The Road to Copenhagen (COP 15): Implications for Business

As business communities around the world are straining under the weight of this recession, in Bonn, UN Climate Change delegates continue to discuss possible frameworks for emissions reductions.

This is a pivotal year for climate change policy, in December, the UN Climate Change Conference in Copenhagen (COP 15) will convene and if they are successful they will forge a new international climate change treaty that will commit all signatory countries to broad reductions in domestic emissions. Ahead of COP 15, United Nations Framework Convention on Climate Change (UNFCCC) meetings are working out the details. See the Timetable for Action on Climate Change.

According to an article written by Ryan Schuchard, manager of environmental research and development at Business for Social Responsibility, this new climate policy will have a direct impact on how businesses operate, including raising the cost of energy, imposing new production process requirements, and changing competitive dynamics.

Understanding the issues associated with the new climate policy has important implications for businesses. Negotiators at the Copenhagen Conference will seek a global treaty for greenhouse (GHG) gas emissions, specifically solutions to the critical problem migrating sources of emissions to the places of least regulation (leakage). And under the notion of common but differentiated responsibilities, all countries will be held "responsible to protect the global climate, but taking into account their different historical contributions and relative capacity to act in requiring commitments."

A global treaty will shape domestic legislation which in turn has major implications for the business community. "[C]reating many layers of price and risk for companies that use, produce, or manage value chains that rely on carbon-intensive energy. Specifically, the treaty is expected to outline regulations and incentives related to not only reducing emissions, but adaptation, technology transfer, finance and international development, a global carbon market, and deforestation."

Although 183 countries have already indicated their willingness to support an updated version of the Kyoto protocol, for the first time the US is expected to participate under the guidance of President Obama.

Perhaps the most significant obstacle to American participation comes from China. American legislators will not ratify cap-and-trade legislation without guarantees that China will participate. "So far, however, China firmly opposes binding commitments, resists the need to act in advance of the U.S., and instead calls on developed countries like the U.S. to provide financial support and a transfer of technologies. Chinese leadership has taken this stance because it believes the country should be as unrestricted in industrializing as the U.S. was under the Industrial Revolution." Further complicating this debate, much of China’s emissions come from manufacturing goods headed to the West.

Business is sure to be affected as climate considerations are being factored into diverse policy arenas. From transportation to agricultural to national security, climate issues are an integral part of our wider economic and social dialogues.

According to an article entitled What Climate Change Policies Mean for Your Business, "policy is part of a general contract between business and society, and social groups may start to hold companies accountable via direct pressure. These actions, according to a recent Harvard paper (PDF), can range from events targeting single companies to strikes and riots deriving from social instability exacerbated by climate change.

The essence of climate policy is putting a price on carbon emissions, which means either regulation by taxes or cap-and-trade. However this also constitutes a regulatory risk as such a system would exposure business to the price of carbon.

Emissions targets can be achieved through direct regulation (a cap-and-trade system or a carbon tax) and various supporting policies. Supporting policies include standards like fuel efficiency. Standards define the requirements for end products and will eventually be applied to the production processes. Technology incentives, include "funding for R&D, the removal of barriers to enter new industries (particularly energy), and financial incentives such as tax credits to encourage companies to generate renewable energy on site."

Market mechanisms can also create positive incentives by taking advantage of the commodity aspect of carbon. The market can "promote activities being done at the lowest-cost locations where investments in activities that reduce carbon emissions are cheaper. With market mechanisms, companies can buy reductions when it is cheaper than “making” them."

The impact of these policies will differ depending on your industry and the country within which you operate. "These types of policies could also influence competitive dynamics. For example, incentives for renewables might lower entry barriers for ICT companies in the energy sector, while feed-in tariffs might enable consumer products companies to develop better cost positions over rivals. Also, with investor groups like the Carbon Disclosure Project demanding more information about companies’ self-appraisals of policy risk, those firms that are willing and able to disclose more have increasingly preferential access to capital."

Carbon taxes could also lead to "reduced availability of carbon-intensive inputs such as steel. Such a tax could also lower demand for products that create higher emissions during their use." Environmental leakage is another big issues, in addition to competition problems.

According to the Peterson Institute and World Resources Institute, the most vulnerable industries are those that have high energy intensity of production, low potential for efficiency improvement, little ability to switch to low-carbon energy sources, and high elasticity of demand. These include, in particular, energy utilities and heavy manufacturing sectors. [While] companies in industries that address adaptation problems, such as pharmaceuticals and biotechnology, stand to gain." Efficiency and renewable energy will be a lot more valuable especially for energy intensive industries.

In a recent interview, Ryan Schuchard predicted that "as the global market mechanisms form, we would expect probably some measures [border taxes or border tax adjustments]. He goes on to explain, "a border tax would be relevant if a country has a tax itself, as opposed to a cap-and-trade system, in which case, a border permit would be more likely. A border tax would probably be relevant for some of the heavy-emitting industries like aluminum, steel, maybe glass, paper products."

