Sales Are Up

Automobile sales are down across the markct. But Toyota and Honda are gaining market share in tough economic times. Over all auto sales are down 14.5% compared to June one year ago. Because of Prius sales Toyota’s sales are down 11.4%. Honda’s Insight has held them up to only a 7.1% decrease in sales. The point is that while many manufacturers continued to invest SUV’s because of the high margins they failed to make inroads into the hybrid market. The challenge for struggling auto makers is now to make investments when cash is tight maybe even nonexistent.

Here we go into a new green economy. For those who say that moving to an economy that emphasizes the changes that will preserve the environment, I say look at the companies  that are surviving in the most challenging environment in 80 years. Our present situation  will reward those that are willing to make drastic change. The challenge is choosing the right emerging technology. But those that stick there heads in the sand are bound to fail.

copenhagen in december

The world governments are taking global warming seriously. Members of the Major Economic Forum are considering halving their carbon emissions by the year 2050. Considerations of developing nations such as China are being considered. This level of cooperation is unprecedented on this issue. There are many issues to tackle in our environment but global warming has to be on the top of the list.

The UN will sponsor the Climate Conference  in Copenhagen in December. The goal of that conference will be to secure an international pact on global warming. The issues addressed by the members of the MEF go along way to lay the ground work for an agreement. It is important that developing nations such as China are finding common ground with nations like the U.S. The biggest challenge will be to bridge the gap that emerging economies face because they are heavily dependent on fossil fuels as they becoming viable players in the world economy. They are faced with the challenge of taking there societies from a state of poverty to viable economies and keep global warming on their radar screen. Only international cooperation can achieve a solution. More advanced economies are going to asked to take on the major commitments of CO2 reduction early on allowing the developing economies more time to reduce their dependence on fossil fuels.

With the expected U.N. climate deal in Copenhagen this December the emerging market of carbon credits could be the saving grace for the remaining Mexican rain forests.  Mexico has less than 10% of  its rain forests left. Uncontrolled population growth and the corresponding development have depleted the forests over the last two decades.   Now the subsistence activities of collecting fuel wood and agricultural clearing could threaten what rain forest is remaining.

But it is expected that participating countries in the U.N. Climate Change Conference in December will establish the use of carbon credits as a way to curb carbon emissions. Countries that emit more carbon than they should will be able to buy carbon credits from countries that have rain forests by paying to get the emerging countries to preserve their rain forests.

Mexico must make a choice. Should they develop their remaining rain forest or not. By introducing carbon as a commodity that a secondary market supports the choice becomes easier. They now can achieve economic gain by preserving the natural resource. Let’s hope all developing countries see the light.

Nestle Nespresso has committed to sourcing 80% of its coffee from sustainable farms by the year 2013. This is a great announcement. Nespresso is the premium coffee capsule division of Nestle. This commitment means they will double the present percentage of 40%. Nestle has instituted the AAA Sustainable Quality Program. The focus is on quality while balancing economic, social and environmental factors. Over 4500 Central American farmers benefit from this program.

The amazing part is that the Nespresso system has not penetrated the American market significantly. The over all benefits of the program will expand as the volume of sales increases. This is a program that can benefit all. The farmers, the workers, the consumer and the company. The next time we hear that the economy can’t bear the costs of going green we can use this as a shining example of green economic success.

I just read an interesting fact. Livestock accounts for 18% of the world’s carbon emissions. I have cut  back on eating red meat for my health. I have high cholesterol and high blood pressure. It only makes sense to eat more fruits and vegetables in order to prevent a heart attack or stroke.  So selfishly I have made changes to my diet.

Now in my reading about eco friendly issues I am finding that eating right is better for the environment. When all the effort to keep livestock as a food source is taken into account the environmental cost is extremely high. Just think about the clearing of the land for grazing, cultivating the feed and animal waste the e-costs are high.

So now when I’m eating my salad for lunch instead of the cheeseburger (one of my favorite foods) I will consider the positive enviromental impact. So now I can leave smaller carbon footprint.

This week we had a get together at our house. Our daughter graduated from high school and we had about 100 people come to the open house celebration. My wife worked tirelessly preparing food and getting the house ready. So it is fitting that we are working to have as little impact on the environment as we can. Our daughter has been the catalyst of change in our house. She is the one that has opened our eyes to issues like organic food, global warming and fair trade.

So some of the things we did for the party are we combined it with another family. So instead of two parties there was one. We have been friends with the other family for 10 years and it was really fun to work together. We are being very conscience of the waste. We are making sure that we recycle as much of the refuse as possible. I have literally been going through all the trash and moving as much as possible in the recycle bins.  The end of result is that we will recycle at least 75% of our waste.

Our daughter is the one that showed us the light. We have shared a car since she was 16 instead of us adding another vehicle to the family. I now take public transportation when I go to the airport. We eat better. We recycle more. We also have consolidated trips and buy organic food and use local markets. We understand that we can get “greener” every day. So I do this work, digging through the trash, with a smile on my face. What a pleasure.

