Carbon-Pricing Mechanism Key To Clean Energy's Future

Jan 26 2009 | 12:04am ET

Deutsche Bank's Kevin Parker says fossil fuels have “had a free ride for generations” because there has been no penalty for polluting and this must change if clean energy is to have a future.

Speaking last week at the World Future Energy Summit in Abu Dhabi, Parker, the bank's global head of asset management, says this situation has “been a massive restraint on investment in clean energy.

“We urgently need a mechanism for pricing carbon – such as a carbon tax or, better, a cap-and-trade system – that will make fossil fuel users pay for their emissions,” says Parker. “To be fully effective, such a system must eventually be implemented globally. This is the most effective long-term solution for placing traditional and clean energy on an equal cost basis.”

Parker says Deutsche Asset Management identified climate change as a global, investment-driving trend four years ago.
 
“We launched several innovative investment products to take advantage of this insight and we are now, with more than $5 billion under management, one of the largest climate change investment managers in the world,” he said.

Parker admits alternative energy is not immune to the current financial crisis, noting that alternative energy stocks have already lost value, but he believes this setback is temporary.

“The inescapable long-term truth is that climate change is a fact, and the world must act. To do so will undoubtedly require a great deal of capital: the International Energy Agency estimates $45 trillion will have to be invested in clean energy alone over several decades. This is certain to create vibrant new energy-related industries and generate tens of thousands of jobs. It will also create great investment opportunities delivering substantial returns over the long term.”


In Depth

Q&A: Pantheon’s McCrary Says Private Equity Market ‘Robust’

Dec 17 2014 | 8:32am ET

Dennis McCrary is a partner at Pantheon, a private equity firm with $32.2 billion...

Lifestyle

Cohen Donates $1.5M To GOP Governors Association

Dec 10 2014 | 7:13am ET

The Republican Governors Association raised close to $25 million from October 1...

Guest Contributor

Q&A With Daniel Gallancy: Institutional Interest In Bitcoin Is Growing Steadily

Dec 12 2014 | 7:54am ET

Daniel Gallancy is founder and CEO of SolidX, a provider of total return swaps for...

 

Sponsored Content

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

December 2014 Cover

Futures 2014 person of the year

Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.