Green technology is making a major splash across the globe. We previously mentioned that a number of emerging markets are making a lot of headway with sustainable technology. Investors are noticing the potential as well and are increasing funding of green technology projects.
Financing for Green Technology is Skyrocketing in 2019
A variety of online sources reveal that renewable energy is all set to become the ‘New Norm’. The sector witnessed a dramatic surge in the percentage of new global investments in 2017-18. Global new investments in the renewable energy sector were recorded at $211.4 billion through the third quarter of 2018.
Given the ever-so-rising, global demand for electric vehicles, solar power stations, etc. it is no wonder why the renewable energy sector has become one of the best investment options in the public market investments globally.
As per online sources, Asia Pacific is leading the Green Technology Sector with solar-powered innovations. Looking at the ever-increasing investments in Green Technology, it wouldn’t be an exaggeration to say that it will soon become a norm, rather than an exception.
But here’s the ‘BIG’ question:
What actually is Green Technology Investment?
Well, the answer is simple! Also called clean technology investing, Green Technology investing by and large entails a series of investments in organizations and firms with environment-friendly and sustainable services and products.
Over the decades, Green Technology has become one of the best investment options for public market investors with constant innovations and ever-so-increasing resource efficiency. Quite obviously, a large number of industry clusters have come to fore with different investment levels, over the years.
The United Nations Environment Programme (UNEP) classifies the Green Tech industry into the following classes:
- Small Hydro
Several countries across the globe have invested substantially into Green Tech. The UNEP has classified global investments by the number of participating countries. The global map of Green Tech investors includes Brazil, USA, Americas, Europe, Africa, Middle East, China, India, and ASOC. On the global green-tech investments map, Asia Pacific region is clearly the leader with the most number of green tech start-ups and investments in the tunes of $40 Billion. South Korea is becoming an unexpected leader in green technology. They announced a plan to invest $360 billion on green business in 2017.
The State of Green Tech Industry Globally
Reports in the online media reveal that Green Tech industry continues to dominate the global business industry. In fact, the green tech was the go-to power generating source with more than 60% market share.
In 2017, solar and wind power generating industry witnessed new investments worth $161 billion and $107 billion respectively. In addition, the sale of electric vehicles too gained momentum in 2017-18 and is going stronger in 2019. China’s electric vehicle manufacturer, NIO is a testament to the fact that the electric vehicle industry is set to grow exponentially in the years to come. The company raised IPO worth $1 billion and its trades on the New York Stock Exchange were recorded to be in the tunes of $7.96.
Countries That Dominate the Green Tech Investment Space
Investments from public and private markets across the globe have reaffirmed the fact that it is the ‘Next Big Thing’ and why it is one of the best investment options for investors globally. But here’s the surprising fact: developing countries around the globe continue to outspend the developed nations when it comes to investing in the Green Tech space. In fact, developing countries invested $177 billion more than developed nations in 2017.
An online report reveals that India, Brazil, and China invested a total of $144 billion in the industry in 2017. China led the total investments with $126.6 billion in the Green Tech industry. The public market continues to spend in the solar and wind power generating start-ups and innovations.
Developed nations are also not too far behind when it comes to investing in the Green Tech space. The United Kingdom continues to invest close to £24.5 million funding in Energy Catalyst space, developed by Innovate UK, the Engineering and Physical Sciences Research Council, and the Department of Energy and Climate Change.
Objectives of Green Tech Space
A large number of new-age investors are looking at Green Tech as the best investment option available at their disposal today. But it makes sense to get acquainted with the goals and objectives of the sector before actually taking the plunge.
Listed below are the five major objectives of Green Tech innovation Trends:
- Pollution Control: It is perhaps one of the most important goals for the sector. A lot of green techs start-ups are working on ways to reduce pollution by modifying the consumption patterns.
- Sustaining Natural Resources:It is yet another important goal of the green tech space sector. The aim here to develop innovative, sustainable and efficient ways to meet societal needs without depleting natural resources.
- Developing Alternative Tech: Green-tech space aims at developing alternative tech innovations to replace the technology that’s harmful to the environment.
- Recycling: It involves developing innovative products that can be recycled and reused.
- Feasibility: Green Tech industry aims at creating an economic activity center which is focused on technologies that do not harm the environment and increase the speed efficiency by up to 100%.
Investment worthy Subsectors of Green Tech
Though Green Tech space simply bursts at its seams with investment opportunities, the subsectors of the industry that are most popular amongst new investors are:
- Energy: With natural sources of energy drying up fast, creating and sustaining alternative energy sources has long been a problem for most countries. No wonder, energy remains the most investment-worthy subsector of Green Tech space.
- Nanotechnology: Nanotech is yet another subcategory of Green Tech Space that attracts hefty investments from across the globe.
Quick Tips for First-time Green Tech Investor
- Always look for investment opportunities that align with your personal and environmental goals.
- Diversification is the key to successful investment in the Green Tech sector. Investing in different subsectors in the Green Tech Space will help you diversify your portfolio.
- First-time investors may also choose to go for socially responsible investment options such as exchange-traded funds (ETFs) and mutual funds.
- Carefully mull over your risk tolerance before investing.
- Do your research before actually investing a green tech company. Look for the sustainability model, and carefully read the fine prints related to environmental practices and policies.
Green Technology is Making a Huge Imprint
Investment opportunities are dime a dozen in the Green Tech Sector but do remember green-tech investing is all about increasing your personal wealth as well as being socially and environmentally responsible.