"[I]mports would likely be taxed or could be taxed if they were from a country that didn’t have adequate regulations by the view of the importing country... exports being taxed (by) the market that they would be exporting to. Specifically, you would see the most energy-intense or emissions-intense sectors getting likely caught there, and those would be things like aluminum, cement, steel, paper, glass, chemicals, iron -- these sorts of very intense industries. When countries like the U.S., Canada, China and other large countries have more serious taxes or caps on carbon, they would want to keep out or at least put constraints on imports. It’s both competitive and environmental reasons..."

"[N]o matter how you slice it, there’s increasingly pressure for the use and propagation of lower carbon fuel and energy. So being on the right side of that makes sense and that is true both in terms of the direct price on energy and carbon associated with the energy, as well as indirect effects, like how suppliers might be affected, about products that you’re selling. So in very many ways, indirectly and directly, there is increasingly a premium on using and propagating low carbon energy and fuels."

Despite the negative implications for some high energy intensity businesses, there are tremendous opportunities for low-carbon businesses. Many companies that generate renewable energy can expect to grow exponentially. Climate change legislation will drive efficiency innovation and provide opportunities for companies that can exploit novel technological applications.

Next: The Road To Copenhagen: Part 3, Positioning Your Business (Ahead of Legislation)

A Sustainable World Order

Green is not a new movement, although buried under a mountain of cynical conspiracy theories, many of the logistics for a sustainable world order have been around for more than a decade.

The current economic hardships serve as a catalyst for change. According to William E. Halal, professor emeritus of science, technology and innovation at George Washington University, "the normal level of social resistance and political stalemate is likely to oppose change. Thus, it may take an occasional environmental collapse, global wars and terrorism, or yet unknown calamities to force the move to global consciousness...Even with the turmoil that is sure to follow, this will mark the serious beginning of a unified global intelligence - a fine web of conscious thought directing life on the planet." [1]

Despite the current Conservative government, Canadians have a proud heritage of environmental leadership. Before the dawn of the 21st century Canadians were actively exploring global interdependence and strategies for greater global cooperation. A cynical article entitled "A New World Agenda," written 10 years ago, follows the work of United Nations reformer, Canadian Maurice Strong. He chaired a task force that revealed that the post-cold war period has "become nothing less than a global experiment in international development." [2] He went on to say, Canada "is in a position to make a unique contribution...by committing itself to be a model of sustainable development...It offers the prospect of uniting Canadians behind a new vision of their own future and a new generation of leadership internationally." [3]

As former Canadian Prime Minister Jean Chrétien once said, "We are one world. We in Canada feel this deeply. Responsible international citizenship is one of our proudest shared values. And the place we exercise that responsible citizenship is in multilateral organizations the town hall meetings of the world community." [4]

Here is a condensed summary of Canada's past environmental efforts as the planetary meeting ground and sponsor for major sustainable development events.

- Canada co-sponsored the 1972 United Nations Conference on the Human Environment (the first Earth Conference) held in Stockholm, Sweden.
-The World Commission on Environment and Development (WCED), producer of the influential report Our Common Future, convened a special meeting in Ottawa, Ontario in 1986. At this WCED meeting, the idea of a "world conservation bank" was forwarded. The WCED was the key organization promoting the term "sustainable development" in the late 1980's.
-The Montreal Protocol on Substances that Deplete the Ozone Layer formatted international rules to combat "global warming" and was adopted in Montreal, Quebec.
-The World Environment Energy and Economic Conference (WEEEC) hosted by the Manitoba provincial government and held in Winnipeg in October, 1990. It was attended by over 3000 delegates from around the globe, it's official theme was "Sustainable Development Strategies and the New World Order." [13]
-Canada played an influential role at the 1992 Rio Earth Summit. Maurice Strong acting as the summit's Secretary-Gerneral.
-The creation of The Earth Council, which is headquartered in Costa Rica. Led by Mr. Strong, The Earth Council [drafted] the global Earth Charter -- a new world-wide Green constitution. [5]

In the words of Prime Minister Jean Chrétien, "Canada [was] at the forefront of efforts to ensure that the United Nations is prepared for the challenges of the future." [6] Consider the following quotes from a 1992 meeting of the Canadian Council for International Co-operation.

"We need a unified one world order to replace the collectivity of nation states at the international level. The Euro-American model which now dominates the world systematically disables people, destroys the earth and creates dependency on wage labour." [8]

"In this model, politics loses its left-versus-right conflict and moves instead towards a fundamental concern for the health of the ecosystem...Democracy remains a need within this model, at both local and global levels, but as one part of the whole system. "Participation" becomes more than people's physical presence and deepens to contain a cultural and spiritual dimension...To implement these concepts, we start with bringing the community together and look at the land resources available. We decide how we want the community to evolve and decide who has control of the resources." [9]

Likewise, the following statement from the Canadian federal government to the United Nations contains a similar thread -- a sustainable world order based on complete world management.
"Canada believes the establishment of an international financial and economic system that is conducive to sustainable development must be a cornerstone of efforts to implement Agenda 21. Canada strongly supports efforts to reform international organizations to ensure effectiveness and efficiency in the promotion of global sustainable development." [10]

