FAVOURITES – From ASX Investor Update – 12 January 2010 – Victor Bivell, editor of Eco Investor, says climate change has the potential to affect everyone and all sectors of the economy.

“The transition to a low carbon economy, whether by an emissions trading scheme, carbon tax or other means, will have dramatic implications for many companies listed on ASX. There are likely to be winners and losers.

“For some, their cost of doing business will rise. These are likely to be the providers of fossil fuels, in the coal and oil sectors. Although gas is also a fossil fuel, it emits half the carbon dioxide of coal and is seen as a ‘transition fuel’. On balance, it should be a net winner.

“Also at risk are the many big users of fossil fuels, such as the steel, aluminium and cement industries, the transport and freight sectors, and companies that export to countries that do not have an ETS, carbon tax or other carbon penalty. The insurance sector is concerned about the likelihood of more extreme weather events.

“The low carbon economy will also create opportunities for sectors and companies that can help reduce or manage greenhouse gas emissions. Among these should be the providers of renewable energies, providers of low carbon energies, and providers of energy efficiency technologies and services.

“Other winners should be companies that can improve agricultural practices, reduce the need for land clearing, and assist others to manage their greenhouse gas emissions.” Read the whole story here

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