CO2 (Part 1 of 2) – Wall Street’s Meltdown Has Killed For Now A US Carbon Trading System
Posted: September 22, 2008
One of the biggest victims of last week’s Wall Street meltdown has yet to be identified. Its name is the global environment.
The idea of a nationwide U.S. cap-and-trade system to reduce carbon dioxide emissions was in trouble before last week as business and energy groups flexed their lobbying muscle on behalf of the estimated one million U.S. corporations whose costs could rise. Now, with the financial foundation of the U.S. economy having shown potentially catastrophic cracks, there will be zero appetite in the new Congress for imposing such a radical change on America’s economic framework, change that might hit all Americans in the pocketbook at a time when many can’t even afford the combined cost of food, fuel and medicines.
No doubt the two U.S. presidential candidates will continue to pay lip service to the idea of passing a regulatory framework for a nationalized carbon trading system when the new Congress takes over next year, lest they lose the support of “green” voters. But it’s important to note that while a recent poll showed that 63% of 1,000 registered voters in California said they favored reducing greenhouse gas emissions (GHG), that support dropped precipitously, to just 47%, when respondents were asked if they would be willing to pay higher energy bills to achieve that objective.
When more than half of registered voters in as green a state as California oppose cutting GHG if it’s going to cost them more money – and this was before many saw their retirement account balances get whacked last week – there’s no way cap-and-trade will have enough public support to pass Congress, especially with utility, oil and other interest groups lined up in opposition. It will be hard for the regional cap-and-trade systems that already exist to gain much traction.
So investors need to rethink their portfolios. Going forward, the strongest alternative energy companies should be those that deliver cost savings – ie, energy efficiency. To be sure, there are enough state regulations now in effect in the U.S. to insure that solar, wind and other renewable energy sources continue to take root. And there will continue to be strong global growth in renewable energy thanks to China and Europe. But in the current economic climate, saving money, not the environment, will be what sells in the U.S.
Fortunately, there are a host of companies big and small in the “saving money” business. Here’s a sampling of recent EnergyTechStocks.com stories to get you in research mode:
Cleantech Indices’ Rafael Coven (Part 3 of 5) – What Do Telvent, Kadant and Ormat Have in Common?
Switzerland’s Komax Group Looks Like an Interesting Player in Both Solar & Efficiency Sectors