A new study is turning the energy debate on its head, showing the massive benefits of transitioning to renewable energy sources such as solar, wind, and hydro. The study found that this is better for the planet as well as smarter and more financially rewarding for investors and the economy. 

The research examined two potential energy futures for 149 countries through 2050: one wherein nations fully embrace clean energy, and another in which carbon capture technology is paired with dirty fuels. The results revealed that renewable energy outperforms carbon capture in terms of both sustainability and cost-effectiveness.

The study found that switching to renewable energy could reduce energy demand by 54.4% and energy costs by 59.6%. More importantly, it could lower social costs, including in health care and environmental damages, by nearly 91.8%. 

Renewable energy is a step forward for the planet — and it’s a smart business move that offers enormous financial returns. Clean energy and sustainability-focused companies are proving to be better investments than dirty fuel stocks, outpacing them in long-term growth.

“If you spend $1 on carbon capture instead of on wind, water, and solar, you are increasing CO2, air pollution, energy requirements, energy costs, pipelines, and total social costs,” said Mark Jacobson, a Stanford University professor and lead author of the study.

Investors are already recognizing the massive potential of clean energy, not just in terms of environmental impact but also in job creation, economic resilience, and long-term profits. The clean economy is providing an abundance of opportunities, from new businesses to infrastructure development, helping to build a more sustainable future for workers and consumers alike.

While past efforts around environmental, social, and governance investing may have been misdirected, the momentum of the clean economy is unstoppable. Clean energy is no longer just a trend — it’s a proven, viable path forward. Policymakers and investors alike are increasingly prioritizing renewable energy as a cornerstone for economic growth, job creation, and resilience.

“It’s always an opportunity cost to use clean, renewable energy for direct air capture instead of replacing a fossil-fuel CO2 source,” Jacobson said. “You’re preventing renewables from replacing fossil fuel sources because you’re creating more demand for those renewables.”

“The only way to eliminate all air-pollutant and climate-warming gases and particles from energy is to eliminate combustion,” the study’s authors wrote.

Join our free newsletter for good news and useful tips, and don’t miss this cool list of easy ways to help yourself while helping the planet.

TCD Picks » Quince Spotlight

💡These best-sellers from Quince deliver affordable, sustainable luxury for all

This popular cashmere sweater just got an upgrade

Starting at $50

Sleep serenely on these luxury sheets at 50% off retail

Starting at $99

You’ll love the pockets on this European linen dress

Starting at $60

This cotton blazer’s price is even smarter than its look

Starting at $80

Cool Picks

How the Expedia of solar panels helps homeowners save money and avoid a common trap: ‘Giving you confidence in the systems’

This startup has a secret weapon that could save you thousands for your kitchen: ‘Gives you that magic … without having to upgrade your whole home’s [system]’

This startup could save you thousands with the first ‘intelligent’ hot water heater of its kind: ‘You can get up to 500% efficiency’

This simple bag lets you earn rewards by recycling your old stuff — here’s how it works and where to get one