[An] international tax on world monetary transactions, known as the Tobin tax...would be "a feasible part of a new world order and new world vision," as stated by Lorne Nystrom, member of the Canadian House of Commons. [11] "If there were a 0.1% Tobin tax on foreign currency transactions, that would raise, in 1995 dollars, $176 billion U.S. A Tobin tax of 0.003% would be enough money to fund United Nations peacekeeping around the world. One of the consequences would be the establishment of a global village which would have a common good amongst the nations of the world. There would be a strengthening of international organizations. The United Nations would become a meaningful world government. There could be permanent international peacekeeping forces. There are many things that could be done. How would this be implemented? There are a number of ways of doing it. The International Monetary Fund could be reformed to do it or the World Bank could be reformed to do it. [Or we could create] a new international financial agency to administer the Tobin tax. National governments would collect the tax around the world." [12]

The introduction to the WEEEC's final report [contained] the revolutionary concept of Sustainable Development Strategies as the New World Agenda." [14] The forward to the report explained, "sustainable development principles that will affect policies, plans and the direction of programs in the coming years on a global scale." [15]

Chisman and Holbrook further explained the importance of education, "The overall strategy is to design courses so as to prepare for a 'sustainable development' literate society." [17] [Here we are talking about] the concept of sustainable education, [and] the importance of global "values" for education, including "population control and support," "intercultural tolerance," "the transfer of appropriate technology," and "environmental literacy." [18] The WEEEC educational platform [also included a] presentation on creating a "Global Green Constitution," or "a global perestroika," it was explained that this "revolutionary" global green political machine would encompass a form of "human rights." [19]

The concept of framing a global "green" constitution was directly linked to national education contributions aimed at furthering this new world agenda. As explained in the report, uncooperative nations would not be tolerated.

"[G]reen governments will oppose any culture if it proves to be prejudicial by means of gender, age, colour, race, religion, belief, sexual orientation, mental or physical condition, marital status, family composition, source of income, political belief, nationality, language preference or place of origin." [20]

"Eventually, a public referendum would be held in each nation state with the objective of obtaining a simple majority in favour of enshrining a Global Green Constitution....Every nation's government would ultimately be a signator to the Global Green Constitution. Obligation to do so would come from grass roots pressure within democratic societies. Less democratic nations or dictatorships would be brought on side through sanctions." [21]

"The question is how do we achieve binding agreements in Law complete with effective programs for applying sanctions against non-compliance that would oblige each nation, regardless of size, to abide by a set of principles that are required to guarantee the survival of life on this earth. Perhaps we will find that there is no other alternative to a system of rigid controls that some would equate to a police state. Unfortunately, in order to save the planet from biocide, there have to be very powerful constraints from doing the 'wrong' things. The constraints must transcend national boundaries, be world-around and enforceable. There would be a need for an agency for preventing eco-vandals from acting unilaterally. Enforcement agencies would need the power to act without being invited by the offending nation. Therefore, there needs to be an agency that is acceptable to all nation states on the planet. We can probably accept the fact that there will always be one or more nations that will not go along but there must be effective sanctions in place. If sanctions do not work, then physical occupation and the installation of a World Trusteeship would be imposed upon the offending nations." [22]

As former Prime Minister Jean Chretian said, the United Nations is "the centre piece of Canadian foreign policy." [23] However the author of worries "that this foreign policy, this promotion of "global order," is taking North America down the fast track to international socialism. Hidden under the guise of sustainable development, our two nations are trading freedom for a draconian world agenda."

The idea of a world government animates the ghosts of the cold war and inspires the conspiratorial musings of anarchists. But these sinister allegations should be taken as seriously as a man in a monkey suit passing for Sasquatch. That is not to say that we can afford to leave our democracies to our elected officials, quite the contrary, we need to be ever vigilant, for where there is power, there is also room for corruption. But the pressing need for international cooperation demands that we develop frameworks within which we can assume our respective environmental and social responsibilities.

As British PM Gordon Brown said, “This crisis demonstrates beyond doubt that a global capital market requires much stronger global cooperation and supervision. And we need to ensure that we have an effective global early warning system to alert us across continents to economic and financial risk.” [24]

Recession and global warming are the defining crises of our time and these issues are powerful justifications for a system of world governance. As stated by Halal, "Some new form of global order is needed to avert disaster." A sustainable world order is a pragmatic corollary of our efforts to manage the global environment.[25]

____________________________________

Endnotes

1. William E. Halal, Emerging Technologies and the Global Crisis of Maturity

2. International Development Research and Policy Task Force, Connecting With The World, p.15.

3. Maurice Strong, Beyond Rio: A New Role For Canada (External Affairs and International Trade Canada, November 10, 1992), p. 20.

4. Canadian Prime Minister Jean Chrétien, Opening Statement by Jean Chrétien to the Commonwealth Heads of Government Meeting, (Speech at Auckland, New Zealand, November 10, 1995)

5. International Development Research and Policy Task Force, Connecting With The World, p.39.

6. Canadian Prime Minister Jean Chrétien, Inauguration Diner for the Lester B. Pearson Chair of International Relations, (Speech at Oxford University, February 22, 1996).

