From Motif Investing (h/t to John Coleman)
Climate change has become more than a hot topic. With carbon dioxide levels at all-time highs and temperatures on the rise, concerns over global warming1 are increasingly leading to government action and policy changes. President Obama announced a ‘Climate Action Plan’ to cut 3 billion tons of carbon pollution by 2025, with an increased emphasis towards clean and efficient energy.2
This can help put the spotlight on the companies that are focused on the mitigation and adaption to challenges brought by climate change, in turn presenting an expanding investment opportunity. We’ve already seen global investments in climate change-linked reform grow 33% to $66.2 billion, between the first and second quarter of 2014.3 This includes companies involved in reducing carbon emissions, increasing energy efficiency, improving water and waste management capabilities and agricultural productivity. How’s that for win-win: the planet cools off, while this sector looks to heat up.
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The Index has 25 stocks, spanning energy, agriculture, waste management and green tech like solar and wind. So far, there’s been only a 0.2% ROI since inception and the S&P 500 is outperforming it.
More here: https://www.motifinvesting.com/motifs/climate-change#/overview
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A more rational view from the VC industry here http://gigaom.com/2014/07/26/science-is-the-new-cleantech-in-the-valley-but-without-the-righteousness/
Not impressed. hitting a few tabs on his site reveals – 7/29/2009 to 7/28/2014 down 3.1%.
P/E ratios of his stocks range from 15.6 to 54.2 and the 15.6 is First Solar with a 3 year trend at down 45.6% over 3 years.
Then Bloomberg reports – “The appeal of cleantech has dimmed as efforts to curb greenhouse gas emissions have faltered: Venture capital and private equity investments fell 34 percent last year, to $5.8 billion, according to Bloomberg New Energy Finance.”
Needs a Keep Out sign somewhere.
what chance Risky Business’s Bloomberg/Steyer/Poulson might have had some input into this report?
29 July: Bloomberg: Mark Drajem: White House Says Delay Will Raise Climate Cost
As the Obama administration defends its efforts to curb carbon emissions this week, it’s taking a new tack: arguing that it is smart economic planning.
A White House report released today says the cost of fighting climate change will increase 40 percent for every decade of inaction…
While the EPA says its carbon rules will be a net benefit to the U.S. economy and result in lower electricity prices, the U.S. Chamber of Commerce and other business groups are warning that it could cause a jump in energy prices and damage to the tepid U.S. economic recovery…
http://www.bloomberg.com/news/2014-07-29/white-house-says-delay-will-raise-climate-cost.html
29 July: Reuters: Power producer Drax earnings fall 15 pct on carbon tax
British power producer Drax Group Plc reported a 15 percent fall in first-half earnings, hurt by increasing cost of UK carbon tax…
http://www.reuters.com/article/2014/07/29/drax-group-results-idUSL4N0Q41IY20140729
39 July: Bloomberg: Coal Miners Clash With Ski Operators Over EPA’s Coal Rule
By Jennifer Oldham and Mark Drajem
Singing, Chanting
In Washington, dozens of activists carrying American flags and miniature windmills sang, chanted and posed for photographs outside of the EPA headquarters.
The Climate Reality Project offered free Ben & Jerry’s ice cream scoops to those who followed a simple process: file a comment to the White House supporting the rule, sign a petition for the plan and tweet that support to the world…
http://www.bloomberg.com/news/2014-07-29/coal-miners-clash-with-ski-operators-over-epa-s-coal-rule.html
Years ago, tried Green investing. “Free Wind” “Efficiency of Recycling” and all that stuff. It’s all fluff, the windmills and the solar panels, requiring heavy subsidies. I lost money.
So I invested in Big Oil when it was unfashionable, listening all the while to all the Left Green commentators saying the industry is on it’s last legs. And so I made money.
in canada we pay quite a bit of attention to the cdn-us exchange rate. whenever a movement is likely there are tons of editorials in the financial pages of the newspapers by experts claiming that the dollar is very likely to move in the opposite direction to what actually happens. the suckers follow the market hype – the smart money bets against it.