Recent investment trends such as GameStop and Bitcoin have resulted in massive returns, but there may be a bigger play coming. Top investors from across the globe are beginning to invest heavily in green tech and I, Ofir Bar, am one of them. Frankly, I have been a digital entrepreneur and an angel investor for over 15 years now, and I can tell you that this is more than just a passing phase.
As many places experience record-breaking temperatures in the summer of 2021, the effects of climate change are more prominent than ever. By investing in green tech stocks now, investors can prevent themselves from missing out on what could be a major investment opportunity later on.
Here are some of the top reasons to invest in green technology before 2022.
Companies Adjusting to the Importance of Climate Change
The business world is only beginning to catch on to the importance of climate change. Investors and customers are now prioritizing eco-friendly options. Businesses need to react quickly or else they may face backlash from customers. In addition, it is likely there will be stricter regulations moving forward.
The fact that carbon emission regulations are likely to be enacted anywhere between 2021 to 2030 will have far-reaching effects all over the world. The faster businesses adjust, the better off they will be.
Air pollution is also a big concern for some companies. The air quality in major cities, such as Beijing and Shanghai, is severely degraded. In fact, a recent study in China found that air pollution is now worse than it was during pre-pandemic times. The more companies focus on environmentally friendly products and initiatives, the more they will be able to differentiate themselves from their competitors.
Exciting New Opportunities
In the last year, Enphase Energy returned over 200% to shareholders. Renewable energy became a household name across America as a result and still represents an exciting buying opportunity.
However, it is not just the stock market where you can find a great green technology investment. Real estate and property management are areas where green initiatives are becoming a necessity. Solar panels, smart lights, high-efficiency appliances, and wood construction industries will all be exciting moving forward.
I, personally, am one of the most vocal supporters of green technology in the investment world today. That’s why I’m always looking for ideas and visions to help out, both financially and with my experience.
Other new investment opportunities in renewable technology include wind and wave energy. Companies like Makani Power are working to develop these technologies at a large scale. Also, Tesla’s recent acquisition of SolarCity will open up new opportunities for renewable energy in smart cars.
A Bright Future for Green Technology
The green-tech investment party has just begun, and the opportunities today barely scratch the surface of the potential. In the coming years, many expect more investors to make sizable investments in renewable technology. The main catalyst will be the increased concerns about climate change.
ESG metrics for investing have become increasingly popular for both retail and institutional investors. They focus on companies adhering to positive environmental, social, and corporate governance. ESG metrics will likely become more widespread in the coming years as green tech continues to grow in popularity.
Investors who are looking to participate in this exciting industry should definitely take heed of what is pushing forward the green tech market today. The world is changing, and investors who do not make their investments today will be left behind. The future is bright for green technology stocks and for those who invest early. Not only will you make a great return, but you will also know you are helping to battle global warming.