An Investment Tip for 2008: Buy Green, Stay Green, Be Green...

Green investing is investing in the future We are all used to hearing the cries of impending economic doom, the sort of reasoning that continues to keep the United States from signing the Kyoto Protocol, as a consequence of taking effective action toward climate change. An alarmist strategy attempting to incite fear of financial catastrophe as the choice we must make for pursuing environmental stewardship. Most of these people claim those of us concerned about global warming and other important environmental issues are the alarmists.

The fact is that interest sustainable business models and “green” investing have seen substantial growth this past year and are poised for even greater expansion in 2008 and beyond.

It’s called the “triple bottom line” – profitable businesses that also support social justice issues and advance environmental protection and sustainability.

Robert Williams, managing editor of the Oxford Club (a well established and somewhat stuffy financial newsletter), writes in a recent article posted on the website MoneyMorning.com of the “coming of age” of the green investment and alternative energy markets in 2007 and, among other things, suggests that “alternative energy” in general is no longer alternative, but fast becoming a mainstream investment vehicle. Of those options, Williams states that solar power is the energy sector warranting the savvy investor’s closest attention.

Another interesting point that Williams makes concerns the big, coal-powered environmental wildcard known as China. With a booming economy and a population of well over a billion people, China looms as an environmental catastrophe in the making. But with growing concern over widespread health issues, global warming, and the upcoming Olympic Games in Beijing this year, pressure is mounting for China to “clean up its act”, and this means opportunity for alternative energy companies and other enterprising firms ready and able to offer viable sustainable solutions to China’s growing pains. And all this means more opportunity for the green investor.

There are many elements required to move society toward a sustainable future, and one vital component of the engine of change is economics. And fueling our economy with investments and businesses that support that “triple bottom line” we can prove the financial alarmists wrong. Investing in the status quo is investing in the past. What we need now are investments in the future.

Sources and Further Reading
Money Morning: Gray Skies Are Going to Clear Up: Profiting From China’s Green-Tech Movement
Herald Tribune: China's environmental problems mirrored in the Yellow River
Triple Pundit: Renewable Energy: Talk is Cheap and Google Puts Their Money Where Their Mouth Is
Triple Pundit: Green Collar Jobs: A Ray of Sunlight in the Marketplace
Green Money Journal
Progressive Investor