In this article, we take a look at the 10 Best Climate Change Stocks to Buy Now.
Investors are focusing on companies driving the transition to a low-carbon economy. Climate change stocks, as defined by the Climate Change Collective, are linked to renewable energy, electric vehicles, and carbon capture technologies. These stocks operate in the reduction of the Greenhouse effect, global warming, and overall carbon emissions.
The past year has been a defining one for ESG investing. The Corporate Sustainability Reporting Directive (CSRD) in Europe and the adoption of the International Financial Reporting Standards for Sustainability (IFRS) across multiple countries have pushed corporate sustainability disclosures forward. However, political and economic headwinds have also emerged. According to Forbes, ESG mentions in U.S. corporate reports peaked in 2023 and have since begun to decline, reflecting a more complex regulatory and market environment.
In the United States, the stock market is navigating an intricate landscape shaped by economic slowdowns and shifting political dynamics. With private sector debt shrinking by 2.4% of GDP in late 2024—the steepest contraction since the 2008 financial crisis. Bloomberg reports that while the broader sustainable debt market faces challenges, a $1.8 trillion segment, backed by U.S. government agencies, continues to thrive. The demand for social bonds, which finance projects in healthcare, housing, and education, has surged by 130% globally, rivaling the traditionally dominant green bond market.
Global investment trends indicate a strong commitment to climate action. Reuters reported that energy transition investments surpassed $2 trillion in 2024 alone, underscoring the financial scale required to reach net-zero emissions by midcentury. Meanwhile, Shell forecasts an annual growth of 4-5% in LNG sales over the next five years, driven by expectations of a 60% increase in global demand by 2040. However, political shifts have also impacted climate stocks—Donald Trump’s return to the White House has led to a dip in European clean energy stocks, as investors anticipate possible rollbacks in U.S. climate policies.
Green finance is gaining momentum, but challenges remain. BloombergNEF Energy Transition Investment Trends estimates that to achieve net-zero emissions by 2050, annual energy transition investments need to reach $5.6 trillion between 2025 and 2030. Currently, investments stand at just 37% of this target, signaling a vast growth potential in climate-focused sectors. Green bond issuance, a key driver of climate finance, hit $575 billion in 2023, with strong contributions from Europe, though U.S. issuers saw a decline. The World Economic Forum’s Fostering Effective Energy Transition 2023 report highlighted the need for trillions in annual investments to meet climate goals, reinforcing the critical role of climate finance.
However, as sustainable investing gains traction, so does scrutiny. Greenwashing allegations have surfaced, with environmental law group ClientEarth taking legal action against BlackRock, accusing the asset manager of misleading investors about its so-called sustainable funds. In response, the European Union has finalized stricter investment fund labels to combat such practices. Morningstar’s 2023 Voice of the Asset Owner Survey showed that ESG considerations now influence a growing portion of institutional investments, yet transparency and credibility remain key concerns.
With all these dynamics at play, the question remains: Which climate change stocks are the best to buy now? Institutional investment remains a key driver. Initiatives such as Mission 2025 have united major corporations and financial institutions in urging governments to elevate their climate ambitions, thereby aligning $31 trillion toward the pursuit of zero emissions. In the following section, we break down the best climate change stocks as investment opportunities in this rapidly evolving sector.
A rooftop view of a busy city skyline with solar energy panels and wind turbines illuminating the skyline.
Our Methodology
For selecting the best climate change stocks, we screened stocks in climate change industries, including renewable energy, carbon capture, electric vehicles, and green technology. From that group, we picked 10 stocks with the highest number of hedge fund investors, as per Insider Monkey’s database of Q4 2024. The stocks are ranked in ascending order of hedge funds having stakes in them.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10. Array Technologies, Inc. (NASDAQ:ARRY)
Number of Hedge Fund Holders: 31
Array Technologies, Inc. (NASDAQ:ARRY) is a leading provider of utility-scale solar tracking solutions, specializing in products that optimize solar panel orientation to enhance energy production. The company primarily serves large-scale solar energy projects, positioning itself as a key player in the renewable energy sector, which makes it one of the best climate change stocks to invest in.
In Q4 2024, Array Technologies, Inc. (NASDAQ:ARRY) reported a net loss but demonstrated robust order growth and improved margins. The company’s order book reached $2 billion, reflecting a 10% year-over-year increase, indicating strong demand for its products.
Analysts’ opinions on Array Technologies, Inc. (NASDAQ:ARRY)’s stock are mixed. While some view it as a promising investment in the solar sector, others note that the company’s 2025 outlook aligns with estimates but falls short of consensus expectations.
