With the world at a standstill due to the pandemic, many of us are wondering if our way of living was ever right at all. The rat race of development and capitalization has all made us forget what an irreparable bad impact we are creating on the planet. Research shows that the world is going to face many of these pandemics in the future if we don’t change our ways.
World leaders and industries are trying hard to find a way to make things right and save the planet. While opting for a renewable solution is the logical thing to do, some questions remain. Is it economically viable? Does it profit business owners and investors? Let’s figure out how investing in renewable energy can reduce pollution without compromising the financial aspect.
The Industry of Renewable Energy
The renewable energy industry deals with producing new technologies for renewable energy. From a humble beginning in 2006, renewable energy has grabbed a significant percentage of total energy production. It is estimated that by 2050, more than 77% of the energy production of the world will be from renewable energy. The renewable energy market value is predicted to reach 1512.3 Billion by 2025.
Why Should You Invest in Renewable Energy?
Investing in renewable energy is not just economic investment; it ultimately results in climate investment. NoBSIMReviews stock newsletter reviews can provide further detail about the growing market share of the renewable energy sector. In the UK, the USA, and Europe, renewable energy investment is much higher than that of fossil fuel. Here are some viable reasons for you to consider investing in the renewable energy sector.
Growing Market Share of Renewable Energy
The renewable energy industry is growing in market share. With active government support, this sector is the future of the energy industry. In near future, coal and gas industries will face more than 50% of their production loss. Investing in clean energy can give you a return of 3 to 8 times your initial investment.
Instability of Fossil Fuel Prices
The instability of fossil fuel prices has become evident during the COVID-19 crisis, where the renewable energy sector faces less turmoil. As people are traveling less, the prices took a hit, with the non-renewable energy sector losing almost 45% of their market capitalization. Even the price of crude oil turned negative for the first time in recent history. Such a plunge in market share only suggests that very few companies in the non-renewable energy sector are going to recover from it.
Low Carbon World
Prioritizing renewable energy can result in a low carbon world. All renewable sources of energy – wind, solar, hydro, and geothermal are carbon neutral. According to The International Renewable Energy Agency (IRENA), the world can move to a zero-emission reality by 2050. The severity of air pollution is so evident that even countries notoriously dependent on nonrenewable energy are going for renewable energy transformation.
From an ethical point of view, investing in renewable energy is highly rewarding. It will be not only an economic investment but also an investment for a greener future. Countries are making ethically-inspired environmental decisions to help the planet. Countries are enforcing stricter policies for the non-renewable energy sector, which will boost the renewable energy industry.
New Job Opportunities
At present, more than 11 billion people around the world are working in the renewable energy sector. Investing in renewable energy will create 63 million jobs by 2050, which ultimately helps the global economy. The sector is opening up new opportunities in the rural community by creating local employment. While the fossil fuel energy sector is facing a crisis period, the massive workforce dependent on it can shift to the renewable energy sector.
Renewable Energy Might Be the Best Solution for the Post-COVID-19 crisis
Every year, more than 4.2 million deaths can be linked to air pollution. Air pollution is also responsible for the fast spread of viruses. People living in megacities, drowning in pollution, are most affected by COVID-19. Investing in renewable energy can provide us cleaner air and promote a resilient future.
COVID 19- The Demise of Fossil Fuel and The Rise of Renewable Energy
As the pandemic hit and lockdown measures were enforced, the demand for energy, such as electricity, dropped drastically. Renewable energy being the cheapest source of energy, energy producers had no option but to adopt a renewable solution to cut down production cost and balance out the decrease in demand. This approach manifests how renewable energy is inevitable for both economic and environmental sustainability.
Best Renewable Energy Industry to Invest In
The renewable energy sector has a greater competitive edge compared to fossil fuel energy. Countries are providing incentives to boost their financial growth. Nextera Energy, Brookfield renewable partners, Vestas, Pattern Energy, and First Solar are some of the leading renewable energy industries to invest in.
The Recent Downfall of the Energy Industry
Like all the other industries, the renewable energy sector has taken a hit during this pandemic. With people consuming less fuel and energy, the investment has slowed down noticeably. As energy consumption is low, the target of transforming 50% of nonrenewable energy to green energy might slow down a little. To achieve the target, governments need to double their effort and investment in the renewable energy sector.
The traditional norm might be to invest in fossil fuel and other non-renewable energy sectors. However, if you count on sustainability and long term benefits, investing in the renewable energy sector is the solution. The instability of the non-renewable energy sector is making more investors choose the renewable energy sector.
Countries are also providing incentives to renewable energy while the environmental rules are getting stricter to follow for the fossil fuel industry. To say the least, it is only a matter of time that renewable energy becomes our primary source of energy.