GREEN BUSINESS

Green Economy
CAPITALIZE ON THE MOMENTUM OF COPENHAGEN SUMMIT

Climate Change summit in Copenhagen, Denmark, last December, recommended to all countries in the world to diminish carbon emission. This will definitely serve as a main trigger of rapid growth of green industry.

At stock market, the sector of mining and energy, telecommunication, infrastructure, and consumer goods in 2010 will definitely continue a trend of positive growth that has occurred in the last few years. Companies in these sectors will keep on improving their performance; their shares will be in the pursuit of investors accordingly. Thus, considering the joint commitment of the world to lessen carbon emission in Copenhagen Summit of Climate Change, obviously green industry is likely to go booming.

Algore, the former Vice President of the U.S., a Nobel Laureate in 2007, as committed to diminishing climate change impact, underlined that climate change impact was overly big for human civilization. On the one hand, climate change has served as a serious threat to human being. However, on the other hand, the global commitment to diminishing climate change impact through carbon emission is believed to stimulate green industry. These two strong reasons will make the year 2010 as a new era of the booming of green industry.

Tree Business Opportunities
If grouped specifically, business activities linked to green environment can be cleaved into three main businesses. First, activities in goods production can directly reduce carbon emission. This product is a substitute of fossilized fuel largely used. The right terminology for this product is green energy.
Green energy, which especially derives from plant, about three years ago, was expected to be a booming commodity. However, the weak commitment of various stakeholders in reducing climate change impact has reduced the booming of green energy.

Other than that, profit margin of green energy which derives from plant is less compatible with other businesses. Even, the land, which is used for green energy, will generate the level of return much bigger if the land is used for non-green plant-based energy. On this business reality, on rational basis, green energy develops less rapidly in the last three years.

Outside this, the majority of green energy business, which still bases on plants, is of small micro entrepreneurs; therefore there is no much fabulous innovation which can be used for further development of the potential of green energy. In addition to that, because they are small-micro entrepreneurs, the pattern of yield is seen in short term. Under such business prospect, it does not show a bigger level of return.

However, it took place several years ago, when there was no global commitment yet that bound the countries in the world to reduce carbon emission. Currently, when global commitment has been made, green industry, not just feasible, but also is something that must run. Therefore, the 2010 becomes an important momentum for the booming of green energy.

Alike green energy business as a core business, other two green economies are supporting as follows (i) industry which supports green activity, and (ii) industry which is green to environment and so are its workers . Most of these two businesses at level of transnational have been implemented in the last few years. However, such positioning is barely as a supplement to its main business.
As an example of the first business, hybrid car made by Toyota Corporation is barely small part of Toyota business activity. Consequently, contribution of this business line to Toyota’s total revenue is still low. However, the post global carbon emission agreement it is firmed that Toyota Corp, business strategy will change that it will produce more green cars.

As a supporting business, in short term these two businesses have not yet contributed to big growth. However, in the medium-long run, the two businesses gradually begin to contribute major revenue. Considering objectively these points, for investors who want to earn the level of profit fairly bigger, a real investment in green economy can serve as an appropriate decision in 2010.