Pension funds and other prominent money managers are moving into the green energy sector. The impressive market capitalisation of approximately $80bn gives Orsted A/S an advantage in terms of day-to-day business activities but also means it also attracts a lot of attention from institutional investors. The firm is involved in generating 29% of the world's wind-powered electricity, and that sector is tipped to expand faster than solar or bioenergy. What is Ethical Trading and Why is it so Important?ĭenmark based Orsted A/S is, by far, the world's largest offshore wind power developer.Then there is the question of which green energy stocks might become dominant market leaders and establish barriers to entry high enough to enable them to provide substantial long-term gains for investors.Īs with all growth sectors, there will be winners and losers, and this list of green energy stocks for 2022 uses fundamental and technical analysis to identify the ones to buy and when to buy them. Some companies benefit from government subsidies that may be tapered back whenever the industry matures, putting a cap on the potential upside. Others see it as the cleanest way to provide base-load power, which will literally keep the lights on if the wind isn't blowing or the sun isn't shining. Some resist the allure of nuclear energy stocks due to the potential environmental damage they can cause when things go wrong. The green energy stocks sector is relatively diverse, and investor preference can steer individuals to one stock and away from another. Rule number 1 of successful investing is to identify a trend and trade with it, which is why the below list of top green energy stocks for 2022 includes some of the most sought after stocks in the market. The pressure to become more environmentally responsible is a clear mandate for companies and investors and makes green energy stocks ideal for 2022 portfolios. For once, Eco-campaigners and hard-nosed government advisors appear to agree that the time to shift to green energy is now. With inflationary underlying pressures being what they are, the last thing business leaders and consumers needed was the 45% increase in Natural Gas prices in the last ten days of January.
Since the 1970s, the world's major economies have been exposed to the risk of oil and gas prices skyrocketing for reasons out of their control and posing a threat to economic activity. The opening months of 2022 were then dominated by geopolitical uncertainty between Russia, Ukraine, and the West, which resulted in those same world leaders realising that the pace of that move needs to be accelerated. A paradigm shift in political consensus in 2021 saw world leaders announce renewed efforts to move towards carbon-free energy to limit global warming.