subject: The Cost Of Global Climate Change [print this page] Lower commodities pricesLower commodities prices. Oil and natural gas prices adjust quickly to temperature fluctuations. In winter, consumption of heating oil and natural gas usually skyrockets; inventories are fast depleted, and prices rise. But when we have a warm winter, as has been the case in much of the country in recent years, demand lessens. With the probability of winters becoming slightly warmer, large oil and natural gas inventories can remain in reserve and prices will likely fall. If the earth gets consistently warmer, theres a real possibility of years of declining or flat demand for oil and natural gas.
Higher insurance prices. Major U.S. insurers are growing increasingly skittish, and some have dropped home insurance policies in Atlantic and Gulf Coast states after paying out about $65 billion during the last few years in response to Hurricanes Katrina, Wilma and Rita. Swiss Re, one of the world's largest insurance firms, reported that the insurance cost of natural disasters nearly doubled between 2004 and 2005 alone (up to $225 billion from $118 billion).
Venture capitalists running to clean tech firms. Clean energy is poised to become big business. According to Michigans Cleantech Capital Group, which monitors venture funding, the renewable energy sector has become Americas fifth-largest sector for venture capital, surpassing semiconductors (#6) and ranking behind only biotech, software, medical and telecommunications. One California-based clean-energy company amassed more than $250 million in VC funding in less than six months during 2006.
New levels of investor scrutiny. If you want to see which companies are doing something about Global Climate Change and which companies are doing little or nothing, go to www.cdproject.net. The non-profit Carbon Disclosure Project surveys more than 350 Fortune 500 companies and business sectors to gather information on their level of greenhouse gas emissions. (Download its annual report to get a closer look.) Momentum is also gathering among 2007 Mercer Investment Consulting survey of 183 institutional investors found that 44% felt climate change was "very" or "somewhat important" economically. An additional 14% said it would become important by 2012.
by: Ishan Goradiya
welcome to Insurances.net (https://www.insurances.net)
