Both clean and green energy are expected to be the future of energy trading. Producing power from fossil fuels is outdated and many nations plan to migrate from non-renewable energy sources to methods that are better for the environment, such as wind, water and solar generation.
Environmentally conscious trading has gone mainstream, particularly following international movements such as the Extinction Rebellion protests and Greta Thunberg's climate change activism. Environmental and climate change movements have gained worldwide traction amid the shift. Events such as these have been the catalyst for transforming the way the world stores, distributes, and generates power.
By 2050, around 90% of global energy production is expected to come from renewable sources, according to the International Energy Agency (IEA). As the public adopts new attitudes and behaviours for an eco-friendlier life, major energy and utility companies are heavily backing green initiatives. For example, Shell has committed to spending up to $3bn every year on renewables and energy solutions.
With large companies generating capital for green initiatives and smaller companies developing innovative technologies to drive the industry forward, BloombergNEF’s New Energy Outlook 2021 forecasts a greater use of electricity and renewable power. The report estimated that capital raised for energy supply and infrastructure to be between $92tn and $173tn over the next 30 years.
Power generated from renewables has more than doubled since 2010 in the UK, with the Office for National Statics (ONS) noting that low carbon sources, such as hydrogen, wind and solar, accounted for 21.5% of the country’s energy generation in 2020. Outside of these, there is also an emphasis on uranium stocks as part of the move to cleaner energy production.