Courage Investing; Clean Energy, Carbon and the LDCs

The recently-formed Global Clean Energy Corporation is committed to improving lives for some of the world’s most vulnerable people in LDCs (Least Developed Countries), while taking advantage of anticipated upward price pressures in the global carbon credit markets.

My client’s new fund is a way to participate in what continues, despite challenges, to become a growing and persistent investment model in environmental economics on the international stage.

A Global Carbon Trade Snapshot (2013 to 2020)

The client anticipates a positive trend in CER prices due to a number of new developments occurring with the EU-ETS carbon platform’s ‘Phase 3’, beginning in 2013.

These are:
-The cancellation of a significant number of credits associated with HFC gases;
-Exclusive eligibility for LDC-based credits from international offset projects in the EU market;
-Higher emission reduction requirements, new industries added (eg aviation)

Newly-released Point Carbon report: Investing in LDC carbon projects (pdf flyer)

A total of 15 national and regional climate trading initiatives are currently underway or have been announced to date, providing a preview of potential positive market growth over the coming decade.http://www.pointcarbon.com/news/1.2000839

The Global Clean Energy Fund

The Global Clean Energy Corporation, based in the UAE, is pooling capital to create profitable and humanitarian renewable energy projects that cut emissions in the Developing World, while qualifying for CER carbon credits from LDCs.

The Global Clean Energy Fund

Registered with the UN Framework Convention on Climate Change (UN-FCCC), the fund is a Luxembourg-domiciled SICAV-SIF alternative fund, developed in collaboration with Progressive Equity Advisors.  The fund is audited by Ernst & Young.

Investment begins at 100,000 US, EUR or GBP.  The fund is targeting a 12% per annum return.  Upon request I can provide an introduction to my associates, Michael A. Young CMA, with Progressive Equity, or Sheikh Mohammed Suleman with the Fund, for more information and complete business plan with a non-disclosure in place.

Working in the Wind

Wind power co-exists peacefully with crops and livestock

Stettler Alberta – I am back on the wind-farm.  The late September weather is warm still, and our days long.  150 workers are now onsite at Capital Power Corporation’s 150 megawatt Halkirk 1 wind power development.  The site is managed by RES Americas, and the tower erection and electrical installation is being performed by my employer, Eagle West Wind Energy.

Its a fantastic thing to be involved with.  Each Vestas turbine now standing (there will be 84 by the time we are finished in early November) stands like a sentinel for a more sustainable future.  It’s a literal metaphor, as the Paintearth and Vesta (I know coincidence right?) coal mines, and Battle River coal power-plant  lie within sight just a few kilometers away, and the turbines suddenly appearing on the horizon captures the energy war now underway perfectly.

When complete Halkirk 1 will be Alberta’s largest single wind power property, capable of churning out enough electricity for about 45,000 homes.  Alberta, long disparaged as overly reliant on fossil fuel energy, will with this project surpass 1,000 megawatts installed and over-take Quebec as the Canadian province with the second highest wind power capacity behind Ontario.

I have joined an electrical terminations crew.  We work from top to bottom, completing the majority of the necessary electrical connections between the tower’s various systems.  The day begins for me with a 5 minute climb 80 meters up the ladder to the nacelle, where wiring for communications as well as the main power transformer are completed.  We then climb down, stopping at several platforms to hook up lights and plugs.  In the “cellar” and the main floor is where the lion’s share of work remains, with everything from grounds to elevator power.  Then on to the next tower asap, as the project, now about 8 months in construction, races to complete before winter begins.

This project marks an important turning point for the Terra1 journey, as I work to complete an electrical apprenticeship and introduce a renewable energy trades service to the agency.

Other Wind news:

Canadian wind and solar associations join forces to power 2013 conferences

Business leaders urge US Congress to extend imperiled wind tax credit

World’s largest wind-farm, the London Array under construction

Food Security; The Ultimate Investment

The current drought in the US Midwest has captured media headlines and brought the world’s most pressing issue home to the comfortable North American super-market society.  What has been prophesied by population experts and climate scientists is coming to bear; our traditional food producing practices are being challenged to meet our most basic of needs.  As this problem continues to grow, capital and innovation will without a doubt be compelled to act, not only to make financial gains but to build a more resilient and reliable food security system.

Increasingly, the case for combining renewable energy and sustainable agriculture is coming to the forefront.  Projects such as New Global Energy’s aquaculture and energy model in southern California are an excellent example.  Launching in September, the Sustainable Resources Fund seeks to provide investors exposure to agriculture, forestry and agroforestry opportunities (please contact Terra1 to learn more about these investments).

To 2013 in Canada, government funding is available to assist farms that wish to integrate renewable energy into their operations.

Many projects in the developing world are moving into this synergistic model, using Agroforestry, which seeks to apply basic permaculture principles to integrate inputs and outputs, and agriculture and forestry, thereby achieving sustainability in addition to higher yields.