7. These points were taken from a private report by Carl Teichrib titled, Charting The Sustainable Society: Agendas for Creating a New Global Future.

8. James Robertson, "Toward a New Economic Paradigm," Canadian Council for International Co-operation, Sustainability: From Vision to Reality (Ottawa, ON: Canadian Council for International Co-operation, February 1992), pp. 5-6.

9. Maximo Kalaw, "A Community-based Model of Sustainable Development," Canadian Council for International Co-operation, Sustainability: FromVision to Reality, p. 8.

10. Government of Canada, Report of Canada to the United Nations Commission on Sustainable Development (Ottawa, ON: Government of Canada, 1996), p. 25.

11. Hon. Lorne Nystrom, "Tax on Financial Transactions," (Private Members' Business) Edited Hansard - Number 144, Wednesday, October 28, 1998, Canadian Federal Government House of Commons, p. 1735.

12.Ibid., p. 1745.

13.Colin N. Power (UNESCO Assistant Director-General for Education), "Preface," John E. Penick and John R. Stiles (editors), Sustainable Development For A New World Agenda (A STAM/CASE/ICASE Publication, Proceedings of the World Environment Energy and Economic Conference, Winnipeg, Manitoba, October 17-20, 1990) ISBN 962-7532-01-3.

14. Robert Lepischak, "Introduction: Sustainable Development Strategies...The New World Agenda," Sustainable Development For A New World Agenda, p. viii.

15.Evhan Uzwyshyn, "Forward: Principles of Sustainable Development," Sustainable Development For A New World Agenda, p. v. 16.Dennis Chisman and Jack Holbrook, "The Future Direction of Sustainable Development in the Curriculum," Sustainable Development For A New World Agenda, p. 237.

17. Ibid., p. 234.

18.Ibid., p. 235.

19.Jim Bohlen, "Towards A Global Green Constitution," Sustainable Development For A New World Agenda, p. 10.

20.Ibid., p. 11.

21.Ibid., p. 16.

22.Ibid., p. 15.

23.Prime Minister Jean Chrétien, National Forum on Canada's International Relations (Speech in Toronto, ON, September 11, 1995).

24. Gordon Brown, Speech on the Global Economy, October 13, 2008

25. William E. Halal, March-April 2009 edition of The Futurist.

One Million Acts of Green: The Human Network Effect

CBC's talk show, The Hour hosted by George Stroumboulopoulos and Cisco Systems have succeeded in mobilizing people to commmit over one million acts of Green. The campaign appropriately entitled, "One Million Acts of Green" (OMAoG) started in October 2008 and as of today, 1,103,140 Green acts have been registered with participants logging an average 9,435 Green acts per day, and seven Green acts per minute. Although it originated in Canada OMAoG now boasts grassroots support from people in 50 countries. Participants also include businesses, politicians, celebrities, athletes, schools, universities, municipalities, and environmental groups.

There are many ways to act Green, it can be as simple as changing light bulbs or driving less. As referenced in a Green Market article subtitled, The Power of Small Gestures, small efforts can have a huge impact when they are repeated millions of times. The OMAoG campaign started with just one act, there are now more than one million acts of Green, amassed one act a time.

The goal is to change how we live and how we treat the planet and challenge others to do the same. The OMAoG interactive website is an accessible educational resource where people can register their acts of Green. It’s a virtual gathering place where people can exchange ideas, view content, post photos and videos, and create groups. Thanks to the website's GreenNexxus caclulator, registrants can calculate the impact of their environmental good deeds.

According to an IT in Canada article, Trent University and Dalhousie University led the way in terms of most members and most acts of green, (other noteworthy educational establishments included Bishop Strachan School, Havergal College, Delta Secondary School, Acadia University). Airdrie was the city with the most Green acts (19,000 acts) followed by the Town of Okotoks and North Bay. Many of Canada’s leading corporations including BMO Financial Group, MTS Allstream and Fairmont Hotels & Resorts have joined OMAoG and are complementing the program with innovative employee engagement and customer-facing initiatives. OMAoG’s “greenest” provinces are Ontario, Alberta, British Columbia and Nova Scotia

Kirstine Layfield, executive director of programming for CBC Television said "I think we helped demonstrate with One Million Acts of Green in particular, the great results you can achieve by reaching out and engaging people.”

OMAoG has not only raised awareness it has reduced greenhouse gas emissions by 63,326,358 kg. With over one million acts of Green in four months, OMAoG is a shinning example of positive and timely environmental change. This is a tangible demonstration of what can be achieved when we work together as a human network.

Go to One One Million Acts of Green to log your Green acts, challenge your co-workers, friends and family to do the same.

Links/URLS:

OMAoG
OMAoG (French)
The Hour
OMAoG Previous releases
OMAoG Facebook group
OMAoG on Twitter

Video: OMAoG <here>
Video: First two months of OMAoG. <here>
Video: BMO Financial Group on OMAoG <here>.
Video: Cisco CEO on OMAoG and how the human network can change the world. <here>

GreenNexxus greenhouse gas calculator
Cisco Green

Green Stimulus: Global Green New Deal

Many feared that a recession would undermine the growth of sustainability, current events appear to indicate otherwise. It is well known that difficult economic times encourage greater efficiency, but the woeful state of the economy is also the reason why economists and others argue that massive Green infrastructure investments are the right prescriptions for our ailing economies.

