Environmentally sustainable investments

by Wallace Lou on October 30, 2017 - 1:37pm

Green investments refer to investments in activities that are considered good for the environment like projects committed to conservation of resources, production, and development of alternative energies, clean air and water. They fall in the category of socially responsible investing (SRI), but are more focused on environment. There are three big sectors: renewable energy, eco-living, and green buildings.

 

For the sector of renewable energy, development of solar panels, wind turbines, hybrid cars, biofuels, geothermal energy and hydroelectricity are all projects dedicated to reduce fossil fuel use and energy consumption. For eco-living, we can commit to organic farming and more green pesticides. As for the green buildings, we can use green materials such as bamboo, recycled plastic and rammed earth, use more energy-efficient glass and develop better insulation.

 

In Canada, for instance, Ontario is committed to investing $325 million in projects such as helping homeowners use less energy (changing furnaces and water heaters for more efficient ones, and upgrading insulation for example), building 500 electric vehicle charging station and social housing development such as building eco-friendly condos.

 

Furthermore, investing in the market of clean energy, although it can be risky since it is based on relatively new technologies, can also return up to 13% per year in some countries like U.K. considering tax breaks for investing in green market. Moreover, in the U.S. there are 88,000 jobs in the wind power sector and 209,000 workers in the solar energy sector which is expected to grow having 420,000 jobs by 2020, while the coal sector only employs 54,000 workers as of October 2017.

 

Sources:

http://www.investopedia.com/terms/g/green-investing.asp

https://www.ontario.ca/page/green-investment-fund

http://greenalphaadvisors.com/2017s-top-sustainable-investing-trends-from-green-alpha-your-mark-on-the-world/

 

Comments

I decided to comment on your post because it reminded me how the source of the problem is in everybody's choices, their house, their car, their use of energy in general. Same thing for industries. And all of this leads to a very common problem. I find it very interesting that you decided to talk about fixing the problem to the source instead of trying to manage its consequences. Your pitch to encourage investment in renewable energy is a good solution that I think too should be more applied because it would highly encourage people to take action to a problem they might not fully realize they have a part to play in. Diffusion of responsibility could be attenuated if financial encouragement were distributed to people in order to incite them to take action.