In the current edition of Nature Geoscience, scientists claim that the earth's tropical belt is expanding faster than expected, saying, "Remarkably, the tropics appear to have already expanded--during only the last few decades of the 20th century--by at least the same margin as models predict for this century."

According to previous models, the tropics were to extend 2 degrees north and south by the end of the 21st century. But only eight years into it, the tropics have already expanded by at least that much, as confirmed by five independent studies.

Traditionally, the Tropics of Cancer and Capricorn bounded the tropics on the north and south, respectively. But that was simply determined by the Earth's tilt on its axis. Now, climate scientists say, it's time to define the tropics by what's actually happening on the ground. And what's happening is a widening of tropical climate toward the Earth's poles.

That poleward movement would correspond to similar movement of seasonal storms. "The jet streams are moving poleward, and so, presumably, would the storm tracks," said co-author Dian Seidel of the US National Oceanic and Atmospheric Administration. This development would have negative implications for agriculture and water resources in nations located in the affected zones.

The Intergovernmental Panel on Climate Change (IPCC), which, coincidentally, is trying to negotiate a successor to the Kyoto Protocol this week, predicted this type of movement.

Those negotiations are taking place in Bali, Indonesia, a location that faces significant risks associated with climate change. In fact, just this week, Indonesian scientists reported that some Indonesian islands could be completely submerged by rising seas if nothing is done to curb climate change.

Just last week, the sea broke through barriers and flooded a major road to the international airport in the nation's capital, Jakarta. According to Environment Minister and conference host Rachmat Witoelar, if Indonesia is affected by rising seas "tens of millions of people would have to move out of their homes. There is no way this will happen without conflict."

Hopefully, that dire warning will serve as inspiration to the thousands of diplomats gathered in Bali this week.

Developed and Developing

But the representatives didn't seem too eager to bail out Indonesia's sinking islands. Instead, amid many opening day ceremonies, diplomats began to argue about whether or not developing nations, like China and India, should face the same emissions caps as developed nations.

Some said China and India are being asked to do too much, while others argued they are not doing enough. But, even among the disagreement, there was a glimmer of hope.

The consortium did agree to find ways to transfer more clean technology , like solar and wind, to developing nations--a surefire way to ensure greater participation on their part beyond Kyoto.

It could be that's what such nations were waiting for--a little support.

In fact, last week China's chief climate negotiator Yu Qingtai said that they would "definitely do more" to cut emissions if wealthier nations were willing to share more clean energy technology with China.

Of course, that raises a few questions. For starters, isn't that where Suntech Power (NYSE: STP) is based? And isn't that company doing pretty well, having doubled in price since July of this year?



Isn't China also the place China Sunergy Co. (NASDAQ: CSUN) and Yingli Green Energy (NYSE: YGE) call home? Two other solar companies that have done pretty well.

And yet, one can certainly see the other side of the coin. Why should China have to cap its emissions if an industrialized and wealthy nation like the US shows no inclination to do so?
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Especially when US emissions, per capita, are about 20.6 metric tons, compared to China's 3.8 metric tons. And when nearly a quarter of China's emissions stem from the production of exported goods for the consumption of rich nations. China calls those "transfer emissions," and they're a big concern not only for China, but also for other developing nations.

Plus, China did decrease its energy intensity (the energy used to generate each dollar of national income) by 3% in the first three quarters of the year. It has also set a goal of reducing energy intensity 20% by 2010.

Premier Wen Jiabao keeps saying that his country is taking firm action to protect the environment, increase energy efficiency, boost the use of renewable resources and reduce greenhouse gas emissions.

And investors are taking notice. China is poised to surpass its 2010 wind installation targets this year--over two years ahead of schedule. By 2020, the rapidly growing nation hopes to produce 8% of its power from renewable resources, not including hydropower.

That seems like an attainable goal, especially because China is using its low-cost production base to manufacture renewable energy components. And a new national rule ensures that any wind turbines installed are 70% manufactured in China.

All these developments should provide nice returns to our subscribers, either through Green Chip Stocks or our latest publication, Green Chip International.

Make sure to keep an eye out for the latter, as we'll be providing sign-up information shortly.

In the meantime, we'll continue to watch investment opportunities abroad and the two-week conference in Bali.

Until next time,

Nick