In the US President Obama plans to invest $150 billion in clean energy and hopes to create 5 million new jobs. The Obama stimulus package now in the Senate reflects the wisdom of Green investment on a massive scale. The bill as it stands will provide $20 billion in tax cuts for wind, geothermal, and bioenergy. Electric grid infrastructure will get $32 billion and $16 billion has been allotted for energy efficiency building retrofits. This stimulus will create a 21st century infrastructure and represents the biggest construction project in US history.

Europe is investing in Greener cars led by the economic engines of the UK and Germany. The UK government has announced funding of GBP250m (€275m) to help the car industry invest in the development of low-carbon vehicles. German Chancellor Angela Merkel promised a $67 billion (€50 billion) subsidy for the country’s car industry tied to the development of world-leading green vehicles with the lowest greenhouse emissions.

In Asia, Japan, the Republic of Korea and China have announced that they will invest billions of dollars in green projects to create jobs and spur economic growth. According to an Environmental News article, Japan has announced that it aims to create up to 1 million new jobs, and offer interest free loans for Green companies. South Korea will invest 38 billion dollars in eco-projects over the next four years with the aim of creating 960,000 new jobs. "The 36 projects include the creation of Green transport networks, the provision of two million energy-saving 'green homes' and the clean-up of the country's four main rivers."

According to an article in China Dialogue, China announced that it is investing at least 350 billion yuan (US$51 billion) for biological conservation and environmental protection. China’s Ministry of Environmental Protection announced that the stimulus will "not be spent in the energy and resource-intensive industries or high-pollution industries" and will benefit the renewable energy and pollution-control industries.

In October, the UN Environment Program launched the Global Green New Deal and Green Economy Initiative "as both an antidote to current economic woes and as a springboard to a low carbon, low impact, high job generating and better-managed global economy. UN Under-Secretary General and UNEP Executive Director Achim Steiner, said: "Investments in clean-tech and renewable energy; infrastructure such as railways and cycle tracks and nature-based services like river systems and forests, can not only counter recession and unemployment but can also set the stage for more sustainable economic recovery and growth in the 21st century." The UN Secretary-General also outlined a Global Green New Deal as the best chance for securing a 'sound and solid' climate agreement in Copenhagen in late 2009.

It is fitting that in the Chinese language, the symbol for crisis is also a symbol representing opportunity. Without the global recession we would not have seen the kind of Green stimulus packages we are seeing. As indicated by the UN Secretary-General, the recession also provides a powerful incentive for international agreement on climate change.

The economy of the future will reward nations and businesses that have low emissions and use resources efficiently. A Green stimulus fosters a more competitive economy that is able to meet the challenges that loom before us.

Rather than causing people to abandon Green, the economic crisis seems to be galvanizing action from governments around the world. The International Energy Agency projects that renewable energy will be by far the fastest-growing part of the global energy sector over the next decade. Wind energy alone is expected to see more than $1 trillion in new investment. The rapid growth of clean energy, fuel-efficient cars, and other green sectors make it clear that the world is moving toward a low carbon economy. Led by renewable energy, this trend will continue and Green markets will keep growing.

An economic stimulus package is about more than addressing a serious economic problem; it is about seizing the opportunity to increase the viability of the human race by making our economies less destructive to our environment.

Geothermal Stock Review

Geothermal offers abundant energy with minimal environmental impact and it is located right beneath our feet. Geothermal systems use the Earth's stable ground temperature to heat in winter and cool in summer. Geothermal, (also know as Geoexchange) has been recognized by both the Environmental Protection Agency and the US Department of Energy as the "most efficient and environmentally friendly way to heat and cool a building." The downside of geothermal has always been the large up-front cost associated with the ground loop.

Obama's massive energy overhaul of federal buildings may justify the the up-front cost given the savings provided by geothermal in the long term. In addition, a new federal tax credit for geothermal systems was passed in 2008 (10% for commercial installations, $2000 for residential), which serves as an additional stimulus for the growing private sector market.

This is an opportune time to consider geothermal investments. Here are 4 geothermal companies located in North America.

Geothermal Heat Pump Stock Picks

Waterfurnace Renewable Energy (WFIFF.PK): Waterfurnace manufactures heat pumps for both residential and commercial buildings. According to their third quarter financial statements, the company is in good shape from a liquidity perspective. They eliminated an unused line of credit in the quarter, paid off the balance of outstanding bonds they had used to build their facilities and their current assets exceed total liabilities. Their cash flow from operations is growing. Waterfurnace paid a dividend of over 3%.

LSB Industries, Inc. (LXU): Their climate control division, which includes heat pumps and air handling systems, accounts for about 41% of sales. LSB has a strong balance sheet and their current assets exceed total liabilities. Both Waterfurnace, LSB boast strong balance sheets and inexpensive valuations. They are likely to receive a boost from the stimulus package.

