According to a report by Allied Market Research, the renewable energy market is in a period of remarkable growth. It was valued at $881.7bn in 2020 and is expected to soar throughout the next decade. In part, this is due to the growing need for sustainable, cleaner energy solutions that don’t harm the environment. However, the cost-effectiveness of wind, solar, and wave power compared to fossil fuels is another key driver.
Now more than ever, governments are aware of the need for using natural resources to power our homes and the benefits of energy security. As a result, the shift towards renewables is beginning in earnest and countries are willing to invest heavily in companies that specialize in green energy.
Along with financing renewables, countries are ready to fund emerging technologies that are designed to minimize carbon emissions. In China, the country’s 14th Five-Year Plan, released in 2022, includes a 50% increase in renewable energy production and a significant reduction in carbon emissions.
Similarly, in the United States, the Inflation Reduction Act will increase the production of renewables, lower the cost of energy and cut carbon emissions by around 40%.
The benefit of government support
In fact, countries around the globe have created programs that support entrepreneurs in the field of green energy. In Europe, initiatives such as the European Battery Alliance aim to establish a robust and competitive business model. The EBA brings together eco-friendly technology companies involved in the manufacture of sustainable batteries. Several EU countries, as well as other stakeholders, are financing the establishment of this reliable internal supply chain.
Government support often results in an injection of capital, better terms from lenders, and more money being spent within the industry. The additional funding these incentives will direct to green energy gives investors hope that the renewables market will remain buoyant for many years.
To support the good work already being done through the use of renewables, innovative climate technologies are also on the rise. These are equally essential when it comes to tackling and adapting to climate change. They include sea walls, crops with inherent drought resistance, and bioenergy capture.
Traders are ready to invest
As new digital technologies are hastening its development, climate tech in particular is becoming increasingly popular in the investment world. People who are hoping to be early adopters can head to Asktraders.com to find out more about the corporations spearheading green energy projects and the best climate tech stocks. They also have a wealth of useful market analysis, signals and real-time alerts, as well as in-depth broker reviews.
Although climate technologies are a relatively new option on the markets, the high level of research and investment being ploughed into them by companies and governments suggests they can be capitalized on by investors. Not every technology is fully mature, but it is clear that market demand is high around the world, so the growth potential could be significant for long-term investors.