Happy Earth Day! As the world celebrates, I wanted to take a moment to talk about Green Energy, specifically Green Infrastructure. With so much hype around the subject of Green Infrastructure, many are anticipating a MASSIVE shift in how we garner energy throughout the next decade.
First, I thought it would be helpful to define Green Infrastructure. The Green Infrastructure Ontario Coalition defines it “as the natural vegetative systems and green technologies that collectively provide society with a multitude of economic, environmental and social benefits.” It’s about harnessing the power of NATURE to enhance the community. These types of technologies can include everything from planting trees and restoring wetlands to establishing green roofs and urban forests.
For context, here is an example. One MAJOR concern is the stormwater runoff in urban centers around the globe because of how much pollution it causes. When rain falls in these areas, it cannot be absorbed into the ground – as it does in nature – because of the vast amount of pavement and concrete. Instead, the water flows through water drains into sewers and is transported to nearby bodies of water. As the water goes through the drainage system, it carries garbage, metals, and various other pollutants that harm the bodies of water, making it environmentally unfriendly. The water runoff also causes erosion and flooding that damages buildings and infrastructure.
The solution? Better stormwater management through green infrastructure, which can include engineering natural filtration systems to absorb and filter stormwater. Check out this REAL world example highlighting the methods that the City of Calgary uses to manage stormwater runoff.
Photo Credits: The City of Calgary
More than EVER, our world is evolving to be more and more reliant on Green Energy. The irony is that the transition path to an inclusive green economy is commodity-intensive. We have wonderful companies that have built our world on fossil fuels – and these are not all bad. Canada has the most stringent environmental standards for the construction of fossil fuel infrastructure in the world. We use petroleum products for so much of our world, so it is assumed that it will take many, many years for us to become reliant on Green Energy, if ever. Fossil fuels are even being used to build solar panels, wind turbines and hydroelectricity plants, which are the fundamental building blocks in helping society transition to Green Energy.
Industry experts believe that Green Infrastructure is on track to become a multi-billion-dollar industry in the next few years. The global central bankers are in favour of the world economy transiting to an inclusive green economy and intend to back it financially (expect a $15Trillion infrastructure spend)! By understanding the banks’ intentions, the ever-changing investing landscape will look similar to the post-WWII reconstruction period – where the federal interest rates came close to zero.
So, where does Green Infrastructure stand on building wealth for future YOU? Many are split on whether this industry stands as an investment opportunity now or will be one in the near future. Some say the time to start investing is now – others believe that this is an industry to keep your sights on as it evolves. As an investor, YOU get to make the investment decisions that work for your goals. While those are working for you, enjoy your time in the great outdoors and keep your eyes out for more emerging stories on Green Infrastructure!
And for the love of the world, PLEASE remember your R’s – Reduce, Reuse + Recycle!
