Posted on 14 November 2009 by admin
Goldman Sachs bought pieces of two carbon-offset companies.
- E+Co, a company focused on bringing clean power to developing countries, announced that Goldman had purchased a majority of its carbon-offsets portfolio.
- Goldman took a minority stake in BlueSource, which is more focused on the tiny offsets market in the United States, and plans to market BlueSource offsets to clients.
Goldman invested in APX, a California company that registers carbon offsets.
Goldman made early investments in other companies that stand to gain from cap and trade legislation.
- Wind power by investing in Horizon Wind Energy.
- Renewable diesel with Changing World Technologies
- Solar power by partnering with BP Solar exactly the kind of deals that will prosper if the government forces energy producers to use cleaner energy.
More recently Goldman purchased a 10% stake in the Chicago Climate Exchange, where coincidentally carbon credits will be traded.
Other demonstrations of investment banks’ interest in the offsets field include, Credit Suisse invested 44 million euros in EcoSecurities, an Ireland-based offsets firm.
JP Morgan bought ClimateCare, another offsets group.
Morgan Stanley took a 38 percent stake in MGM International, yet another such firm.
Banks buying into the offsets business could benefit if a federal carbon-trading system is introduced in the United States.
Posted on 14 November 2009 by admin
Goldman Sachs, JP Morgan, Morgan Stanley, Citigroup and the other Wall Street speculators are frontrunning the carbon trade.
Since these firms contributed so heavily to Obama’s campaign, they will exert enormous pressure on Obama to push a huge carbon trading program. As University of Maryland professor economics professor and former Chief Economist at the U.S. International Trade Commission Peter Morici writes:
Obama must ensure that the banks use the trillions of dollars in federal bailout assistance to renegotiate mortgages and make new loans to worthy homebuyers and businesses. Obama must make certain that banks do not continue to squander federal largess by padding executive bonuses, acquiring other banks and pursuing new high-return, high-risk lines of businesses in merger activity, carbon trading and complex derivatives. Industry leaders like Citigroup have announced plans to move in those directions. Many of these bankers enjoyed influence in and contributed generously to the Obama campaign. Now it remains to be seen if a President Obama can stand up to these same bankers and persuade or compel them to act responsibly.
The same companies that made billions off of derivatives and other scams and are now getting bailed out on your dime are going to make billions from carbon trading.
More to come later on what each bank is buying into.
