Investors

Investors

The financial system of the whole world has investment assets totaling about $45 trillion. Most of it represents holdings in an old economy that still relies on the careless consumption of fossil fuels.

The fact of climate change is putting the accumulated wealth of the entire globe at risk. That's why 50 leading investors representing more than $4 trillion of those assets called on Congress to put tough mandatory limits on carbon emissions. And their numbers are growing.

Wall Street has never confronted a risk factor like this. This is the big kahuna, the mother of all bubbles. Global warming will spare no nation, no market and no industry, and investors are under increasing pressure to pull off a pretty neat trick. Without either missing the next quarter's numbers nor spooking the herd, they need to start moving that $45 trillion into low carbon investments. Tall order, especially if you consider that Exxon is the most profitable company in the history of mankind, but investors really have no choice.

They can deploy their enormous power and wealth to help chart the course to a new energy economy, or risk universal ruin. This is a logical, scientific and financial certainty.

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Resources

McKinsey on Solving Climate (Report)

The United States could shave 28 percent off its greenhouse gas emissions at fairly modest cost and with only small technology innovations. Coming from McKinsey, that's big.

WMO 2007 GHG Bulletin (Report)

This 4-page bulletin from the World Meterological Organization reports on GHG levels in 2006, the highest on record.

California Green Innovation Index (Report)

This report from Next 10 explains how and why California has grown its robust economy for three decades AND is still greener than any other state. Contains big lessons for federal climate policy.

Citizen's Guide to Carbon Capping (Report)

This guide explains carbon capping so that citizens can understand and shape it. The easy-to-read guide describes three different ways to cap carbon: cap-and-giveaway, cap-and-auction, and cap-and-rebate. It explains how if done right, a carbon cap is the single best tool to fight climate change, but if done wrong, will transfer hundreds of billions of dollars from families to corporate polluters. Mandatory reading for every American.

Clean Energy Blueprint (Report)

This report from the Union of Concerned Scientists outlines the policies needed to meet at least 20 percent of America's electricity needs from renewable sources by 2020. The measures would save consumers a total of $440 billion, reduce use of coal by nearly 60 percent, and avoid the need for new power plants.

How Biofuels Could Starve the Poor (Report)

It takes 450 pounds of corn to produce enough ethanol to fill the 25-gallon gas tank of an SUV. That corn also contains enough calories to feed one person for one year. This article from Foreign Affairs shines a light on unintended consequences of the US rush to produce and consume biofuels to replace dependence on foreign oil.

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