David Blood, who co-founded Generation Investment Management LLP with Al Gore, said investors should stop giving money to companies that don’t account for the cost of pumping carbon into the atmosphere.
“We’re still seeing businesses assume that there’s no price on carbon,” Blood, a former Goldman Sachs Group Inc. executive, said today at the Bloomberg New Energy Finance conference in New York. “Allocating capital to companies that don’t know the price of carbon is a bad investment decision.”
Deploying a carbon tax, opposed to implementing cap-and- trade initiatives, would be simpler, even accounting for economic differences between richer and poorer nations, Blood said. Politicians in favor of such measures should be more courageous in pressing for them, he said.
About a decade ago, many thought the capital markets alone could solve energy issues related to climate change, “but I think the lesson from the last 10 years is that that’s not accurate,” Blood said. “We have to move away from the idea that this is a short-term economic question.”
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