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Past Event

a Brookings-Tsinghua Center seminar

The Impact of Climate Change on the Investment Climate

Climate Change, China, Development, Developing Countries, China's Economy


Event Summary

On June 2, 2008, Jack Rivkin presented a seminar on the investment implications of climate change.

Event Information

When

Monday, June 02, 2008
9:00 AM to 11:00 AM

Where

Room 208
School of Public Policy and Management, Tsinghua University
Map

Event Materials

Contact: Brookings-Tsinghua Center for Public Policy
E-mail: beijingevents@brookings.edu
Phone: 8610.6279.7363

Jack Rivkin is Executive Vice President, Chief Investment Officer of Neuberger Berman and Head of Private Asset Management. He is also a member of Neuberger's Executive Management Committee. As a part of his work on paradigm shifts affecting investments, Mr. Rivkin has spoken on the subject of Climate Change to a wide variety of audiences over the last several years. He is a member of Lehman Brothers Climate Change Council and chairs the Advisory Board to the Neuberger Berman Climate Change mutual fund which he championed within the firm.
 

Transcript

JACK RIVKIN: So let's start with what I will call, what everybody knows. At least I will not make this point as we have seen CO2 emissions on the rise. Sometime this year maybe next year, China in terms of angular emission with pass the United States, but the United States and Europe will continue to be quick emitters for a long time to come. That course will be a very long time before China, in terms of total emissions, gets very close to where US and Europe are in terms of total emission that have been produced by these societies. You can also say that NID is on the rise, but relatively speaking the emissions coming from their growing are still relative to China, and US and Europe are low. So recently I point this out is because carbon dioxide (CO2), or you can just deal with carbons specifically. Carbon is the issue, and it's producing climate change. So I say it is producing global warming. I think it will produce global warming. But the fact is that we are reaching a level of CO2 in the atmosphere that we have never seen on this planet before, at least in the last four hundred thousand years. And that is going to produce change. When I exactly show what the change is, some of the models in the case are warm trend or other changes could be produced as well. The belief is that if we get to a level of 550ppm in the atmosphere, it is a game change in the sense that we have an order. Not an order of magnetic change, but we have a significant enough change in CO2 in the atmosphere and we can't actually model all of the effects that will have on the planet and on every segment within the planet as well.

Even if we start the rise in emissions today, if we are able to think of turning off emissions tomorrow, it's very likely that as we get towards the end of the century, we will see at a minimum 1-3 centigrade rise in temperatures, and more likely even the impact will see 2-4 degrees change in global temperatures. We the United States can live in a fairly high world, so we made this by 1.8 and in terms of degree of Fahrenheit. It is important to do that in the US because anything that is 1 or 2 doesn't see to make a difference to US citizens. But if you are talking about 4 or 5 degrees, even the same temperature change if in the scale they can understand, they begin to believe that this is a problem, to which they have to respond.

Participants

Moderator

Geng Xiao

Director, Brookings-Tsinghua Center

Speaker

Jack Rivkin

Executive Vice President, Chief Investment Officer and Head of Private Asset Management, Neuberger Berman


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