Green Energy Sees Growth

The Stock Market Takes Note

Investors are making predictions about green energy’s post-pandemic future. Sustainable energy is already becoming more mainstream—plus, now the cost of some renewable fuel is competitive with fossil alternatives. Some analysts expect this trend will continue.

After lagging for years, the S&P Global Clean Energy Index, which includes 30 green energy stocks, has climbed 37% since 2018. It has outperformed the S&P 500, which gained 18% during the same period.

The economic downturn will inevitably force some companies and governments to put green energy projects on hold. However, the pandemic could end up accelerating the transition to renewable energy. Recently, investments in green energy have performed much better than those in oil and gas. According to UBS analysts, investments in green energy will make up half of the total investments in the energy sector this year.

You can invest in a way that aligns with your principles by choosing companies that are ethically sound. Explore the Doing Good collection on SoFi Invest®.

The Impact of Government Stimulus

Due to coronavirus and its economic repercussions, governments around the world are pumping money into their economies. For many, this includes investment in renewable energy initiatives. The German government ramped up electric car subsidies, and both China and the EU included
a number of clean energy incentives in their relief packages.

Large corporations are also keeping their eyes on the transition to clean energy and are investing hundreds of millions of dollars in the sector. These companies include Royal Dutch Shell (RDS ), Toyota (TM ), Air Liquide (AIQUY ), and many others.

What to Watch This Weekend

This weekend marks an important new step for clean energy. For years, the energy industry has faced pressure to curb the amount of methane it produces. Methane is over 80 times more harmful than carbon dioxide for the first 20 years it’s in the atmosphere, so it is important to monitor how much is being released.
A new satellite has been developed that can track methane emissions by site and company using a spectrometer. This weekend, the microwave-sized satellite, nicknamed Iris, will be launched from French Guiana. It will log methane emitted by oil and gas wells, coal mines, power plants, and other locations. The satellite’s creators hope the data it collects will provide actionable information to energy industry leaders, investors, and consumers.

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