COP26: A Green Financial Revolution?

The COP26 conference in Glasgow has concluded, and many government officials, world leaders, and billionaires have pledged vast sums of money to companies that are at the forefront of green technology.

The decisions made during this gathering are expected to have a significant impact on multiple sectors.

Continue reading to discover the major winners and potential losers from COP26 and how they could affect your portfolio.

Green Energy

The green energy sector is undoubtedly a winner from the conference.

Investors and governments from all over the world are increasingly committing themselves to transitioning to green infrastructure, and they will need companies to complete the work.

It is advisable to invest in green energy-driven ETFs following this conference.

The sector will receive billions of dollars, pounds, and yen, and although the specific companies securing the contracts may not be known, an ETF will allow you to maximize profits.

Shipping

Shipping is an industry that is likely to experience negative effects, partly due to the significant amount of emissions that shipping requires.

Just a few shipping containers emit more greenhouse gases than most cars on the planet, and this is likely to have an impact after COP26.

If shipping cannot develop eco-friendly solutions for the long term, it could find itself in a precarious position.

General Lessons

Although the more specific shifts in stocks will be established in national policies in the coming weeks and months, there are a few lessons we can learn from COP26.

The first is to have a better understanding of the industries you should monitor, such as green energy and major multinational stocks like Amazon.

The second is to keep an eye out for minor legislative shifts.

As markets are expected to further open up to green energy and emerging technologies, older companies will either adapt or struggle.

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