Our top pick for
Renewable energy stocks have been investors' favourites in recent years.
As the world moves towards sustainability, renewable energy is becoming a major priority of governments and businesses around the world. For countries such as Australia, China and India where electricity is largely generated from high carbon-emitting coal, many see the future of renewable energy as critical.
If you're looking to invest in companies that support the growth of sustainable energy sources, you can start here. Below is a list of renewable energy companies that are listed on the Australian Securities Exchange (ASX).
In the last century, we've come to rely on fossil fuels to create electricity, power our vehicles and drive manufacturing. But overwhelming evidence says the extraction and use of coal, oil and gas are causing irreversible environmental damage and global warming. Fossil fuels are also finite – over time, we'll be forced to rely on alternative energy sources regardless of our environmental views. This is driving investors towards renewable energy stocks.
This creates a big opportunity as economies look to decarbonise. According to McKinsey, net zero will cost the world $9.2 trillion every year. And that spending by big businesses and governments is creating opportunities for investors. After all, that money has to go somewhere and into something. So investors can purchase shares in the companies helping to create a net-zero planet.
Adding to the opportunity is simply population growth. Studies suggest the world's population is expected to reach almost 10 billion by 2050. Both environmental constraints and limited fuel and water supply (used in mining) will increase our need for renewable and clean energy sources. For these reasons, investing in renewable energy makes both environmental and money sense.
Note: This is a general guide only and should not be taken as investment advice. The above list may not be fully representative of the Australian renewables marketplace.
Several categories of renewable energy stocks include solar power, wind power, biomass, geothermal and hydroelectric. Some include nuclear energy to that list despite its controversy. In some cases, you can even invest in the metals that will be used in the net-zero transition.
Below is a list of ways that you can invest in companies that support renewable energy.
Also read: Invest in sustainability ETFs
Important: The standard brokerage fee displayed is the trade cost for new customers to purchase $1,000 of either Australian or US shares. Where a platform charges different fees for both US and Australian shares we show the lower of the two. Where both CHESS sponsored and custodian shares are offered, we display the cheapest option.
Disclaimer: This information should not be interpreted as an endorsement of futures, stocks, ETFs, options or any specific provider, service or offering. It should not be relied upon as advice or construed as providing recommendations of any kind. Futures, stocks, ETFs and options trading involves substantial risk of loss and therefore are not appropriate for all investors. Past performance is not an indication of future results. Consider your own circumstances, and obtain your own advice, before making any trades.
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