The global push towards decarbonization has reached unprecedented levels, with the International Energy Agency (IEA) projecting $1.7 trillion in investments for renewable energy and clean-energy technologies this year. This marks a new record, continuing a six-year upward trend. However, experts emphasize that achieving decarbonization extends beyond electrifying transportation and increasing solar and wind energy use. It requires a comprehensive approach, including sustainable agriculture, low-carbon manufacturing, and green construction.
Venture capital investments in decarbonization-related deals have skyrocketed, reaching $433 billion in 2023, as per the GlobalData Net Zero by 2050 report. The Arab Energy Fund's plan to invest up to $1 billion in decarbonization technologies in the Middle East and North Africa over the next five years exemplifies the growing support from global funds.
For investors, accessing the decarbonization opportunity has traditionally been limited to private markets, excluding everyday investors. However, four companies stand out for offering alternative investment avenues. VivoPower International PLC (NASDAQ:VVPR) is making waves with its subsidiary Tembo, which provides conversion kits for transforming internal combustion engine vehicles into electric vehicles (EVs). These kits have garnered significant market interest, with over 5,000 commitments and an order pipeline exceeding 10,000 in the first half of 2023.
Array Technologies (NASDAQ:ARRY) plays a pivotal role in renewable energy with its solar panel trackers, which are in demand at a rate 30%–40% faster than the rest of the solar industry. Enlight Renewable Energy (NASDAQ:ENLT) contributes as an independent power producer, with a gross installed capacity of 1883 MW and plans to expand further by 2025. SolarMax Technology, Inc. (NASDAQ:SMXT) operates across the U.S. and China, focusing on solar energy solutions for residential, commercial, and governmental needs.
These developments underscore the dynamic shift towards decarbonization, offering both challenges and opportunities for investors, industries, and the global community. The involvement of companies like VivoPower International PLC, Array Technologies, Enlight Renewable Energy, and SolarMax Technology highlights the diverse strategies being employed to combat climate change and transition towards a sustainable future.
