Energy: Climate changes investment opportunities

The facts around climate change may be disputed, but few would argue that there is an energy crisis in the making. Demand for energy is rising as traditional sources of energy are increasingly depleted or environmentally toxic. What is the future of energy provision likely to look like?

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1. THE BACKGROUND

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Recommended: The debate on energy supply can be muddied by vested interests on both sides, but this Channel 4 show is a good entry point:

But there are some certainties:

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2) THE SCIENCE PART

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Recommended: The science on energy provision is not clear-cut. The Intergovernmental Panel on Climate Change is considered the most credible source of scientific information on energy provision in the future. This covers everything from climate change to wind farms.

This older but simpler outline may work for those with a bit less time (it also has natty graphics):

And for all your energy statistics needs

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3) THE POTENTIAL IMPACT OF AN ENERGY CRISIS

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At its most prosaic, an energy crisis will force up household bills. This problem should not be underestimated at a time when the consumer is already stretched and economic growth weak.

But clearly there are some more profound potential consequences at home….

…and abroad

It is also worth reminding ourselves of the wild card element.

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4) REGULATION

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Governments are undoubtedly taking the problem seriously and have been working together to put energy initiatives in place. However, it is relatively easy to lose track of current targets and these sites serve as useful reminders:

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5) IS IT AS BAD AS WE THINK?

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Recommended: This is a timely reminder that technology can emerge that if not quite saves the day, then at least postpones the crisis.

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6) WHAT IS THE FUTURE?

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Recommended: The Guardian’s environment site provides good independent insight into the latest energy initiatives:

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7) WHAT ABOUT THE INVESTMENT OPPORTUNITIES?

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Recommended: Alternative energy is likely to form a significant part of any ‘green’ or ‘climate change’ fund. This Moneyweek article provides an up to date guide on the potential and perils of an investment in alternative energy.

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LATEST LINKS

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  • OPEC to hail in $1 trillion as oil prices increase risk of double-dip recession (Telegraph)
  • What they didn’t want you to know about Peak Oil (Guardian)

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Do you know of any companies developing alternative energy solutions? Let us know in the comment section. Thanks!

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