Climate change is perceived as a growing problem that needs our urgent attention. Recognising the issue, 194 UNFCCC (United Nations Framework Convention on Climate Change) members have signed the Paris Agreement to keep the global temperature rise below 2 percent. These members include all major countries that constitute the most in global greenhouse gas emissions and that includes India.
Alternative energy sources are expensive for a common man to implement, but when nations around the world get together to make sure the poorest also have access to it, more and more policies are being implemented to promote the change.
India too has been taking initiatives to make electric vehicles account for 40 percent of the new sales by 2030. Efforts are being made to make owning an electric vehicle convenient with efforts like building more charging stations for them.
As the world's third largest importer, the country fulfills over 70 percent of its domestic demand from foreign suppliers. Rising crude prices are also making the government re-think its dependency on imported crude oil.
Solar plants and wind power generation has high potential in a tropical country like India. While these areas are being explored for innovation, one can invest in related stocks and commodities.
For example, the copper metal is essential in conducting electricity, it will become more valuable as the government plans on making one charging booth every 3 km. It will drive the demand for the metal.
When it comes to investing in company stocks, big players like Mahindra and Mahindra (electric vehicles) and Tata Power Solar Systems are working on innovation in the alternative energy fields.
Some leading solar power players are Tata Power Solar Systems, EMMVEE, Kotak Urja Pvt. Ltd., Icomm Tele Ltd., Indosolar Ltd and others. These are working on solar powered products like water heaters and photovoltaic cells.
However, new and emerging areas come with risk along with a potential for growth. The industry will only flourish when supporting policies are put in place by the government. Making significant returns from these will also take longer as demand for petroleum still remains high.
Like Al Gore said, "What the world needs is the vision that the solution to our global economic malaise is precisely the solution to the climate crisis," and so our hope remains in the possibility of cost-effective development of alternative sources to make it accessible to all households. Easy access and cheap prices (that comes with advancement in technology) will drive its growth.