Green investing refers to the practice of investing in companies and projects that promote environmental sustainability and combat climate change. This can include investing in renewable energy sources such as solar and wind power, as well as in companies that focus on reducing carbon emissions and waste and promoting energy efficiency.

Green investing can also involve avoiding investments in companies that have a negative impact on the environment, such as those involved in fossil fuel production. The goal of green investing is to generate financial returns while also promoting positive environmental and social outcomes.

One of the most important investment trends for the ensuing decades will be clean energy; including renewable energy sources, electric cars, and various base metals, the addressable market for clean energy is enormous.

The online marketplace NASDAQ expects the addressable market for this renewable energy to reach $2 trillion in size by 2030 and the market for electric vehicles to reach $1.1 trillion globally. As related industries are poised to profit from these favourable tailwinds, making a portfolio out of numerous stocks in clean energy stocks will yield exceptional results.

Green companies

There are many companies worldwide that are considered to be “green” stocks due to their focus on environmental sustainability and clean energy. Here are a few examples:

• Vestas Wind Systems (Denmark): One of the world’s largest wind turbine manufacturers, produces wind turbines for both onshore and offshore use.
• Tesla Inc. (United States): Electric vehicle (EV) manufacturer and clean energy company that designs and manufactures electric cars, battery energy storage from home to grid-scale, and solar products and products.
• NextEra Energy Inc. (United States): Renewable energy company that operates wind and solar power plants, as well as natural gas facilities.
• Enel Green Power (Italy): Renewable energy company that operates wind, solar, hydroelectric, and geothermal power plants in Europe, North America, and Latin America.
• Canadian Solar Inc. (Canada): Solar power company that designs, develops, and manufactures solar panels and provides energy solutions.
• Orsted (Denmark): Danish company that generates electricity and heat from renewable energy sources, such as offshore wind, bioenergy and onshore wind, and is a leader in the development of offshore wind farms.
• Brookfield Renewable Partners (Canada): Global company that operates and develops a diversified portfolio of renewable power generation assets, including hydroelectric, wind, and solar power.
• Hanwha Q Cells (South Korea): Designs, develops, and manufactures solar cells and modules, and also is involved in the development of solar power projects.

The carbon market is booming: 5 must-have green stocks

Top stocks for 2023

According to NASDAQ, this year represents a buying opportunity for undervalued equities and recommends pondering an increased portfolio exposure to the following stocks in particular:

• Albemarle Corporation (ALB): As global government policies favour the adoption of electric vehicles, the demand for lithium has surged. n Q3 2022, Albemarle reported a 152% growth in sales. Additionally, the company has also guided for a robust increase in adjusted EBITDA (280% to 300%) for 2022. With higher realised prices for this commodity, Albemarle is expected to continue reporting healthy cash flows. 
• Rivian Automotive (RIVN): The electric vehicle manufacturer has maintained its production guidance for 25,000 units despite a 75% price correction in 2022. As of November 2022, RIVN had a backlog of 114,000 vehicles. 100,000 of them for Amazon (NASDAQ: AMZN). Its current cash buffer of $13.8 billion will fund operations through 2025. And the company will launch its more affordable R2 model in 2026. 
• ChargePoint Holdings (CHPT) will ride the massive market potential electric vehicles unlock for EV charging infrastructure. It is expected the United States will need $40 billion in investment in publicly-accessible charging infrastructure by 2035 and Europe 65 million EV chargers by 2035, requiring a total investment of $134 billion. ChargePoint sells hardware, subscription software and services. As the number of charging stations installed swells, software subscription revenue will swell. 
• Enphase Energy (ENPH) The solar power company´s stock surged by 80% in 2022. In Q3 2022, Enphase reported revenue of $634.7 million. Considering its growth trajectory -an annualised free cash flow potential of $700 to $800 million- Enphase is positioned to deliver free cash flow in excess of $1 billion in 2023. 
• First Solar (FSLR) In 2020, the International Energy Agency confirmed that the world’s best solar systems provide the “cheapest electricity in history.” The company has a 9.7GW capacity. And its long-term expansion plans will ensure healthy revenue and earnings growth.: FSLR has indicated this capacity will increase to 21.7GW by 2026 and total booking opportunities up to 113.6GW. The company’s current module shipment backlog stands at 58 GW.
• Vestas Wind Systems (VWDRY): The company has a strong wind turbine backlog of €18.1 billion. This provides long-term cash flow visibility, something investors clearly like. Additionally, Vestas reported services agreements that provide a contractual revenue backlog of €32.8 billion.
• Lithium Americas (LAC): Another lithium play that’s worth considering because of its quality assets in the United States and Argentina. Recently, the company announced a split into two entities. Lithium Americas will continue to focus on the U.S. asset where the company has a 100% interest. Further, Lithium International will focus on the asset in Argentina where the company has 44.8% operating interest.
  

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• Source: https://www.green.earth/blog/the-top-10-green-energy-stocks-to-invest-in