Green Investments

A report commissioned by the British government by consultancy group Innovas Solutions, valued the global green economy at £3.2 trillion in 2008/09. The 'green economy', consists of traditional environmental activities, worth an estimated £657 billion globally, and technology which reduces carbon emissions. The report valued the renewable energies sector at £940 billion, and low-carbon technologies, including alternative fuels, at £1.45 trillion.

The underlying fundamental driving green investments, is the need to address the issue of global warming and the depletion of finite natural resources. These two seperate issues have one principle root cause, which is fossil fuels. Emissions resulting in the production of energy from the combustion of fossil fuels are are the principle cause of global warming. Fossil fuels also provide between 80%-90% of energy needs world wide. In the US, the figure is 84%.

These natural resources are however finite, and there is a growing need to find viable alternatives as traditional stocks decline and extraction from new sources increases in difficulty and expense. The international community has also accepted the grave dangers posed by global warming and has, via the Kyoto Protocol, largely committed to reducing global emissions levels of greenhouse gasses to 5.2% below 1990 levels, by 2020.

These two primary concerns are changing the ways in which we live our day to day lives and how companies to business. It is this shift towards a low-carbon economy which has opened up 'green investment', in the design, production and maintenance of carbon efficient technology and practices. Taken as a whole, the markets and industries which comprise the green economy, is the fastest growing industry in the global economy.

Green investments can also prove highly profitable from a business perspective. Funds and private equity are investing heavily in low-carbon related businesses. Attractive green investment opportunities exist in both established markets such as forestry, renewable energies, biofuels and carbon emissions trading.

Funds and investment vehicles engages in green investments also have also shown some of the best financial results within the global recession and in bouncing back from it. Below are the results of a prominent Irish company whose field of operations is forestry investment and investment in renewable energies. While the Irish economy was going down the proverbial plug-home, the company in question was posting results for 2010 that would have been admirable even in a strong economy.

For the more adventurous and less risk adverse, investing new sustainable technologies, or cleantech to use the industry buzz word, offers the opportunity for massive profit, if you back the right horse. As with any investment, those looking to opportunities for profitable green investments must carefully way up the pros and cons of the available options. We'll take a look at some of the options here to help you decide which green investment is also a wise investment.