A key finding released in London Accord research suggests that Carbon Capture and Storage (CCS) technologies will fail to play a major role in stabilising CO2 concentrations in the next two decades, due to the lack of price signals, plus missing technology and absent regulatory and legal enablers.
The report by Marc Levinson, an analyst at JP Morgan Chase, is part of London Accord, the largest ever collaborative investment research project by City firms and institutions.
Michael Snyder, City of London Corporation Policy & Resources Chairman and co-originator of the project, along with the City's Gresham Professor Michael Mainelli, of Z/Yen Group, said: "The project will help unleash the resources of the market to solve the CO2 problem by raising the quality of investment thinking and establishing sign-posts for the general investment community."
Investors should invest now, if they believe carbon markets are coming. Markets, and other government measure, could produce prices in the range of £30 to £40 per tonne of CO2. Investment portfolios can be constructed that produce attractive financial and 'carbon returns' at those levels - and beyond.
Energy investment is going to become much, much riskier - this is due to greater uncertainty over the pace of technological development, higher and more volatile prices for oil and gas - and uncertainty about the mechanism for the pricing of greenhouse gas emissions.
Forestry is a big unknown. There is a need to narrow the range of credible estimates for the real extent of abatement potential and the real costs of forestry project which mitigate greenhouse gas emissions.
The report by Marc Levinson, an analyst at JP Morgan Chase, is part of London Accord, the largest ever collaborative investment research project by City firms and institutions.
Michael Snyder, City of London Corporation Policy & Resources Chairman and co-originator of the project, along with the City's Gresham Professor Michael Mainelli, of Z/Yen Group, said: "The project will help unleash the resources of the market to solve the CO2 problem by raising the quality of investment thinking and establishing sign-posts for the general investment community."
Investors should invest now, if they believe carbon markets are coming. Markets, and other government measure, could produce prices in the range of £30 to £40 per tonne of CO2. Investment portfolios can be constructed that produce attractive financial and 'carbon returns' at those levels - and beyond.
Energy investment is going to become much, much riskier - this is due to greater uncertainty over the pace of technological development, higher and more volatile prices for oil and gas - and uncertainty about the mechanism for the pricing of greenhouse gas emissions.
Forestry is a big unknown. There is a need to narrow the range of credible estimates for the real extent of abatement potential and the real costs of forestry project which mitigate greenhouse gas emissions.
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