery storage cells will benefit. These are all promising areas for investors today.
The World’s Largest Companies are Investing in Clean Energy
Even in America where clean or alternative energy has seen a relatively slow adoption rate, the landscape is changing.
Big tech companies are leaders in clean energy adoption. Amazon (NASDAQ: AMZN) has pledged more than $2 billion in its effort to use 100% renewable energy by 2030. The company is currently on track to use 80% renewable energy by 2024.
Google (NASDAQ: GOOGL) is aiming to become carbon neutral by 2030. It will eventually run all of its offices and data centers on renewable energy. Microsoft (NASDAQ: MSFT) is aiming for a similar target within the same timeframe.
Apple (NASDAQ: AAPL) is currently ahead of the pack. It is already carbon neutral in terms of its corporate offices. It aims to achieve the same with the rest of its business by 2030.
The Easiest Way to Invest in Clean Energy
Clean and renewable sources are the future of global energy. Mainstream investors can gain exposure with the help of a reliable ETF fund.
The First Trust NASDAQ Clean Edge Green Energy ETF (NASDAQ: QCLN) is an affordable option with a low expense ratio. Its holdings include leaders in the alternative energy space, including SolarEdge, Enphase Energy, First Solar, and Tesla.
An affordable ETF can add clean energy to a portfolio today, bringing the opportunity for gains while investors explore individual stocks in the wider market.
You may be interested
Fed Chair Powell’s Inflation Prediction Shakes Market ConfidenceLamont J - March 5, 2021
Although likely a blip in the extended bull market, stocks closed lower on Thursday. All major indexes reported single-digit declines…
Disney Will Close 60 Stores in North AmericaBecky H - March 4, 2021
The Walt Disney Company (NYSE: DIS) is closing at least 60 of its retail stores across North America as it…
Oil has Produced Historic Gains Since the ElectionAdam R - March 1, 2021
The oil market recovery is here, and it's bigger than many analysts had expected. Unprecedented in the modern era, the…