Green, planet-saving tech the next investment wave, but financial gurus advise caution

April 08, 2016 / by / 0 Comment
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Ecological awareness, climate change, the rising prices of oil, and the instability in the Middle East are pushing a renewed investor interest in green technology. The top innovators and businessmen in the planet are espousing it to be the next big thing in investment. At the same time, financiers who always keep one eye on their stocks still advise caution in choosing companies and causes to put their hard-earned money in, most especially in tech.

Worth enumerates some of these technologies that are catching the eye of decision-makers and deep-pocketed stockholders all over the world. Richard Branson’s Green Fund will sponsor to the tune of $25 million any endeavor that can remove or reduce significantly dangerous carbon emission.The UN Foundation has received more than $1 billion from CNN founder Ted Turner to protect species diversity while educating the next generation of children to be as equally protective and nurturing of their environment. The San-Francisco-based Climate Policy Institute has $1 billion in funding to discover cleaner and less oil-dependent energy resources.

Worth also sees a huge promise in China’s Suntech Power, which plans to build photovoltaic cells that will harness solar power as the next producer of energy. Tech giant Google also intends to contend with when it comes to solar energy. Founders Sergey Brin and Larry Page have committed one percent of their vast financial resources to make solar power as affordable as coal to the common man.

The Street’s report looks past these famous investors to name Canadian Solar, one organization with a stock that is projected to rise 193 percent in 2016. One reason for this is the strides it has been making in the development of solar power. Canadian Solar’s headquarters is based in Ontario while its China-based factories help to keep its costs low. Its “small-cap rocket” stock, which has a market capitalization of $1.07 billion, also makes it of lower risk than some of its competitors. Canadian Solar has also poised itself to align with the inevitable industrial developments in Europe, such as Germany’s plans to transform its coal-driven power to solar and wind energies from 2022 to 2050.

The consequences of an oil-driven economy on nature and fears as to its sustainability have compelled investors to consider investing in companies that are developing newer, safer, and renewable energies. Environmental issues and the solutions they need are real and urgent; there is no mistaking that. However, the conservative investment approach remains a smart one, despite the interest that is being displayed by the big players. Each technology that is introduced into the market must still be sized up and studied before any investment is made, particularly when it comes to revolutionary “green tech.”

Financial Planning suggests checking out how the competitor first, before taking the plunge.Learning the movements of tech and environment from news and business apps like Born2Invest, Yahoo News, BBC, and the Wall Street Journal is fast becoming a lifestyle and a necessity for investors. Another cautious strategy would be to gradually integrate the technology being invested in into the organization before launching it full-blast.

The billionaires above who are infusing huge amounts of capital into renewable energies did so after years of study, research, and strategic planning. As with any other enterprise, there were a lot of trial and error before hitting success. Any investor who wants to dabble in green tech would be wise to follow that path first before marshaling all his monies to become a sudden savior of the planet.



Alessandra Rose Miguel-Descalso is a freelance journalist. She covers a wide range of industries, from music to mining and technology, for global publications.