Investing in clean energy can help economies recover from the slowdown caused by the Covid-19 pandemic, and add more jobs. Green investments can be a vital part of recovery packages, help address climate change, and lead to job creation and positive economic outcomes.
Paul Favret mentions that as the world grapples with extreme weather conditions and rising heat, along with an employment squeeze, going green provides the opportunity to tackle both problems at once. Paul is the Founder and Owner of Abundant Investments, which has recently shifted to sustainable investments like geothermal, solar, and wind.
Paul Favret mentions why it would be a good idea to invest in renewable energy
Along with the growth of the global population, energy demand is also rising. An increasing number of people are now opting for renewable energy sources for energy services. Global warming and climate change are among the biggest concerns for the planet at the moment. The use of non-renewable energy sources like fossil fuels is among the key causes of environmental changes. Frequent use of non-renewable energy sources for energy sources hampers the environment to a great extent. The production of energy from these sources emits heat-trapping gases like carbon dioxide and is responsible for a significant amount of greenhouse gas emissions.
Renewable energy resources, on the other hand, come from natural sources and do not cause any such harm to the environment. Examples of renewable energy sources include hydro, wind, solar, geothermal, biomass energy, and so on. Going for renewable energy than non-renewable ones can cut down greenhouse gas emissions into the atmosphere, and play an important role in fighting climate change. The use of solar energy for electricity has become quite common these days. Energy efficient appliances, wind turbines, geothermal heat pump systems, electric/solar vehicles, and more have also become quite popular.
Paul Favret points out that fossil fuels are limited and have unpredictable costs. Hence, it is better that investors pivot to more dependable, sustainable energy. Technological advancements have helped accelerate the production of diverse energy services with the use of renewable energy sources. Governments of many nations have also started investing in the renewable energy sector. All of these activities have elevated growth opportunities in this sector.
The global renewable energy market was valued at $928 billion in 2017. It is expected to be around $1.5 trillion by 2025, at an annual growth rate of 6.1%. With every passing day, government policies regarding global warming, climate change, and the use of renewable energy are becoming all the more stringent, and the future is likely to become quite green. The renewable energy market has witnessed impressive growth in the last few years.
Even though fossil fuels are still the primary energy source, the prominence and popularity of renewable energy are steadily surging. The rising concerns of climate change have encouraged people to look for alternative energy sources. There is no doubt that the future of renewable energy is bright, which makes this industry ideal for investments. Choosing to invest in stocks of renewable-energy-based companies can help investors to enjoy handsome returns in the future.