In This Issue: The Cost Of Keeping Our Cool: Global Warming And The Economy: The planet's environment is going through an epochal upheaval in weather patterns. So what might this mean for economic growth? Clearly, the costs of controlling carbon emissions remain highly uncertain, primarily because of the technological variables. Still, as the technologies become better defined, the range of cost estimates is narrowing, and now at least some reasonable projections are becoming available.Coping With Climate Change: The Varied Credit Effects Of A Portfolio Approach: Carbon legislation could create substantial risks for companies and, potentially, for their credit health. Significant increases in capital costs and/or reductions in profitability may result as companies attempt to comply with restrictions on emissions. Potential Climate Change Law Compliance Costs And Their Effect On U.S. Utility Credit: For regulated utilities the most important credit factor will be the extent to which regulators allow cost recovery. For unregulated power generators, the actual cost of compliance will be a major credit influence. Influence Of Regulatory And Policy Decisions On Utility Credit Quality Deepens, Demanding Timely Assessments From Standard & Poor's: Power companies will use the capital markets to raise funds for upcoming capital projects, and the capital markets will look to Standard & Poor's for commentary on the creditworthiness of the utility industry. Lower Emissions, Higher Costs? U.S. States Plan For Carbon Reduction: As the focus sharpens on the role that carbon emissions play in contributing to climate change, several U.S. states have opted to develop plans for curbing those emissions in advance of any federal legislation. Credit Considerations Of Carbon Cap-And-Trade Mechanisms: As the debate over global warming heats up, the challenge for U.S. regulators and lawmakers will be to fashion the emerging variety of state systems and voluntary actions into a single coherent approach to regulating carbon emissions. Public Power Explores Ways To Reduce Emissions As Federal Regulation Looms On The Horizon: Although the cost of reducing emissions is uncertain, it will probably be substantial. Therefore, remediation will likely represent a significant operational and financial challenge to the public power industry, and to ratepayers. Global Carbon Emissions And The "Chindia" Factor: One challenge that makes climate stabilization more daunting is that projections for global emission increases could understate the growth coming from China and India. Combating Climate Change In The EU: Risks And Rewards For European Utilities: The European Council recently reaffirmed its commitment to the reduction of carbon dioxide and other greenhouse gases. It recommended that the Emissions Trading Scheme be strengthened and broadened in scope. Effects Of Warming, Efficiency Programs, And Conservation On Energy Usage And Credit Quality: The credit concerns for utilities from global warming, are largely the result of financial pressures created by capital and variable costs of added emissions controls. However, the potential exposure of financial margins is not exclusively limited to these contingencies. Which Power Generation Technologies Will Take The Lead In Response To Carbon Controls?: The U.S. utility sector is in the midst of a large capital spending cycle to add capacity. It's unclear what type of plants will be built in the face of impending new climate change policies, plus growing base load capacity needs. How Close Is Carbon Capture And Sequestration To Being Ready For Prime Time?: Carbon capture and sequestration technology has been around since the 1970s, but it's now attracting more interest because of rising concerns about climate change. Turning Coal Into Liquid Gold: Alchemy? No, Polygeneration: Even though most people have never heard of "polygeneration," the process of taking coal and turning it into synthetic natural gas, gasoline, diesel and jet fuel was developed in Germany after World War I. Solar Power's Potential Shines Brighter As Technology Advances: Rising concerns over climate change and energy security, have renewed the U.S. power industry's interest in fuel diversification. Solar energy is one option that's gaining more attention. Biomass Will Grow In Importance With Caps On CO2: The expectation that new U.S. laws will place some type of cap on carbon dioxide emissions is fueling renewed interest in biomass power generation with energy created from plant life. Can Global Automakers Meet Emissions Limits Without Steering Off The Road?: The world's automakers, already financially strained, now face a longer term threat to their financial performance: stringent environmental legislation to reduce vehicle emissions and increase fuel efficiency. About CreditWeek:
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