Nevada Geothermal Power (NGLPF.OB): Although Nevada Geothermal is currently unprofitable, their Blue Mountain geothermal project has sufficient financing to take it to production, which the company expects near the end of 2009. As the expectation of revenue draws nearer, expect the stock price to appreciate.

Raser Technologies, Inc. (RZ): Raser is an energy technology company focused on geothermal power development and technology licensing. It has an innovative business model for developing geothermal power plants. Using United Technologies's modular PureCycle turbines, they can start development of a geothermal site with only a 10MW plant, and then expand rapidly. They are currently commissioning their first project, consisting of 50 PureCycle units in Utah. Having recently raised $20M in new equity capital, Raser appears to be adequately funded in 2009. This should be long enough for them to start earning revenues.

Geothermal's simplicity comes with low operating cost and low environmental impact, it has a long life expectancy and requires very little maintenance. It is a system that pays for itself in a short number of years. Geothermal is an efficient means of reducing our reliance of fossil fuels and the noxious emissions that come with them.

Energy Efficiency Stock Review: The Smart Grid

President Obama has promised to propel the US economy into the 21st Century by providing a massive push for Green initiatives like energy efficiency. The US will need to build more high-voltage transmission lines that can move renewable energy from isolated areas to cities. The introduction of smart grid technology is an efficiency initiative that will enable the US to save massive amounts of power. The utility industry estimates smart meters alone can cut electricity consumption by 20-30% during peak hours.

As reported in CNNMoney.com, "in 1950, 20% of the nation's economic output was directly dependent on electricity. Now that number is 60% and rising fast, said Jesse Berst, editor of smartgridnews.com, an industry Web site. In an era of energy scarcity and global warming concerns, he said building a better grid is essential for economic growth. Berst, a former tech analyst, says the investments made in smart-grid technology over the next couple of decades will dwarf those that fueled the tech boom."

On January 8, US President-elect Barack Obama renewed the call for investment "to begin work on a new 'smart' electric grid to replace the nation's old, fragmented and inefficient system."

Making this work will require considerable investment. The utility industry estimates it would cost about $50 billion to equip every home in the country with a smart meter. Melissa McHenry, a spokeswoman for American Electric Power, one of the country's largest utilities, says an investment of $60 billion would enable the country to transport enough energy to offset 20% of its current total electricity use with renewable power.

The Brattle Group, a think tank, estimates the nation will need to spend up to $1.5 trillion on its electricity system over the next 20 years. Brattle estimates a smart grid could cost about $900 billion over the next two decades. That includes money for computers, meters and software to digitize the grid. An investment in cleaner energy could put the figure at $2 trillion, and would include building new power plants, transmission lines, and focus on conservation.

With all that investment, electric grid stocks and more specifically smart grid stocks represent significant opportunities. Here is a list of electric grid stocks in industries that should benefit from Obama's recovery program.

Grid Stocks
The ABB Group (ABB): Involved in a number of areas related to transmission and distribution systems. The company makes cables, transformers and various other products related to power electronics and management.

Allegheny Technologies, Inc. (ATI): Producer of products with grid applications, among them are a number of specialty alloys and metals for transformers and efficient grids.

Composite Technology Corporation (CPTC.OB): Commercializing an innovative transmission cable solution.

General Cable (BGC): Makers of a range of cables, including transmission and distribution cables of different voltages and underground cables.

MasTec Inc. (MTZ): A subcontractor to the utilities and communication industries, building, installing and maintaining electricity transmission infrastructure.

Quanta Services (PWR): A contractor to the power transmission and distribution industry, with services including infrastructure design, installation and maintenance.

Resin Systems (RS.TO): Makers of composite utility poles for electricity transmission and distribution. Although wood, concrete and steel still dominate, as in other applications, composites have great potential.

Siemens (SI): Makers of a range of products for the power transmission and distribution sector, including switchgear, transformer and substations.

Valmont Industries (VMI): Makers of transmission and distribution poles from concrete, steel or a mix of the two.

Smart Grid Stocks

Expanding transmission capacity is only part of the challenge, making the transmission infrastructure digital makes it smarter and more efficient and this is a major priority of the Obama recovery plan. Here are some smart stocks that should benefit from Obama's planned spending.

EnerNOC (ENOC): Designs, among other things, demand response solutions for grid operators and utilities.

Itron (ITRI): Leading maker of smart meters, the key tool on the consumer end of a smart grid.

Comverge (COMV): Maker of smart meters and works with utilities to design smart grid solutions revolving around demand response.

RuggedCom (RUGGF.PK): Designs critical systems for building a smart transmission and distribution including communication applications for electric utility substations and communication equipment embedded at various points of the grid.

Energy efficiency is a priority for the Obama administration and with the inauguration of the 44th President of the United States in less than a week, American electric grid companies make attractive buys, providing they have a strong balance sheet.

Next: Lighting Stock Review / Geothermal Stock Review

Global Trends 2025: A Greener World

An energy transition from fossil fuels to alternative sources is inevitable, and "the only questions are when and how abruptly or smoothly such a transition occurs," this according to the top US intelligence panel. This week the Washington Times revealed the contents of a draft report from the National Intelligence Council (NIC). A report that took about 18 months to complete and "engaged hundreds of people around the world in solicitation of ideas."