As of March 22, 2025, Array Technologies’ stock has faced a 17.39% decline over the past month compared to the oil and energy sector’s 1.36% loss. Stock price stands at $5.63, as of 26th March. Analyst sentiment, however, remains optimistic, with 54% of 26 analysts rating it a “Buy.” The median price target stands at $8.00, indicating a potential upside of 42.10%.
9. Shoals Technologies Group, Inc. (NASDAQ:SHLS)
Number of Hedge Fund Holders: 31
Shoals Technologies Group, Inc. (NASDAQ:SHLS) is a prominent provider of electrical balance of system (EBOS) solutions, serving the solar energy sector in the United States and internationally. The company offers a comprehensive range of products, including custom harness solutions, combiner boxes, junction boxes, PV wire, in-line fuses, racking, and string level monitoring solutions. These components are essential for transmitting the electric current generated by solar panels to inverters and, ultimately, to the power grid.
By moving assembly from the field to the factory, Shoals Technologies Group, Inc. (NASDAQ:SHLS) reduces onsite labor requirements, lowers project costs, and accelerates deployment timelines. This approach not only minimizes project risks but also supports sustainability goals by optimizing material use and reducing waste.
In Q4 2024, Shoals Technologies Group, Inc. (NASDAQ:SHLS) reported revenue of $107.0 million, with an adjusted gross profit margin of 37.6% and a net income of $7.8 million. The company’s backlog and awarded orders totaled $634.7 million at the end of the quarter, indicating robust demand for its products. For the full year 2025, Shoals projects revenue between $410 million and $450 million and adjusted EBITDA ranging from $100 million to $115 million.
On March 26th, Shoals Technologies Group, Inc. (NASDAQ:SHLS) announced its continued commitment to investment in domestic manufacturing in Alabama with First Solar. As of March 26, 2025, Shoals’ stock price stands at $10.86, reflecting a 1.02% increase from the previous close.
Analysts remain optimistic about the company’s prospects, citing its strong order backlog, innovative product offerings, and the expanding renewable energy market as key growth drivers. Bullish sentiments prevail among analysts, with 65% of 23 ratings recommending a buy. The average price target across these ratings stands at $6.50, suggesting a potential upside of 75.44%.
8. Clearway Energy, Inc. (NYSE:CWEN)
Number of Hedge Fund Holders: 32
Clearway Energy, Inc. (NYSE:CWEN) is a prominent player in the renewable energy sector, focusing on the ownership and operation of clean energy generation facilities across the United States. The company’s diversified portfolio includes wind, solar, and natural gas-fired power plants, positioning it strategically to capitalize on the growing demand for sustainable energy solutions. It is among the best climate change stocks to invest in.
In the fourth quarter of 2024, Clearway Energy, Inc. (NYSE:CWEN) reported a net loss of $48 million. However, the company’s adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) stood at $228 million, with cash from operating activities totaling $55 million. It exceeded its 2024 financial goals and committed approximately $450 million to growth investments during the year, underscoring its dedication to expanding its renewable energy footprint.
A significant development for Clearway Energy, Inc. (NYSE:CWEN) was the signing of a binding agreement to acquire a 137 MW wind portfolio, with the transaction expected to close in the first quarter of 2025. This acquisition aligns with the company’s strategy to enhance its renewable energy capacity and is anticipated to contribute positively to its 2025 financial results.
On March 26th, Deutsche Bank Aktiengesellschaft issued a “Buy” rating for the stock, setting a price target of $38.00. This target suggests a potential upside of 27.41% from its current trading price.
7. Albemarle Corporation (NYSE:ALB)
Number of Hedge Fund Holders: 36
Albemarle Corporation (NYSE:ALB) is a global leader in specialty chemicals, primarily known for its production of lithium, bromine, and catalysts. The company’s lithium segment is integral to the energy storage market, supplying materials essential for electric vehicle (EV) batteries and renewable energy storage solutions.
In Q4 of 2024, Albemarle Corporation (NYSE:ALB) reported net sales of $1.2 billion and an adjusted EBITDA of $251 million. Despite these figures, the company faced challenges due to a significant decline in lithium prices, which dropped by 53%, impacting revenues in its Energy Storage division. Albemarle Corporation (NYSE:ALB) reported a total revenue of $5.38 billion in 2024, reflecting a 44.08% decline compared to the previous year. To navigate these market conditions, the company implemented cost-cutting measures, including workforce reductions and the suspension of certain expansion projects, aiming to save hundreds of millions of dollars.
