Turn a Profit From Global-Warming Stocks

It's not just coincidence that politicians on both sides of the Atlantic are talking simultaneously about stopping global warming and ending their nations' addiction to oil.

This program of action, whether under the guise of national security or stopping global warming, couldn't come at a better time for what I'll have to call alternative-energy stocks, for lack of a better term. The subsidies and market incentives in this program will be more than enough to push maturing, but still not fully commercialized, technologies into the market on an equal footing with other energy technologies.

Come what may after that, these alternative-energy technologies -- and I'm thinking here primarily, though not exclusively, of wind and solar power -- will have received enough of a boost to be able to compete with the rest of the energy sector. You can get a good sense of what the coming global-warming combat orders are going to look like from the plan unveiled Jan. 10 by the European Union.

The plan calls for:

• Making a 20% reduction, from 1990 levels, in carbon emissions in the European Union by 2020.
• Getting 20% of electricity supply in the European Union from renewable sources by 2020. That's more than a doubling from current targets.
• Constructing a new generation of safer nuclear reactors to keep nuclear power at a 30% share of supply.
• Keeping coal at 30% of electricity supply but ensuring that all new and existing plants include systems for capturing carbon and storing it out of the atmosphere.
• Having biofuels provide 10% of fuel for transportation by 2020, up from 2% now.

Global warming or no global warming, it's pretty clear that these changes are critical for the future health of the European economy. Europe is desperately worried about its reliance on Russian energy supplies. In the most recent example to Europeans of why they have to do something to reduce their dependence on Russian natural gas and oil, Russia cut off oil supplies to Western Europe through the pipeline that crosses Belarus for three days during a dispute with Belarus.

Even in Washington, the ice is thawing because of this conjunction of global-warming science and national energy security. The "Advanced Energy Initiative" in last year's State of the Union address promised a 22% increase in research for "clean" coal, "safe" nuclear power, "revolutionary" wind and solar energy, "cutting-edge" biofuels, hybrids and hydrogen fuels.