THE ECONOMIC CYCLE I subscribe to the 18-year economic cycle theory. I studied Behavioural Finance during my MBA and then completed my Thesis on The Cycle of Investor Emotions. As such, bearing in mind that we remember the last 3 years most clearly, it is no surprise to me that reliably, about every 7 years we (the human race) get ahead of ourselves and every 14 years, every significantly ahead of ourselves. Most of these shocks start with a crisis of confidence, maybe a fear of heights, but the crisis of confidence is based on some factor or another and at this point [...]

$2.5 trillion of global financial assets are at risk from the effects of climate change, according to a report. The report, produced by the London School of Economics and Political Science (LSE), the Grantham Research Institute and Vivid Economics, looks at the value at risk (VaR) associated with financial assets should global temperatures increase by 2.5°C by 2100. This warming figure is believed by the report’s authors to be the ‘business-as-usual’ emissions path if all of the commitments made at December’s landmark Paris agreement are implemented. The summit concluded with an agreement to limit global warming to 2°C but the commitments made [...]

Bank of America has formed a new partnership within its Catalytic Finance Initiative (CFI) that aims to direct $8 billion to "high-impact sustainable investments". Partners joining the initiative include investment manager AllianceBernstein; Babson Capital Management (a subsidiary of insurance company MassMutual); Credit Agricole; the European Investment Bank; HSBC; the International Finance Corporation; and Mirova (a subsidiary of French bank Natixis). All have pledged capital and expertise to develop "innovative financing structures" for investments in clean energy and other sustainability focused projects. In addition, several long-term institutional investors within the recently-formed Aligned Intermediary group, will collaborate with the partnership on specific investment opportunities. The [...]

Bill and Melinda Gates released their annual letter this week. In it, the two discussed the two super powers they wished they had: More energy More time The following excerpt from Bill's letter explains their justification: More energy! When we sat down to write this year’s letter, those answers stuck with us. Sure, everyone wants more time and energy. But they mean one thing in rich countries and something else entirely when looked at through the eyes of the world’s poorest families. Poverty is not just about a lack of money. It’s about the absence of the resources the poor need to realize their potential. Two [...]

The Thompson Reuters Carbon Market Survey 2015 has now been released. Read the results here on the 350PPM site: Read the Thompson Reuters Carbon Market Survey 2015