Prediction: The Smart Money Avoids the Corporate Carbon Bubble

PREDICTIONS FOR 2014 & BEYOND

Shareholders will demand future-readiness

Shareholders will demand that executive teams begin listening to their insurance companies and consultants regarding fuel costs, wacky weather and the Carbon Bubble that will burst and create obsolete business models. Without a climate change corporate strategy and an exit strategy from carbon-based fuels, many companies are vulnerable to quickly becoming dinosaurs. Everything happens faster in the stock market these days. You can lose value overnight that took years to build. Shareholders will demand strategic readiness to prevent this.

Natural gas denial will end

Energy companies are still pretending that they can cut fracking costs enough to justify the low cost of natural gas; but shareholders will soon catch on and say,“These wells are overhyped and drying up early. They’re hurting profits.” Acceptance will take place quietly because the whole reason for the magical fracking boom was that Washington and T. Boone Pickens needed a PR program to wipe the smirk off the faces of OPEC, and rationalize a cutback on Middle East war budgets; while creating the badly needed time window for the shift to renewables. As natural gas prices and other carbon fuels rise to reflect reality; solar, wind, geo, biomass and district solutions will enjoy even more explosive growth.

Longer-term corporate view

New corporate strategies will be accompanied by changes to executive compensation, which will begin to move away from the mirage of very short-term achievement bonuses. Boards of Directors will begin to look at 5 and 10-year strategies again. Companies with a lot of brick and mortar facilities will be forced to look at the costs of carbon fuels vs. renewables over the medium term. They will be pleasantly surprised to find they can save a great deal of money with relatively minor capital reallocations towards clean tech in building systems.

Walmart and big courier companies are laughing all the way to the bank with clean tech

With all the courier companies already saving loads of cash on greener fleets and the Walmarts and Empire State Buildings of the world saving a ton on building energy, it will no longer be possible to create doubt and rail against the future with any credibility. There will still be thousands of career climate-denier lobbyists in the four denier countries (USA, UK, Canada, Australia); but fossil fuel companies who want to have a future will be forced to start eliminating these lobbyist careers, investing less in BS propaganda, and more in strategic readiness.

Insurance companies will put the hammer down on companies ignoring the Carbon Bubble

As more companies acknowledge that fuel costs and wacky weather are just too dangerous, we will move towards a tipping point. Like they did with corporate health programs, insurance companies will take advantage of the timing and try to recover their losses on weather events, by further penalizing those who refuse to add a climate change strategy to their corporate strategies.

After share values are pummelled and silver-haired executive teams are embarrassed for their irrational energy and insurance costs, they will be forced to retire or incorporate climate change strategy. They will hire more young people to move their building energy systems and transport fleets towards clean tech.

Investors will complete the shift to clean tech

The investment shift towards clean tech has been undeniable. It hiccupped a bit recently with the last gasp of the climate damage denier lobbyists cranking up the fake science, and with the natural gas sham storyline. Once the truth manifests itself, investors will wake up and realize that the more future-oriented among them like Vesta, GE, and Tesla-Toyota have already made loads of cash. They will have no choice but to invest in the future too, rather than in the past.

More and bigger class action lawsuits against unethical corps

Those who peddle carbon, unhealthy food (and tobacco in the East), will face tougher and better-organized foes, that will sue them into the stone-age for the havoc they are wreaking on the planet and our health. With the rise of the internet there is no place to hide.

Bigger governments will finally catch up

Follow the money. Where corporations and investors go, national and regional governments eventually follow at a politically safe distance. They will acknowledge that corps and big pension plans have now joined local governments, small businesses and private citizens; who are all way ahead of the bigger governments on climate change solutions. Bigger governments will finally enact simple polluters-pay legislation, and/or continue to level the playing field between fossil fuels and renewables when it comes to government strategic investment and incentives.

Citizens must ramp up their support for future-readiness

The shift will not be completed if we don’t keep up the pressure. Remember it’s not someone else’s problem. It’s up to each of us as individuals to make the world a better place. Thankfully it’s not that hard and it’s not as complicated as some would have you believe. You can take that from me. I’ve spent the past dozen years studying world-wide clean tech viability and renewables economics, and publishing detailed technical articles on both, in respected journals.

7 Ways We Make the World Green in 2014

Click here to learn the 7 simple things you can do to make the world a better place next year and beyond. Make it a resolution to save money now and improve the lives of your children and grandchildren. And have a Happy and Green 2014.

 

 

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