In his sobering keynote address at last week's Morningstar Investment Conference, GMO's Jeremy Grantham argued that we are in "the race of our lives" to stave off the worst effects of climate change. Grantham noted that the development of greener technologies and renewable energy is accelerating, resulting in a decarbonizing economy that is the biggest economic event since the industrial revolution. But climate change now appears to be happening faster than expected. Thus, it’s a race against time to mitigate the destabilizing consequences of global warming.
Capitalism's "complete inability to deal with externalities, tragedies of the common, and the very long term” helped cause these problems and is ill-suited to helping solve them.
Jon Hale, Ph.D., CFA does not own shares in any of the securities mentioned above. Find out about Morningstar's editorial policies.