renewable energy institute india
The response of businesses competitive response and risk management
Companies face meeting with the economic, environmental and social goals. There is two main ways that companies will respond within the economics of climate change:
 · competitive response and development of opportunities – Focuses primarily on mitigation. Climate change becomes a focus of attention of businesses and corporations up new business opportunities;
A risk management · – focuses primarily on the adaptation and corporate responsibility. Increasingly, markets are beginning to focus on the net position carbon of companies and enterprises to integrate climate change risks in their policies and procedures.
Increased focus on corporate climate change
Last year, the public discourse on climate change has been active:
 • In anticipation of the Bali conference, 150 Global business leaders issued a communiqué © underscore the urgency of climate change action. Business leaders wrote that an agreement legally binding United Nations to reduce emissions of greenhouse gases is necessary for companies to make appropriate investments in clean technology and infrastructure, and an expanded carbon market should be part of the framework because it allows for flexibility and low cost transition to a low carbon economy;
 · As companies have argued for a strong post Kyoto agreement, the companies are channeling funds to increase the supply of clean technology and investment in the sector has grown;
· Companies have also been vocal in the G8, which underlines the need for a "rapid and fundamental strategy to reach low carbon economy in the world "in a document submitted to the Prime Minister Fukada of Japan at the G8 meeting in Hokkaido-Toyako;
 • A survey McKinsey reveals that 60% of global executives regard climate change as strategically important and a majority that is important for product development, investment planning and brand management. 34% of executives in China, 37% of those in Europe and 40% of respondents in India report that their companies often or always consider climate change in the overall strategy.
Competitive Response – Where are the opportunities?
Markets for products climate change and climate change are related to fast growth companies:
 • In 2007, there were about 500 Private Equity and Venture Capital deals in climate change – which represents 13.5 billion U.S. dollars of investment. This is 46% from 2006;
 · had 1900 Private Equity and Venture Capital investors in climate change in 2007;
 • In 2007, Germany, China and the United States were the main investors in new renewable energy capacity with $ 14 million, $ 12 billion and 10 billion U.S. dollars respectively;
 · There are about 300 money managers active investment in space that climate change, along with a growing number of hedge funds and private equity managers;
 · No less an oilman T. Boone Pickens has announced plans to build 4 GW of wind capacity in Texas – and running commercials promoting alternative energy;
 · Renewable companies are increasingly wide. Iberdrola Renovables was the largest initial public offering second half of 2007 with funds raised, with offer value of $ 6 billion – and the funds raised by IPOs for clean technology companies across the board increased by more than 300%, from $ 7.5 billion in 2006 to $ 32 billion in 2007;
 · As part of the Masdar Initiative, Abu Dhabi – an emirate that is about 8% of reserves oil in the world – opened in 2008 in a revolutionary clean city. The broader initiative, launched in 2006, aims to promote energy efficiency and develop alternative energy sources and $ 15 billion have been announced for the new green investments;
 · alternative energy dominates additions capacity in some markets: the wind at 40% of newly installed capacity of power generation in Europe in 2007;
A Estimates of · show that the global market for emissions trading soon worth 150 million dollars;
 • The global investment in sustainable energy broke all previous records, with 148.4 billion U.S. dollars of new money raised in 2007, an increase of 60% over 2006;
 • The IEA projections a massive scale of investment to $ 45 billion in order to achieve the common goals of the accumulation of energy infrastructure and change mitigation climate.
Risk Management – What are the risks and how they are handling are?
 • The insurance industry has begun to feel the effects of climate change and taking the issue seriously. In U.S. Insurers have begun to cancel homeowners policies in areas of risk of hurricanes and forest fires;
 • In 2007, a group of global insurers, re-insurers and brokers developed a set of "principles ClimateWise in response to global warming, designed to promote greener policies. The principles that enable companies worldwide to build climate change in their business operations;
 · Some insurance companies are already adjusting their products and services to adapt to emerging markets that have proved climate change, such as the risk of time, carbon trading and clean technology industry;
 • The Carbon Disclosure Project (CDP) operates to create lasting relationships between shareholders and companies on the implications for shareholder value and commercial operations presented by climate change. It represents 385 institutional investors with a combined 57.5 trillion in assets under management;
 • A U.S. coalition led by Ceres, encouraged to improve the dissemination of climate change and governance in dozens of companies and is committed to the regulators and the Securities and Exchange Commission by calling to publicly traded companies to assess and fully disclose their financial risks from climate change;
 · We're seeing more attempts to measure the carbon net position of firms and assess risk or beta carbon dioxide.
In short, climate change and awareness of clean technology is here to stay, and it is rapidly becoming an overall theme for most companies – regardless of the product, demographic, and industry.
