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http://www.ft.com/cms/s/0/181e160e-883e-11dd-b114-0000779fd18c.html
Climate change has altered several industries, and brought intense pressure to decision makers to respond rapidly to the problem. Recently, investors in London have chosen to challenge the usual measurements of a quality investment by asking for companies to provide information that reveals their carbon footprint. As they look ahead to further costs of not adapting to new policies and procedures to manage the issue, investors seek to avoid placing their money into a company that fails to weigh the financial risks they predict for the future.
The investors are basing their decisions on the belief that emissions will be more closely regulated around the world in future, giving companies that already manage their emissions a competitive advantage. They are also weighing other factors, such as the risk that companies may face future litigation, and the possible ill effects of climate change, such as floods and storms.
With uncertain economic times in the United States, it might be effective for companies to start reporting a reduction in carbon emissions as one way to win back investors around the world. If they haven't understood the impact of a strategic response to climate change, competitors might win with the corporate model that has emerged out of the enviromental crisis.
The Financial Times; September 22, 2008
Submitted by K. Rutherford
http://www.telegraph.co.uk/earth/main.jhtml?xml=/earth/2008/07/09/eag8109.xml
The G8 summit concluded with major developing countries, such as China and India, refusing to sign on to G8 climate change goals. During the G8 meeting, members agreed to cut greenhouse gas emissions by fifty percent by the year 2050. Even though, developing countries have said that climate change is an important issue and steps should be taken to reduce greenhouse gas emissions, they've concluded that climate change actions should not impeded on their economic growth.
One president of a developing country told the G8 during a closed session: "My country has a great many people living in poverty. They all need support in health, sanitation and basic needs. So we cannot accept the introduction of measures which may hinder our economic growth. If we are going to accept these measures to reduce greenhouse gas emissions, this must be linked to sustainable growth."
Developing nations are not the only ones criticizing G8 nations on their climate change goals. Environmental groups are also dissatisfied, saying that goals to reduce greenhouse gas emissions by 2050 are not strong enough.
Telegraph; July 9, 2008
Submitted by M. Lamarre
http://uk.reuters.com/article/environmentNews/idUKN0131191820080701
As the G8 nations prepare for their July, 8 summit in Hokkaido, Japan, The World Bank has agreed to establish two investment funds for them to consider during the meeting. The investment funds are to help developing economies switch to cleaner energy technologies to curb carbon emissions and to better enable poor countries to adapt to climate change.
World Bank President Robert Zoellick said the funds are part the Bank's response to climate change challenges.
"We think the (funds) will have a significant impact in generating even more financing for climate action," Zoellick said, "but also in demonstrating new approaches to address the current and future effects of climate change.
"These approaches will range from agriculture to water management, from transport to urban development, and from biodiversity to energy access," he said.
The World bank is optimistic about the future of the investment funds, as several nations have already came out in support of them. Indeed, climate change will be a heated topic during the G8 summit.
Reuters: Lesley Wroughton; July 2, 2008
Submitted by: M. Lamarre
http://www.prdomain.com/companies/A/Allianz/newsreleases/200861758305.htm
Allianz's Chief Operating Officer, Oliver Bate, spoke to the UN General Assembly about what financial service companies can do to aid with global efforts to fight climate change. Bate also answered questions regarding the UN's role in fostering a better climate and the effect of climate change on businesses in the private sector.
When asked, what significance does climate change have for the business and strategy of Allianz? Bate cites the need to satisfy their customers.
Our business is to empower our customers to manage their risks and opportunities and to find solutions for the challenges they face. Climate change is one of most important challenges of the next centuries. If we manage to provide innovative and sustainable solutions like insurance and investments for clean technology, it will help our customers, and ultimately us, to generate sustainable growth.
Business Register: June 16, 2008
Submitted by: M. Lamarre
A group of experts who met in New Delhi concluded that climate change, even with its perils, would open opportunities for businesses in developing countries to make profits. The profits would come as a result of certified emission reduction (CER) sales.
Industrialized countries that have committed themselves to reducing their greenhouse gas emissions plan to achieve 25-30 per cent of their target by buying CERs from developing countries, according to YP Abbi, senior fellow at The Energy and Resources institute (TERI).
"This is a huge opportunity for Indian businesses," Abbi said at a seminar on the business of climate change organized by TERI and Knight International Journalism Fellowships.
However, researches suggested CER supplies will depend on numerous external factors. For example, China's recent earthquake would reduce their CER supplies by up to five percent.
The Times Of India; May 22, 2008
Submitted by M. Lamarre
http://www.usatoday.com/money/industries/energy/2008-06-15-power-prices-rising_N.htm
Energy costs are skyrocketing even without a cap-and-trade system in place. Our lack of a national energy policy has led to outdated infrastructure and no "Smart Grid." Fortunately, that is changing thanks to utility companies, who are raising their rates to pay for these problems and offset the rising costs of transportation fuels.
Utilities across the USA are raising power prices up to 29%, mostly to pay for soaring fuel costs, but also to build new plants and refurbish an aging power grid.
