16 November 2009 | Luca Del Buono
Carbon, Climate Change, Energy, Europe, North America

 

A strong political deal including targets for emission cuts at the Dec 7-18 summit might be just enough to accelerate moves by investors such as pension funds or sovereign wealth funds to adjust portfolios to better reflect long-term risks from climate change, asset managers reckon.

It is also likely to boost growth rates of firms which are either energy self-sufficient or engage in alternative energy such as wind or solar, while pressuring emission-intensive industries such as utilities, aluminum or car makers.

Bruce Jenkyn-Jones, managing director of listed equities at Impax Asset Management said, "The idea that... people will pay for carbon right across the economy will have an impact on products and services. Big energy producers, utilities and industrials will be affected."

The strength of a Copenhagen deal is still very uncertain. At a preparatory UN meeting in Barcelona last week, developed countries played down expectations of agreement on a legally binding text, saying that would take an additional 6-12 months.

But developing countries are suspicious of backtracking on commitments from rich nations, which have promised to lead in the fight against climate change. They insisted on a legally binding deal in December.

"Politicians have done a good job of lowering expectations. That's exactly why there's real opportunity here," said Simon Webber, fund manager at Schroders.

Click here to read Reuters article

 

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