India hopes to derive annual revenues of more than $1 billion dollars from a new coal tax it has introduced.These revenues will go to a proposed Green Bank which will fund Green Energy Projects and R&D in the Country.While initially the funds will be managed by the government’s financial agency IREDA,later on a full fledged Green Bank will be managing the annual $1 Billion Coal Tax.Note Coal is the biggest Energy Source for India and China.Both countries are trying to diversify their dependence from Coal as it is the dirtiest form of energy.However the cheapness and abundance has made coal indispensable to the voracious energy requirements of both countries.Coal India Limited (CIL) which came out with an IPO recently was a resounding success in India showing that investors believe that Coal will contiue to grow and dominate the Energy Scene in India.
Food Prices are rising at an incredible pace around the world due to a combination of money printing by the USA and Bad Weather in Russia and Asia.The major cause of the Food Price Increase has been the global rush towards investing in commodities as currencies get devalued by countries eager to increase exports in a zero sum game.Wheat Prices were the first to rise after Russia stopped exports leading to the sharpest gain in the last 2 years.Corn prices have increased with increased demand from ethanol,bad harvests and relentless QE.Rice and Soybean prices were bound to rise in empathy with other grain prices.Note these two food varieties are substitutes of corn and wheat.So it makes sense for speculators and consumers to increase the demand for these 2 commodities as well.
Rice Price Increase after Flooding in Biggest Exporters
Rice Prices have shown a record increase after floods sharply reduced output in the 2 main exporter Vietnam and Thailand.With inventories being sharply cut and harvests going down it is not much of a surprise.Rice importing countries like Philippines will be badly hit as their per capita income is quite low and they have a large poor population highly sensitive to increasing food prices.Expect 2011 to be a Hunger Year for a large chunk of the world’s population thanks to Ben Bernake and print his way to prosperity team.
According to a report from Maplecroft,India and Bangladesh are the countries most at risk from the deleterious effects of Climate Change.The other countries in South Asia like Nepal,Myanmar,Pakistan are not far behind.Maldives the smallest country in South Asia is the heaviest in danger with its very existence at stake.Next in the list are African countries like Mozambique,Madagascar and others from Global Warming Changes like Droughts,Floods,Submersion etc.Note Climate Change has faced massive setbacks in recent time with the failure of the Copenhagen meet and not much chance of success with the next Cancun meet.USA and China the two biggest emitters of GHGs have been reluctant to move forward in the the Climate Change issue.Note the poorest countries are the most vulnerable to climate change and they have the least voice in climate change talks.Rich countries like Saudi Arabia have even blocked studies on climate change by poor island nations.
India’s Massively Growing Industry is clashing head-on with the Environment leading to huge fissures.There have been numerous clashes already with many of the mega industrial projects being cancelled or shifted.Tata Motor’s Nano Project in Singur,West Bengal was probably the most famous project to be scrapped after a huge people’s uprising due to loss of land and livelihood.Unlike China,where industry manages to always win over people’s protests,it is not that easy in India’s Democracy.Orissa recently saw Vedanta Resources Bauxite Mining Project cancelled over loss of tribal sacred land loss concerns.This was a huge victory for India’s environmentalists as officials and companies were found breaking forest and environment laws.Now POSCO which has been trying to build a $12 Billion Steel Plant in the Mineral Rich State of Eastern India finds that Green Approvals given might be cancelled by a panel of government experts.Note the POSCO project was stopped recently pending an environmental assessment whose report will be published on Oct 25.Despite hectic lobbying by POSCO and the provincial Orissa government,the project looks set for more delays.Note the Steel Plant which was started in 2005 is already way behind schedule.
Coal India IPO the biggest primary market-raising company in the history of the markets has raised a huge amount of investor interest.The investor is barraged with news,opinions,analysis,reviews,overview about the Rs 15,000 crore ( $3.5bb) money-raising IPO. Coal India Limited (CIL) will become the largest Coal Company to be listed in the world and the 7th […]
Abu Dhabi has got the largest sovereign wealth fund in the world with asset of over $600 Billion.The small emirate which is a part of the larger United Arab Emirates is one of the richest countries in the world due to its Oil Riches.The country had made ambitious Renewable Energy Plans setting up a Fund/Company dedicated to its Green Ambitions called Masdar.The Company has faced a number of reverses as it tried a number of things all at once in a new industry.Its “Jack of All Trades” Strategy has proven to be a failure as it lost/fired a number of top executives.Its Solar Plans have also come up a cropper as Thin Film Technology has faced a lot of reverses in recent times.The Company has tried to change tactics by concentrating now on Solar Thermal Technology partnering with Abengoa and Total in building a CSP plant near Abu Dhabi.With its Renewable Energy Arm facing a number of reverses,its plan for a futuristic,zero carbon Green Masdar City has also been scaled down.