Atmospheric concentrations of CO₂e are rising due to increasing anthropogenic emissions. Unchecked, rising concentrations of CO₂e in the atmosphere will lead to catastrophic climate change.
Public electricity and heating in Annex I countries accounted for over 6.68 billion tons of CO₂e emissions annually in 2007.
Transport is responsible for approximately 20% of global anthropogenic emissions, or more than 4.63 billion tons of CO₂e annually. Source: UNFCCC, 2009.
Buildings are responsible for an estimated 1.45 billion tons of CO₂e in Annex I nations and over 20% of global anthropogenic emissions annually. Source: UNFCCC, 2009.
Annex I industry emissions are over 1.3 billion tons of CO₂e annually. Global industry emissions account for approximately 24% of annual anthropogenic emissions. Source: UNFCCC, 2009.
Emisisons from agriculture in Annex I countries totaled more than 1.43 billion in 2007 CO₂e emissions.
The EIA estimates that 2006 energy-related emissions from non-OECD countries accounted for approximately 30%, of global anthropogenic CO₂e emissions, or 15.4 billion tons. Source: EIA, 2009.
Biochar could potentially remove over 1 billion tons of CO₂e annually. In general, carbon management solutions could remove billions of tons of CO₂e from the atmosphere annually.
The finance and insurance industries govern the flows of capital and ultimately determine which technologies get developed and what infrastructure gets built. Influencing these decisions to shift capital to low-carbon sustainable investment is at the core of the Carbon War Room’s operations.
The finance and insurance industries govern the flows of capital and ultimately determine which technologies get developed and what infrastructure gets built. Influencing these decisions to shift capital to low-carbon sustainable investment is at the core of the Carbon War Room’s operations.
Under the current system, investments in fossil-based energy generation and conventional industry are increasing CO2e emissions globally that lead to catastrophic climate change. The IPCC projects global emissions increase of 16 billion tons of CO2e by 2020 under business-as-usual.
Investment in high-carbon assets that results in continual increases in annual CO2e emissions that lead to catastrophic climate change will lead to collateral losses of a much larger magnitude than experienced in the 2008 melt down. Low-carbon energy and technology assets poses significantly less risk and will increasingly gain the interest of investors looking for high return-low risk investments, of which pension funds and endowments are two important examples.
It is the mission of the Carbon War Room to redirect capital flows from fossil-based energy generation and conventional industry into sustainable low-carbon technologies that can generate and preserve wealth in the long term. These technologies offer higher returns to investors and society.
It is the mission of the Carbon War Room to redirect capital flows from fossil-based energy generation and conventional industry into sustainable low-carbon technologies that can generate and preserve wealth in the long term. These technologies offer higher returns to investors and society.
Redirecting investment to low-carbon technologies is critical to achieving CO2e stabilization targets that require avoiding the projected 16 billion ton annual increase in emissions by 2020.
Investment and insurance decisions are made based on risk-reward trade-offs. Existing asset classes are valued largely based on historical performance, which is problematic when systemic shifts affect the future risk profile. Conventional energy and technology assets are being overvalued based on inaccurate assessment of four key factors: (1) energy prices, (2) volatility of fuel prices, (3) security risk, and (4) climate change risk.
Market-based Approaches
Three key areas of development are needed to affect change in the finance and insurance industries:
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Donec et neque quis velit semper tristique quis quis lectus. Proin sit amet convallis elit. Vestibulum interdum lacus a lectus interdum et convallis dui sagittis. Phasellus quis sem nulla. Lorem ipsum dolor sit amet, consectetur adipiscing elit. Cras iaculis commodo tortor, aliquet feugiat tellus placerat id. Nunc quam sapien, luctus placerat auctor a, tristique ut neque. Ut a est justo, a iaculis mauris. Sed dapibus nunc at metus dapibus et rutrum dui pellentesque. Nulla sed risus sed felis semper adipiscing vitae vitae enim. Nullam placerat, neque a mollis dictum, odio risus dictum lectus, nec vehicula arcu nisi et turpis. Suspendisse potenti. Sed malesuada ullamcorper condimentum. Donec quis turpis ac felis pretium tempor at blandit ligula. Quisque risus ante, suscipit a convallis vel, convallis nec quam. Ut a tellus in lacus bibendum faucibus quis id purus.
Nullam justo lectus, facilisis non gravida non, fringilla a massa. Mauris ligula lorem, venenatis quis fermentum rutrum, mollis quis sapien. Vestibulum in sapien in mi luctus mollis. Sed blandit pharetra condimentum. Donec cursus iaculis eros eu faucibus. Donec pellentesque quam a velit vulputate laoreet. Etiam ut dui magna. Fusce eget arcu velit, eu convallis nunc. Nunc eu nibh eu quam aliquam tempus ac id odio. Sed erat nulla, pharetra vitae consequat eu, porttitor vitae dolor. Etiam cursus commodo est, cursus venenatis nisl dignissim tincidunt. Nulla ac magna sed libero mattis suscipit. Quisque id orci ac quam fringilla sagittis vel at dolor. Duis ac nunc nibh. Morbi tempus, orci a feugiat hendrerit, felis erat aliquet lectus, non consectetur felis orci in sem. Fusce id felis orci, eget hendrerit lorem. Vivamus a erat urna, sit amet placerat neque. Donec id diam vitae risus placerat blandit non vel risus. Vestibulum ante ipsum primis in faucibus orci luctus et ultrices posuere cubilia Curae.