In addition to climate and peak oil related pressures, an aging population of farmers is adding an extra level of urgency. Younger generations need to begin taking very seriously the importance (and profitable right livelihood) of a career in agriculture or its related niches. An excellent recent article at Alive Magazine describes this demographic struggle, and includes a selection of  training resources.  It also refers to this Canadian Fed of Independent Business report, Fostering Ag Competitiveness, published June 2012.

A recent article by Paul Farrel at Marketwatch actually introduces the business readership to the concept of Permaculture, which blew my mind.  Perhaps there is hope after all for a marriage of sustainable capitalism and ecologically-responsible resource security.

EVs Abound!

The electric vehicle revolution may be here, it appears, possibly.  Bloomberg reported in May that US 2012 Q1’s total sales of hybrids, plug-in hybrids and straight EVs outweighed all of 2011 sales combined.  Is critical mass fast-approaching for electric mobility?  Its hard to judge by sales numbers alone. Stats now report 2012 Q2 as relatively weak in all-electric sales in the US.

There is at last today a healthy menu of available models, from funky kit-cars to the GM Volt and all-electric Ford Focus.  Federal and state incentives to help carry the cost remain available to consumers.  Charging stations are beginning to pop up hither and thither, some capable of a full recharge in only 10 minutes. 

The more courageous investors have had their hand in bringing this about.  What most are still wondering is “is now the prime moment to jump in and enjoy the ride?  Or is it another false wave of optimism”?  It is a bit of a self-fulfilling prophecy, either way.  Jump in, whether as an investor or motorist, helps it happen.  Or, stay away (worst-case scenario, in droves), and inadvertently let the effort sputter and die.

The biggest driver of course is the end of cheap oil, as well as its negative environmental and social impacts.  Though prices may be temporarily depressed due to economic turmoil, the law of supply and demand is a fierce one.  The medium to long-term trend for electric vehicle applications are both common sense and and extremely exciting.

Beyond the importance of consumer and investor support, there are questions that utilities need to tackle now, to help the scenario evolve on the logistical side.  A recent RenewableEnergyWorld article describes the challenges and opportunities.

An opportunity for investors may be presenting itself in the form of Green Automotive, a publicly-listed company that has just signed a merger contract with the UK’s Liberty E-Cars.  The deal allows both companies to further expand their efforts to lead conversion and distribution efforts.  The flagship vehicle is Liberty’s 100% electric Range Rover, dubbed the E-Range.

Rio

Do you remember the original Earth Summit in Rio, and society’s first modern wave of green thinking?

Archived summary of the original event, with reference to Canadian national context (1992)

Leaving aside commentary, this post is a short reference for reading concerning the current Rio 20 activities and resources.  Extensive selection of pdf publications here made available here.

Well-referenced article from Paula Alvaro at Treehugger.com, providing a list of probable focus areas and outcomes around the 2012 event  What to Expect from Rio+ 20

What is certain is that this pair of events mark epic environmental milestones in humanity’s evolving global consciousness, and whether we succeed in abandoning fossil fuels and scarcity/competition models of growth, while erecting a dynamic new model of sustainable development, or we fail spectacularly to prevent an apocalyptic reset, leaving our children to resiliently pick up the pieces… What is certain is that the Rio events symbolize the very best of our collective intentions.

Post-event note: Rio +20 has officially been panned, deemed a failure in the scope of outcomes.  The non-binding pledge of $500B+ means little in the absence of winning spirit and common interest.

Our Renewable Resource Economy; The Future is Now

The current economic paradigm has lost its way, outlived its usefulness, become obsolete, ran the race to the bottom, and reaped its diminished returns.  Its once unassailable advocates, the traditional mega-corps, central banks and high net worths, are feeling the nausea, and sensing an impending defeat.

The question remains; which way forward for a sustainable economic renewal, and the viability of tomorrow’s human societies?  As certain industry trends clearly have demonstrated over the past ten years, the answer is indisputable.

Sustainability, renewable resources and clean technology, reducing emissions, reducing fossil fuel dependency, coupled with bio-regional growth and development planning strategies, are the most promising path forward.

US coalition of RGGI states slash emissions by 20%+ while increasing GDP  ClimateProgress.org, Environment New Jersey, June 2012

2011 global trends; record $257B invested in renewable energy, fuels Bloomberg, UNEP, Frankfurt School, June 2012

Giving Redd+ Life; Integrating REDD+ with Broader Development Goals;        The Forest Dialogue, May 2012

California green jobs economy 3x faster growth than status quo  Published by Next10, Jan 2011

SRI (Sustainable & Responsible Investment) now $3 trillion in assets under management  The Forum for SRI, March 2012

The Sustainable Resources Fund

Seeking an opportunity to invest in a diversified fund dedicated to sustainability?  Consider the Sustainable Resources Fund, managed by Alpha Wealth Management, with advisory services provided by our associate Michael Young at Sustainable Capital.

