Climate change presents one of the greatest investment opportunities!

In 2010 I made a presentation to a group of folks in Singapore on how the opportunity for climate change to scale will need Wall Street and The City (UK), Singapore and other financial hubs to scale.

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I just  read this report last week and the article in the Independent.

IPCC report: The financial markets are the only hope in the race to stop global warming
The chairman of the IPCC warns that the only way to reduce large-scale fossil-fuel use is to ‘price’ carbon emissions

What will be the one difference that will make this asset class different, scalable and mitigate risk of speculation. The longevity of the growth of the NPV of the asset class.

Imagine this.  A telecom or shipping or airline or mining or power generation company needs power for their business.

1. They sign a futures contracts that hedges against price of oil, gas and coal discounted in their country annually against Biodiesel, Biogas and Green Coal

2. All of this is hedged against international commodity exchanges

3. All of the products are grown on marginal lands, hazardous sites like mining, small holder farmers with unproductive lands, unused unproductive lands, for 60 years

4. Creating Carbon Sinks

5. Whole ecosystems of entrepreneurs are created around upstream, midstream and downstream processing, distribution and maintenance

6. Main street finance, banks, equity investors, government bonds, et al all get into the act and across every phase of the cycle

Now the intrinsic value of the entire system is the force multiplier. The assets created cannot be removed and sold preventing greed across the value chain.

Green Coal! Imagine a by-product where the calorific value is almost that of good Coal (between 4,000 Kcal and 4,500 Kcal), no Sulphur and Ash content and grows for 60 years!  Now being sent as the sample internationally. Imagine this product traded on the international Coal exchanges!

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This is true sustainability and presents the Moon Shot for this generation with a future that belongs to the next generations to come, with an IRR that does not depend on subsidies and where the value is measured on how clean your water and air is and how many people are now included into development and economic progress just because you use your smartphone, drive your car, use ecommerce that needs ships and planes and how you use your lighting at home.

“It is not mass production, but production by the masses”, Mahatma Gandhi.

After all the www is based on the same for-profit socio-economic model and look what an impact it has made on all our lives!

Guess what the company I cofounded and serve on the board just began this entire model in India and Africa.

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