Soros Comes Clean to Shell Out One Billion

Billionaire George Soros’ is getting in on the climate saving act, with plans to invest US$1 billion in clean energy technology and another US$100 million to fund the newly-created Climate Policy Initiative, while Royal Dutch Shell Chairman Jorma Ollila is urging the US Senate to make clear progress on legislation capping greenhouse gas emissions before international climate change negotiations in December.

Mark Scott in Business Week (12 October 2009):

The upcoming climate talks in Copenhagen are less than two months away, and everyone is looking to throw in his/her two cents. On October 10, it was billionaire George Soros’ turn to get in on the act.

Giving a speech in Denmark, the man who famously ‘broke the Bank of England’ in the early 1990s now plans to invest $1 billion in clean energy technology. Another $100 million — doled out in $10 million increments annually over ten years — will fund the newly-created Climate Policy Initiative, a foundation targeted at environmental policy.

That’s a sizeable amount of cash, though Soros didn’t specify where the $1 billion would be spent other than saying ‘stringent conditions’ will be used to evaluate potential investments. And in an ironic twist, Soros, who made a sizeable chunk of his fortune through currency speculation, put his support behind carbon taxes, not cap-and-trade systems. His reason? Financial investors can too easily manipulate carbon markets.

Soros is wise to keep his cards close to his chest. With so much money on the table, potential deals could be given a ‘Soros premium’ if the billionaire focuses on a too-narrow clean energy brief. But some of his likes/dislikes are already known. Soros, for instance, has invested in clean coal technology, including Portsmouth (NH)-based Powerspan Corp that specializes in carbon capture technology.

Yet before we start speculating too much on where Soros will spend his cash, a word of caution is merited.

Other high-profile figures, such as T. Boone Pickens, have made similar promises of multi-million dollar investments. Often, though, their plans have come to nothing. That obviously doesn’t mean Soros won’t go ahead with his $1 billion scheme. But until concrete plans are announced, I’ll reserve judgment. As Rod Tidwell (from Jerry Maguire fame) once said: ‘show me the money.’

Indeed, the more important figure — for me — is $25.9 billion. That’s the amount of moneyinvested in green energy projects in the third quarter of 2009, according to New Energy Finance. After a shaky start to the year, investors are now more willing to fork out for clean energy projects. The gradual thawing of the credit markets certainly has helped. So have government-sponsored funds — like renewable feed-in tariffs or other subsidies for green technologies — that were included in global stimulus packages.

So with investment returning to the sector, maybe Soros has picked a good time to buy in. Other investors will keep a close eye where he puts his money.

Source: www.businessweek.com

From Hearst Newspapers (16 October 2009):

WASHINGTON — Royal Dutch Shell Chairman Jorma Ollila on Thursday urged the U.S. Senate to make clear progress on legislation capping greenhouse gas emissions before international climate change negotiations in December.

Although the House has passed broad legislation to limit carbon dioxide emissions, the prospects are murkier in the Senate where Democratic leaders have signaled that the issue may not be debated until next year.

In remarks at the National Press Club, Ollila suggested that Senate inaction could undermine negotiations on a global climate change pact.

“As the world prepares for climate negotiations in Copenhagen, we must see American leadership, backed by its own domestic actions on climate legislation,” Ollila said.

Ollila noted that “the U.S. is an important player” in the negotiations and that world leaders will be closely studying the Obama administration’s approach — as well as that of developing countries such as China and India.

The United Nations Climate Change Conference, set to begin Dec. 7 in Copenhagen, will consider plans to cut greenhouse gas emissions blamed for global warming.

The Obama administration had hoped it would have more leverage in the international negotiations with a congressional mandate for greenhouse gas reductions in the U.S.

U.S. businesses generally have said they want to see developing countries agree to similar greenhouse gas emissions cuts as part of any international agreement. Without similar commitments from China and India to impose limits and a price on carbon dioxide emissions, they fear, U.S. companies could be put at a competitive disadvantage.

Ollila said he has been encouraged by “a lot of very positive signals” from the leaders of India and China.

Ollila acknowledged that his comments — and Shell’s support of greenhouse gas emissions cuts — put him at odds with some lobbying by the U.S. Chamber of Commerce against climate change legislation.

In recent weeks, several companies, including Exelon and Pacific Gas & Electric, have severed ties or limited their connection with the chamber over the issue. Shell remains in the group, though Ollila noted that there was “a disagreement” over climate change.

Source: www.timesargus.com