Home -> Law Blog Directory -> Corporate & Securities Law Blogs -> Institutional Shareholder Services -- Corporate Governance Blog

Corporate & Securities Law

: Institutional Shareholder Services -- Corporate Governance Blog

Will New Policies Go Far Enough to Arrest Global Warming?Submitted by: Doug Cogan, Director of Climate Change Research

Concerns remain whether new policies will go far enough to arrest global warming. At present, fossil fuels provide 80 percent of the world?s energy demand, and dependence isn?t expected to drop much by 2030 under business as usual. The International Energy Agency estimates that energy-related investments would have to rise by $10 trillion over the period, from $26 trillion to $36 trillion, to limit the atmospheric concentration of carbon dioxide to 450 parts per million. This would require deployment of new technologies at an unprecedented scale, yet still lead to 2? C of expected warming that could lead to permanent loss of coral reefs, mountain glaciers and onset of ice sheet melting that produces substantial sea level rise in the coming century.

Clear investment winners and some possible losers will emerge in the years ahead.

* Technologies and companies that promote more efficient use of all forms of energy are now in the driver?s seat, and will be for years to come.

* Renewables will be the fastest-growing new energy source, especially as a global market price is attached to fossil fuels? carbon emissions.

* Nuclear power may also benefit, but still faces many challenges, including high capital costs and unresolved concerns over supply and proliferation of enriched uranium, permanent disposal of waste and local community opposition.

* Coal?as the most carbon-rich fuel?is likely the biggest loser, along with tar sands and oil shale, which have a coal-like CO2 content. The future of these industries rests largely in successful adoption of carbon capture and storage technologies.

Full post as published by Institutional Shareholder Services -- Corporate Governance Blog on April 01, 2009 (boomark / email).