With the Democrats’ victory, the transition to a “green economy” awaits the United States – here are 30 companies to invest right now

The Economist predicts Joe Biden will lead Donald Trump to win the 2020 US election in November, due to criticism of the current administration’s handling of Covid-19.

But more important to a potential Biden administration is the fact that the Democratic Party is more likely to win the Senate:

In that case, the United States would likely face four years of sweeping political reforms and implementation of Biden’s “clean energy revolution,” budgeted with $1.7 trillion in federal money, plus commitments from local states and the private sector.

As a result, the oil and gas industry will lose out, and the clear winner is any company or industry that provides solutions to move the United States toward a 100% clean energy economy. This will mean the growth of manufacturers of electric vehicles, solar energy, wind energy, waste management and recycling, water efficiency solutions, and more.

Stocks to make your portfolio green

We invite investors to pay attention to the shares of the most important “green industries”, most notably:

Solar energy

$11.21 billion (here and less – market capitalization)

Supplier of energy optimizers, solar inverters and monitoring systems for PV arrays.

Full cycle production of PV modules.

Universal solar power system for home

Development and production of crystalline silicon photovoltaic cells and solar panels.

Wind Energy

One of the largest wind turbine manufacturers in the world.

The Spanish-German wind energy company, manufactures wind turbines, provides onshore and offshore wind services.

Development and operation of power plants and solar energy

hydropower

New Zealand’s largest renewable energy company.

Global Leader in Renewable Energy (Canada)

Provider of alternative and renewable energy technology

Owns and operates renewable energy, transportation and transportation infrastructure

fuel cells

Solid oxide fuel cell power generator, utilizing a variety of inlet fuels, including liquid or gaseous hydrocarbons derived from biological sources.

Proton exchange fuel cell plant (Canada)

Biodiesel Corporation

electric cars

Manufacturer of electric vehicles, solar energy and integrated renewable energy solutions for homes and businesses.

Design and development of electric autonomous vehicles (China)

One of the largest manufacturers of household appliances and electronic goods in the world. Production of car batteries. (Japan)

The industry leader in the production of lithium and lithium derivatives, it is one of the fastest growing markets in the specialty chemicals industry. Lithium production for electric cars

Atomic Energy

Mining company, one of the largest producers of uranium in the world (Canada)

Production, sale, transmission and delivery of electricity.

Renewable polymers, renewable chemicals and catalysis, the goal is to create and commercialize environmentally friendly technological solutions in the field of chemistry (Netherlands).

Recycling

Waste collection, transportation, recycling, recycling or disposal

Collection, recycling and safe disposal of any kind of waste (Australia)

Innovation in Chromatography, Mass Spectrometry and Thermal Analysis, Discovery of New Pharmaceuticals, and Securing the World’s Food and Water Supply

Water supply, wastewater treatment and drinking water

Building materials

The world’s largest manufacturer of fiberglass composites, developing and producing insulation, roofing and fiberglass composites

A multinational company based in Ireland. Manufacturer of HVAC equipment, security and automation systems for buildings and structures, remote diagnostics, preventative maintenance, monitoring and more using AI

A world leader in high-performance insulation and building envelopes that save more energy, carbon and water, enable a circular economy, water management solutions (wastewater, surface water and stormwater harvesting), energy management solutions, and the use of the Internet of Things.

Developer and manufacturer of energy-saving technologies and materials based on organic light-emitting diodes, as well as a service provider for the display and lighting industry

food

The world’s largest manufacturer of plant-based meat substitutes that mimic the taste and texture of chicken, pork and beef to benefit human health, climate change, natural resource restrictions and animal welfare.

The above thirty stocks give investors access to these green industries. When selecting these companies, market value was taken into account. Preference was given to larger companies in the industry.

Risk factors for green industries

  • Compared with the public stock market, hydropower, nuclear power, refining and water supply are less risky as their demand profile is more stable, while industries related to solar energy, wind energy, electric vehicles and building materials are more cyclical than the market as a whole. , and more susceptible to negative influences during a recession.
  • The fuel cell industry is highly dependent on government subsidies and is therefore exposed to high risks.
  • The bioplastics industry is likely to grow at a robust pace as several consumer companies, McDonald’s and Unilever to name a few, have said they will improve their plastic packaging over the next decade. But bioplastics is a small and fragmented industry, and public bioplastics companies can easily lose out to larger companies in the traditional chemical industry.
  • All these green industries operate in the physical world and require huge costs to operate, unlike the software industry, where the return on capital is high and easily scalable. Low interest rates contributed to its growth. However, if interest rates rise, it will adversely affect both operating conditions and capital valuation.
  • Solar, wind and nuclear energy depend on government support, which means that future shareholder returns will depend not only on technological progress, but also on government support.

Renewable energy growth prospects

  • Solar energy is competitive in some regions of the world even without subsidies – due to an ongoing technological process. Solar energy is likely to play an important role in the energy mix, especially in the sunny regions of the world.
  • Wind energy is one of the cheapest forms of renewable electricity available today. Wind energy accounted for 63% of renewable energy investment in Europe in 2018.
  • The future use of wind energy is linked to a major technological breakthrough in the industry following the launch of 10 MW offshore wind turbines in late 2019 by Vestas Offshore Wind.
  • The political capital behind cutting carbon emissions amid the raging climate crisis will provide investors with exceptional opportunities over the next three decades.
  • Green companies (and their stocks) have a long-term outlook that promises to become the world’s largest and could outperform technology companies over time. This will come with huge government support and investments that will create a huge trend in green industries.

Investors with a long-term investment horizon should consider purchasing clean energy stocks.

I am convinced that every long-term investor should have access to this topic.

If investors don’t make their portfolios more green, they could miss out on the next major trend in the financial market and society.

Author: Zhanna Zhumagalieva, investor since 2006, channel Telegraminvestments_simple

We decided to diversify the Tinkoff Investments blog and give opportunity to investors who are our clients. From now on, we will regularly publish the texts of external authors. If you have a text you want to share and get a reward, write to it [email protected].

The opinion of the author may not coincide with that of the editors of Tinkoff Investments. The securities and other financial instruments mentioned in this review are provided for informational purposes only; A review is not an investment idea, a tip, a recommendation, an offer.

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