Climate change and economic growth enigma: An investment suggestion from Wall Street

• We have a unique opportunity to invest in exergy efficiency based on non-fossil resources.
• A massive investment shift from fossil fuel use could offset sub-par economic growth and high unemployment.
• Financial “bubbles” are not only inevitable, but are coming at shorter and shorter intervals.
• Investment for a shift from fossil fuels needs long-term securities whose return is based on exergy efficiency improvement.

A unique opportunity to deal with climate change and stimulate faster economic growth exists today because of the 2007–2009 financial crisis coincidence with secular structural changes in the global economy. A massive investment shift from fossil to non-fossil fuels could offset sub-par economic growth and high unemployment in the developed economies caused by the financial crisis and aggravated by demographic trends and the shift of economic dynamism to emerging markets. The 2008 and dot.com crises demonstrate that our financial system is inherently unstable and that “bubbles” are not only inevitable but occur at shorter intervals and inhibit long-term investment. Financing massive investment in non-fossil fuels could be done, however, with long-term securities whose rate of return, based on exergy efficiency improvement, would attract global institutional investors with long-term investment needs. Such a massive new securities market would reduce the volatility and systemic risks inherent in today's Wall Street-with-Wall Street markets.