Carbonated commerce

Summaries - Australian Financial Review
Friday 12/9/2008 Page: 34

The local head of General Electric recently told an American Chamber of Commerce lunch that climate change is 'the biggest business opportunity of the century'. Meanwhile the Business Council of Australia has focused solely on old dirty industries that will suffer from the institution of an emissions trading scheme. Austrade reports that the renewable energy sector has grown at 15 to 30 percent a year since 2002 and US$100 billion was invested in the sector last year.

The Australian government is committing $500 million to a renewable energy fund. Forest Reinhardt of Harvard Business School says the emerging carbon economy is an opportunity for innovation and leadership over short-term balance sheet focus. Peter Meurs of WorleyParsons says those who invest early in this new economy are 'going to do very well'. Baker & Mackenzie is offering investment banking services for the low-carbon economy. UBS has launched a 'greenhouse index' and Macquarie Bank has recruited former Australian of the Year Tim Flannery to design rainforest projects for carbon offset.

The Carbon Disclosure Project has signed up over 3,000 companies including: AMP, Foster's, Wesfarmers, Merrill Lynch, Goldman Sachs, Morgan Stanley, AIG, Barclays, Colonial First State, HSBC and Rupert Murdoch has endorsed the project. PricewaterhouseCoopers reports a massive change in Europe since carbon trading began in 2005 and as more Kyoto Protocol signatories get on board, this alternative economy has immeasurable potential.