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Green Tech flounders following Copenhagen debacle

Green Tech flounders following Copenhagen debacle

Wanaka, New Zealand – December 23, 2009 – The Copenhagen Climate Convention failed to achieve a legally binding agreement for all countries to work together in order to reduce carbon dioxide emissions. This sent a strong message to the economic world that green investments would not have the political or economic support leading into the New Year, causing a fall in the price of carbon credits and a boom in heavy polluters such as oil and coal.

“The financial implications from COP 15 are devastating. Without setting a high price on carbon, clean energy and technology cannot be financially justified for big businesses and investors. The recent data that has unfolded this week proves that because a deal was not met in Copenhagen, big polluters will still have a free ride,” said CEO of Logic Fund Management, Greg Marshall.

Early this week the EU Carbon Market fell 8.7% to 12.40 Euros per tonne. In Australia, AGL Energy announced that the proposed $800 million wind farm may not go ahead due to a collapse in price for renewable energy certificates. Further more; the Australian ETS is facing criticism from big business because of Australia and New Zealand are among few of the countries with an ETS, which may hurt business and taxpayers if not structured carefully.

On the other hand big polluters such as Macarthur Coal (MCC) put a deal on the table to takeover Gloucester Coal Corporation (GCL), in aims to achieve market leadership as Australia’s top coal producer.

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“The proposed transactions will create a great Australian coal company,” stated the MCC Chairman, Keith DeLacy. GCL is up 25% on the Australian share market as of Wednesday.

“Although investment opportunities in heavy polluters are more economically attractive now, we have chosen to focus on the recent developments in the natural gas industry, specifically those of Exxon Mobil. We see this as a huge opportunity especially one for North America as the adaptation to cleaner energy becomes more economically favorable,” said Mr Marshall.

Exxon Mobil recently acquired XTO Energy Inc. which is a Tex-based natural gas production and refinement company. Exxon paid a 25% premium in an all share buy out equating to a $31 billion deal, which immediately caused price increases to stocks industry-wide. Exxon has been steadily increasing its natural gas reserves globally; this is illustrated through a recent deal to supply Japan with $15 billion worth of natural gas and the recent acquirement of natural gas reserves in Africa.

“We didn’t think Australia and New Zealand’s Emissions Trading Scheme’s were among the most progressive heading into Copenhagen, but after the fact, it appears as though we may be have some of the worlds most progressive laws in place for reducing green house gas emissions,” stated Mr Marshall.


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