2017 Trump Presidency Cause for Celebration-Tipping Point towards Fuel Free Energy and Value(s) Investing

As the year comes to an end,  we normally take stock and think encouraging thoughts for the future. I feel extremely upbeat, in spite of hardships, refugee crisis, elections, referendums, heros dying, Syrian War, corporate governance abuses, financial challenges, and more.

Who would have thought that Donald Trump would become President of the United States. Well, in spite of losing the popular vote by nearly 3 million, he is. Among my immediate and intermediate network, many were upset, angry, and concerned that the progress that had been made on climate change,  would end. In addition, we would lose all the momentum that COP 21 set in motion. Fossil intensive investments would gain the uperhand. I don’t share that concern. In fact, maybe this is the ultimate stress test that a carbon free economy needs. The USA has a President and his team, and a great deal of Congressmen and Senators, that are climate deniers. The government seems controlled by those in the camp of fossil intensive industries. If we can survive that, then the system has turned the corner. I believe we have. Just look at the figures, even if Donald and Fox News say otherwise.

Coal companies have gone bankrupt (Peabody) or loss most of their share price, on lack of demand and low prices. Oil prices are at historic lows. If demand keeps going down for fossil fuels, how will increasing drilling and mining help the matter. That train has left the station. If we look at the state of fuel free energy systems, we can only see massive success that can’t be turned back, as that would fly in the face of economics. Trump’s team does seem to have some expertise in making money and should be able to do the math.

2016 has been a year of record low prices for low-carbon technologies. In August, a solar PV project in Chile set a new low price of 2.9c/kWh. The following month, a record low was set for offshore wind in Danish waters of approximately 6.4c/kWh. The third record to fall is that of battery storage courtesy of Tesla’s Powerwall 2 that was announced in November. The Powerwall 2 is nearly half the installed cost per kWh of its predecessor with an inverter built in, making it “the cheapest lithium battery for the home ever made”, according to Bloomberg New Energy Finance (BNEF). To make matters all the more impressive, BNEF announced this year that 2015 saw record levels of investment into renewables and record installed capacity.

Bloomberg New Energy Finance, 2016

How electric cars will cause further oil collapse?

Investment Agreements

The Montreal Pledge is the first agreement of investors that require full transparency of their carbon risk and exposure. You can imagine that very few have signed, as this is not an aspirational statement like most of the international ESG agreements, but a true commitment to de-carbonization. “By signing the Montréal Carbon Pledge, investors commit to measure and publicly disclose the carbon footprint of their investment portfolios on an annual basis.”

Want to know who has signed and who hasn’t?

Podcast on Corporate Governance-Wells Fargo Bad Form

Great podcast on how Wells Fargo forced its sales teams to force customers to buy products they didn’t want, which led to fraudulent practices. Unfortunately, the employees took a great deal of the fallout.

TBLI VIP Dinners

In 2016, TBLI organised 4 VIP dinners and they were a huge success. The last two we held Dec 6&7, were sold out. In 2017,  TBLI will be organising private dinners in various locations during international ESG & Impact Conferences,  for a small group of thought leaders (25). The goal is to support each other in our ambition of scaling up Impact Investing.

Speaking Engagement:

Responsible Investment 2017 Copenhagen March 2, 2017

Books:

Journal of Cleaner Production

TBLI Foundation

Support TBLI’s work on building capacity and educating asset owners and managers about liquid and illiquid investments in Sustainability (ESG and Impact Investing). Make a Donation to TBLI Foundation.

Closing Remarks

I want to particularly thank my immediate family. They have been a great source of strength, inspiration, and sometimes less so. One thing, for sure, they are never boring. Rieki, Sam and Silas. May all your aspirations come true. Let’s keep laughing.

Arthur stay well and hope to see you more frequently in 2017.

To my 90 year old mother in NY. As we say in Brooklyn ‘Ma. Ya did good.” Thanks.

As a sign of defiance in a world of injustice, let us all confront Chat and Cutters, and other abuses, as Larry David does so brilliantly.