This week on the Hill, a group of the nation's religious leaders pushed for Congress to make sure the country's poor and most vulnerable are protected from the consequences of climate change.
Gathered in Washington were leaders from the U.S. Conference of Catholic Bishops, the National Association of Evangelicals, the National Council of Churches, and the Union for Reform Judaism.
And while these groups normally don't agree on much--not even on how to worship the same God--they've all bonded together to request Congress set an official reduction limit for greenhouse gas emissions.
It seems to me that an organization of such devotion could just take their case to the really High Court, but their earthly route certainly goes to illustrate a major point.
Greenness Is Next to Godliness
If that's really the case, then the world's leading banks are in the midst of a great religious awakening.
Even though major banks are still in the middle of massive mortgage and credit crises, they are still more than willing to lend to and invest money in the green and clean-tech industries.
According to Phil Spector of Troutman Sanders, "Banks consider renewable ventures to be well worth the upfront money. They are able to invest in green assets and achieve some public heroism while they make smart investments."
Wells Fargo has found a way in by backing solar energy initiatives by SunEdison that allow companies to avoid high initial costs for installing solar, while enabling them to purchase electricity at long-term prices that are frequently lower than many utilities' rates. Wal-Mart and Walgreens are some of the companies taking advantage of the program.
These types of projects are done through what is called a Power Purchase Agreement (PPA). A company (SunEdison) seeks out customers that want solar power (Wal-Mart). The company then gets financing to purchase and install turnkey solar systems on the customer's facilities. For its part, the customer agrees to a long-term PPA--usually for 15 years or longer.
The company makes money from the sale of power. The lender makes money from the interest on the loan. And the customer benefits by getting the advantages of powering their business with solar, without incurring the high upfront costs.
Yet without a national renewable portfolio standard (RPS), which would mandate that a certain percentage of the nation's energy needs be generated renewably, the number of companies looking to enter into PPAs cannot grow as quickly as the big banks would like, limiting the opportunities in this investment area.
But with green being so hot, big banks are looking for any way possible to get into it, including granting funding to projects they would have been avoided a few years ago.
The Race Is On
With renewables still making up only about 2% of the energy mix and oil all but straining to break the $100 barrier, alternative energy options are looking better than ever. And there's been a mad dash to buy up as much as possible.
You see, when oil rises like it has recently, renewable sources become that much more competitive in the eyes of investors, and the money starts flowing in their direction.
Let's take a look a just a few of the companies you've missed out on in the past month if you're not a green investor.
Solar has been one of the main benefactors of oil's recent ascendance. Yingli Green Energy Hold. Co. Ltd (NYSE: YGE) has gained 41.2% since the beginning of October, climbing from $27.30 to $38.57.
Suntech Power Holdings Co., Ltd (NYSE: STP) has risen hand-in-hand with oil for a 39.5% gain in the last month.
But it isn't just feast or famine. The geothermal stocks have been going crazy as well, including these gems straight from the Green Chip Stocks portfolio.
US Geothermal Inc. (OTCBB: UGTH) hit an all-time high of $4.78 this week after making an extraordinary gain of 68.9% for the month. That left our readers sitting on gains of well over 455%.
Making sure not to disappoint, the geothermal big boy, Ormat Technologies, Inc. (NYSE: ORA) reached an all-time high as well, touching $59.93 while rising nearly 30% for the month.
The bottom line is there are plenty of charts like this I can show you. But they just don't have the same meaning if you're not the one making the gains.
Oil is going to continue to rise. Climate change is going to continue to be an issue. And these problems aren't going to fix themselves on their own. It's going to take real solutions and trillions of dollars of investment. So why wouldn't you want to be a part of this financial megatrend?
Billions of dollars from investment banks can't be wrong. And if you want to consistently make the kind of gains I've shown in this article, you have to be a Green Chip Stocks subscriber.
No other service knows as much about the industry as we do. We're constantly sending updates and telling our readers how to profit from companies in a variety of clean-tech sectors.
And now we've got the nation's religious leaders behind us.
To take advantage of profits that are growing even faster than the price of oil, click here.
Until next time,
Nick
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Energy waste in America is horrendous and FIXABLE !
(1) We over heat and over cool our homes, businesses, offices, schools, churches, etc...
(2) 10's of millions of outdoor lights burn during the day.
(3) Most Americans do not minimize their driving.
(4) Over packaging is the norm. Recycling is inadequate . Our landfills are busier than ever.
(5) Road construction in America is the ultimate contradiction.
The ONLY way to reduce energy waste and over demand is by using the economics of taxing energy, in lieu of Federal Income Tax. UNTIL the price of gas is $6 to $8 per gallon, hedonistic America will not significantly reduce its over consumption and energy waste. Federal Gas Tax should be $4 to $6 per gallon and 'offset' by making Federal Income Tax begin at $60k.
ONLY with a tangible/dollar reward will America care to conserve.
In the mean time, the USA continues to 'give away' its economic and political wealth to the Islamic Middle East via OPEC, so we can continue our energy waste. Know that the Islamic dominated OPEC cartel is glad to allow supply and demand market forces to drive energy prices to $8/gallon. The Islamics, who want to annihilate us, will likely succeed; using our American 'gas money' to buy the weapons needed to do so.
China, India, and other 'developing countries' are just beginning to compete for the world's remaining energy supply. Geopolitical unrest is directly related to global competition for energy and natural resources. If global demand for energy is not dramatically reduced, World war is inevitable.
Ford and General Motors are headed for bankruptcy, which will leave 100,000,000 Americans unemployed, ruin our economy, and lead to anarchy. America can no longer continue to 'do business as usual'. Ford and GM need to transition to the lucrative business of building solar and wind 'energy producers' for the world's 6.7 BILLION people reason$. The world cannot continue to support all the automakers. We are running out of petroleum. Wake up !
Mass transit must reward those who reduce their driving and thereby become FREE, SAFE, CLEAN, and CONVENIENT. Only then, will significant numbers of people use it.
The ONLY workable means by which America can implement intelligent sustainable energy conservation, is by using the economic incentive of TAXING ENERGY - NOT INCOME!
The government over taxes us and wastes the money it receives. I say we end taxation on our incomes and energy and let the free market and peak oil create the incentive for us to conserve. Ron Paul rocks!