"Environmental" is a loaded buzzword these days in all walks of society. This is especially noteworthy in politics, where so much of the discourse has environmental themes. From global warming to endangered species to green technology, we cannot avoid discussions that have an environmental theme to them.
Interestingly, even the investment world is seeing a shift towards environmental focus. The most notable sector where this is true is "green" jobs. We know that part of the goal of the recent stimulus bill was to create a variety of green jobs that would not only help to spur the economy but also help the environment at the same time. The jury is still out on the benefit of this "green" stimulus, but we know that the topic is not going away. With so much government being pumped into this sector, it was inevitably only a matter of time before the investment dollars followed suit. Numerous green companies have seen investments and cash flows increase as a result.
Another investment sector with a strong environmental tie is mlp investing. These are investments in master limited partnerships, which are publicly traded partnerships set up as a "pass-through" business structure, similar to the limited partnership, whose shares are traded in public equity markets. Many companies now offer mutual funds for this type of investment vehicle. These partnerships are entirely energy based, from oil to natural gas and more. Clearly, these have strong environmental ties.
One of the biggest drains on the environment is our need to consume energy and the byproducts of that consumption. Many of the green jobs mentioned above are aimed at reducing "carbon footprints" and making energy usage more cost and energy efficient. While you might consider these two types of investments to be on different ends of the environmental spectrum, clearly they are both of interest for anyone with an environmental focus.
Whether looking into energy investments or green jobs is right for you depends on your interests, risk level, and goals. Clearly though, these are two areas that anyone should keep their eye on.
