Companies invest in green energy for several reasons. Some of them are concerned with the effect that climate change will have on their business and others are simply interested in saving the world. Regardless of what is driving the desire to be more environmentally friendly, there are a number of steps that companies can take to improve their energy production and reduce their impact on the environment. A few of these steps include:
Companies often invest in solar energy or wind energy production. The reasoning behind this is because they are more cost effective options than traditional fossil fuel burning power plants. They are also more environmentally friendly because they use renewable natural resources. For instance, solar energy produces no pollution while it consumes very little fuel. Companies that purchase or lease their power plants typically participate in programs that require them to purchase clean emissions permits when they bring the power plant into operation.
By investing in clean energy, companies can help to slow climate change. In fact, investing in green energy technology can make up a large part of what is being done to reduce greenhouse gas emissions. A recent study showed that if every American took part in a long-term effort to build as many solar panels as they could, the reduction of carbon dioxide emissions from the power plants could amount to nearly half of the total amount that the U.S. releases into the atmosphere each year. Investments in clean energy can help companies avoid the impact of climate change.
Companies also invest in carbon trading to reduce their exposure to greenhouse gases. When a company sells its carbon credits, one of the results is that they receive cash in return. The more carbon credits a company has the more money they have to put towards reducing their footprint on the environment. In the past, companies have purchased credits from the carbon trading market to help them move away from using coal or petroleum to generate their electricity and other sources of energy.
If all companies in the world invested equally in green energy production then global warming would be a non-issue. However, this isn’t the case. Some countries have been able to develop technologically advanced fossil fuel resources that can provide a substantial portion of the world’s energy needs. Developing nations have limited sources of oil and natural gas and are dependent upon foreign sources for these sources. Because of this, developing countries have an economic interest in exploring alternative energy production.
One of the reasons that the U.S. has been hesitant to develop long-term plans to reduce greenhouse gas emissions is because of the fears that it will lose business to foreign competitors who use green energy sources. Companies aren’t afraid that they will lose business – they’re afraid that they will be left behind if the rest of the world takes a lead and develops advanced technologies quickly. However, over the last decade there have been a lot of new advances in renewable energy and green energy production. Now is the time to invest in this type of technology. You will be the one that makes the difference between whether we stay dependent on fossil fuels or not.