One carbon footprint at a time, people are hoping to change the world. In their zeal to save the planet, folks appear willing to support a variety of market-distorting measures to shift power generation away from fossil fuels and toward renewable energy.
That's translating into action. Regulatory wheels have been set in motion to affect that shift, and there are quite a few interesting investment opportunities as a result.
While the nuclear, wind, and solar industries are great for investing on a macro level, proactively reducing emissions trickles down to consumers and their vehicles. In transportation, we should see some regulatory incentives for companies that adhere to global emissions standards defined by the Environmental Protection Agency (EPA) and the Kyoto Protocol.
Let's look at a few of the key players moving the automotive industry toward greener pastures.
The auto parts suppliers
Both drivetrains and transmissions are major areas for improvement for automobile emissions, and BorgWarner
More negatively impacted by the economic crisis than its cousins mentioned above, Tenneco
Now, should the big three U.S. automakers take a turn for the worse, there's no guarantee -- at least, not in the short run -- that the parts suppliers would be capable of offsetting the losses. If you don't think Detroit will go the way of the dinosaur, then these companies look pretty attractive. However, if your prognosis is that GM, Ford, and Chrysler are doomed, then there are other opportunities you can consider.
A pair of automakers
In addition, Toyota Motor
Vehicular emissions can be reduced in a number of ways, but these five companies deserve a closer look for their approaches to cleaner energy -- especially because their stock prices have mostly taken a beating this year. Those losses shouldn't surprise anyone who has been following the saga of Detroit's Big Three; nonetheless, if you think we've seen the worst of the economic apocalypse, they may well be temporary.
Of course, these five stock ideas are only the tip of the iceberg for climate-change investing; they're not recommendations per se, just ideas to jump-start your research. Toward that end, check out these related Fool articles:
Fool contributor Chris Jones does not own shares in any of the companies mentioned. BorgWarner and BMW are Motley Fool Stock Advisor recommendations. The Motley Fool's disclosure policy produces less "Well-to-Wheel" carbon emissions than any alternative or conventional engine under production.