Sustainable investing might be gaining momentum among both institutional and mainstream investors, but the concept still faces headwinds due to the current state of U.S. energy policy, or the lack thereof.
"There hasn't been a consistent, comprehensive framework that helps provide guidelines for investors to direct money to lower-carbon technologies over the long term," Dalheim said. "We've seen examples of countries who've done it better and have had more growth, such as Germany."
That means U.S. companies have been reticent to make long-term investments in green technologies, and that investors by-and-large have been sitting on the sidelines until the policy picture--such as some form of carbon tax--become clearer, Dalheim said.