By Robert Turner
If you had invested in the electric vehicle and clean energy company Tesla from the beginning, aside from being rich right now, you would have spearheaded the move away from fossil fuel cars and done something to fight climate change. Tesla is a good example of the growing power of green energy investment, and the trends are becoming clearer.
Capitalism can be a force for good, and there are plenty of people willing to invest in new technologies and the market-based solutions that often follow. That gives me hope in a changing climate.
Investment money is pouring into sustainable technologies. Global investment in transitional, green technologies reached $755 billion in 2021. Investment in clean energy is expected to rise from $1.3 trillion in 2022 to more than $2 trillion annually by 2030, a significant shift, says the International Energy Agency.
That kind of investment is starting to pay off. Since 2010, the cost of solar power and lithium-battery technology has fallen by more than 85 percent, and the cost of wind power by more than 55 percent. Planned solar farms for the near future in the US will double the current worldwide output.
Auto manufacturers are transitioning to electric vehicles, and by 2035, many will likely stop producing gas vehicles altogether. Most major utility companies, like the power plant on Asheville’s south side, have already begun phasing out coal and are making large investments in new solar, wind and battery storage technologies.
The US government is now stepping up. The bipartisan infrastructure bill signed into law by the Biden Administration in 2021 makes a $65 billion investment in the research, development and deployment of cutting-edge clean energy technologies as well as new transmission infrastructure that will connect new renewable and clean energy power sources. The recent Inflation Reduction Act, which contains hundreds of billions of dollars in subsidies for cleaner technologies, will help the US make good on its promise to cut emissions by 50 percent below 2005 levels by the end of this decade.
If these trends continue, and with more investment, scientists now believe we may avoid the worst of a climate disaster, with just 2 to 3 degrees Celsius of warming by the end of this century. That is still bad, but much less so than 5 or 6 degrees of warming, which would be catastrophic for people and the planet. In other words, the future looks mercifully less apocalyptic.
Climate deniers are most often those who are heavily invested in fossil fuels and the status quo, and in their denial, the world will surely pass them by. But sustainable investment does not absolve us from our responsibility to change our culture of mass consumerism and waste. We need to cut back on all the stuff and find happiness in the simpler things in life, like relationships, and finding meaning and purpose. And we need smarter investments to activate the change necessary on a large scale.
Want to invest in a better world? There are many ways the average person can invest in green tech, and there are several categories to choose from. As the world transitions away from fossil fuels, there is plenty of market opportunity for people investing in energy sources like wind, solar and hydropower, which represent the most promising technologies. Battery storage technology is another big area for investment.
Food and agriculture represent more than 30 percent of greenhouse gas emissions (including transportation), so that’s an area ripe for disruption (and potential gains). We need new fertilizers that are not made from fossil fuels. We need pesticides that are less damaging to ecosystems and the environment, food crops more resistant to heat and drought, new technologies that reduce food waste, more regional supply chains to cut food miles and better methods of cultivating that protect soil health and fertility.
Investments in renewables will need to triple in the coming years to reach our net-zero carbon emissions goals. According to Bloomberg, to stay on track for reducing net carbon emissions to zero, investment in transitional energy will have to reach about $4 trillion by 2030.
There are several types of clean energy investments—from individual stocks in companies to mutual funds and ETFs that group together various green energy companies. There are also several financial investment firms that specialize in sustainable investment portfolios, like Earth Equity Advisors, based in Asheville. The company focuses on and only offers sustainable, responsible and impact investment portfolios.
Does it matter to you if your retirement fund owns stock in fossil fuel companies, polluters, weapons, tobacco or other negative impact companies? Earth Equity can “help clients invest in companies that have a positive impact on our planet, our society and our future,” says Peter Krull, founder, CEO and director of investments. “It’s possible to make a competitive return and invest with your values. At this point in time, it is the prudent thing to do to move away from traditional, dirty investments and replace them with positive, solutions-based companies that are leading us into the new economy.”
Which companies and sectors are going to bring about the most sustainable solutions? No one knows for certain, and it’s wise to hold a diversified portfolio for retirement. Investing can be risky, and you should always do your homework and get advice from financial advisors. But there are enough opportunities out there now that, like a farmer buying seeds in the spring, you can invest in a greener future.
Robert Turner is a farmer and author of Lewis Mumford and the Food Fighters: A Food Revolution in America. Learn more at EatYourView.com.
