From Guest Blogger Dave Elliotte: Companies Worldwide Unlocking Green Finance as Mandatory Survival Strategy

Allocating funds for sustainable progress is fast becoming a mandatory survival parameter for companies worldwide. With the climate change concerns mounting heavily by drastic weather conditions (consider the polar vortex), companies are realizing that they should shift to the green gear while there is still time. With the global fossil fuel supply running out every second in heavy consumption, full investment in alternative energy options is only a matter of time. From automobile manufactures to telecom services, everyone has to go green or perish.

The need of the changing times

Given the current state of events, there is simply no other option but to adopt green finance policies. In fact, the World Economic Forum recently unveiled a comprehensive report formulated by the Green Growth Action Alliance committee (formulated in 2012 Los Cabos G20 summit). This detailed note dealt with the issue of unlocking private investment in green energy alternatives. The report highlights the urgency of aligning with sustainable growth parameters.

So, what are the eco-friendly finance requirements of the world?

• Essentially, these refer mainly to the implementation cost of advanced energy efficient technology in maintaining the limit of greenhouse emissions at a level supporting balanced environment-friendly growth objectives.
• Besides, a huge amount of expenditure is also necessary to undo the damaging effects of the energy invasive technologies that companies keep on using indiscriminately. The writing on the wall is very clear.
• Even the Wall Street is recognizing that they pulled the strings so hard that they might actually snap! The urgency was evident when the top 500 investors (virtually an extension of the core group controlling the entire global economy) met up recently at a top level summit hosted by sustainable nonprofit organization Ceres. Held at the UN headquarters New York, the investors evaluated the green finance situation in setting effective targets.

Companies still lacking the initiative

The climate chief of the United Nations, Christiana Figueres recently projected that the world needs to invest $ 1 trillion in clean energy technologies by 2030. However, keeping with the regressive trend, investors worldwide are still failing to realize the importance of green finance investments fully. New data revealed by Bloomberg New Energy Finance notes the total clean energy investment of 2013 at $254 billion, which is a sweeping 20% less than the record green investments of 2011.

Good news keeps coming in

Against this trend, several major services are already available to fund initiatives in developing renewable energy sources. A major US bank announced that 2013 would see the widespread circulation of the ‘green bonds’. These bonds intend to generate investments for climate friendly opportunities. Several other services are also doing their best at fast adaptation to the green cause. (In a related ‘green’ news, the recreational marijuana companies in Colorado made more than $1 million in the first day of legal weed sales.)

Positive news is surfacing rapidly everywhere. Apparently, the Wall Street is recognizing the reality at last. The cost of an usual solar panel system dropped by 45%  from mid 2012 to 2013. This has to do with the fact that the world installed solar panels at a 20% growth rate from 2012 to 2013. Mainstream investors are fast catching up. Several leading companies are already beginning to see the moneymaking opportunities in green investment. Search engine behemoth Google recently acquired energy efficient startup service Nest at $ 3.2 billion. This is only one example of the renewed worldwide impetus on green finance.

Adapt or perish

The key issue that companies worldwide need to focus is the proper allocation of stranded assets as fossil fuels. As the global renewable energy scenario continues to improve, and countries begin to enact climate tax on companies, the fossil fuels stand at the risk of being worthless. This would mean complete disaster for companies tying their holdings with the fossil fuel market. There is no way they can stop this either. The services now need to adapt with the new reality. Otherwise, no company is too big to fall.

Author Bio: Dave Elliotte is an investor from Philadelphia. He has been a long-term proponent of green finance initiatives and debt consolidation despite suggestions otherwise. He believes maintaining a clean investment portfolio would be highly rewarding in the long-term.