I’ve now got my hands on the UBS climate change report (98 pages, dated January
2007), to accompany the Lehman
and Citigroup reports.
UBS’s paper doesn’t have much of an equities focus at all, but it does include
an interview with A
rmory Lovins, the recipient of a fascinating New Yorker profile
by Elizabeth Kolbert last month:
What are the highest priority areas for technological development to
bring about reductions in greenhouse gas emissions? What sort of leading technologies
need to come first?
You seem to be very interested in future technologies to solve our climate
change problem. However, that is not really my focus. The technologies that
are already on the market offer everything we need and more, to reduce greenhouse
gas emissions dramatically…
The climate debate has unfortunately been misguided as implying large costs
of climate protection. In my view there has been a “sign error”
here. In fact, the opposite is true. Climate protection can save money, because
energy efficiency costs less than the fuel it saves. Interestingly enough,
100% of the experts involved in energy efficiency measures talk about profits,
and 100% of the politicians concentrate on the costs.
In terms of what this all means for investments, here’s a couple of interesting
charts from the report.