INVESTORS` CORNER: PUSHING FOR A GREENER 2017

Overall investments in renewable energy has fallen 23% last year, as stated by a recent research. Despite this, installation of renewable power capacity has hit a record high and remaining stable, despite the drop in investments. The decline is seen to have been caused by a lack of funding from emerging markets.

Background

Green technology investing is basically financially backing companies with environment-friendly practices, products, and services. Most of these either offer measures to increase productivity, while others aim to decrease the damage in the surroundings. With the rise of this sector, several industries have emerged as well such as agriculture and transportation.

In line with the politics joining in the going green push, fund allocations of governmental institutions have been angled towards this initiative as well. However, private equity firms and venture capitals continue to dominate this sector up to now.

Investments in green tech also had its rough times as investors usually have to struggle due to regulatory procedures that is often incorporated in this field. Still, they see it as a good opportunity still, especially with its remarkably low costs. Solar energy is one of the most appealing departments in this the green technology division.

Goals

It is important that those who are considering to try their luck here understand the sector's goals, which cover:

• Safer systems: It aims to reduce pollution and waste by altering manufacturing and consumption ways.
• Sustainability: This is angled towards societal needs and targets measures to meet these demands without damaging natural resources
• Modernization:It focuses on technological alternatives that are less harmful for the environment.
• New product cycle: It involves creation of products that can be recycled.

Meanwhile, the divisions that provide the best investment opportunities include energy, green nanotechnology, and chemistry.

Devising your strategy

In choosing where you want to invest, consider not only your personal interests but those of the environment as well.

Green tech investments are generally considered as good ones but keep in mind that diversification is still important so allocate your funds in various sectors to better secure them. Moreover, there is a trap in this field called greenwashing, wherein an entity claims to be green but actually is not. This calls for a thorough research on the company you are eyeing on, particularly their practices and type of technology used.