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00:00BIG LANDMARK. THIS WAS BY FAR THE MOST GLOBAL -- AMBITIOUS GLOBAL DEAL EVER. FROM THE EUROPEAN UNION, CHINA, THE U.S.. THIS IS QUITE SERIOUS. THE IMPACT ON ECONOMIES AND BUSINESSES WILL BE REAL, EVEN IF THERE IS SOME BACKSLIDING DOWN THE ROAD. FRANCINE: WHAT DOES IT MEAN FOR BUSINESSES? I LOVE THE WAY YOU PUT IT ON THE HEADLINE ON BLOOMBERG.COM. MA TT: THERE WILL BE A PREMIUM CHARGED IF YOU WANT TO BE IN THE FOSSIL FUEL BUSINESS, AND ENVIRONMENT A PREMIUM. WE HAVE A CARBON PRICE IN THE EU THAT IS A VERY FLAWED SYSTEM. LARGE PARTS OF NORTH AMERICA ARE GOING TO A CARBON PRICE. THERE WERE MORE OF THAT -- THERE WILL BE MORE OF THAT IN CHINA. WHAT THIS MEANS IS THAT INVESTMENT FLOWS TO WHERE THEY WANTED TO FLOW, RENEWABLES. IF YOU LOOK AT THE POWER SECTOR, 65% OF INVESTMENTS WILL GO INTO RENEWABLES OVER THE NEXT 40 YEARS. NO ONE IS TURNING OUT THE LIGHTS AT EXXON MOBIL, BP ANYTIME SOON. YOU'LL PROBABLY GOING TO SEE A PROGRESSIVE SHIFT OF THE CAPITAL , THOSE INVESTOR DOLLARS TOWARD RENEWABLE. FRANCINE: CHINA IS GOING SEVER THE ABOUT THIS AND SETTING ITS OWN TARGETS FOR 2017. HOW WILL CHINA DIFFER FROM BENEFITS WE WILL SEE FROM THIS? MATT: IN CHINA, THERE IS A DIFFERENT SITUATION IN THAT THIS IS STILL A DEVELOPING COUNTRY TO SOME EXTENT. A VERY LARGE AMOUNT OF COAL IS COMES -- CONSUMED THERE EVERY YEAR. THE CHINESE LEADERSHIP HAS SIGNALED THEY DO WANT TO BE AMBITIOUS ON THIS. PART OF THAT IS SIMPLY POPULAR DEMAND. CHINA IS NOT A DEMOCRACY, BUT THERE IS SOME DEMAND A PUBLIC PRESSURE. WHAT WE HAVE SEEN IN BEIJING IN TERMS OF SMOG AND POLLUTION, SMOG AND CLIMATE CHANGE ARE NOT THE SAME THING, BUT THERE IS A REAL ENVIRONMENTAL CONSCIOUSNESS. MORE IMPORTANT, THE CHINESE HAVE FIGURED OUT THIS IS AN AREA OF COMPETITIVE ADVANTAGE FOR THEM, POTENTIALLY. THEY COULD CREATE A WORLD LEADING INDUSTRY IN SOLAR, WIND, ENERGY EFFICIENCY. AS WE HAVE SEEN IN SO MANY OTHER INDUSTRIES, WHEN THE CHINESE GOVERNMENT THINKS THERE IS AN INDUSTRIAL POSITION TO BE CARVED OUT, THEY CAN ACT DECISIVELY TO DO SO. MIKE: IS THIS AN EFFORT THAT HAS TO BE COMPELLED? IF I'M AN AMERICAN CEO, I AM THINKING THE PRESIDENT BRINGS BACK THIS TREATY BUT CONGRESS IS CONTROLLED BY REPUBLICANS WHO DON'T BELIEVE IN IT AND THEY MAY NOT PASS ANYTHING THAT WILL FORCE ME AS A CORPORATE LEADER TO ACT. AM I GOING TO ACT? IS THERE A PAYOFF TO ME? MATT: THERE WERE A COUPLE OF THINGS TO NOTE THERE. ONE IS THAT PRESIDENT OBAMA WAS CAREFUL TO STRUCTURE THE U.S. COMMITMENT IN A WAY THAT HE ARGUES DOES NOT REQUIRE CONGRESSIONAL RATIFICATION. THAT IS THE FIRST THING. THE SECOND THING IS THAT IT WAS AMAZING TO SEE AT THE SUMMIT IN PARIS THE PRESENCE FROM BIG BUSINESS. NOT JUST EUROPEAN OR ASIAN BUSINESS, BUT AMERICAN BUSINESSES. DUPONT, MONSANTO, KELLOGG. DOZENS OF OTHER LARGE AMERICAN COMPANIES ALL THEIR, ALL SAYING THEY WANT TO DO WHAT IS NECESSARY AND IN SOME CASES, THEY SEE OPPORTUNITIES TO MAKE MONEY. DUPONT MAKES TEMPLES WERE SOLAR PANELS. THERE ARE LOTS OF OTHER EXAMPLES -- THEY MAKE CHEMICALS FOR SOLAR PANELS. THE OPINION IS NOT AS MONOLITHIC AS SOME PEOPLE THINK. FRANCINE: HOW MUCH WILL IT CATALYZE IN TERMS OF INVESTMENTS? MY QUESTION FOR GEORGIA'S WITH THE PRICE OF DOLLAR -- OIL AT $34 IS DOES THIS NOT DELAY INVESTMENT CATALYSTS? MATT: IT IS NOT EASY AND CHEAP ALSO FEELS DON'T HELP. THEY WERE COUNTING ON THE PRICE OF OIL WOULD TURN PEOPLE OFF OF FOSSIL FEELS. WE WON'T GET THAT. YOU NEED THE INCENTIVE TO COME FROM THE REGULATORY SIDE. FRANCINE: OIL IS NOT GOING ANYWHERE? GEORGE: FIRST OF ALL, THERE IS AN ISSUE WITH WHAT IS NOT TO LIKE. THE FIRST ISSUE IS THIS ADDRESSES A PROBLEM THAT HUMANITY HAS TO BE CONCERNED ABOUT. THE SECOND IS THAT THIS WILL TAKE A LONG TIME, AS YOU SAY, BUT OVER 20 YEARS, 25 YEARS, DEVELOPING A NEW ENERGY INFRASTRUCTURE, RENEWABLES IS A POWERFUL CATALYST FOR SUSTAINABLE GROWTH. THE HEADWIND INCLUDES CHEAP FOSSIL FUEL. THAT COULD BE A PROBLEM. IT WOULD BE A PROBLEM IN TERMS OF DELAYING OR LEADING TO A MORE PROTRACTED CHANGE. THE PRESSURE THAT YOU ALLUDE TO , INTERNALIZED PRESSURE FROM THE CORPORATE SIDE, IN PARTICULAR, COULD BE QUITE STRONG REGARDLESS. FRANCINE: THANK YOU SO MUCH. MATT CAMPBELL, A REPORTER AT LARGE, AND GEORGE MAGNUS STAYS WITH US. COMING UP NEXT, WE HEAR FROM THE PRESIDENT OF THE WORLD BANK. WE WILL ASK HIM ABOUT HOW MUCH MORE FINANCING THE WORLD BANK WILL DO IN GREEN ENERGY PROJECTS GOOD THAT IS AT 6 P.M. IN NEW YORK, 11:00 A.M. IN LONDON. -- 6:00 A.M. IN NEW YORK.

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