Green Investments are also known as Socially Responsible Investments (SRI) include managing and creating renewable ‘green’ energies. Green investments do not usually include investing in forestry such as teak or bamboo as these are usually known as ethical investments which we discuss in more detail here.

There is a whole array of investment opportunities available for the conscious investor who wants to ensure that his green investment money is being put to good use. The essence of it all is really about thinking and knowing where your investment money is being spent. As a rule the term green investments refers to investments that finance projects that create some kind of environmental benefit. And in the fast evolving world of green investments the investor is often spoilt for choice.


Invest in Carbon Trading

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Carbon trading

One popular green investment scheme revolves around the carbon trading mechanisms that were set up as an outcome of the Kyoto Protocol and intended to keep world CO2 emissions within prescribed targets. Originally carbon markets were set up for big business and nation states, setting emission quotas and enabling trade between over-producers and under producers. Since its inception carbon trading has taken off in a big way and it is not just the big, polluting industries that use it. Small businesses and even the man in the street now have the possibility to trade in carbon credits, either by buying them to offset their carbon footprint, or by trading in them on one of several carbon markets that have been created as a consequence of this legislation. More on carbon trading, carbon offsetting.

Emissions trading

Even though carbon trading dominates the emissions markets, a product of CO2 being the major greenhouse gas, there are markets in other emissions and pollutants. By applying market forces to polluting, the emissions trading schemes hope to clean up industry and reduce emissions by allowing the market to financially penalise polluting processes and reward cleaner processes. This will provide the financial incentive that industry needs to clean up its act. More on emissions trading.

Feed-in tariff

UK homeowners can install a solar PV or wind turbine electricity-generating technology which are both from renewable or low-carbon sources. The government’s Feed-In Tariff scheme (FIT) means that the energy that your solar PV or wind turbines create will be put back into the national grid and you will be paid for it. So you can certainly reduce your electricity costs and if you create a surplus you will be paid by your energy supplier. The ‘big six’ energy suppliers are required by law to provide these payments. More on feed-in tariff (FIT).

Green oil investment

Replacements for oil are constantly being sought and there are many projects and schemes underway that are seeking to do just that. One of the most exciting and controversial of these is the development of green oil. Green oil is oil that is extracted from plant material. Many green oil programmes around the world have had great success and produced huge amounts of green oil, helping to lessen the reliance on fossil fuel oil. Brazil in particular has generated a lot of green oil and turned over huge swathes of land to green oil production. And there in lies the controversy. In a world where questions are being asked about how we are going to feed a burgeoning global population, is there merit in using land to produce oil that could otherwise have produced food? Many people blamed the recent worldwide spike in food prices on the huge areas of land that had been taken out of food production in order to produce green oil. The debate rages on. There are a number of investment opportunities available to those who support green oil and some are discussed on our page about green oil investment. More on green oil investment.

Renewable energy investment

The best method for investing in renewable energy is directly through the purchase of shares in companies running renewable energy investment projects such as Renewable Energy Holdings PLC (REH), Ocean Power Technologies (OPT.L), Trading Emissions PLC (TRE.L) and Clipper Windpower PLC (CWP.L). More information on renewable energy.

Solar energy

Currently one of the most popular ways of making a green investment is in the field of renewable energy. Solar investments have recently grabbed a lot of headlines and solar panels are springing up on roof tops across the UK. By investing in solar panels that can generate free, renewable energy from the sun, investors can benefit from the government-backed Feed-in Tariffs scheme which ensures that the major electricity suppliers will buy your solar generated electricity at a fixed price. This has taken solar panels out of the realm of ideals and plonked them down firmly in the mainstream as a true green investment with solid returns. Although solar panels are by far the most common way of entering the feed-in tariff scheme it is not the only option. Feed-in tariffs apply to all forms of renewable energy and make it possible for the average investor to benefit financially, as well as environmentally from wind turbines, bio-energy (anaerobic digesters) and micro-combines heat and power systems. More on solar energy investments.

Green investments allow you to control your own financial future with an eye on a better future for the next generations.


Invest in Carbon Trading

SIPP approved UK company – Click here