Exploring Green Stocks and Green Economy

It can also mean making clean energy investments. Investing in green stocks allows one to participate in green economy while boosting the well being of the environment. The alternative energy sector has had its ups and downs but it is beginning to grow steadily.

According the U.S. Energy Information Administration, the demand for renewable energy sources (solar, wind and other non–fossil fuel sources) will increase 22 percent over the next five years and 85 percent over the next 25 years around the world.

The tax credits for solar power has been extended until 2016 and now big companies such as Google, GE, and Citigroup have started to invest hundreds of millions of dollars in wind-farm projects.

"The increase in demand is going to be huge, and it's going to squeeze out the short sellers," says Garvin Jabusch, chief investment officer of investment firm Green Alpha Advisors.Therefore, alternative energy funds might be a good place to invest these days.

However, we also have to consider the following factors that might prohibit the growth of green funds:

Rated # 3 in the world: United States

If you are looking to invest in the United States, please know:

1) As of early this year, according to Pew Charitable trust (independent non-profit group), Germany has taken the 2nd place (after China)in alternative energy investments.

2) Early this year, the U.S. senate failed to pass a comprehensive energy bill for national mandates for utilities to produce minimum amounts of clean power. This bill would have boosted confidence in the longevity and stability of alternative energy sector in the U.S.

3) About 30 states in the U.S. have passed their own renewable energy standards, which sets the minimum amount of power generated from renewable energy alternative energy sources. However, a lack of initiative from other states discourages investment in alternative energy funds.

These factors will definitely affect the future of clean tech funds. So, what are some of the bright sides of investing in the United States?

1) Investments in green energy in the US were up 51 percent from the previous year (a total of $ 34 billion).

2) Venture capital and private equity investments in clean energy went up by 27% from the year before.

3) The ideas generated by venture capital investments by used and distributed by other countries (good and bad we suppose). So the fact that research and development (R&D) is happening much more in the U.S. is a good reason to invest in green funds.

Click here for federal tax credits information

Now, these factors might make green stocks attractive to invest in the United States. One can make investments in green stocks using alternative energy mutual funds which are a conglomerate of stocks:

Alternative Energy Funds (mutual funds)

Allianz Global Eco Trends Fund (AECOX)

Calvert Global Alternative Energy Fund - Class C (CGACX)

Calvert Global Alternative Energy Fund - Class A (CGAEX)

DWS Climate Change Fund Class A (WRMAX)

DWS Climate Change Fund Class S (WRMSX)

Firsthand Alternative Energy (ALTEX)

Gabelli SRI Green Fund class AAA (SRIGX)

Guinness Atkinson Alternative Energy Fund (GAAEX)

Leuthold Global Clean Technology Fund (LGCTX)

Gabelli SRI Green Fund class C (SRICX)

Winslow Green Growth Fund (WGGFX)

Rated # 1 in the world - China and rated #2 in the world -Germany in alternative energy production

Here are some facts that one needs to consider when it comes the world leaders in alternative energy growth:

1) Green economy in China and Germany grew much faster than the U.S. Last year, China invested $54.4 billion and Germany invested $ 41.2 billion the renewable energy sector.

2) China and Germany (and many other countries) have set up very clear minimum-energy targets that allowed these countries to move ahead of the U.S. in clean energy sector.

3) Due to national incentives, many alternative energy firms are setting up manufacturing and distribution plants in places such as China and Germany.

4) Germany has been the world leader in using feed-in tariffs to grow its solar alternative energy (especially small-scale rooftops projects) and other renewable energy production. It has a long history of using this system so it was easy for them to integrate alternative energy production into their existing grids.

These factors definitely go in favor of investing green stocks in these countries. Here is a list of Green Funds/Green Stocks that are publicly traded.

Click here for solar investments information

They have been categorized since there is a lot of options in this alternative energy funds. The list is detailed (and we will be adding names of more alternative energy companies)but please know it is no way exhaustive:

Smart Grid Stocks:

Badger Meter, Inc. (BMI)

Cooper Power Systems (CBE)

ESCO Technologies (ESE)

Elster Group (ELT)

Google (GOOG)

First Trust Nasdaq Clean Edge Smart Grid Infrastructure Index Fund (GRID)

International Business Machines Corp.(IBM)

Microturbine Stocks

Capstone Turbine (CPST)

Electricity Storage Stocks

A123 Systems, Inc. (AONE)

China BAK Battery (CBAK)

China Ritar Power (CRTP.OB)

Dresser-Rand Group (DRC)

Exide Technologies (XIDE)

Graftech International (GTI)

Maxwell Technologies Inc (MXWL)

Universal Power Group (UPG)

Waste to Energy Stocks

Alter NRG Corp (ANRGF.PK)

Clearford Industries (CLI.V)

China Recycling Energy Corp. (CREG)

Environmental Power Corp (EPGRQ.PK)

Four Rivers Bioenergy / Verta Energy (FRBE.PK)

StarTech Environmental (STHKQ.PK)

Waste Management (WM)

Therefore, do keep an eye on these alternative energy companies and their publicly traded green stocks as an investment option.

Go to Alternative Energy Investments from Green Stocks

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