Copenhagen and Climate Change
The U.N. Climate Change Conference is wrapping up after two weeks of discussion, leaving many questions unanswered. However, the agenda of climate change mitigation has put the spotlight on some interesting opportunities for the enterprising investor. As countries craft policies to reduce their carbon emissions, entrepreneurs are developing businesses around green technologies. These same policies that will cut emissions will also spur economic growth. As guidelines change and carbon emission reduction gains more momentum, investors are poised to take advantage of this emerging sector.
Alternative energy and clean tech are two green technology sectors that are attracting strong interest among alternative investors. Groups investing in these sectors range from government pension plans to funds of funds. These investors are not only seeking private equity funds but also hedge funds that have green tech strategies, such as carbon trading and long/short equities that focus on the clean tech space. During the month of November, approximately 8 percent of the investors BHA analysts spoke with were considering green technologies. Nearly 10 percent of the investors that were researching hedge funds were interested in clean tech and alternative energy investments. Finally, close to 20 percent of all investors researching new private equity commitments were looking into the clean tech and alternative energy sectors.
The Copenhagen Climate Conference has pushed climate change politics back to the forefront as the economic recovery continues, and governments are proposing drastic cuts to carbon emissions. The European Union is looking to reduce greenhouse gas emissions to 30 percent below 1990 levels by 2020, and the United States aims to cut carbon emissions to 17 percent below 2005 levels by 2020. These goals are going to make for some attractive opportunities in the near term and investors are keeping their ears to the ground. Climate change is creating prospects for high returns from alternative investment fund managers.
|
he U.N. Climate Change Conference is wrapping up after two weeks of discussion, leaving many questions unanswered. However, the agenda of climate change mitigation has put the spotlight on some interesting opportunities for the enterprising investor. As countries craft policies to reduce their carbon emissions, entrepreneurs are developing businesses around green technologies. These same policies that will cut emissions will also spur economic growth. As guidelines change and carbon emission reduction gains more momentum, investors are poised to take advantage of this emerging sector. Alternative energy and clean tech are two green technology sectors that are attracting strong interest among alternative investors. Groups investing in these sectors range from government pension plans to funds of funds. These investors are not only seeking private equity funds but also hedge funds that have green tech strategies, such as carbon trading and long/short equities that focus on the clean tech space. During the month of November, approximately 8 percent of the investors BHA analysts spoke with were considering green technologies. Nearly 10 percent of the investors that were researching hedge funds were interested in clean tech and alternative energy investments. Finally, close to 20 percent of all investors researching new private equity commitments were looking into the clean tech and alternative energy sectors. |
The Copenhagen Climate Conference has pushed climate change politics back to the forefront as the economic recovery continues, and governments are proposing drastic cuts to carbon emissions. The European Union is looking to reduce greenhouse gas emissions to 30 percent below 1990 levels by 2020, and the United States aims to cut carbon emissions to 17 percent below 2005 levels by 2020. These goals are going to make for some attractive opportunities in the near term and investors are keeping their ears to the ground. Climate change is creating prospects for high returns from alternative investment fund managers. |