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3 Investments Profiting from Climate Change Investing

Climate change is real, and there’s no doubt about that in the scientific community. According the United Nations Convention on Climate Change, the average temperature of the earth’s surface has increased about 1.33 degrees Fahrenheit since the late 1800s, and  sea levels have risen by 10 to 20 centimeters, or about 4 to 8 inches, over the 20th century.

More recently, a report from the Intergovernmental Panel on Climate Change says that humans are responsible for at least half of that warming — and possibly almost all of it — and warns the warming and rising sea level will only speed up if we don’t change our behavior.

Disagree? Well go ahead and argue with these facts over at NASA — that is, if you think you’re smarter than one of those lame-brain rocket scientists.

Anyway, climate change isn’t just a political issue — it’s an economic one. As the planet’s environment changes, there are going to be new opportunities for investors who are paying attention.

In this Fox Business interview, I discuss some of the opportunities out there to invest around global warming trends.

The obvious pick for climate change investing is to buy solar stocks. But given the volatility in solar stocks like First Solar (FSLR) over the past few years, there’s clearly more at play in this space than just climate change. So look to water, electric cars or nuclear in your portfolio. Possibilities include:

Water:  The PowerShares Water Resources ETF (PHO) gives you a broad-based way to play water and water scarcity. Flow control systems leader Flowserve (FLS) is another option, as is American Water Works (AWK).

Electric Vehicles: There’s momentum monster Tesla (TSLA), but if you don’t like the frothiness consider auto parts stock Johnson Controls (JCI) or a battery play in the Global X Lithium ETF (LIT).

Nuclear Energy: Uranium play Cameco (CCJ) is one option, as are manufacturing and engineering leaders General Electric (GE)  and Babcock & Wilcox (BWC).

You can read more about global warming plays in my MarketWatch column on the topic here.

Jeff Reeves is the editor of InvestorPlace.com and the author of The Frugal Investor’s Guide to Finding Great Stocks. Write him at editor@investorplace.com or follow him on Twitter via @JeffReevesIP. As of this writing, he did not own a position in any of the stocks named here.

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