Crowded landfills, global warming and skyrocketing commodities prices have led to a growing interest in waste management that could benefit related exchange traded funds (ETFs).

Waste management includes trash collection, separation, disposal and recycling, the latter of which has already gained more momentum as rising prices in raw materials has made the recycling much more profitable. Stricter disposal and recycling regulations caused by limited landfill space, especially in Europe, have increased the cost of waste management, reports Thao Hua for Investment News.

Waste energy and recycling are already big winners, and there is more profit to be made as we recognize the convergence of energy, resources and the environment. For instance, China Methane Recovery Fund has around $6 million in assets and invests in projects such as the capture of methane gas from coal mining, then using it to generate electricity and earn carbon credits.

In the future, composting, recycling, and landfill management will not be niche areas, but instead become necessary and profitable investment needs.

• Market Vectors Environmental Services ETF (EVX), up 1% year-to-date

Tags: Environmental Services, EVX, Green ETFs