Environmental consciousness has become a global meme, touching several industries from fashion to finance. Across the world, individuals and industries are choosing to act on conscience when fulfilling their personal and financial needs. The concern is not entirely selfless, however. Climate change is a threat that will affect macro and micro economies in the future. Business productivity and health will be diminished by acid rain, extreme weather conditions, spiking temperatures and rising sea levels. The potential catastrophe the international population faces if greenhouse gas emissions are not controlled is transforming the investment world as consumers put their money where their mouths are by spending where it counts.
Just before the economic storm, international green investment quadrupled in North America and Europe. Not to be beaten, Asia and Oceania poured ten times more money into sustainable energy industries. The recession did not manage to stifle consciences enough to dampen the boom; only a short-lived dip was experienced in the industry when the economy reached its direst point. The distribution of markets has shuffled between four major players, largely because of differing responses to economic conditions. Asia and Oceania`s market share rose by 14% while Europe and America`s dropped to 46% in 2010. China acted as the star of the intercontinental stage by topping worldwide investments in renewable energy, promoting innovative green initiatives and increasing research and development efforts in two major renewable sectors.
The optimism felt as a result of this powerful collective effort was palpable until the end of September 2012, when the EU announced a cap on biofuel use. Nonetheless, the plan to carry 10 percent of transportation`s fuel over to renewable sources within less than a decade remains. Corporate clients continue to invest in biofuel in an effort to reach the 2020 target. The US and EU have used policy change to encourage biofuel`s use in transportation by turning up the pressure on car manufacturers.
First generation biofuel used food crops as energy sources, but second generation offerings are beginning to steal investor attention. Focus is shifting onto advanced biofuel sources, which are expected to be market ready by 2020. This generation of green energy is still in its infancy, so finance plays an imperative role in how soon it will be ready for use. The increased interest being turned towards new biofuel sectors is leading to an eruption of new products, including green crude, algae-based fuel and energy made from waste products. The emergence of a new generation resolves concerns about the use of important food sources, which are needed elsewhere.
Corporate investments might give companies brand power and squeaky clean reputations, but individuals are more concerned with the immediate profitability of a biofuel investment. The world`s fuel demand is skyrocketing, so a savvy investment in a successful renewable energy enterprise has the potential to make a grand sum. As it stands today, biofuel use is a reality in many countries already. Ethanol and biodiesel are the most significant, with production growing at a rate of 33% a year. The volatility of the oil price makes the investment all the more attractive. Areas of research and commercialization are speeding forward in an attempt to reduce costs and increase the availability of feedstock.
The green fuel movement has incredible potential, not only for Western pockets but also for many developing countries` economies. Brazil produces the most ethanol in the world and has the potential to increase its exports by a further 53 billion gallons within the next 13 years. India, Malaysia and Thailand are all increasing their production. The world of high conscience investment looks bright. The market size of ethanol and biodiesel is expected to rise to a collective $144.9 billion between 2015 and 2018. Sustainable lifestyles are given oomph when investment is used to support environmental concerns and provide healthy financial returns. Experts at simplyfinance.co.uk reveal the opportunities available in ethical investments that match your financial world with your inner values.