Archive for category Finances

Economics Driving the Clean Energy Revolution

The fossil fuel era, one of the principal drivers of the industrial revolution, is gradually giving way to a new energy future, one in which less energy is needed and what is needed is generated from renewable sources. Donald Trump notwithstanding, this transition is well under way, and will only accelerate in coming years, as humanity seeks cleaner sources of energy and a more harmonious relationship with nature. With the cost of renewables coming down dramatically, and the recognition of carbon pollution as a global waste management problem, more and more capital is being directed into the transition, whether it’s being invested in new solar capacity or in conservation or energy storage.

A 2016 Bloomberg report found that at least $11.4 trillion will be invested in new power-generating capacity over the next 25 years, and 60 percent of that will fund wind and solar power. And that’s just the power-generating capacity; overall, the UN estimates that $90 trillion will need to be invested in the next 15 years to meet the 2030 Sustainable Development Goals and the promises made in the Paris Agreement.

These are seemingly staggering numbers; the entire world economic output in 2015 was about $73 trillion. But they are also a measure one of the most profitable opportunities in the history of the planet. What we’re talking about is essentially a wholesale conversion from dirty energy to clean energy, from toxic waste to the circular economy, and the recapture of carbon from the atmosphere and the oceans in order to restore soil fertility and feed a world of ten or eleven billion people a healthier diet than most of us consume today.

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Climate Change, Sea Level Rise and Retirement Risk

By , Registered Representative and Financial Advisor at Park Avenue Securities

James-Cox-644671-220One of the oft repeated risks from climate change is the threat that comes from rising sea levels. Depending on the forecast, even in the most optimistic ones, seas are projected to rise several feet before the end of the century. With the accelerating build-up of CO2 and the rate of temperature increase (2015 being the hottest year on record), many expect dramatic sea level rise to occur much sooner than most expect. (https://www.co2.earth/ )

While people might want to buy shore property for benefits that include potential rental income, capital appreciation and personal use, they also face potential risks of hurricanes, sea level rise, etc. Some of these risks can be mitigated by purchasing flood insurance.

Last summer I explored the question, “if sea levels rise, what will be the impact on a clients’ net worth and portfolio?”

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