Being interested in environmental issues can lead you to some pretty interesting places on the internet. Well one article I read today floored me. It stated that the heavier you are the more the you personally contribute to global warming. As a person that struggles with his weight I have heard lots of reasons that I should lose the extra pounds. These include heart attacks, stroke, cancer, joint pain, self esteem and many others. I get these comments from family, friends, acquaintances and it is all over the mainstream media.

Now I find out that I am not only a  burden to the scale but my extra large frame bears down heavily on the environment. Moving me from place to place takes extra fuel and therefore produces more carbon emissions. Obese people eat more than those who are not. Think of the environmental costs of feeding us. We already pay more for the large size fast food meals. More food is grown, processed and shipped in order to appease our large appetites. Now I’m feeling extra guilty for eating that double cheeseburger yesterday.

So in the end the larger you are the more you contribute to our environmental issues. So if you are heavy like me not only do you leave a deeper footprint in the sand on the beach you leave a larger carbon foot print on the planet.  So I better cut this one  short and go take a walk for my health and the health of the planet.

The new economy is going to bring about change.  We can argue about the causes of the economic collapse. We can blame banks for bad credit decisions, we can blame consumers for over spending, we can blame oil companies for driving the economy to the edge by hiking gas prices while making unprecedented profits, we can blame auto makers for being inefficient and out of touch with the marketplace. But in the end we are living in new economic environment. Changes are going to occur and we can either see them as positive or negative. To take it another step we can either see the oncoming changes as opportunities or the demise of the present.

If you believe that a green economy is the wave of the future now is the time to seize the opportunity. One example was made very clear in a blog published by Robert Ludvig as he states on March 15, “The survival of the auto industry is dependent on the the sale of cars run by electricity. The auto industry either fully adapts and creates automobiles that satisfy the needs of the green era or they perish.”www.futureofbusiness.info/ The message is simple. But depending on your attitude you can see this a threat to the norm or an opportunity knocking.

Robert J. Samuelson says in a op ed piece in the Washington Post on April 27 “Re-engineering the world energy system seems an almost impossible undertaking.” www.washingtonpost.com/wp-dyn/content/article/2009/04/26/AR2009042601515.html I know this an overused reference but so did landing on the moon in in 1961. But with a commitment from a President and a sense opportunities to be won we were on the moon in less than ten years. The difference between now and then is that we must make these changes in order for our planet to have a long term plan of survival. Mr. Samuelson then goes on to make an argument for not committing CO2 limits because they are unachievable. I go back to a Henry Ford quote, ” Whether you think you can, or that you can’t, you are usually right.”

The situation today requires an even deeper comittment. We “must” make changes and the current economic conditions should not be seen as impediment to change but as the launching pad for new opportunites in the battle for our planets survival.

The Obama administration has been relentless in its commitment to becoming a world leader on environmental issues. This week the U.S. House of Representatives is considering a 932 page bill that will set limits on carbon emissions. The administration wants to have passed legislation before the December United Nations Climate Change Conference in Copenhagen.

At issue is the cap and trade policy that the administration wants to advance. This would put a premium on the amount of carbon emissions that energy producers could emit by issuing permits. These permits could then be sold on the open market. Those that have permits and emit less than their permitted level could then sell these licenses to those that have the need to produce higher carbon emissions than their permitted level. This would encourage the advancement of technology that would reduce the need for these highly valued permits.

Opponents feel that this is risky because of the impact on the economy. The European Union, last week, sent signals that they had members that were wavering on the issue because of economic concerns. These concerns are legitimate, but they are unwarranted in the long run. This policy would essentially make carbon emissions a marketable commodity therefore placing economic value on the scarcity of the resource of a healthy environment. While this may change the focus of investment it will not take any economic resources out of the economy. Investment will shift to the area of highest returns.

The shift will be significant but it will also have almost immediate positive effects. For example bio fuel companies all over the world are poised to take a place in the market. The boost that this type of  legislation would give to these companies would be huge. They could become bigger than pharmaceutical companies were 10 years ago as far as attracting capital for research and growth.

Yesterday representatives from 16 different countries met in Washington D.C. to start work on a UN initiative to limit the effects of greenhouse gases on our environment. The countries represented produce about 75% of the world’s greenhouse gas emissions. The Obama admisinstration requested this meeting about month ago and other big greenhouse gas contributors like China and India agreed to attend.

The meeting was not meant to produce specific agreements but rather foster relationships between all interests so that an agreement can be reached at later meetings. These and other countries will meet in Copenhagen in December to review and revise the Kyoto Protocol. The Bush administration did not support the Kyoto Protocol siting the fact that it would be too harsh on the American economy and developing countries.

The good news is that the Obama administration is positioning themselves as a world leader on these issues. After the meeting U.S. Secretary of State, Hilary Clinton, offered “Climate change is a clear and present danger to our world that demands immediate attention.” 

There are going to be some very complex issues to deal with for the delegates in Copenhagen but the future of ouir planet could rest in their hands. The interests of developing conuntries as  well as those that are established can conflict. Economics will have to considered. But with the necessary changes will come economic opportunity. The challenge will be to strike the balance shares the opportunities and apportions the burdens equitably.