Investing in clean technologies: an alternative against climate change

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The idea that simple dance steps are the principles and only ones to generate electric energy is closer to being a reality. This is an example of how investment in clean technologies will turn into an alternative of energy in the future.

In Holland and Japan there already exist nightclubs that generate energy through customers' dance steps. The feet movement makes LED lights of the dance floor illuminate and it works as a lighting system.

With consumers' awareness of the impact of climate change, clean technologies are shaping up to be long-term energy sources. According to the firm Deloitte 's in a report of trends of green technologies, the Business School, explains that investment in this green technologies grows 2% per year.  

The firm explains that this trend remains to be associated with the need to mitigate greenhouse gas emissions and combat climate change.

Clean and climate technologies in development

The trend towards the development of clean energies allows new players to invest in their growth. Initially, for investors the main green technologies with potential are solar, wind and biofuels.

The firm's report details that investment in these three axes is essential for the construction of infrastructure and growth of clean technologies.  To drive these technology trends, capital comes from all markets, from traditional investments models, corporate investors as global companies, investment supported by the government to venture capital funds.

Among these alternatives exist investment centers that promote the development of clean technologies. The firm PwC mentions that the principal countries with higher capital are the United States and China.

Germany, London and France also stand out among the countries with investment in renewable technologies focused on markets such as agriculture, food, land use, as well as micro mobility and sustainable transport.

Additionally, another investment trend is in climate technologies that concentrate 63% of total sustainable investment in markets such as the United States, but what are these technologies about?

Technologies against the climate change

The global alert about climate change generates interest to develop technological solutions that allow curbing these negative factors in the ecosystem. Hence the importance of investing in innovative technologies against climate change or climate technologies.

This market is one of the most recent, but also one with high growth in the recent years. This type of project needs more and greater capital rounds every time, said Azeem Azhar, senior advisor at PwC in the United Kingdom in the report.

However, there are still obstacles in this investment ecosystem. There is a gap between the access to capital and the investment opportunities in funds specialized in these technologies.

Investing in green economy

The growing interest in investing in clean and climate energy responds to concerns about global warming and demand for more sustainable projects. These investment alternatives grow as more groups, institutions and mechanisms exist to support the green economy.

On the venture capital side, innovation in green technologies shows a potential in emerging markets. An example is Nexxus Capital Fund that invests in sustainable projects in Mexico.

While there are challenges to boost investments focused in clean technologies, both Latin America and Mexico represent a market with potential to both individual and institutional investors.

So far, specialized investments in the sustainable sector with double-digit profitability. According to Morningstar, data, variable income investment for this sector increased to 26% average before the pandemic. Nowwith a trend to promote more green projects, the platform expects that growth to continue.

In the long term, the trend to preserve the environment and the growing demand to combat climate change can be essential to promote venture capital investments in this market.

The venture capital investments prioritize projects and ventures with high profit potential and with a sustainable vision.

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Investment in clean technologies is emerging as an alternative against climate change.

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