World's Largest Pension Funds and World Bank Exploring Green Investments: Lockyer
Ten of the world's largest pension funds are teaming with the World Bank to figure out how they can use their financial muscle to make effective green investments, according to California State Treasurer Bill Lockyer.
Ten of the world's largest pension funds are teaming with the World Bank to figure out how they can use their financial muscle to make effective green investments.
Dubbed "P10," the pension funds hail from Australia, China, Western Europe and the U.S., including the California State Teachers Retirement System (CalSTRS) and California Public Employees' Retirement System (CalPERS), according to California State Treasurer Bill Lockyer.
"We are collaborating with the World Bank to try to figure out how to make global green investments that will make a scalable difference in planetary conditions," Lockyer said.
Lockyer joined GreenBiz.com Executive Editor Joel Makower Thursday for a wide-ranging interview that discussed how California is using its power of the purse to clear the path for a greener economy. The conversation took place at the Sustainable Business Leadership Forum, a monthly event hosted by San Francisco law firm Hanson Bridgett.
"If we can figure out the way to align market forces with the desire to do good things, it will work," Lockyer said. "And if we don't figure that out, we will probably fail."
Lockyer spoke of his fiduciary duty to protect investors as a board member of CalSTRS and CalPERS. For instance, the Investor Network for Climate Responsibility is working to force companies to disclose potential climate change impacts in filings to the U.S. Securities and Exchange Commission (SEC).
"We're long-term investors," Lockyer said. "We want to know if that investment is going to be helped or hindered by what's going on environmentally. We're trying to convince the SEC it should be part of their current regulatory regime anyhow."
Lockyer also described how the state reached deep into its arsenal for a little-known tool to convince Tesla Motors to build its electric sports cars in San Jose.
The Alternative Energy Advanced Transportation Financing Authority had never been used. It allowed the state to waive the sales tax on $100 million worth of Tesla's manufacturing equipment. Gov. Arnold Schwarzenegger called it the best-kept secret in California.
"It was in the drawer somewhere," Lockyer said. "I dusted it off and now we're going to put it to work."
The deal made sense because the amount of money pumped into the state economy from Tesla's plant will exceed the tax break. That won't, however, always be the case.
"I would love to do it for solar manufacturing ... but the number of zeros associated with the tax loss," Lockyer said, "is a little bit on the scary side."
The interview will appear on GreenBiz TV in the coming weeks.
Dubbed "P10," the pension funds hail from Australia, China, Western Europe and the U.S., including the California State Teachers Retirement System (CalSTRS) and California Public Employees' Retirement System (CalPERS), according to California State Treasurer Bill Lockyer.
"We are collaborating with the World Bank to try to figure out how to make global green investments that will make a scalable difference in planetary conditions," Lockyer said.
Lockyer joined GreenBiz.com Executive Editor Joel Makower Thursday for a wide-ranging interview that discussed how California is using its power of the purse to clear the path for a greener economy. The conversation took place at the Sustainable Business Leadership Forum, a monthly event hosted by San Francisco law firm Hanson Bridgett.
"If we can figure out the way to align market forces with the desire to do good things, it will work," Lockyer said. "And if we don't figure that out, we will probably fail."
Lockyer spoke of his fiduciary duty to protect investors as a board member of CalSTRS and CalPERS. For instance, the Investor Network for Climate Responsibility is working to force companies to disclose potential climate change impacts in filings to the U.S. Securities and Exchange Commission (SEC).
"We're long-term investors," Lockyer said. "We want to know if that investment is going to be helped or hindered by what's going on environmentally. We're trying to convince the SEC it should be part of their current regulatory regime anyhow."
Lockyer also described how the state reached deep into its arsenal for a little-known tool to convince Tesla Motors to build its electric sports cars in San Jose.
The Alternative Energy Advanced Transportation Financing Authority had never been used. It allowed the state to waive the sales tax on $100 million worth of Tesla's manufacturing equipment. Gov. Arnold Schwarzenegger called it the best-kept secret in California.
"It was in the drawer somewhere," Lockyer said. "I dusted it off and now we're going to put it to work."
The deal made sense because the amount of money pumped into the state economy from Tesla's plant will exceed the tax break. That won't, however, always be the case.
"I would love to do it for solar manufacturing ... but the number of zeros associated with the tax loss," Lockyer said, "is a little bit on the scary side."
The interview will appear on GreenBiz TV in the coming weeks.
