TBLI

My esteemed colleague Fabian just passed me the new dates for the upcoming investor salons. If you click over to the website you will see them along with other salon-related information.

The next three dates are in October,  in our favorite three cities: Munich, Geneva, and Amsterdam. Note that our investor salons are free for all investors. In addition, wealth managers and family officers are welcome in the presence of at least one of their clients..

There are still a few that we did not manage to collect following the conference. If you see yours is missing, please get in touch with us.

We will be uploading the conference photos, podcasts, presentations shortly. Hope everyone can join us next year, May 27-28th in Tokyo.

Pointing to economic difficulties as a reason to not adopt necessary and potentially revolutionary (for the good of people, planet and how we do business) is a move not unique to Australia. Perhaps the most famous nation to adopt this philosophy was the United States during the Bush administration, which refused to discuss curbing carbon emissions as it would allegedly damage the economy.

So despite the environmental and social platform that helped sweep Kevin Rudd into office, despite the clear evidence from the world’s leading scientists that climate change is real and that it is vital that we launch what many have refferred to as the Green New Deal, we still have leaders and governments who worry that it isn’t a convenient time for their political careers or their national economies.  Nevermind the countless jobs that would be created, the positive environmental impact, and the need to take action sooner rather than later – The Australian government thinks the world can wait.

A pig farm in Mexico claimed to be the source of swine flu is host to a UN-registered CDM project.

The clean development mechanism (CDM) project, which has not gone into operation, was to be developed by UK-listed Ecosecurities at a pig farm near the town of La Perote in Veracruz state.

Media reports have cited the farm as a possible source of swine flu that threatens to become a global pandemic.

However the plant’s owners and the Mexican government said there is no evidence for these claims, and the UN’s Food and Agriculture Organisation (FAO) is carrying out an investigation at the site.

“Depending on the outcome of the investigation from the FAO, it is feasible that, if it had been implemented, the project would have helped by improving waste management on the site,” said Belinda Kinkead, head of implementation of Ecosecurities.

Little impact

Kinkead said swine flu was unlikely to have a major impact on supply of credits – unless the Mexican government was to order a mass cull of pigs in order to prevent the spread of disease. But so far the government shows few signs of doing this until a firm link is established between porcine and human influenza.

According to design documents, projects that capture animal waste in Mexico could supply around 23 million carbon credits from the Kyoto protocol’s CDM between now and the end of 2012. But the percentage of credits generated by the sector is typically only a quarter of that promised.

Of the 89 projects in the sector registered by the UN, just 16 projects have been issued with credits.

Ecosecurities has plans to develop 28 CDM projects in Mexico that cut methane emissions from pig waste, but only 10 have gone into operation, as the credits yielded by such projects is now so small as to render them unfeasible, Kinkaid said.

AWMS

Other investors in animal waste management systems (AWMS) include Agcert, a company that was formerly listed on the London Stock Exchange. AES Agriverde, which now controls Agcert’s methane capture projects, said it couldn’t comment on the impact of swine flu on its Mexican operations because the company operates a media blackout in advance of declaring quarterly earnings.

Besides trying to sell CDM credits from projects developed by Agcert, the company aims to generate credits that could be sold in a future federal trading scheme in the US. Only last week, before news of swine flu broke, a US developer Environmental Credit Corp said it would try and generate 200,000 CERs from methane capture projects in Mexico. Cargill, a large US commodities trader, is also involved in methane capture CDM projects in Mexico, and is named as a participant in the La Perote project now being investigated by the FAO.

However, no one from the company was available to comment at press time.

Flies

Media outlets from across the world have reported claims by villagers close to the La Perote pig farm that flies feeding on animal waste at the facility had helped spread swine flu to the local human population. The FAO has said so far there is no evidence that swine flu has spread directly from pigs to humans in this way.

At pig farms, companies such as Ecosecurities use technology known as an anaerobic digester to cover up lagoons of animal waste at pig farms and then generate electricity from the captured methane.

By John McGarrity – jm@pointcarbon.com

To fully understand the impact of the stimulus packages being announced. we need to look at the figures for renewable energy commitments prior to the downturn. According to the Clean Edge report ( a think tank that tracks renewable global energy investments), in 2007, the global investments in fuel cells, and distributed hydrogen, wind, solar, biofuel was approximately $ 77.3 biliion. This figure was predicted to rise to $ 254,5 billion in 2017. This is quite a growth curve. In 2008, the figures jumped to $ 116 billion and the projection for 2018 was $ 325 billion. These figures were all achieved without the government stimulus packages.

Now, if we look at the various stimulus packages, the growth figures become even more dramatic. If you study the chart below, a whopping $ 436, 10 billion of “Green Stimulus” is planned. A large percentage of these commitments is for energy. This is on top of the investment in the pipeline and the natural growth of renewable energy in spite of short term credit crunches. This money will dramatically influence the entire supply chain (project finance, debt financing, private equity, public equity, etc), and also attract even more money as money flows attract more money flows.

Global Figures for Government Stimulus Packages

source: Investeco Capital Corp.

It might not be called the Green New Deal, but it certainly looks like it to me.

Let the good times, roll

The plan includes $500m in refitting and renovation to curb the amount of energy the building consumes by 1/3rd.  Each of the buildings 6,500 windows will receive a thin layer of film, while overall ventilation and insulation will be boosted as well. When all is said and done they estimate annual savings of $4.4 m.  Plus if the results are consistent with their goals, the Empire State Building hopes to attract bigger companies as tennants.

And they’re not alone, as Pacific Hydro CEO Rob Grant explained on a recent edition of ABC Radio National’s Background Briefing:

Europe has endorsed a 20% target, many of the States in the USA have significant renewable energy targets in the order of 20%, and countries in South America where we are also operating have 15% to 20% renewable energy targets, and China has a 20% renewable energy target. So they’re generating a significant amount of demand for new capacity and the capital that’s required to invest in that will indeed be significant.

Australia is the largest, per capita, carbon emitter on the planet.  Which brings us to the role of Carbon Trading, Emissions Trading, Cap and Trade, Carbon Abatement, etc., in the federal governments goal of reducing emissions while pushing for more alternative energy.  The debate over whether 20% by 2020 is a big enough push, and whether or not the government’s carbon trading plan will be effective.

These are just the tip of the iceberg in terms of what is discussed in this program. Highly recommended listening.