The world is becoming more environmentally conscious, with everything from power generation and recycling to organic food and sustainable fisheries. Nearly everyone, including politicians, climate scientists, businesses, and consumers, is keen to reduce humanity's environmental burden on the planet. There are many options for investors looking to add a little green to their portfolios. Here are some top areas to invest in green.

Understanding Green Investments

Funds or businesses that invest in green investments seek to reduce harmful pollution or make more sustainable use of resources. Alternative technologies such as solar/wind energy or research on better resource use can be used. Eco-friendly investments can bring both financial and environmental benefits. Older technologies, such as polluting industries and fossil fuels, will face increased costs and regulatory hurdles as the world adapts to climate change. This creates a market for alternative options. These alternative investments are sought out by many mutual funds and index funds, hoping to reap strong future returns. Here are some options for green investing.

Renewable Energy

Green energy is hot in a world that is concerned about climate change. Many investment opportunities in power generation do not rely on burning fossil fuels to produce electricity for homes and industries. Renewable energy is a top power source, with solar, wind, and water being the most popular.

Hydroelectricity

For centuries, water has been the main source of renewable energy. Ancient Greeks operated grain mills using water power. Projects like China's Three Gorges Dam, which supplies electricity to 70 million to 80 million households, are still possible today. According to the International Renewable Energy Agency, hydropower is the most efficient electricity generation. Hydropower is not a purely profitable business. Three energy producers have significant hydropower assets. One of the largest hydro operations is held by PG&E (PCG). Idacorp (IDA) has 17 hydro projects.

Wind Power

The wind is the fastest growing renewable energy source, which has grown 75-fold in the last two decades. China is the largest country, with 288.3 gigawatts installed capacity for 2020. The United States has 122.3 gigawatts, and Germany has 62.9 gigawatts. This renewable is worth your consideration. You can look for companies that make wind turbines or wind farms that generate wind energy. There are not many pure-play stocks. However, here are some interesting wind stocks:

• General Electric
• NextEra Energy Partners
• Siemens Gamesa Renewable Energy
• Vestas Wind Systems

Solar Energy

The sun's energy powers homes, buildings, and a wide range of other devices, from lights to radios. Focus on solar panel companies if you believe the sun is only beginning to rise in this sector. They will reap the benefits as more homeowners and businesses adopt solar power. First Solar (FSLR), a major producer of solar systems and modules, is a good example. JinkoSolar Holdings (JKS), which also produces solar modules, claims to have produced 80 gigawatts. Sunpower (SPWR) makes homes and businesses solar modules and storage systems. There's much more to solar than just panels. There are many investment opportunities available, from components to installation.

• Enphase Energy
• Sunrun
• Invesco Solar ETF

Pollution Controls

This is where the key word is reduction. The pollution control industry is growing. It can reduce greenhouse gas emissions from industrial power plants or minimize emissions from your car's tailpipe. This industry responds to legislation that limits harmful chemicals released into our environment. These companies and ETFs are focused on pollution control technologies.

• Fuel-Tech
• VanEck Vectors Environmental Services ETF
• Invesco MSCI Sustainable Future ETF

Green Transportation

Tesla (TSLA), the leader in transportation, is often the first name people think of. Although Tesla (TSLA) is a well-known company for its attention-grabbing leader, innovative technology, and exemplary leadership, it's not the only one in town.

Researchers are also working on fuel-cell technology to find an alternative way of driving automobiles. This technology is possible, and millions of cars (and consumers) want it. Ballard Power Systems (BLDP) is one of the companies that operate in this space. It produces cells that can be used as backup power systems and vehicles. FuelCell Energy (FCEL), on the other hand, focuses on offering power options for commercial and industrial facilities.

Waste Reduction

Recycling is now a common practice. While most people know that metal, paper, and glass can all be reprocessed or reused, the number of items you can recycle is increasing. You can give a second chance to oil, vegetable oil, batteries, cell phones, computers, or car parts. These items can be recycled by businesses that are working in the background. Suppose you are looking for a waste management company with a wide range of recycling facilities.