As humanity continues to evolve and technology along with it, there is one constant that cannot seem to be outrun: the dependence on energy. From the earliest days of cavemen discovering fire to today’s extensive power grids, energy has always been the lifeblood of human advancement. However, in recent decades, the downsides of producing these large amounts of energy have become apparent. From finite resources like fossil fuels, through the pollution brought upon by coal burning, to the dangers of nuclear energy – the world is in dire need of clean, sustainable energy in order to keep going.
Polluted skies and bodies of water, continued depletion of natural resources, and an ongoing increase in non-renewable energy consumption have brought the human race to the edge of catastrophe. However, there are numerous entities fighting these phenomena by creating new means of sustainable energy production and deploying significant infrastructure to support it. The world has run on non-renewable energy for too long, and a growing number of companies and governments are realising that clean energy must be more widely adopted.
The sustainable energy industry has the potential to completely revolutionise the global energy sector – and carries an exciting investment opportunity, as the renewable energy market is expected to reach a massive $2.1 trillion by 2025¹. It is no wonder, then, that both veteran energy corporations and innovative new companies are exploring, developing and implementing new, sustainable means of producing energy.
The damage is done
It is quite clear that the energy sources that have powered the world since the beginning of the industrial revolution are finite and that non-renewable energy will eventually run out. While this might sound ominous, it is actually a good opportunity for well-established energy firms and sustainable energy entrepreneurs to generate new revenue streams from sustainable energy sources.
After all, the world will never stop needing energy. On the contrary, as technology advances and more aspects of our daily lives become technology-dependent, one can assume that global power consumption will likely continue to rise. Investing in sustainable energy solutions will not only be positive for the environment, it may very well be one of the most promising investment opportunities.
Cleaning up the future
So how can humanity restore the damage and set a course to a cleaner future? The answer is multifaceted. There are numerous industries that are part of the ongoing pollution of the globe, all of which now have players that are trying to reverse the damage. Some focus on energy production methods that are more environmentally friendly, as these become the preferred energy source in some countries², while others focus on improving the way existing industries produce and consume energy.
Naturally, an emphasis is placed on producing energy from coal and fossil fuel alternatives, such as solar energy and wood fiber, as they offer reduced emissions of greenhouse gases. These go alongside improved electrical infrastructure, that increases efficiency of energy consumption and is constructed using environmentally-friendly methods and materials. Another major cause of emission is the transportation industry, which is being revolutionised with an ongoing shift to electric vehicles and constant innovation in battery charging.
Investing in clean energy
As stated before, the sustainable energy sector is expected to reach a market cap of more than $2 trillion over the next few years. Naturally, as humanity progresses towards cleaner and greener means of energy production, the financial aspect of the renewable energy sector will grow, and an increasing number of investment opportunities will arise. To give its clients exposure to this sector, eToro created the RenewableEnergy Smart Portfolio, which offers a diversified, long-term investment strategy in clean energy. To follow its performance, you can add the Smart Portfolio to your Watchlist on eToro.
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The RenewableEnergy Smart Portfolio offers a thematic investment opportunity in renewable energy companies, comprising various stocks of organisations operating across multiple segments of the industry, in different locations around the world.
The Portfolio was created with diversity in mind, offering stocks from solar energy pioneers, such as SolarEdge, waste management companies, such as Renewi, and several other companies covering sectors relevant to the sustainable energy industry.
Sources:
- https://www.alliedmarketresearch.com/renewable-energy-market
- https://www2.deloitte.com/insights/us/en/industry/power-and-utilities/global-renewable-energy-trends.html
This content is intended for information and educational purposes only and should not be considered investment advice or investment recommendation. Past performance is not an indication of future results.