{"id":510007,"date":"2023-10-26T11:00:41","date_gmt":"2023-10-26T10:00:41","guid":{"rendered":"https:\/\/www.finder.com\/uk\/?p=510007"},"modified":"2026-01-30T06:16:01","modified_gmt":"2026-01-30T06:16:01","slug":"climate-change-stocks","status":"publish","type":"post","link":"https:\/\/www.finder.com\/uk\/share-trading\/invest-in\/climate-change-stocks","title":{"rendered":"Invest in climate change stocks"},"content":{"rendered":"

The renewable energy market is already valued at close to $1 trillion globally and is forecast to grow 8% per year over the next decade. Undoubtedly, the green transition is a big-money sector, and you might be wondering how you can \u201csolar-charge\u201d your portfolio to find the best climate change stocks on the market.<\/p>

What are the best climate change stocks?<\/h2>

No one has a crystal ball, so it\u2019s impossible to say for certain the best climate change stocks to invest in. So, to give you some starting inspiration, these climate-related stocks below are the top constituents in the S&P Global Clean Energy Index. It\u2019s the industry benchmark used for tracking top climate change stocks from developed and emerging markets.<\/p>

First Solar (FSLR)<\/h3>
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Consolidated Edison (ED)<\/h3>
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Enphase Energy (ENPH)<\/h3>
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Vestas Wind Systems (VWS)<\/h3>
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Iberdrola (BE)<\/h3>
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SolarEdge Technologies (SEDG)<\/h3>
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China Yangtze Power (600900)<\/h3>
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Energias de Portugal (EDP)<\/h3>
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Chubu Electric Power (9502)<\/h3>
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Orsted (ORSTED)<\/h3>
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How to invest in these climate change stocks<\/h2>

If you want a simple way to invest in all these top climate change stocks (plus plenty of others), one straightforward way is to invest in an exchange-traded fund (ETF)<\/a> like the iShares Global Clean Energy UCITS ETF (for example), that aims to track this index.<\/p>

Compare share dealing accounts<\/a> to find the right platform for you. Make sure to use a platform with access to international markets or a large ETF selection if you want to invest in top global climate change stocks.<\/p>

Why do people want to invest in climate change stocks?<\/h2>

First off, let\u2019s consider the ethical angle. The International Panel on Climate Change (IPCC) 2023 report states that human activities are an unequivocal cause of global warming. Don\u2019t want to guilt trip you, but the phrase \u201cmade our bed, time to lie in it\u201d comes to mind.<\/p>

Many investors want to have a positive impact. Understandable right? Buying shares<\/a> of a renewable energy company won\u2019t directly funnel money into the firm. But it does help create a financial climate where these firms are more likely to flourish like sunflowers in, well, the sun. Investing in climate change stocks can improve the world, and make you richer \u2013 well, that\u2019s the idea anyway.<\/p>

Importance of climate change investing<\/h2>

Demand for a company\u2019s stock pushes up its price, which can indirectly benefit a climate firm in various ways. For instance, it can facilitate the issuance of new shares, make it easier to secure loans to drive growth, or attract valuable partnerships. These advantages can, in turn, provide the company with the resources it needs to innovate and expand its environmentally friendly technologies.<\/p>

Then there\u2019s the governmental tailwinds. Take the Inflation Reduction Act of 2022 in the US, for example. It\u2019s pumping $500 billion into new spending and tax breaks, with a good chunk aimed at giving clean energy a leg up. Governments are essentially rolling out the green carpet, making it financially attractive to invest in eco-friendly initiatives.<\/p>

Lastly, the sector is a hotbed of innovation and disruption. It\u2019s still uncertain which technologies will take the lead. For example, will batteries continue to charge ahead, or will hydrogen fuel cells<\/a> make them run out of juice? This uncertainty means there are potentially huge, albeit unpredictable, rewards for picking the right climate change stocks.<\/p>

The risks of investing in climate change stocks<\/h2>

Investing in climate change stocks can be successful with favourable winds, but just like real life \u2013 it\u2019s hard to forecast whether it will be clouds or blue skies in the stock market. Here are some of the major investing risks with positive, climate-related stocks:<\/p>