The Green Trade


Might Wall Street go au natural? Continental Airlines (CAL), Toyota (TM) and Goldman Sachs (GS) are among the many companies dropping big bucks on eco-friendly products and initiatives. Is green more than the color of money?

Peter Darbee the Chief Executive PG&E Corp (PCG), the largest utility on the West coast, joins the conversation. PG&E is one of Fortune magazine's “Top 10 Greenest Companies” and it's stock is up some 30% in the past year

Dylan Ratigan asks how will yesterday’s Supreme Court ruling, classifying carbon monoxide and other green house gasses as official pollutants, impacts PCG.

Darbee says his first thought as the Supreme Court decision came out, was that’s the right decision! The question now is what will the EPA do with the decision. They have the authority to regulate but will they step up?

Dylan asks him what he anticipates. Darbee says we’ll have to wait and see. He thinks in the next year or two the EPA will step up but it could be in the new administration.

Then he explains PG&E emits 4% of the CO2 of the average utility in the United States – so no matter what happens, his company will be in good shape.

Eric Bolling adds that as he understands it, if a company emits less CO2 than allotted they can sell those credits.

Darbee doesn’t know exactly how that will work, but is confident that companies that emit less CO2 will be in better shape than those which emit more.

Eric adds it’s a planetary issue and he thinks it will be challenging to impost the same standards outside the US.

Darbee agrees, and explains up until recently the US had emitted the most CO2 of any nation. Just recently, however, China by-passed our nation, but they have a lot more people.

Jeff Macke asks if American business can remain globally competitive with CO2 restrictions?

Darbee admits it’s a challenge, but feels it’s possible.

Dylan adds that the US auto makers have not stepped up to the challenge – and the Supreme Court ruling presents a big problem for them.

Darbee agrees. And says by contrast Toyota (TM) has been addressing CO2 for a while, so they’re better off.

Eric Bolling says the nuclear utilities that don’t emit CO2 are the play.

Darbee agrees.

After the interview Dylan asks the guys for a trade.

Guy Adami likes Evergreen Solar (ESLR) for solar panels.

Tim Strazzini recommends taking profits in utilities because they’ve had such a run lately.

Jeff Macke recommends Toyota because hybrid sales are up 58%.


Questions? Comments?

Trader disclosure:
On APR 3, 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders Bolling Owns (DIS), Gold, Silver Strazzini Owns (VZ), (YHOO)