If you–like Dr. Richard Sandor–believe in the proposition that air and water will become the asset classes of the near future, you understand that companies helping to provide clean air and water will be good investments.
Sandor, a Ph.D who is chairman, CEO and founder of the Chicago Climate Exchange (CCX) which, in turn, owns the Chicago Climate Futures Exchange (CCFE), is an acknowledged pioneer in the design and implementation of market-based mechanisms to address environmental concerns. The CCX, for example, claims to be the world’s first and is definitely North America’s only voluntary, legally binding registry and trading system for integrated greenhouse gas emissions reduction.
An acknowledged visionary for his contributions to the creation of the interest-rate futures market–he has been called “the father of financial futures–Sandor earned a place among Time magazine’s “Heroes of the Planet” as the “Father of Carbon Trading”
Last week, Sandor participated in a panel discussion sponsored by Dow Jones Indexes/STOXX Ltd. in New York. (See The First 100 Days.) In an exclusive, follow-up interview with Wealth Manager Managing Editor Nancy Mandell, he speculated on post-recession investment opportunities.
In Sandor’s opinion, the current recession will be followed by a period of wealth creation in the green technology area, a sector that extends far beyond the socially responsible investing of previous decades. A more apt comparison, says Sandor, is the commoditization of technology in the 1990′s–perhaps better known as the tech bubble. But the similarities will lie in the value creation that accompanied the tech boom–the communications explosion, the Web, cell phones, for example–rather than the boom-and-bust cycle.