Areas to invest to lower carbon world

Oct 17
08:06

2011

Hugh McInnes

Hugh McInnes

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Many businesses are taking the lead through environmental policies and actions. Car manufacturing companies have entered the low carbon market with alternative fuel offerings to increase fuel efficiency and environmentally-friendly technologies.

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A clean environment is good for everyone,Areas to invest to lower carbon world Articles and so are business practices designed to keep it that way. Making an investment that gives decent returns is also a good thing. Meeting both goals at the same requires a lot of effort, but despite difficulties it can be done with some due diligence and perhaps a little help. The Climate Is Right for Fighting Climate ChangeThe main source of carbon pollution in the atmosphere is automobile emissions from as-burning internal combustion engines, so truly responsible motorists who are also active investors find themselves wondering what if anything they can do to shrink their own carbon footprint and benefit them financially at the same time.Governments around the world are actively looking for new low-carbon, ecologically-friendly industries in which to invest, meaning there's a lot of solid capital to back individual investors. Last year, investments in low-carbon energy production rose to an all-time high of $243 billion, much of it driven by a 30 percent increase in low-carbon technology spending by manufacturing giant China. This, along with a slew of smaller companies also looking to help the environment while enriching themselves, makes for a virtual smorgasbord of green investment opportunities. Stop Pollution at the Source Since the largest source of carbon coming into the atmosphere is the tailpipe, it makes sense to stop up as many of them as possible, at least figuratively. The best way to do that is making sure they're never built in the first place. Car manufacturing companies realize this, and they're well down the road to producing more fuel efficient vehicles vehicles, gas-burning, hybrid and electric to reduce the Co2 offsetting. This eye on efficiency and sustainability, born both of a desire to help the environment and lower out-of-pocket fuel costs, make car companies a good place to put your investment. Car companies have driven all the way to the bank with profits from hot selling models as well as hybrid versions of their more popular models. Most manufacturers have entered the low-carbon market with hybrid, alternative fuel and electric offerings, and these companies have generally good long-term performance records. And don't forget subsidiary industries that produce the parts and manufacturing tools. Making up the DifferenceThe other greatest source of carbon pollution is energy production. The obvious choice for investors are the makers of new, environmentally-friendly technologies like solar panels and wind turbines. That is just the tip of the alternative-energy iceberg. There are also a slew of support companies in related industries. Investment opportunities abound in the energy storage field, advanced materials production, data collection and analysis, utility and grid companies and education. An All-Encompassing Approach With all the different options open to the would-be green investor, it makes sense to look into funds that have already done the homework for you. Firms pool the resources of thousands of investors, creating strength in numbers, as well as providing a knowledge base and the protection of a diverse portfolio. Putting your money in funds like these puts it in the hands of experienced money management teams with proven records of success. Because of their research and unwavering attention to the bottom line, when investing with a green fund you'll know the products and services they support will produce genuine reductions in the amount of carbon reaching the environment. Whether joining forces with like-minded investors or going it on your own, the new global sense of environmental awareness offers an unprecedented opportunity for investors today with ever growingpossibilities in the long-term.