The increases come after rising fuel prices already have driven up utility bills nearly 30% in the past five years, the sharpest jump since the 1970s energy crisis. Fuel costs are again the main culprit. In Virginia, Potomac Edison, citing high coal and natural gas prices, plans to raise rates 29% on July 1, pushing an average monthly residential bill from about $70 to $90. AmerenUE, Missouri's largest utility, recently asked for its first rate increase in 20 years, a 12.1% boost, mostly to cover higher fuel costs. Customers of Public Service Co. of Oklahoma were socked with a 25% rise on June 1.
The price of coal, which fires half of U.S. power plants, has doubled since last year, largely because of surging energy use in countries such as China and India. Natural gas prices are up nearly 50% on high U.S. demand. In California, drought has forced Pacific Gas & Electric to replace cheap hydroelectric power with natural gas, helping to prompt it to seek 13% rate increases.
Once we build the smart grid and figure out to lower the costs of transportation fuels, will we see headlines saying, "Utilities Lower Rates"?
USA Today; June 15, 2008
Submitted by B.Shapiro
http://gas2.org/2008/06/10/senate-gop-blocks-windfall-profits-tax-on-big-oil/
As the average gas price surpasses $4 a gallon and oil companies earn record-shattering profits, the Senate Democrats attempted to pass legislation that would tax oil companies' windfall profits and rescind billions of dollars in tax breaks. However, the slim Democratic majority could not muster up enough votes to break a possible filibuster or override a White House veto.
The proposed windfall profits tax would have been somewhere between 10 and 12 billion dollars for this year, and it would have been levied against the country’s five largest oil companies. The legislation would have also rescinded $17 billion in tax breaks the companies expect to enjoy over the next decade.
"The oil companies need to know that there is a limit on how much profit they can take in this economy," said Sen. Richard Durbin of Illinois, warning that if oil prices are not reined in, "we’re going to find ourselves in a deep recession."
As these oil companies are publicly-traded, would shareholders demand that they raise the prices of their products in order to meet and exceed profit expectations from the previous year?
Gas2; June 10, 2008
Submitted by B.Shapiro
http://www.ipsnews.net/news.asp?idnews=42687
The World Bank is coming under fire by green groups who says the World Bank should not control climate investment funds. Of particular concern to green groups is the ten-billion-dollar clean technology initiative that will create clean coal power plants instead of renewable energy from wind, sun, or tides from below the earth surface.
Proponents of the upgraded coal-burning technology say it qualifies as a "clean technology" because it produces sufficiently lower levels of climate-distorting pollutants than do conventional coal-fired power plants. Opponents disagree, adding that the new technology does nothing to minimize the environmental damage wrought by coal mining in the first place.
The World Bank has not compiled a record that most environmentalists approve of in its general operation," said Barney Frank, the Democrat who chairs the House of Representatives financial services committee. "It's like they do their environmental work one day a month and then they undo it."
The Bush administration is urging Congress to release up to two billion dollars for the next three years for the technology fund and wants the U.S. to take a leading role. G8 finance ministers will meet June 13 and 14 in Osaka, Japan to discuss the funds.
IPS: Abid Aslam; June 6, 2008
Submitted by: M. Lamarre
http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/05/20/cmethical20.xml
Investing in climate change is proving to be profitable for governments, corporations, and investors from many sectors. Governments recent subsidies towards energy-efficient programs is bringing in newfound wealth for investors. In addition, the rising price of oil have been influential in pushing investments towards alternative energy sources. CEO's are taking charge in ways that were unforeseen.
"Eight years ago, there were around 350 companies to choose from in this sector," says Christie at BlackRock. "Now there are around 1,100. These companies are also growing up – a large number already have a competitive product and are profitable."
Christie estimates that, as little as four years ago, only around 30 per cent of the companies in the BlackRock portfolio were making a profit. Now that figure is 90 per cent.
There are is no one way to profit from climate change. Corporations are finding innovative strategies to reap the benefits of climate change from government subsidies and consumer demands.
Daily Telegraph: May 20, 2008
submitted by M. Lamarre
http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/05/20/cmethical20.xml
Investing in climate change is proving to be profitable for governments, corporations, and investors from many sectors. Governments recent subsidies towards energy-efficient programs is bringing in newfound wealth for investors. In addition, the rising price of oil have been influential in pushing investments towards alternative energy sources. CEO's are taking charge in ways that were unforeseen.
"Eight years ago, there were around 350 companies to choose from in this sector," says Christie at BlackRock. "Now there are around 1,100. These companies are also growing up – a large number already have a competitive product and are profitable."
Christie estimates that, as little as four years ago, only around 30 percent of the companies in the BlackRock portfolio were making a profit. Now that figure is 90 percent.
There are is no one way to profit from climate change. Corporations are finding innovative strategies to reap the benefits of climate change from government subsidies and consumer demands.
Daily Telegraph: May 20, 2008
submitted by M. Lamarre