The world's population is expected to grow by about 1.2 billion between 2009 and 2025 -- from 6.8 billion to about 8 billion people. And India's population will "overtake China's around 2025." But population expansion is not our only challenge.

The draft goes on to say: "The next 20 years of transition toward a new international system are fraught with risks, including possible interstate conflicts over resources." There are two major differences from an earlier report. First is the "assumption of a multipolar future." A second major change involves energy. The 2004 text predicts energy supplies "in the ground" are considered "sufficient to meet global demand." In contrast, the latest NIC report "sees the world in the midst of a transition to cleaner fuels."

"We believe the most likely occurrence by 2025 is a technological breakthrough that will provide an alternative to oil and natural gas, but with implementation lagging because of the necessary infrastructure costs and need for longer replacement time," the draft says.

The panel is predicting that by 2025 China will be the world's second-largest economy and a major military power and Russia will become the world's fifth-largest economy in 20 years, (although the oil boom could catapult it there by 2017). The report envisions widespread appeal of "state capitalism, a loose term to describe a system of economic management that gives a prominent role of the state. Rather than emulate Western models of political and economic development, more countries may be attracted to Russia's and China's alternative development models."

It warns that the U.S. dollar "could lose its status as an unparalleled global reserve currency and become a first among equals in a market basket of currencies, forcing the U.S. to consider more carefully how the conduct of its foreign policy affects the dollar."

The text also says that conflicts over resources could re-emerge, because "perceptions of energy scarcity will drive countries to take actions to assure their future access to energy supplies." "In the worst case, this could result in interstate conflicts if government leaders deem assured access to energy resources, for example, to be essential for maintaining domestic stability and the survival of their regimes," it says.

The report is clear in its implications. As American military and economic dominance wanes, the US will need to have an effective alternative energy program to compete in a multipolar world. As pointed out by one of the reports authors, "the future is subject to influence" and what we do or don't do can make all the difference.

Green Investing Part 3: Finding and Assessing

Finish Rich has a few useful suggestions for finding and evaluating Green Investments. If you are eligible for a 401(k) plan at work, find out if your “investment menu” includes a green fund. If it doesn’t, speak to your plan administrator and express your interest in having an SRI or a green fund added to your choices.

Begin researching a few green funds Many green funds have posted double-digit returns, and some were up over 30 percent in 2007. This does not mean you should invest your entire retirement savings in a green fund. Many of these funds are narrowly focused and volatile. Others are more broadly diversified. So before you invest, do your research carefully and consider green investing as a piece of your overall financial plan and diversification. A great place to start your research is at Morningstar, which evaluates funds, their diversification, and their levels of risk.

Find out how your current investment holdings perform in terms of sustainability by visiting Climate Counts, a nonprofit organization that brings together companies and consumers in the fight against global warming. Climate Counts provides a scorecard for companies in eight sectors based on their commitment to fighting global warming.

Find a financial planner who specializes in socially responsible investing. Go to Social Investments Forum, and click on “individual investors” to find a financial services directory and other tools.

Next: Green Investing Part 4: Top Performing Green Funds and Resources

Green Investing Part 2: The "Green Wave"

According to an article entitled, Finish Rich, "the financial consequences of a changing climate and the global crisis it is presenting are staggering in their implications for both corporations and consumers. Those that adapt to become “eco-conscious” will flourish financially—and those that don’t may be financially devastated. The fact is, companies are already dedicating billions of dollars annually to becoming eco-friendly, and many of these companies are quickly returning millions of dollars.

As (bestselling author) David Bach points out in GO GREEN, LIVE RICH, the emerging “green economy” presents the single greatest investment opportunity of the 21 st Century. “Green investing is finally coming into its own, which is great news for the environment—and your ability to build wealth,” he says. “Green investing is simple, it’s about investing in opportunities, companies, and services that both support and promote efforts to reduce CO2 output, improve the environment, and turn the tide on global warming.”

To catch the “green investment wave,” Bach suggests investing in the new breed of SRI (Socially Responsible Investing) index funds and exchange-traded mutual funds (ETFs) that screen out companies that engage in ethically and environmentally destructive practices and screen in those that have embraced sustainability and have demonstrated a strong sense of environmental and social responsibility. While the number of “green funds” available will explode in the coming years, many of the funds already available have outperformed the S&P 500, proving that investing green is a viable strategy."

Next: Green Investing Part 3, Finding and Assessing

Green Investing Part 1: Objective Research and Analysis

Despite wild fluctuations in the stock market, Green is becoming a major economic power. However to be a successful investor in this area you must remain objective. Emotions are often harmful to the value of an investor's portfolio, this is particularly true in Green investing. For many investing in Green businesses, decisions are based on their hopes rather than on objective research and analysis. A successful (Green) approach to investing implies more than the ability to recognize a good concept or anticipate a trend, to be a bottom line investor you must also research and analyze a company's finances and business practices. Examine the management, the uniqueness and positioning of the product, the industry, and the competition. Consider also the future growth prospects for the company and the industry. Above all, effective analysis must review the plan for integrating green technologies or concepts into sustainable profitability.

