1. The world needs a secure, clean energy supply

Infrastructure cannot support current global energy demand. A massive global investment in energy infrastructure is required to meet existing demand, let alone meet the rapidly increasing energy needs of the developing world. This investment must also be in energy solutions that will help address the problem of climate change. The upgrading and rebuilding of the next generation electrical grid will mean capital expenditures are set to surge globally in the next five years; USA – $125 billion, Russia – $80 billion, Saudi Arabia $50bilion.

2. The ‘coal age’ is coming to an end

Supposed ‘clean coal’ technology is proving unfeasible and inconsequential as a means of greenhouse gas emissions reduction. The technology is still in development and is cost-prohibitive as a means of reducing the environmental impact of coal-fired power stations.

3. New, cleaner nuclear energy is emerging as the power of the future

The most significant opportunity provided by the end of the ‘Coal Age’ will be the deployment of new, cleaner nuclear power to provide GHG free base line power generation. Significant advancements in the management of waste, safety standards and plant efficiency have seen governments all over the world embracing new nuclear power as being both economically viable and environmentally sustainable. China, for example, is expected to complete 26 new nuclear power plants by 2025 to address smog and climate change. Nuclear power accounts for 77 percent of France’s electricity. New nuclear power is the only option available to America that has the proven capacity to meet demand. It currently provides 70% of US GHG free power while producing 20% of the United States’ electricity. The price of uranium has already increased from US$10.60/lb in 2003 to US$113/lb today. Carbon Logic believes uranium may trade for up to US$500/lb within the next 3-5 years.

4. Clean energy has become a political imperative

The US supreme court has ordered the Environmental Protection Agency to consider CO2 a pollutant. Pollution control will accelerate as a significant business expense due to regulatory change and consumer preference forcing companies to clean up their acts. Carbon Logic sees investment opportunities in the end-to-end physical mitigation service providers.

5. The timing is right

New legislation is being debated with resulting bipartisan bills expected before the US congress and senate by July 4, 2007. Unrivaled capital pools in the United States, including venture capital, will drive technological innovation to combat climate change providing an entirely new investment vehicle.