Sep 072017
 

Whoa, climate change? On a finance blog? Yep it’s come to this. First, lets get this out of the way. Is climate change real? Maybe, maybe not… Just kidding. It’s totally real and anyone who says otherwise has been reading too many blogs. I mean… well… this blog is fine.

Don’t believe in climate change? You are free to believe in whatever you want but the objective truth doesn’t change based on what you believe.

Anyway this article isn’t for climate science it’s about profiting from the inevidible!

 

You’re saying I can make an unethical buck profiting off the suffering of others?

Not exactly, we aren’t buying stock in cigarettes or leaded gasoline here. Based on my own research into climate change and seeing this emerging denialist attitude, it’s my opinion that the future planet is going to be warmer and there is nothing that you as an individual can do about it. Might as well watch the world turn to hell with a few extra bucks in your pocket.

Alright, I’m listening…

Before I start blindly listing energy stocks we need to define how the world will change as the climate warms. First, lets think of the worst case scenario where average temperature increase dramatically:

  • Hotter summers
  • Warmer Canadian winters (yay!)
  • Stronger storms
  • Rising sea levels
  • Water shortages (fewer glacial sources)
  • Crop failures/famine
  • Mass human migration away from the coast
  • Extinctions
  • Increased vegetation (from higher CO2)
  • Cats and dogs living together, mass hysteria!

Well that’s a scary list, except for #2. What kind of products and services might be in more demand in this new world?

  • Air Conditioners
  • Storm resiliency planning/construction
  • Storm recovery
  • Sunscreen
  • Moving/immigration services
  • Construction
  • GMO crops (resistant to climate changes)
  • Desalination
  • Energy efficiency
  • Green energy
  • Higher elevation land
  • Short shorts

As an engineer this list makes me excited. Lots of investment opportunity here. Finally lets rank them in terms of the greatest potential for short-medium term gain:

  1. Storm resiliency planning/construction
  2. Storm recovery
  3. Energy efficiency *
  4. Construction
  5. Green energy *
  6. Air Conditioners
  7. Sunscreen/short shorts
  8. Moving/immigration services
  9. GMO crops (resistant to climate changes) **
  10. Desalination *
  11. Higher elevation land

*These ones might have fantastic potential if a bright young person comes up with a miracle invention. Unfortunately we can’t rely on that for investing.

**If people weren’t so scared by GMOs this would be higher (especially those that don’t even know what GMO means)

Finally lets go through the points and identify some companies that provide these services:


1, 2, 4 – Storm resiliency planning/recovery/construction

 

Storms and flooding damaging coastal cities is one of the first things we’ll start noticing in the coming decades. Already Hurricane Harvey has flooded Houston and Irma is on its way. Lets find some companies involved in rebuilding and resilience:

Tetra Tech – TTEK – Consulting and Engineering services with lots of disaster planning and recovery services. Up about 19% in the past year

Ch2m (now Jacobs) – JAC – Also consulting and engineering with lots of resiliency work.


3 – Energy Efficiency

If and when energy costs get super high (kinda like they are in Ontario right now) energy efficiency consulting and related industries will be in high demand:

Ameresco – AMRC – Energy efficiency consulting. They’ve gone up 40% in the past year!


5 – Green Energy

(Solar powered electric chair)

People love green energy. Even the word sound pleasant. Green Energy…. mmmm. I predict the next couple decades will see the green energy industry flourish, especially with so many governments commiting to investing in green energy. One more time – Green Energyyyyy

WSP – WSP – All sorts of green energy design and construction. Up 18% in the past year


6 – 9 Other

The rest aren’t easy to invest in. But keep an eye out on sites like Frondfundr and maybe you can find a hidden gem. Buying high elevation property is a risky venture, but maybe you want to copy Lex Luthor in Superman and just buy the real estate that will become the waterfront in a few decades.

Hooray for greenhouse gases!

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