In response to prolonged low lithium prices, Albemarle Corporation (NYSE:ALB) announced plans to mothball its Chengdu lithium hydroxide plant in China by mid-2025.
Analysts maintain a cautiously optimistic outlook for Albemarle. Some have assigned a “Hold” rating with a price objective of $88, suggesting a 13.30% potential upside from current levels.
6. Enphase Energy, Inc. (NASDAQ:ENPH)
Number of Hedge Fund Holders: 39
Enphase Energy, Inc. (NASDAQ:ENPH) is a leading global energy technology company specializing in solar microinverters, energy storage systems, and EV charging solutions. Its products cater to residential and commercial markets, enabling users to harness and manage solar energy efficiently, which makes it one of the best climate change stocks to monitor.
In Q4 2024, Enphase Energy, Inc. (NASDAQ:ENPH) reported revenue of $382.7 million, surpassing analyst expectations, with adjusted earnings per share at 94 cents. The company projected first-quarter 2025 revenue between $340 million and $380 million.
Enphase Energy, Inc. (NASDAQ:ENPH) faced challenges, particularly in Europe, where revenue declined by approximately 25% due to weakening demand.
Enphase Energy, Inc. (NASDAQ:ENPH) launched its next-generation IQ EV Charger in March 2025, designed to optimize cost savings across various tariffs and integrate seamlessly with Enphase home energy systems. The company expanded its IQ Battery 5P solution for single-phase solar installations, enhancing its product offerings in the energy storage market.
Analysts’ opinions on Enphase are mixed. In February 2025, Truist downgraded the stock to ‘Hold,’ revising revenue and EBITDA estimates for the year and citing concerns over growth prospects. Conversely, some analysts maintain a positive outlook, highlighting the company’s strong market position and innovative product pipeline. The consensus among analysts suggests a cautious approach, with a median price target reflecting modest upside potential.
5. Bloom Energy Corporation (NYSE:BE)
Number of Hedge Fund Holders: 42
Bloom Energy Corporation (NYSE:BE) specializes in the design, manufacture, and sale of solid oxide fuel cell systems, known as Bloom Energy Servers, which provide on-site power generation for various sectors, including data centers, healthcare, and retail. These systems offer reliable, clean, and cost-effective energy solutions.
In Q4 2024, Bloom Energy Corporation (NYSE:BE) reported revenues of $462.6 million, surpassing market expectations and marking a 24% year-over-year increase. This growth was primarily driven by heightened demand in the data center sector, particularly from companies expanding their AI capabilities. The company’s adjusted EBITDA stood at $62 million for the quarter.
Recently, Bloom Energy Corporation (NYSE:BE) expanded its collaboration with Equinix, a global data center leader. This 10-year agreement involves deploying next-generation fuel cells across 19 data centers, enhancing on-site energy reliability and sustainability. The company has also partnered with Chart Industries to advance carbon capture solutions, aiming to reduce emissions from industrial and commercial operations.
The increasing energy demands of AI data centers present a significant opportunity for Bloom Energy Corporation (NYSE:BE), making it one of the best climate change stocks to buy now. Its fuel cell technology offers a decentralized power solution, addressing grid congestion issues that many AI companies face. Analysts project that the AI sector’s energy needs could reach $632 billion.
4. Duke Energy Corporation (NYSE:DUK)
Number of Hedge Fund Holders: 62
One of the largest utility providers in the United States, Duke Energy Corporation (NYSE:DUK), delivers electricity and natural gas to millions of customers across the Southeast and Midwest regions. The company’s energy portfolio includes natural gas, nuclear, renewables, and coal, positioning it to meet diverse energy demands.
In February 2025, Duke Energy Corporation (NYSE:DUK) announced an increase in its five-year capital expenditure plan to $83 billion, a 13.7% rise, driven by growing demand from data centers and industrial sectors. The company plans to add nearly five gigawatts of natural gas power by the end of 2029 to accommodate this surge. To fund approximately 40% of this expansion, it intends to issue $6.5 billion in equity from 2025 to 2029.
Duke Energy Corporation (NYSE:DUK) reported a 5% increase in income from its electric and gas segments for the fourth quarter ending December 31, 2024, totaling approximately $1.4 billion. The company posted a profit of $1.66 per share, aligning with analysts’ expectations, and revenues slightly exceeded estimates at $7.36 billion. Duke Energy forecasts 2025 earnings per share in the range of $6.17 to $6.42.
