Green Gold?

Danish academic Bjørn Lomborg, named by The Guardian UK this year as one of the 50 people who could save the planet, has argued for a tenfold increase in research and development into non-C02 –emitting energy technologies. For the sometimes controversial “skeptical environmentalist,” the solution is not to merely reduce our carbon footprints, it’s about ultimately phasing out fossil fuels altogether. It’s a mantra that even U.S. President George W. Bush seems to have gotten on board with. Over the last few years, W. has been touting the virtues of biodiesel, variously made from corn, vegetable oils and animal fats, which can be blended with regular diesel fuel.

There’s certainly a buzz about the potential value of alternative fuel, says Kelly Morris of Morris Financial Group, but he warns that this investment theme is still in its infancy, and will thus be subject to many more years of growing pains. For the investor, this means higher initial investment, less liquidity, and more risk given the conspicuous lack of well-diversified product. Nonetheless, Morris says that industry analysts are generally optimistic about the investment possiblities. What he cautions green (pun intended) investors not to do, is compromise their risk tolerance or stray far from their existing financial plan.