President Barack Obama Turns On The Environmental Engine
WASHINGTON, D.C. - This week's speech from U.S. President Barack Obama on "Energy and the Environment" put the world's environmental engine into top gear as he outlined proposals that will help all global economies start their progress out of the economic malaise rooted in the current financial crisis. Whether the message had come from Chinese President Hu Jintao, German Chancellor Angela Merkel, or any other world leader, it was the effort engaged by President Obama to initiate the U.S. Administration's Energy and Environment agenda in the direction of a global sustainable future that deserved all of the merit.
One of the key policy objectives announced this week by President Obama was that the United States will implement the 'road map' towards the achievement of an 80% reduction in greenhouse gas emissions by 2050. From an investment perspective, this commitment opens up huge global opportunities for the development of new environmental technologies in almost every industrial area, and it creates a 2050 planning benchmark from which all associative global transportation, energy policy, consumer goods design, and investment decisions will be made.
Also contained within the United State's Energy and Environment Agenda is a plan that 10% of the United State's Energy will come from renewable energy by 2012, and 25% by 2025. This will only further push the global drive towards wind, solar and geothermal energy, and hence massively increase the investment in these areas and the associative revenue streams. The challenge for U.S., Chinese, Indian, and European companies is to jump into the arena of environmental, economic, and technology progress more quickly than they have in the past, and to move their thinking towards Planet sustainability integrated with a long-term perspective towards corporate profit.
In the case of the United States, and other countries like Germany, France, and Japan, who have already started down the Environmental Economy path, the new developing green industries will create many jobs for them. The challenge for all the world's nations is to align themselves within a global economic formula that develops integrated global prosperity aligned with methods and technology development that cleans up the Planet.
The United Nations Climate Change Conference in December 2009, will bring all of the world's nations together in Copenhagen, Denmark to discuss the appropriate universal measures needed to start the reversal of the environmental destruction associated with Climate Change. Within new global environmental initiatives in Copenhagen may also be the means by which the global financial recovery starts to become solidified. This is because the work required to restore the health of the Planet is a minimum 200 years of global integrated effort, and there is so much work to do throughout the world once an integrated agreed international plan is achieved.
The challenge for the Copenhagen Conference is deriving the complex economic impetus formula and top-level environmental regulations that promote evenly distributed global financial progress amongst nations while at the same time restoring the Earth's environment. One of the simplest elements to adopt for each country at the Copenhagen Conference is a universal acceptance of the United State's recent 8050 agenda goal, an 80% reduction in greenhouse gases by 2050. This will also require a later agreement about the worldwide steps required to achieve this goal during the next 40 years.
The specific elements associated with achieving the 2050 goal will probably be determined in a later series of 2010 U.N. Enviro-Finance Summits after the United Nations meeting in Copenhagen. One of the key requirements of achieving global success by 2050 is the re-establishment of a majority focus on long-term investment mechanisms for equities and bonds, so that environmental energy projects have the appropriate backing, and so that financial success can be equated with long-term profitability horizons.
To achieve the 8050 goal, global financial analysts will need to move their focus to corporation's 1-year, 5-year, and 10-year corporate strategies and results. Financial regulations will need to exist that create significant reductions in the gambling and scam aspects associated with turnkey methods like uncontrolled shorting and ultra-leveraged trading, which is today comparable to shooting a torpedo into the global economy for the sake of a destructive profit shared by only a few.
The return to honest corporate accounting is essential, along with accurate figures, proper oversight, and the correct credit rating assignment. Reforms will only further support more inward investment and thus promote the global recovery - the status quo will no longer support economic growth.