Portfolios receive an allocation to Clean Energy

By Jon Andre, CFP

Clean energy companies have been increasing in numbers for several years and as this industry has continued to grow, it has become a more compelling area of the market to consider investing. As a result, our Investment Policy Committee at Total Wealth Planning has begun to specifically allocate a portion of the investment portfolios to take advantage of these increased opportunities.

What is Clean Energy?

Clean energy companies earn most or all their revenues from the creation, facilitation, or storage of renewable energy sources. These renewable energy sources primarily consist of: hydropower, solar power, wind power, geothermal energy, various biofuels, and fuel cell storage.

Why invest in Clean Energy?

A global shift in economic policies has been occurring for several years, substantially increasing the number of opportunities for investing in renewable sources of energy. Major commitments have been made from both developed countries and large corporations to reduce the carbon footprint. In many cases the goal has been set to decrease to “net-zero carbon”, where the amount of greenhouse gases that are produced are no more than the amount that is taken away. These global commitments and shifts in government policies are supported by significant financial subsidies and tax incentives and are creating significant room for expansion of sources of clean energy. Currently, 78% of the world’s GDP has made a net-zero carbon commitment and this will likely continue to increase over time.

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