Here’s Why You Need to Go Green

The Story

Juice, recycling, energy – they can all be green and good for you and the planet too. So can the places you invest your money. Yep, you read that right. Your cash can grow AND have a positive impact on the world. Hello green investing. 

So what exactly is green Investing?

When you back a company whose activities focus on improving the environment. Think: Wind power, solar panels, recycling, electric vehicles… 

Three reasons to ‘back’ green energy: 

1. We’re using more and more
All signs point to demand for energy increasing. Case in point? The world’s population is expected to reach 9 billion by 2040 and studies predict our demand for energy will grow by nearly 40%. 

2. It’s the new petrol (and diesel)
F-YOU greenhouse gases was the take-away when 195 countries signed-up to the Paris Agreement in 2015. Governments have since flexed their muscles: the UK will ban the sale of petrol and diesel cars in 2040, provinces in China are running on 100% renewable energy for a week and in Germany renewable supply is already exceeding demand.

3. The price is right
Renewable energy is getting cheap enough to compete with it’s carbon producing rivals  (Think: coal, oil, gas,…). Studies show that in China, by 2019 it will be cheaper to build a new solar plant or wind farm than a coal plant and by 2030 it will be cheaper to build solar than run an existing coal plant. Other countries are following suit. 

How can I invest?*

You could buy shares companies devoted to producing green energy such as Greencoat UK Wind or the Good Energy Group but there are also more traditional well-known names expanding into environmentally-friendly products, such as Scottish and Southern Electric (SSE) and the National Grid. You may also want to invest in a green fund (which could be via your pension) such as BlackRock New Energy. Funds allow you to spread your money across many different companies and products in one go, learn more with our guide Introduction to Funds. 

*Note that this is not a recommendation to buy the companies, groups or funds mentioned are examples of green organisations only.  

What about risks?

Like with all investments, the value could fall as well as rise. As any financial advisor will tell you, when you invest it’s best to have a longer-term view of at least five years. For instance, the quoted study in this article is based on an outlook to 2040. But remember, only invest money after you’ve covered your saving goals. 

Related guide: Introduction to Buying Shares