Further Support for Greenhouse Gas Regulation
Banks, insurers and institutional investors are now estimating trillions of dollars in financial risk posed by climate change and are demanding that companies in which they have ownership or that they insure calculate risks associated with climate change and are requiring that companies modify their business plans to mitigate risk. CEO's are beginning to understand why climate change is important as scientific data translates into business realities of "efficiency investment" and "material risk". This is compounded by the fact that the public has basically accepted that global warming is a reality. Cutting energy use and greenhouse gas emissions can actually improve the bottom line and lead to new business opportunities, while also enhancing companies' reputations.
Insurance companies are astounded by the elevated bills they now paying to cover their clients' damages from hurricanes, floods, fires, hailstorms, disease, heat waves and crop loss. Many scientists believe that higher temperatures are causing more intense storms and extreme weather events. In October of 2006, Fox News poll found that 77% of Americans believe global warming is occurring and 76% of those that believe say that it is partly due to human activity.
Greenhouse gas reductions are now even becoming trendy and a number of States are beginning to pass their own legislation in an effort to curb GHG emissions. This has also caught the eye of business leaders, because they are concerned that their companies are required to abide by a patchwork of state regulations rather than a consistent set of federal standards. Cinergy, BP, Chevron and a number of other companies that emit large amounts of carbon dioxide are investing significant quantities of money in preparation for a "carbon-constrained" world.