solco - renewable energy stocks in portfolio

Do you need renewable energy stocks in your portfolio?

It's not easy to determine which sector in the renewable energy space is the best bet.

By Staff Journalist | 15.08.2011

The government's carbon tax has pushed ethical investing into the spotlight and share prices of stocks in the renewables sector are starting to look greener. There has been some commentary in the media recently that investors without exposure to the renewable energy sector are at risk of losing out on future gains. Or, more to the point, investors with too high an exposure to carbon polluters could be at risk of faltering returns as share prices flatten.

It's undeniable that the world is transitioning from a world motored on oil, coal and gas, to a world run on a more diverse mix of alternative and renewable energy sources. Global investment in renewable energy last year sat at a record $US211 billion ($A198 billion), increasing by 32% over 2009 and 540% since 2004. China accounted for more than a fifth of the total, investing $US48.9 billion ($A45.9 billion).

The government's $13 billion Clean Energy Package pushes the case for renewable energy - with $10 billion over five years to be invested in renewables and low emissions technologies (not Carbon Capture and Storage), with a further $3.2b in renewable sector funding.

The big investors, like fund managers and professional investors, are taking note. In its climate change report, Mercer argued that investment firms are beginning to increase their allocation to climate sensitive assets in order to capture new opportunities and help mitigate risks. Indeed, fund managers and professional investors are realising the benefits of bolstering exposure to companies and funds that benefit from a carbon tax, which include clean technology and renewable energy stocks across waste, solar, water, wind, biofuel, geothermal, carbon and others.

What does this tell us? Well, if the funds are getting in, the best companies in these sectors have only one way to go - and that's up.


complete report :
http://www.thebull.com.au/articles/a/22000-do-you-need-renewable-energy-stocks-in-your-portfolio.html