Guest Post: Green Investing Opportunities

The last few years have witnessed a significant rise in people who wish to invest in businesses that support different environmental causes. What helps is that investors now get several opportunities from which to choose when it comes to increasing their wealth and avoiding harming the environment or even working toward its betterment.

Green investing essentially refers to investing in businesses or projects that focus:

• Implementing clean water and air projects
• Producing and discovering alternate sources of energy
• Conserving natural resources
• Following other environment-friendly practices

While green investments fall under the bracket of socially responsible investing (SRI), they tend to follow more specific guidelines. Pure-play green investments, for instance, rely on green activities to generate most of their revenue. Businesses that have multiple lines of offerings might also offer green investment opportunities through specific green-based projects or initiatives.

Green investment alternatives come from across sectors, and your main options include:

• Water stocks. Availability of clean water is becoming a global concern, which is why there is a good opportunity to invest in businesses that focus on collecting, cleaning, and distributing water. American Water Works (AWK) is the largest American water utility company, and others associated with this realm include Aqua America (WTR) and ITT Industries (ITT). The AllianzGI Global Water Fund (AWTAX) and Calvert Global Water Fund (CFWAX) provide access to global water-based opportunities.
• Wind power. The U.S., much of Europe, Australia, and India are making considerable investments in wind power. Businesses linked with wind power don’t just generate and sell energy, there are ones that design and construct wind turbines as well. Some of the big names from this sector include General Electric (GE), Siemens Gamesa (GCTAY), NextEra Energy Partners LP (NEP), and Vestas Wind Systems (VWDRY). The First Trust ISE Global Wind Energy Index Fund (FAN) gives you an easy way to invest in wind power.
• Solar power. Companies that manufacture solar panels might make for good green investments, simply because the use of solar energy continues to increase. Some of the top manufacturers that you may consider investing in include Sunpower Corp (SPWR), JinkoSolar Holding Co. Ltd. (JKS), and First Solar (FSLR).
• Green transportation. While Tesla (TSLA) is among the most popular names from this sector, there are others that require your attention too. These include Fuel Cell Energy (FCEL), a company that provides power solutions for commercial and industrial facilities, and Ballard Power Systems (BLDP), a company that develops and manufactures proton exchange membrane fuel cell products for use in automobiles as well as other fields.
• Pollution control. Given the fairly frequent legislation mandates surrounding pollution control, this industry needs to respond to any applicable amendments in quick time. Some of the leading businesses that focus on developing pollution control technologies include PowerShares Cleantech (PZD), Fuel-Tech (FTEK), and Versar (VSR).

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