Like almost everything else, capitalism has turned global warming into a business. Companies both small and large are profiting from this controversial and somewhat daunting time when climates are changing and effecting the entire world around us. Here are ten businesses that are capitalizing on global warming by taking advantage of the effects of climate change.
1. Carbon Credits
Carbon credits are a somewhat complicated business, and less effective than they might sound. On a smaller scale, individuals can buy carbon “offsets” - the price of which is determined by the carbon footprint they leave by flying, driving, or using electricity - which dedicate their purchase amount to programs that work to counteract carbon emissions. On a larger scale, companies can buy carbon credits - or may be required to - in order to offset the harmful effects of producing greenhouse gases as a consequence of coal production or other processes.
However, purchasing carbon credits or offsets can be easily manipulated and is often abused. In India and China, companies realized that they could actually game the carbon credit business to increase profits by increasing the amount of harmful gases they produced and, therefore, the need for more carbon credits. This self serving cycle of profit pushed less polluting products out of the competition and even gained political influence that would support the truly non-existent need for their own carbon credit business.
Another scam offers worthless, small amounts of carbon credits as an investment at a high price, and has unfortunately weaselled millions of dollars from (mostly elderly) people who just don’t know any better.
2. Air Conditioning
As temperatures around the globe continue to rise at a record pace, air conditioning businesses are profiting from the increasing need to keep apartments, houses, and offices cool. The last two decades were the earth’s hottest in the past 400 years, and cities like New York and Atlanta are expected to get hotter by 3 to 8 degrees fahrenheit by the end of this century.
The Verge interviewed John Staples, president and CEO of US Air Conditioning, who noted that air conditioning was especially crucial in hotter areas such as Arizona, where people may be “forced to go to a motel to sleep” if the air conditioning should go out overnight.
3. Flood-Proofing Businesses
As the temperature rises, so do the water levels - melting glaciers and Arctic ice combined with an increase in violent tropical storms means more flooding for coastal areas such as California and New York City. The Verge points out that another business profiting from global warming is that of flood proofing; “invisible” flood walls that can be put up and taken down in short periods of time to prepare for flooding and cost US$100 per square foot, flood insurance, barriers, and waterproof coverings are all products whose demand will continue to increase alongside global warming’s severe effects on the planet.
4. Shipping Through The Melting Arctic
Companies like Beluga Freight, which specialize in moving extremely heavy materials such as multi-ton wind turbine machinery, are capitalizing on global warming by taking shortcuts right through the melting Arctic. Less glaciers means a safer route along the coast of Russia, which was previously impregnable without the help of an icebreaker, a ship which travels ahead of the cargo and smashes through the ice to create a safe passage. Beluga shipping is estimated to be saving US$300,000 per trip by using this route along the Northern Passage instead of navigating through the Suez Canal, the 11,000 mile trip they were used to. Nordic Bulk Carriers claims to have saved one third of its shipping costs thanks to this new route.
5. Smart and Hybrid Cars
Ford, Honda and General Motors are all capitalizing on global warming with their influx of smart cars and hybrid cars, vehicles designed to reduce carbon emissions and whose fuel efficient methods of operation eliminate the need for costly gasoline. These vehicles are ready to begin turning huge profits if oil should become too sparse and expensive, but are already increasing sales for these companies right now, just from consumers who are concerned with global warming and reducing their contributions to it.
6. Weatherbill
Weatherbill is a relatively new start-up that provides weather insurance to individuals and businesses for specific events or periods of time. Just punch in your location and dates and you’ll receive a quote that predicts the weather for that area for the next two years and includes a price based on that information. Wired notes that in the past three years Weatherbill has been in existence, extreme weather events have increased 8%. Whether the insurance is needed for a week-long outdoor convention or to insure a farm during crop season, Weatherbill is one particularly clever way for a business to capitalize on global warming.
7. Climate Change Consultation Firms
Climate change information and consulting firms are turning a profit by offering services which help both the wealthy and large corporations by estimating the ways in which climate change will effect the futures of both. Wealthy investors may be encouraged to invest in farm land in Australia, predicted to become more valuable as temperatures continue to rise, and corporations may be advised on disaster preparedness and provide sustainability strategies.
8. Monsanto
It’s no surprise that Monsanto, repeatedly voted the world’s most evil company year after year, is capitalizing on the sad and daunting state of global warming which they largely contributed to with their unethical and negligent practices.
Monsanto already has 55 “climate ready” seed patents to prepare for global warming. These seeds are able to thrive in dire weather conditions such as droughts and extreme temperatures. These climate ready crops have their perks, but the ETC warns that “The pretext of climate-ready genes will increase farmers’ dependence on GM crops, jeopardize biodiversity, and threaten global food sovereignty.”
9. Weather Derivatives
Weather derivatives are a complicated financial tool that basically amount to a rich investor’s make believe way of capitalizing on global warming by using these derivatives to predict weather conditions and create risk management strategies surrounding them. Though farmers can use weather derivatives to hedge against poor weather conditions which may ruin crops, it’s difficult to price these derivatives…and the weather itself.
But that isn’t stopping large corporations such as Nephila Capital from capitalizing on weather derivatives; the company just sold a 25% to a company called KKR for a whopping US$8 billion.
10. Consumer Guilt
As global warming effects the weather, the livelihood of wildlife living in effects areas such as the Arctic and the coral reefs, and temperatures worldwide, people are beginning to feel more and more guilty about the ways in which they may be contributing to global warming - however big or small. Air conditioning, electrical usage, driving a car, taking a flight… Those who wish to go green are trying to come up with innovative ways to give back to planet earth.
But they don’t have to try too hard, because many big businesses are doing the thinking for them by coming up with inventive ways individuals can help counteract global warming by purchasing their services. The carbon credit scam is a perfect example of this, but there are also more (sometimes marginally) legitimate ways businesses are garnering profits by capitalizing on consumer guilt. From eco-friendly packaging to energy efficient products (LED and solar lights, for example), there’s a lot of money to be made from global warming.
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