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Making the decision to invest in green companies can be intimidating. There's a lot of information in cyberspace - some of it encouraging investment and some of it weary of the ROI on sustainable investments. I've offered some do's and don't's for would-be green investors and in this post, we'll take a look at the factors that make green investing a wise decision in 2011.The Think-Tank CSR Asia announced yesterday that, despite the recession in 2010, investments in green energy reached nearly $200 billion, up from $162 billion in 2009. Most of the new investors are coming from places outside the United States. Brazil, China, and India have the most number of new green investors. CSR Asia notes that these non-OECD countries have recognized the climate change threat and are investing in green energy in efforts to reduce carbon emissions.
These investors are not alone. The UNEP report on sustainability and green investment notes: "the green economy is expected to generate as much growth and employment - or more- compared to the current business as usual scenario and it outperforms economic projections in the medium and long term, while yielding significantly more environmental and social benefits." Green investing, therefore, makes sense not only environmentally but also economically.
Investors deciding to jump into the green sector are obviously coming off the heels of the recession. They understand that there are deep rooted problems in the global financial system. Nonetheless, the sheer number of new investors in the green sector reminds us that a changing climate, the loss of biodiversity, and the threat of global warming are all reasons to invest in responsible green initiatives.
As CSR Asia points out: "the potential and the mechanisms within the green economy ... make it a success
Source: justmeans.com