In February Barclays capital released its 'equity gilt study'. Not being a client I have not been able to get hold of the study, but according to its press release:
"Chapter 1 – The energy revolution
We examine the relationship between the energy market and climate change policy. Our thesis is that the energy infrastructure of the global economy is prone to radical restructuring in the years ahead, a process that could be described as an energy revolution.
The driving forces are twofold. First, the spiral higher in energy prices since 2002 has revealed that current energy supply is likely to prove insufficient in light of current demand trends. The world therefore needs a sizeable increase in capacity to accommodate the energy ambitions of both industrialised and industrialising economies. Second, public opinion in the OECD has reached an inflection point on climate change, with the political path now open for establishing an international agreement on emissions reduction.
We discuss the difficulty of simultaneously increasing energy supply by 50% over the next 25 years, while also lowering dependency on hydrocarbons, which currently provide 80% of the world’s energy needs. The likely effects on asset markets and modes of financing are expected to be sizeable and could dominate other fundamental factors. Investors need to place the nexus of climate change policies and energy scarcity at the centre of their asset allocation process. We conclude that the impending energy revolution may – contrary to consensus expectations – prove highly stimulatory for the global economy."
I can't help wonder if some big investors have been putting these ideas into practice...
Or it could be that someone has decided to use CETO for Perth's water supply or another capital city..
CNM
carnegie corporation limited