On March 17, Duke Energy Corporation (NYSE:DUK) shares surged to a record high, reaching $121.26. The consensus 1-year target estimate for the stock is $125.00, suggesting a 6.70% upside potential from current levels, as of March 26th.
3. First Solar, Inc. (NASDAQ:FSLR)
Number of Hedge Fund Holders: 65
First Solar, Inc. (NASDAQ:FSLR) is a leading American manufacturer of photovoltaic solar modules, specializing in thin-film technology. The company serves utility-scale developers and operators, offering solar panels that convert sunlight into electricity.
In February 2025, First Solar, Inc. (NASDAQ:FSLR) reported strong financial results for Q4 2024, with net sales of $1.5 billion, marking a $0.6 billion increase from the previous quarter. The company also provided an optimistic outlook for 2025, forecasting net sales between $5.3 billion and $5.8 billion, approximately 32% higher than the previous year and surpassing Wall Street estimates. First Solar’s stock has experienced a decline of approximately 25.73% year-to-date as of March 2025.
In February 2025, the company filed a lawsuit against JinkoSolar, alleging infringement of its TOPCon technology patent, reinforcing its commitment to protecting intellectual property.
First Solar, Inc. (NASDAQ:FSLR) has delivered a strong 5-year return of 233.62%. Among 38 ratings, 87% recommend a Buy, with an average price target of $243.40—implying a 98.95% upside potential. The company reported $4.21 billion in total revenue, marking a 26.75% YoY increase.
With strong fundamentals and policy tailwinds, FSLR remains a top renewable energy stock.
2. NextEra Energy, Inc. (NYSE:NEE)
Number of Hedge Fund Holders: 84
NextEra Energy, Inc. (NYSE:NEE) is a leading clean energy company based in Juno Beach, Florida. The company is recognized for its commitment to renewable energy and holds a significant position in the utility sector, generating electricity from wind, solar, and natural gas. It is among the best climate change stocks to invest in.
In the fourth quarter of 2024, NextEra Energy, Inc. (NYSE:NEE) reported a net income of $1.20 billion, or 58 cents per share, slightly down from $1.21 billion, or 59 cents per share, in the same period the previous year. This decline was attributed to increased costs in its renewables segment and higher operating expenses.
NextEra Energy, Inc. (NYSE:NEE) is expanding its project backlog, driven by rising power demand from data centers and residential and commercial sectors. The company plans to boost capacity with new solar and battery storage facilities between 2026 and 2029.
In March 2025, NextEra raised its dividend by 10%, reinforcing its commitment to shareholder value. Analysts remain bullish on its dividend growth. Recent leadership changes coincide with a 5.95% rise in the company’s stock over the past month.
NextEra Energy, Inc. (NYSE:NEE) is currently trading at $69.43, up 0.84% from the previous close but still 20% below its 52-week high of $86.10. The company projects EPS between $3.45 and $3.70 for 2025, with a 6%-8% annual growth outlook. With 70% of analysts rating it a Buy and recent price target upgrades, NEE remains a strong investment as a climate change stock.
1. Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holders: 126
Tesla, Inc. (NASDAQ:TSLA) is a leading electric vehicle (EV) manufacturer and clean energy company renowned for its innovative products, such as the Model S, Model 3, Model X, and Model Y. Beyond automobiles, the company also offers energy storage solutions and solar products, positioning itself at the forefront of sustainable energy solutions.
In early 2025, Tesla, Inc. (NASDAQ:TSLA) faced a challenging start with a significant decline in global sales, particularly in China and Europe. The company reported a 40% year-over-year drop in sales for February, contributing to a 43% decline for the year so far
Tesla, Inc. (NASDAQ:TSLA) is expanding to Saudi Arabia, with a launch event set for April. After a five-day, 30% rally, the stock dropped on March 26 following Canada’s decision to exclude its vehicles from future EV rebate programs amid a trade dispute with the U.S.
Analysts’ opinions on Tesla, Inc. (NASDAQ:TSLA) remain mixed. CFRA maintained a “Buy” rating with a price target of $385, citing the company’s regionalized manufacturing as a buffer against potential import tariffs from Canada and Mexico. Conversely, some analysts have lowered their delivery projections and price targets, reflecting concerns over demand and market conditions. Despite recent volatility, analysts see a 41.34% upside, with 57 ratings and a 51% buy consensus.
Overall, Tesla, Inc. (NASDAQ:TSLA) ranks first on our list of the best climate change stocks to buy now. While we acknowledge the potential for TSLA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than TSLA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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