The concept of a carbon tax is a hot topic among economists and environmentalists. However, it’s likely to be a mystery for the rest of us! Ultimately, it combines two vital aspects of our everyday existence–the wellbeing of the ecosystem and the condition of our wallets.
So here we go: Carbon taxes involve assigning a monetary value to every ton of greenhouse gas emitted by a corporation. As a result, businesses are incentivized to limit the extent of their emissions by either reducing their production or by phasing into greener forms of energy and tech. Just like other taxes, the proceeds could pay for a multitude of projects; from promoting infrastructural improvements to reducing regular corporate taxes or possibly even helping your wallet in the form of carbon dividends.
I know what you’re thinking–how can something that could improve environmental efficiency possibly result in financial gains for me? Considering the details of the carbon tax, I urge you to keep an open mind regarding investment opportunities–particularly as the political and social climates of the world become greener.
Your Green Portfolio
Global warming and climate change have major implications on the future of investing. Companies as well as consumers are faced with a dilemma –either continue to produce and invest in ways that hamper the environment or utilize new and better ways of green production and eco-conscious investing. Renewables, such as solar and wind, have garnered a lot of attention as industries worldwide seek to utilize platforms that exclude carbon emissions and provide cheaper sources of power. As a result, the carbon tax is effectively ushering in a new era of green energy alternatives and a plethora of investment opportunities that are more environmentally sound.
When it comes to investing in environmentally conscious industries, it’s often about playing the long game as companies are pushed to embrace more sustainable practices. The investment opportunities in companies that are carbon tax proficient continue to grow and gain investor interest as we evolve into an eco-friendlier era.
The ‘Demand Green’ portfolio is an efficient way to make environmentally conscious investing possible. The securities offered within the ‘Demand Green’ portfolio include companies like Tesla and SolarEdge, spearheading the movement for clean and renewable energy. If you are interested in pursuing an environmentally sound investment strategy that aligns with your values and personal financial goals, schedule a video conference with one of our advisors regarding a comprehensive financial plan today.
Chart Data taken from fossilfreefunds.org, tobaccofreefunds.org and deforestationfreefunds.org
This report is a publication of Demand Wealth. Information presented is believed to be factual and up-to-date, but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the author as of the date of publication and are subject to change.