Renewable energy is here to stay in most of the world. Especially throughout Europe, Oceania, and China, the transition to sustainable power sources is almost complete. Some countries, like New Zealand and Uruguay, now get upwards of 80% of their electricity from renewable sources. The same goes for Norway, where nearly 89% of all new cars sold in 2024 were electric.
In the U.S., political headwinds might appear to be shifting the country away from renewable energy and toward traditional sources of energy and fuel. But almost everywhere else, the bullet train has left the station. Geopolitical scientist Ian Bremmer says the green revolution has attained “escape velocity,” and its advancement is now being driven by the market rather than political forces.
It’s fair for investors to wonder, given this moment in American politics, how their renewable energy investments might perform over the next four years. Despite the debate, there’s every reason to think alternative energy companies are positioned for success, even in the U.S.
Renewable Energy: Once Optional, Now Mainstream
The shift in clean energy growth engines is significant. Global governments helped spark green energy in response to growing climate threats. They provided subsidies, tax incentives, and research to spur innovation, and they established frameworks for sustainable energy to unfold.
As has happened with telecommunications and personal computing, alternative energy has become more cost-efficient to consumers over the last 15 years or so. Private companies and investors realized their potential and renewed their commitment to carbon-free energy. Today, supply and demand are the bigger drivers of clean energy efforts; what was once aspirational is now fully mainstream.
Even with the United States government’s apparent inclination toward traditional coal and natural gas, renewable energy takes hold in unexpected places. Texas, a state with more ties to fossil fuel than any other, currently leads the entire nation in clean energy development. Policy still matters, but even old-guard investors can see where they’re headed.
Clean energy is also an institutional goal. Recently, Microsoft agreed to “the largest carbon removal deal in history,” according to ESG News. The tech leader’s goal is to be carbon-negative by 2030, and the economic prospects for renewable energy show climate goals mean smart business.
What This Means for Your Investments
In the past, many who invested in sustainable energy did so to send a message. But now it makes business sense too, even for more mainstream investors.
At Laurel Wealth Planning, our ESG funds have largely kept pace with their non-ESG counterparts. While it’s impossible to have ESG-compliant options for every recommended investment, for our ESG-focused clients, clean energy portfolios range from around 65% to 80% ESG.
But businesses are increasingly turning to sustainable energy to run across the board. When market trends are driven by corporate demand rather than government or nonprofit initiatives, they reshape the economy more dramatically and durably for investors.
Financial advisors are now seeking companies using renewables as part of their strategies. And they’re not focusing on just utilities and solar power manufacturers; these companies also include logistics firms, cloud providers, and major industrials looking to cut costs via clean power.
For many investors, shifting priorities in American policy are hard to track and cause uncertainty. But renewable energy’s groundswell continues. Market demand and global momentum are real. In the end, that should bolster investors’ returns as the world transforms.
Laurel Wealth Planning: Skilled Guidance in Changing Times
Laurel Wealth Planning makes investing in renewable energy a priority. But our biggest responsibility is finding wealth management strategies that resonate with you and your financial goals. When you partner with Laurel Wealth Planning, you’ll have experienced fiduciary advisors in your corner who always place your interests and objectives above all else.
To schedule a complimentary meeting, email laurel.wealthplanning@laurelwealthplanning.com or call (952) 854-6250. Find out whether the Laurel Wealth Planning team is the right financial advisor for you based on your wants and needs.
The foregoing content was prepared by Indigo Marketing Agency with verbiage, opinions, and/or financial commentary input provided by Laurel Wealth Planning.
The foregoing content reflects the opinions of Laurel Wealth Planning LLC and is subject to change at any time without notice. Content provided herein has been obtained from sources considered reliable, but we do not guarantee the accuracy or the completeness of any description of securities, markets, or developments mentioned. The content is for informational purposes only and should not be used or construed as investment advice or a recommendation regarding the purchase or sale of any security. There is no guarantee that the statements, opinions, or forecasts provided herein will prove to be correct. Past performance may not be indicative of future results.
Indices are not available for direct investment. Any investor who attempts to mimic the performance of an index would incur fees and expenses which would reduce returns. Securities investing involves risk, including the potential for loss of principal. There is no assurance that any investment plan or strategy will be successful.
As a precautionary measure, we cannot rely on e-mail requests to authorize, direct, or affect the purchase or sale of any security, wire transfer, or to affect any other transactions. Such requests, orders, or other instructions sent via email should be confirmed verbally or by written instructions faxed to 952-854-6250 prior to their anticipated execution. We are unable to ensure that emails sent to you from us, or sent from you to us, will be received. Please contact us at 952-854-6250 if there is any change in your financial situation, needs, goals, or objectives, or if you wish to initiate any restrictions on the management of the account or modify existing restrictions. Additionally, we recommend that you compare any account reports from Laurel Wealth Planning LLC with the account statements from your custodian. Please notify us if you do not receive statements from your custodian on at least a quarterly basis. Our current disclosure brochures, From ADV Part 2 and Form ADV Part 3, are available upon request and on our website, www.laurelwealthplanning.com. This disclosure brochure, or a summary of material changes made, is also provided to our clients on an annual basis.
Laurel Wealth Planning LLC (LWP) is an Investment Adviser registered with the Securities and Exchange Commission. Registration does not imply any level of skill or training. LWP is a wealth management firm and does not practice law or accountancy. The information and material contained in this communication is confidential and intended for the recipient addressee named. If you are not the intended recipient, please delete the message and notify the sender immediately. The foregoing content was prepared by Indigo Marketing Agency with verbiage, opinions and/or financial commentary input provided by Laurel Wealth Planning.
