The Progressive Money is now Investing in Clean, Technology Driven Companies
The world is changing and we are in the midst of the greatest economic shift of our generation. Technology is affecting everything, including energy consumption and sustainability efforts, which is why we created Carbon To Clean.
We are a group of conscientious, global citizens that are concerned about the current state of climate affairs. Our goal is to shed some more light on how we can profitably invest our way back on the path to clean. I’ve been charged with spearheading the group’s efforts. Mark Holland, Irish origins, US business ties, father and husband, Cleantech angel investor and global citizen is the gist of my background. I’ll be capturing the thoughts of all of our contributors and communicating the reflections as candidly as possible.
Carbon To Clean is Focusing on Clean Technology Investment Opportunities
Renewable energy has entered into a virtuous cycle of falling costs, increasing deployment and accelerated technological progress. (1)
Although growing rapidly, renewables (Solar, Wind, and others excluding Hydro) still account for less than 3% of primary energy consumption. (2) Society will need to develop new technologies and more scalable solutions to solve the climate issue. The worlds greatest challenges are the worlds greatest opportunities.
The traditionalists would vow for the following to transition the world to be powered by more than 50% clean energy. Existing oil & coal-fueled society →2030→ clean and fossil fuel generated electricity & natural gas →2050→ more progressive version of nuclear energy.
We believe that new technological advances will improve alternative energy options to complement and disrupt the proposed transition above.
The current global advanced energy market by segment is outlined below. Aside from fuel production and delivery, which have both been hit by low-carbon fuel prices and high ethanol production costs, all other segments are showing steady revenue gains. Electricity generation is inclusive of solar, wind, gas and hydro. Bear in mind that most of the sectors below have not reached mass adoption yet and are still in the early adoption phase of the growth cycle.
Are your investments aligned with industries and companies that are in growth mode?
Carbon Emissions will Drive Investment into Alternative Energy
The graph below and the ensuing effects of climate change on society will drive public and private investment into alternative energy for the foreseeable future.
The graph above, coupled with the declining costs of alternative energy, are causing significant changes in how energy markets are viewed and operated.
A very high-level primer on carbon emissions is outlined below to frame future carbon pricing and trading opportunity discussions.
You can see below that emissions have stabilized in the United States and Europe but are growing in China, India and other parts of the developing world.
The Momentum is Gathering for a Unified Tax on Carbon Emissions
Below are some reasons as to why the world should implement a unified carbon tax over the coming decade.
1) China has offset is CO2 emissions, and it’s Kyoto obligations, on the recipients of its exports. The worlds largest producer of CO2 is now moving to an economy fueled by domestic consumption.
2) China’s agreement with the Obama administration at the Paris conference in 2015 ultimately declared that they would retain the right to continue increasing emissions until 2030, at which point it would cap further growth. 2030!
3) Carbon fuel prices will likely remain low due to oversupply and falling demand.
4) Existing pilots and demonstrations to recapture atmospheric CO2 are insignificant compared to the magnitude of the problem.
The likely introduction of a carbon tax, at some point in the future, will mean a faster adoption cycle for alternative energy technologies and a more proactive approach to reducing atmospheric CO2. The tax will provide more stable energy pricing, which is important for emerging clean energy technology adoption. Eventually, electricity produced from all energy sources should be bidding for the same contracts on a price comparison basis. Taxing carbon emissions should remove the burden of assessing environmental impact on the part of the purchaser.
The points above are to highlight the instability of the current system and the importance of new technology to generate solutions, while we are waiting for public policy input.
Where there are problems, there are opportunities!
Impact investing is Far Too Complicated
The team here at Carbon To Clean believes that technological evolution will generate solutions to the climates greatest challenges, providing unprecedented economic opportunities for investors that are in the right place at the right time. We are focused on trying to make sure our financial investments are in the right place at the right time and that they are aligned with our moral and ethical world-views.
We are not interested in environmental improvements in lieu of competitive financial returns.
We are focused on finding companies engaged in clean energy and technology that are poised to deliver competitive, non-discretionary, returns to investors. This is our effort to help entrepreneurs progress the most innovative clean technologies that will help provide a better, cleaner future.
As Francis Bacon declared roughly five hundred years ago, “He that will not apply new remedies must expect new evils; for time is the greatest innovator.”
Looking to the Future
Just some of the topics we will tackle in future posts, highlighting investment opportunities, include:
- Lithium and how it’s changing the energy game
- Electricity generation and distribution in the US, the existing and future players
- Graphene as a potential replacement for plastics and other synthetically produced materials in the petrochemical industry
- Dominant players in the Solar industry and potential new era technology
- Dominant players in the offshore and onshore wind industry and potential new era technology
- Energy efficiency and the future of construction
We will never ask for any compensation, we are investing our own resources.
We just want to share our findings in an effort to simplify impact investing, provoke idea’s and create a better, cleaner future.
Take what you want, leave what you don’t and always do your own diligence on everything you read.
This is our effort to simplify impact investing for anyone that is interested.
We are asking that you look at your own portfolio and see which energy producers are lurking in there. Are you in an ETF or index fund that is heavily weighted toward oil, coal or companies engaged in environmental malpractice? Let us know your questions or thoughts in the comments below.
The information provided is for informational purposes only. It should not be considered legal or financial advice. You should consult with an attorney or other professional to determine what may be best for your individual needs.