Investors may also want to consider Green Chips, (exchange traded funds or "baskets" of green energy companies). Although sustainable energy gets a lot of attention, there are many smaller opportunities that offer favorable rates of return. Assess risk by anticipating obstacles, and the individual set of pros and cons that come with each investment. To help minimize your risk, diversify your portfolio.

When eco-convictions hold sway over analysis, invest only what you can afford to lose. When analyzing a Green investment, research the details and remain objective.

Next: Green Investing Part 2: The Green Wave

Making Mobile Marketing Work for Your Business: Interactive Digital Marketing For the Young and the Not So Young

New media is enabling marketers to target a wide-ranging group of highly interactive and motivated consumers. This is the first in a series of seven posts on mobile marketing. This post reviews some of the key features of the digital environment that are fueling mobile's growth.

As reported in a recent Adage article, "Interactive- and digital-marketing budgets have experienced a healthy increase. The first quarterly Epsilon CMO Survey reveals that nearly two-thirds of chief marketing officers said their interactive/digital marketing budgets have increased in the past year, while 60% have seen their traditional advertising budgets go south. The findings reflect marketers' growing need to better target their campaigns, according to Steve Cone, CMO of Epsilon. The results show that because of the economy, companies are really trying to identify the consumers that are very active in communicating with each other through social computing, blogging or podcasting. The more popular interactive and digital channels that marketers said they are keen to start experimenting with are social computing (42%), which includes word-of-mouth, social-networking sites and viral advertising; blogs (35%); podcasting (31%); and mobile devices (29%), which include phones and PDAs. The study found that some marketers have already started incorporating these tactics, with 19% of respondents already using blogs, 18% making use of podcasting and 22% using mobile devices as part of their marketing mixes. Blogging is a major activity among a relatively educated, affluent and not-as-young-as-you-would-imagine age group. And when you're talking about podcasting and mobile devices, that's a younger demographic. Marketers are trying to target the broadest age range of consumers, and that's reflected in how these break down from top to bottom. You can find hundreds of thousands of people who are really active in these areas, and they are going to be extremely receptive to offers of relevance. The study also revealed that CMOs are relying on analytics, CRM techniques and other measurable marketing strategies when determining who they want to go after."

Of all digital media, mobile is the channel that is growing most rapidly. As reported in Mobile Marketer "It’s no exaggeration to say that mobile advertising is about to revolutionize the way that marketers reach out to consumers for branding or customer acquisition or customer retention purposes. A well-targeted mobile ad campaign will strengthen bonds between brand and consumer." Mobile Web usage was up 29.4 percent from the first quarter of this year to the second. There are many reasons why Mobile marketing is destined to keep growing including the fact that mobile is a less expensive, targeted channel in an uncluttered medium.

As reported in a recent Mobile Marketer article, "A common theme voiced by mobile marketers is that to get high response rates from young consumers, they have to issue a simple, [clear]direct call-to-action that is tied to an appealing incentive and with the need to be informed that they have the ability to opt out at any time. The call-to-action must [offer] a direct incentive that is related to some type of prize or reward. The messaging of the campaign should be very straightforward and feed control to the respondent."

While the youth demographic may be the most receptive to mobile campaigns, other groups are catching on quickly. According to Dan Miller, the executive vice president of Neighborhood America. “Mobile phones are the one common device that we have with us all the time, and the youth demographic is key, but its appeal is extending across all demographics. Over time, mobile is appealing to broader and broader demographics, from older people and high-end, high net worth all the way down to blue-collar workers—the complete socio-economic spectrum...”

Digital marketing is tapping into new communication trends. In this downturn, the metrics that come with digital tactics are crucial and a significant reason why this demand is increasing. The way you approach the call to action is also important, particularly with younger audiences. However, as noted above, interactive digital's base is not exclusive to the young as it is growing accross many age demographics. In the digital marketing milieu, mobile is emerging as the hottest commodity in the expanding digital marketing universe.

Next: Understanding the Differences Between Mobile and Online Marketing / Research Your Target / Presentation Tips / Design Tips / Applications and Video / Key Success Factors

Digital Marketing Will Thrive in a Downturn

Digital marketing is poised to grow during this downturn. Although the marketing world has been hit hard, as reviewed in a recent Convince & Convert article some marketing channels will thrive in this environment. During the last recession, online advertising, plummeted 27% over two years. But according to the author, this time will be different. "Not only will online marketing survive, it may actually thrive during the lean times, continuing its inexorable theft of ad spend from traditional media tactics. Online is far more mature and proven now"

There are several reasons that account for digital marketings viability in a downturn. Online does not require a long term commitment and it is typically less expensive than an offline campaign. The predictable shift in a downturn is to focus on expanding sales with existing customers and email is the perfect vehicle for this group. Reduced marketing dollars can be focused on likely prospects rather than wasted on the disinterested. When compared to traditional tactics, online marketing offers superior measurability and trackability.

Next: The Growth of Mobile / Making Mobile Marketing Work For Your Business