Climate Change and Investors

My eldest introduced me to Jeremy Grantham's Quarterly Letters recently. Jeremy Grantham is a fund manager and  noted investor, particularly interested in predicting bubbles. He is known for an investment philosophy of "reversion to the mean" - ie all investments eventually adjust to long term mean values - leading to bubbles and busts. His Quarterly Letters (QL) hold numerous humorous and serious observations on current goings on in America and range over topics as wide as "Everything you need to know about Global Warming in 5 minutes" (QL July 2010) to Aging Populations, Pensions and Health Costs to  "Night of the Living Fed: something unbelievably terrifying" (Oct 2010).
The Global Warming Topic reads like a primer for those who know little and understand less. It should be basic reading for every Australian politician!
I liked the comment " The biggest cost of all from Global Warming is likely to be the accumulated loss of biodiversity. This features nowhere in economic cost-benefit analysis, because its hard to put a price on that which is priceless".
The recent Cancun climate talks (29 N0v - 10 dec) however, is trying to do this. By establishing a green fund and paying 3rd world nations to keep their rainforests, instead of burning them for palm oil plantations and beef raising, we are attempting to price that which is priceless and hopefully saving some biodiversity.
This fits in with James B Moody's prediction that adaptation to climate change and monitoring/measuring using ICT will be the next big investment boom - The Sixth wave.
Lets just hope its not quickly followed by the inevitable bust!