I find this one interesting.
Be sure to read the last paragraph in my post, and everyone needs to read the entire article at the link provided at the end. What's that old line? Follow the money.
As reported by the Associated Press:
"Gore, who won the Nobel Peace Prize last month for his work on climate change, joins Kleiner Perkins Caufield & Byers as it and dozens of other venture firms expand into so-called ‘clean-tech' investments worldwide.
...Also Monday, Kleiner Perkins partner John Doerr announced he's joining the advisory board of Generation Investment Management(GIM), the $1 billion investment firm that Gore founded with David Blood, who previously managed $325 billion in assets out of Goldman Sachs' London office. Doerr is one of Silicon Valley's most outspoken clean-tech advocates."
From HumanEvents.com:
The Money and Connections Behind Al Gore’s Carbon Crusade
by Deborah Corey Barnes
10/03/2007
...
Gore’s Circle of Business
Al Gore is chairman and founder of a private equity firm called Generation Investment Management (GIM). According to Gore, the London-based firm invests money from institutions and wealthy investors in companies that are going green. “Generation Investment Management, purchases -- but isn’t a provider of -- carbon dioxide offsets,” said spokesman Richard Campbell in a March 7 report by CNSNews.
GIM appears to have considerable influence over the major carbon-credit trading firms that currently exist: the Chicago Climate Exchange (CCX) in the U.S. and the Carbon Neutral Company (CNC) in Great Britain. CCX is the only firm in the U.S. that claims to trade carbon credits.
CCX owes its existence in part to the Joyce Foundation, the Chicago-based liberal foundation that provided $347,000 in grant support in 2000 for a preliminary study to test the viability of a market in carbon credits. On the CCX board of directors is the ubiquitous Maurice Strong, a Canadian industrialist and diplomat who, since the 1970s, has helped create an international policy agenda for the environmentalist movement. Strong has described himself as “a socialist in ideology, a capitalist in methodology.” His former job titles include “senior advisor” to UN Secretary General Kofi Annan, “senior advisor” to World Bank President James Wolfensohn and board member of the United Nations Foundation, a creation of Ted Turner. The 78-year-old Strong is very close to Gore.
CCX has about 80 members that are self-confessed emitters of greenhouse gases. They have voluntarily committed themselves to reduce their emissions by the year 2010 to a level 6% below their emissions in 2000. CCX members include Ford Motor Company, Amtrak, DuPont, Dow Corning, American Electric Power, International Paper, Motorola, Waste Management and a smattering of other companies, along with the states of Illinois and New Mexico, seven cities and a number of universities. Presumably the members “purchase” carbon offsets on the CCX trading exchange. This means they make contributions to or investments in groups or firms that provide forms of “alternative,” “renewable” and “clean” energy.
CCX also has “participant members” that develop the carbon-offset projects. They have names like Carbon Farmers and Eco-Nomics Incorporated. Still, other participant member groups facilitate, finance and market carbon-offset projects to “sequester, destroy or displace” greenhouse gases. CCX aspires to be the New York Stock Exchange of carbon-emissions trading.
Along with Gore, the co-founder of GIM is Treasury Secretary and former Goldman Sachs CEO Hank Paulson. Last September, Goldman Sachs bought 10% of CCX shares for $23 million. CCX owns half the ECX, so Goldman Sachs has a stake there as well.
GIM’s “founding partners” are studded with officials from Goldman Sachs. They include David Blood, former CEO of Goldman Sachs Asset Management (GSAM); Mark Ferguson, former co-head of GSAM pan-European research; and Peter Harris, who headed GSAM international operations. Another founding partner is Peter Knight, who is the designated president of GIM. He was Sen. Al Gore’s chief of staff from 1977-1989 and the campaign manager of the 1996 Clinton-Gore re-election campaign.
Like CCX, the ECX has about 80 member companies, including Barclays, BP, Calyon, Endesa, Fortis, Goldman Sachs, Morgan Stanley and Shell, and ECX has contracted with the European Union to further develop a futures market in carbon trading. What’s in it for the companies? They will benefit either by investing in carbon credits or by receiving subsidies for doing so.
Front and Center
Clearly, GIM is poised to cash in on carbon trading. The membership of CCX is currently voluntary. But if the day ever comes when federal government regulations require greenhouse-gas emitters -- and that’s almost everyone -- to participate in cap-and-trade, then those who have created a market for the exchange of carbon credits are in a position to control the outcomes. And that moves Al Gore front and center. As a politician, Gore is all for transparency. But as GIM chairman, Gore has not been forthcoming, according to Forbes magazine. Little is known about his firm’s finances, where it gets funding and what projects it supports.
We do know that Goldman Sachs has commissioned the World Resources Institute (affiliated with CCX), Resources for the Future, and the Woods Hole Research Center to research policy options for U.S. regulation of greenhouse gases. In 2006, Goldman Sachs provided research grants in this area totaling $2.3 million. The firm also has committed $1 billion to carbon-assets projects, a fancy term for projects that generate energy from sources other than oil and gas. In October 2006, Morgan Stanley committed to invest $3 billion in carbon-assets projects. Citigroup entered the emissions-trading market in May, and Bank of America got in on the action in June.
Some environmentalist groups disparage Gore and his investment banker friends. They say the Gore group caters to others who share their financial interest in the carbon-exchange concept. The bulletin of the World Rainforest Movement says that members of a United Nations-sponsored group called the Intergovernmental Panel on Climate Change (IPCC) stand to gain by approving Gore’s carbon-trading enterprise. The IPCC has devised what it says is a scientific measure of the impact of greenhouse gases on global warming. In fact, the critics charge, the IPCC sanctions a mechanism that mainly promotes the sham concept of carbon exchange....
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full and very interesting article)