Curbing air pollution is expected to be one of the major steps taken by governments worldwide, aligned with their long-term goal of achieving carbon neutrality. As a result, we think established pollution control stocks Fuel Tech (NASDAQ:FTEK) and Donaldson Company (NYSE:DCI) are poised to grow substantially over the long run. But which stock is a better investment bet now? Read more to find out.Fuel Tech, Inc. (FTEK) produces and commercializes air pollution control and reduction products and solutions for industrial and utility businesses globally. The company operates through two segments: Air Pollution Control Technology and FUEL CHEM Technology. Donaldson Company, Inc. (DCI), manufactures and supplies filtration systems and replacement parts through three segments--Engine Products, Industrial Products and Corporate.
Given rising concerns over climate change worldwide, countries have been taking steps to restructure their economies to reduce their carbon footprints. Most Western countries are expected to reach carbon neutrality by 2050, while major South Asian economies, such as China, plan to hit this mark by 2060. President Biden has announced his goal of eliminating carbon emissions from the power sector by 2035, and gradually achieving a zero-carbon footprint by 2050. His proposed $2 trillion-plus American jobs plan caters to a restructuring of the country’s infrastructure through eco-friendly methods.
The global air pollution control market is expected to grow at a 6% CAGR over the next three years. Thus, the demand for filtration products and services is expected to rise significantly, benefiting both FTEK and DCI.