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Mindy S. Lubber

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Major Investors Show the Way on Climate Change

Posted: 01/12/2012 5:02 pm

Anyone who thinks the business world doesn't believe in acting on climate change should check out what's happening at the United Nations today. Some 450 global investors who control tens of trillion in assets are gathering for the Investor Summit on Climate Risk and Energy Solutions.

These major financial players see opportunity in clean energy and efficiency. Take it from Alan Salzman, CEO of Silicon Valley-based VantagePoint Capital Partners.

Worldwide, clean energy investment has hit $1 trillion since 2004, according to Bloomberg New Energy Finance. The U.S. solar industry grew more in the third quarter of 2011 than in all of 2009. And top investors are finding ways to price the risks of climate change, while developing financial mechanisms that encourage efficiency.

Investors have helped convince the Securities and Exchange Commission that corporations should disclose material climate-related risks. Last year, they introduced more than 125 shareholder resolutions pushing companies to improve their climate change strategies. And the 2011 Global Investor Statement on Climate Change was signed by the largest group ever to stress the urgent need for governments to scale up low-carbon investment and incentives.

Despite these efforts, the global carbon footprint continues to grow. The climate continues to change, and signs of a warming world are everywhere, from rising sea levels to severe weather.

Scientists warn that we are racing against the clock. But special interests are pouring billions into climate change denial, political campaigns, and junk science, trying to drive a wedge between scientific reality and worldwide action.

The institutional investors gathered at the UN today show that there is an alternative path. They see both risk and opportunity in a changing climate. They see mitigating risk and taking advantage of opportunity as bottom-line imperatives. And they are acting accordingly.

Today these investors are hearing new data from Bloomberg New Energy Finance that shows a record $260 billion in total clean energy investment in 2011, up 5 percent from $247 billion in 2010 and five times the total attained only seven years ago.

They are also hearing that renewable portfolio standards in 29 U.S. states represent a $400 billion investment opportunity, and that GE's ecomagination business is growing at twice the rate of the rest of the company. They will also find out about new energy efficiency financing strategies that are creating tens of thousand of new jobs in the Northeast, Florida, and California -- while saving companies billions of dollars in energy costs.

Major corporations and institutional investors alike are committing billions of dollars to efficiency and clean energy technology. No matter what our highly partisan political system does -- or fails to do -- investors know they cannot afford to wait. The smart money is already getting to work.

 

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HUFFPOST SUPER USER
Doug Brockman
09:16 PM on 01/17/2012
I decided to invest some money in clean energy too. I went out and filled up my tank on my H2 Hummer with premium before the administration drives the price of fuel up.
06:31 PM on 01/16/2012
The Bloomberg figures you quote suggest a leveling off, a slowing down, not a consistent rapid climb. Here they are :

''$260 billion in total clean energy investment in 2011, up 5 percent from $247 billion in 2010 and five times the total attained only seven years ago.''

So between 2005 to 2010 average annual increase is 90%? And now is 5%?
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julieintx
End the Hollywood tax cuts
06:17 PM on 01/14/2012
You know Enron was one of the first big corporate pushers of this climate change stuff. They saw how they could make a profit in government subsidies and mandates on CO2. Much easier than competing with real companies providing real products that real people want.
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julieintx
End the Hollywood tax cuts
06:13 PM on 01/14/2012
This is mostly rent seeking. It's easier for them to buy some subsidies from the gov. than to compete in a free market. Crony capitalism.
11:50 AM on 01/16/2012
This has nothing to do with Enron or crony capitalism. With or without government incentives, business is investing in climate change opportunities. $260 billion is a real number. You should have some facts before guessing at what is happening in the real world.
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HUFFPOST SUPER USER
hardycross
07:48 AM on 01/14/2012
Prepare now for the green depression when these investors pull out and leave the naive citizen holding the empty bag, eg Solyndra.
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alvdh1
03:54 PM on 01/14/2012
Solar price per per watt have plunged over the last two years and bottoming at the end of 2011 at .94 cents per watt. This is largely due to the glut of solar manufacturing capacity and heavy subsidies in China. There is no way that Solyndra could compete in an environment of oversupply while paying much higher wages than China.

Consequently, you are expressing Republican talking points that have no basis in reality.
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julieintx
End the Hollywood tax cuts
06:14 PM on 01/14/2012
Yes, the company was unsustainable, even though the gov knew this and poured half a bil of our money into it.
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julieintx
End the Hollywood tax cuts
06:18 PM on 01/14/2012
One of Obama's biggest bundlers was the owner of Solyndra. Funny how his big donors are getting billions of dollars of worth of these subsidies for bad business models. Solyndra is just one example.
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saintpeterclan
07:36 AM on 01/14/2012
It's always been about green...$$$$$$$ It really is that simple...
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HUFFPOST SUPER USER
Doug Brockman
08:10 PM on 01/13/2012
Yah those business guys, they sure showed Ben Stein the door.

I saw Algore yapping on tv again the other day pounding the table: "when the facts are in your favor, pound the facts, when the law is in your favor pound the law, when neither is in your favor, pound the table."
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alvdh1
03:57 PM on 01/14/2012
Without specifics, your comments are as empty as apparently your understanding of energy is - especially alternative energy, finite resources and energy economics.
04:52 PM on 01/13/2012
And yet fuel became our top export.
Wacky world.
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HUFFPOST SUPER USER
Moose Luck 99
GEOENGINEERINGWATCH DOT ORG
03:31 PM on 01/13/2012
http://www.motorcycle-usa.com/360/5406/Motorcycle-Article/Green-Speed-Air-Motorcycle.aspx

Green Speed Air Motorcycle

Looking to the future of transportation, there are many interesting alternatives to the traditional internal combustion engine. Engines powered by compressed air are one of the more obscure ideas. But how fast could a compressed air motorcycle go? It’s a question one Australian college classroom worked on this past summer, designing the Green Speed Air motorcycle.

Edwin Yi Yuan, a 23-year-old student at RMIT (Royal Melbourne Institute of Technology), worked on the group project in an industrial design course. Lecturer Simon Curlis came up with the project idea a year after his own motorcycle accident. Wanting to get back on two wheels, his goal was to set a land speed record at Lake Gairdner, a dry lake bed in Southern Australia. He wanted his new racebike to be environmentally friendly, but eschew the typical eco-power routes of bio-fuel or electric. Instead, the team decided to harness an air engine.
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Counterintuitive
We'll steer by the beacon of our 100 year forecast
10:54 AM on 01/13/2012
The spooky thing for me: had this thing been handled in 1965 when President LBJ warned about it, it would have been a very easy change over. Instead we've left things so long that the changes are going to be more jarring.

Anyone who is in favor of limited regulation should push to get regulation passed quickly in order to limit its scope. The longer we delay, the more draconian the final agreements will be.
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ckdogs
Veritas
05:50 PM on 01/12/2012
Why do the Republicans persist in their denial? Perhaps their oil buds can work on renewable energy, and get super big tax breaks for doing the right thing instead of destroying the planet.
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Doug Brockman
08:10 PM on 01/13/2012
cheap energy=prosperity
expensive energy= poverty

just follow the math
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mbkeefer
Elder Amateur Scientist
03:37 PM on 01/14/2012
It is not just oil, it is oil and coal. Especially coal, as even as the market as fuel fades, oil will still have value as a raw material for the petro chemical industry. Where as, if you as not going to use it as fuel, coal becomes just another rock.