The Paris Climate Agreement demonstrated that governments all over the world understand the importance of investing in the preservation of natural resources through an increased focus on reducing carbon emissions. While there have been many flawed arguments posed against the widespread implementation of sustainable energy systems, one of the most prominent has been the idea that economies all over the world will suffer as a result of such a transition.
As Marlon Kobacker has noted, most economists agree that an increased focus on the implementation of sustainable energy systems will actually encourage significant degrees of economic growth in countries all over the world, with the growth occurring more or less equally and not favoring one particular nation over another. This is in stark contrast to many of the claims and concerns voiced by those who have largely opposed or at least discouraged the widespread implementation of sustainable energy systems.
Since the Paris talks, private investors have taken note of the fact that people all over the world wish to see massive change occur quickly, and many polls have demonstrated that the overwhelming majority of consumers are willing to pay a premium rate to companies that engage in environmentally responsible practices. While investment is on the rise on a global scale, one of the most prominent examples of sustainable energy’s impact on economic growth comes from the United States, where the White House recently announced new private sector investments and other non-federal investments in excess of $2 billion.
Those private investments will do a great deal of good in terms of encouraging greater conservation efforts and driving continued sustainable energy innovation. Developments such as those in the United States are occurring all over the world, with government leaders working diligently to unite the public and private sectors in efforts aimed at achieving the goals outlined during the Paris talks. Germany and Pakistan, Marlon Kobacker points out, recently announced a renewable energy forum in which public- and private-sector stakeholders from both countries seek to increase energy efficiency and establish greater levels of support for sustainable energy efforts.
With the private sector’s increasing investment and the clear likelihood that consumer demand will only continue to rise, the sustainable energy industry is poised for significant growth and will be a major force in stimulating future economic prosperity across the globe. As a result, there is a tremendous opportunity for early investors from the private sector to yield a significant return while also contributing to one of the most important and laudable causes of a generation.