A month ago, Xshares Advisors launched the first exchanged-traded fund -- AirShares (ASO) -- geared to this market. It holds futures contracts on the European Union Allowances and seeks to mimic their performance. There also is the iShares Global Carbon exchange-traded note (GRN), as well as indexes, particularly in Europe, that will spawn more ETFs and index mutual funds.

A month ago, Xshares Advisors launched the first exchanged-traded fund -- AirShares (ASO) -- geared to this market. It holds futures contracts on the European Union Allowances and seeks to mimic their performance. There also is the iShares Global Carbon exchange-traded note (GRN), as well as indexes, particularly in Europe, that will spawn more ETFs and index mutual funds.

EnerNOC (ENOC) is a virtual utility. Utilities pay it to make deals with big power consumers to cut usage at peak-demand times, as when the temperature hits 100. The utility pays EnerNOC, which pays the consumers. The utility can afford this, because it doesn't have to go off the grid to buy power during a crisis at what can be 15 times normal prices. EnerNoc's market cap is $184 million, and Robinson expects it to lose $1.07 a share in 2009.

American Superconductor (AMSC): Using superconducting technology, it moves electricity very fast and with little dissipation over long distances. As a result, a city like New York could economically import some of its power from windmills far away. American Superconductor has a market cap of $721 million and is expected to lose 34 cents a share for 2008. The stock trades at 16.68.

Ormat Technologies (ORA): This outfit drills down as deep as 500 to 2,000 feet to produce geothermal power. It pumps water down to hot rock, which turns it into steam to power turbines. The steam then is redirected into the well and reused. The company has a $1.3 billion market cap and is projected to earn $1.51 a share this year. It sells for 29.68.

First Solar (FSLR): In Jackson's opinion, this rapidly-growing company has the best technology of any of the solar providers, which should allow it to reach price parity with nuclear or coal within the next two years or so. The shares trade at $142.58 and it has a $12 billion market cap. He estimates that it will earn $7.13 a share in 2009, giving it a forward multiple of 20.

Energy Conversion Devices (ENER): The company makes flexible film for solar power that's very light and strong enough to handle a Category 5 hurricane. It's pliable enough to wrap around corners and so light that it doesn't require any reinforcement the way panels do. It's marketed to commercial and industrial buyers. He expects earnings to hit $1.59 a share in 2009 for a multiple of 16.

Itron (ITRI): It sells meters that regulate power consumption and program it. The potential is vast. If, for instance, everyone turned off his hot water heater for one hour, notes Jackson, it would provide a carbon-emission savings equivalent to pulling 100,000 cars off the road. The shares traded at 62.11 last week, giving it a roughly $2 billion market cap. Eps for 2009 are estimated at $3.78.