Wednesday, August 20, 2014

How to invest in a low-carbon, climate resilient economy

One of the discussions taking place at the climate change negotiations is how to increase climate finance, that is resources to fund the transition towards a low-carbon and climate resilient economy.

However, you, as an individual investor, can also participate in this process.

Or. to paraphrase President Kennedy, ask not what the major developed countries can do for climate finance, but what you can do for the planet.

You can sell you fossil fuel related stocks (oil, gas, carbon) and ETFs (Exchange Traded Funds), and buy shares and ETFs in companies and sectors that promote renewable energy, energy efficiency, green bonds, sustainable forestry, and other related areas.

Some examples:

#PBD  PowerShares Global Clean Energy Portfolio ETF, focused on renewable energy.  Valuation up from a minumum of $10.24 to $13.57 in the past year.

#PBW PowerShares Wilderhill Clean Energy ETF, renewable energy companies in the US.  Valuation up from a minumum of $5.33 to $6.82 in the past year.

#TAN Guggenheim Solar ETF, focused on solar energy. Valuation up from a minumum of $25.54 to $43.79 in the past year.

#LIT Global X Lithium ETF.  Lithium is a key component of batteries, including for hybrid vehicles.  Valuation up from a minumum of $11.11 to 13.49 in the past year.

#CGAFX  Calvert Green Bond Fund Class A Mutual Fund.  The fund invests at least 80% of its net assets in "green" bonds.  Year to date return, 3.7 %.

#AMRS Amyris, Inc.  Amyris designs microorganisms to produce defined molecules for use as renewable chemicals and transportation fuels.  Valuation up from a minimum of $2.17 to $4.22 in the past year.

#CDXS Codexis, Inc  Codexis has commercialized its biocatalysts in the pharmaceutical industry and is developing biocatalysts for use in producing advanced biofuels.  Valuation up from a minimum of $1.25 to $2.45 this year.

#TM  Toyota Motor Corp.  Toyota has commited to moving most of its fleet towards hybrid vehicles, and produces the best selling hybrid model the Prius.  Toyota offers more hybrid models than any other auto maker and dominates sales of hybrid vehicles around the globe   Valuation up from a minimum of $103.38 to $115.74 this year.

Usual disclaimers apply.  In particular, while returns in the past year have been quite positive, that was not true several years ago; and obviously past performance is no guarantee of future returns.  

I hold active positions in most of these.

1 comment:

  1. Those who followed my advise to divest from #FossilFuels back in August would have avoided major losses #XOP ETF down 27% since then