The Climate Change Problem
According to Calvert, climate scientists believe that in order to have a better than 50% chance of avoiding the worst effects of climate change, greenhouse emissions should be capped. This cap would limit global temperature increases to 2 degrees Celsius.
Carbon Capping: Profit or Financial Burden?
The U.S. Chamber of Commerce (USCC), in a 2014 statement representing the business community, opposed climate change solutions. The USCC believed it would kill jobs, slow the economy, and raise electricity prices.
Joseph F. Keefe, President and CEO of Pax World Management, disagrees. He states, “There is an urgent need to put a price on carbon so that markets and businesses can not only plan for, but profit from, the transition from an industrial age economy powered by coal and oil to a sustainable economy powered by clean energy and energy efficiency.”
He is in good company. At the United Nations Climate Leadership Summit in September 2014, 1,000 investors and businesses joined 74 countries and 22 states/provinces to ask for a price on carbon emissions. These businesses, which include Calvert and Pax World, account for 52% of global GDP and 54% of global greenhouse gas emissions.
Essential Facts About Greenhouse Gas Emissions
Despite reform efforts, the global cost of fuel subsidies developed into over $550 billion dollars. These subsidies distort high carbon energy demand when alternatives are becoming increasingly more reliable and affordable.
Electric power plants are the single largest source of carbon emissions in the U.S.
Lower Carbon Initiatives
At Three Corners Capital, we support:
Businesses that call for clean energy renewable portfolio standards. These standards require that a certain percentage of electricity generated or purchased by utilities comes from wind, solar, or other clean energy sources.
Tax credits for businesses incorporating clean energy initiatives.
Businesses that invest in clean energy industries, creating thousands of jobs in the process.
To learn more about the cap and trade program, watch the following video.
Thus, we recommend that investments be made ahead of governmental regulation, which can reduce profit and impact stock prices. We also advise that investors support businesses in efforts preventing climate and environmental disasters since all stakeholders have an impact in the economic and environmental effects of climate change.
Economist Nat Keohane uncovers the real facts behind clean energy legislation in our short video: "The Facts of Cap-and-Trade." With some help from a team of animators, Nat explains why a cap on global warming pollution is the best option to create a better future for America.
Source: Intergovermental Panel on Climate Change (IPCC) 2013 Report