The fund offers exposure to sectors like forestry and agriculture, investing in related elements such as biomass, carbon, farmland, food crops and biofuels.  Its target annual return is net 15%.  Additional benefits include reduced CO2 emissions, capital support for sustainable economic development, and improved livelihoods at the community level in which the funds projects are located.

A shariah-compliant sub-fund to the Amiri Shariah Investment Platform, the Sustainable Resource funds provides both Western and Islamic investors with a very high measure of ethical integrity.

Michael Young, Sustainable Capital:  “The primary objective of this fund is to provide capital growth by investing in a portfolio of forestry, agriculture, biomass, farmland and other sustainable resource assets globally.  There is a strong ethical case for allocating capital to the sustainable resources sector.  The commercial and portfolio diversification benefits makes investment in sustainable resources, via a regulated fund, increasingly compelling”.

Terra1 Capital Resources

In an effort to better represent projects across several important sectors, we are rebranding as Terra1 Capital Resources.  Its still about One Planet, with an eye towards environmental forestry, clean technologies, and sustainable agriculture.

Stay tuned as we announce other news shortly!

A trip through Aquaculture country

Thermal Farm, GETG’s first acquired property, is managed by Aqua Farming Tech, a 17 year producer

California – In the semi-desert and fertile crescents of the Coachella Valley and not far from the city of Palm Springs on the shores of the Salton Sea, a cluster of farms have been providing California markets with fresh seafood for years.  Limited water licenses have been tapped, enabling flows of geothermally warmed water perfect for raising tropical and semi-tropical fish.  Tilapia, catfish, sable, and shrimp teem in the carefully monitored on-shore tanks that mark a California aquaculture operation.

In recent years, the spiking costs of energy, coupled with cutbacks in consumer spending, have made it difficult to run these farms at optimal margins.  Now, one company is seeing an opportunity and acquiring select farms with the intention of becoming, quite literally, a big fish in a small pond.  Global Energy Technology Group has identified a niche opportunity to couple aquaculture with solar energy generation and biofuel crops, both of which enjoy ideal conditions in the southern California sunshine.  Now, the company is about to go public, creating a special window of opportunity for private shareholders.  See the company’s filing on Nasdaq.

Contact TreePower for more information on obtaining equity positions in the company.

2012 Forest Carbon Outlooks

This is taken directly from ForestCarbonPortal’s article of collected comments from leaders in the forest carbon industry, speaking about their views and hopes for the year ahead.  Visit their page to get the full comments, plus links to all companies quoted below.

David Rokoss, ERA Ecosystem Restoration Associates:  “The continued progress of REDD…where additional project validations/verifications will demonstrate REDD as viable and robust…”

Mike Vitt, 3GreenTree Ecosystem Services:  “I think the biggest theme in the space in 2012 will be California leadership into creating a compliance market for NA forest projects, which will break critical ground for WCI (i.e. BC, ON, QC action) and set clear demand and pricing…”

Steve Ruddell, CarbonVerde LLC:  “Agricultural Roundtable Standards will be used to take deforestation out of supply chains for corporate agricultural commodity buyers, while providing additional revenue for producers from carbon credits…”

Jonathan Shopley, The CarbonNeutral Company:  “First sales of RMUs Impact of first verified REDD+ credits on price and demand in VCM — whether fears in the market that REDD+ will flood and kill prices comes true..?”

Mary Grady, American Carbon Registry:  “Based on 2011 announcements of Norfolk Southern’s investment in offsets from ACR-registered GreenTrees project and Chevrolet’s investment in the ACR-registered National Forest Foundation San Juan National Forest project, we expect to see a marked increase of registered U.S. and international projects…”

The International Forest Carbon Association:  “While the forest carbon market will remain difficult against the backdrop international economic and financial weakness in 2012, the development of national and regional compliance schemes will see growing demand for forest carbon assets, particularly in Australia and, dependent on further rule-making, California and Quebec…”

Nick Oaks, Global Canopy Program:  “The voluntary carbon markets are likely to keep growing in 2012, mostly thanks to growing interest in REDD, which will also have an increasing proportion within the voluntary carbon markets…”

Gena Gammie, Forest Trends:  “As the first REDD VCUs enter the market, and as many more big projects are expected to be verified in 2013, the market’s response to a big influx in supply will be in the news…”

The kicker, if perhaps gloomy, does point to the need for human societies and markets to recognize the global need for healthy forests and sustainable forest-based resources, and value them accordingly, regardless of the inaction or backsliding at the political level:

“Who will buy? There is more clarity on the role of markets to curb deforestation…but who will buy future credits if national emission reduction goals are so weak..?”   -Anonymous