Green technology is a hot topic nowadays. Green technology investing is geared toward resolving climate change, reducing the pressure on the environment. The idea of investing in clean technology is selecting companies that utilize environmentally friendly practices that you can commit in. Green technology has three sub-sectors: energy, green nanotechnology, and green chemistry.
When it comes to green technology investing, investors usually invest in the energy sector. The energy sector focuses more on the development of fossil fuels. Green nanotechnology is the other form of green technology that is worth investing in because it deals with the manufacturing of different products from raw materials. And the green chemistry encompasses the invention, development, and application of raw materials that will not cause harm to the environment.
Where To Invest In?
Solar power investments
Solar power is a renewable energy that makes it more interesting for investors. Due to climate change that makes the ozone layer to be depleted, the use of solar powers will become more significant in the future. Solar power is a great investment because it increases your savings by decreasing electricity costs.
The two main disadvantages of solar investments are its high costs and it is weather dependent. There are fewer chances that you’ll not be able to maximize its benefits because it is an attractive source of energy. Research shows that solar panels last longer making your investment worth it.
Wind energy investing
Wind energy is promising renewable energy because it cannot be deleted. Based on the International Renewable Energy Agency report, it is said that investing in clean technology such as wind energy has an economic return of about 3-5 times higher than the initial investment. Among the different renewable energies, wind energy produces significant amounts of energy
Investing in green technology related to wind energy includes the process of the production of wind power as well as in the manufacturing of the parts of windmills. It may increase your initial investment faster, but wind energy investing has its downsides. In manufacturing windmills, not all of its components are eco-friendly or is non-recyclable. It is also vulnerable to natural disasters.
Geothermal investments
The geothermal energy may not be as popular as the wind and solar energy, but it is also a promising investment. For those who are interested in investing in it, it will have a positive trajectory of sustainable growth even in the future. Due to studies conducted, the technology behind it became advanced for efficient usage.
For countries that aim to have a carbon-free future that can improve the economy, investing in geothermal energy is the best option. The capital cost of investing in this energy is higher, but when it is already operational, the production cost can be lowered.
Hydroelectricity investment
The time that you need to spend investing in hydroelectricity energy can be a tedious process. It requires regular maintenance to ensure its efficiency. Investing in hydroelectricity energy reduces carbon dioxide emissions that is why investors not only help the environment, but also help improve the economy.
Due to climate change, the water shortage has become an issue. With the help of hydroelectricity, irrigation and drinking water supply is somehow alleviated. Countries where drought is experienced every year, they are encouraged to invest in hydroelectricity for preparedness.
Biofuels
Nowadays, biofuels are the largest source of renewable energy. It is commonly used in all sectors, specifically in the transport industry. The need to produce more biofuels is always in demand. Investors who want to invest need to find ways on how they can turn organic matter or wastes into energy.
Investing in biofuels is not only geared towards providing energy, but it aims to improve food production to feed the population. The greatest importance of biofuels is that it reduces the use of fossil fuels to also avoid carbon footprint emissions.
Green Technology Investing Risks
Investing in green technology has benefits for both the investors and the environment. However, each type of green technology has its risks. If you are to invest in green technology, it is important to know the possible risks. Here are the risks involved in green technology:
- Unstable profitability is expected due to electricity fluctuations, changes in government regulations, and coal prices.
- A large amount of money is needed before you can invest. There is no specific time frame when you can get a return of investment. That is why it is suitable for those who have patience.
- Green technology is broad that is why sufficient knowledge about where you’ll invest in is important. Each place has a suitable technology to invest in so your money can prosper easily.
Final Thoughts
Those who invest in green technology are those who are socially responsible individuals that look forward to sustainable growth. Green technology investing is a way to be environmentally responsible while being financially stable. Before investing, know the type of green technology to invest in and know its risks.
