About the Book
This important book looks at the prospects for low-carbon technologies and services that are fundamental to mitigating climate change. Insights from leading experts from the environmental technology and finance sectors, under the guidance of Will Oulton, Global Head of Responsible Investment at First State Investments, show how the fast developing environmental technology sector can provide excellent long-term, sustainable and superior investment opportunities. The book aims to inform investors and their professional advisers about clean technologies and services, their potential and the ways to invest in them. It is also an invaluable and timely guide for companies, academics, government agencies and anyone interested in the confluence between clean technology and investment finance. This second edition, published by Environmental Finance Publications has been extensively updated to reflect the rapid rate of change in technology, investment incentives and regulations and includes eight entirely new chapters.
Contributing organisations include: PGGM, Bank Sarasin, Tiptree Investments, Mercer, Impax Asset Management, Friends Provident, ICE Futures Europe, Herbert Smith, Universities Superannuation Scheme, Trucost, Nissan Motor Company, FTSE Group, HSBC, Zouk Capital, Deutsche Bank, BP, Chatham House The editor, Will Oulton, is Global Head of Responsible Investment at First State Investments. He was previously Director of Responsible Investment at FTSE Group, where he led the development of FTSE's global sustainability indices and services, including the leading SRI index series FTSE4Good.
Table of Contents:
Contents Acknowledgementsix About the contributors x Forewordxxi Sir Mark Moody-Stuart Making the transition to a Green Economyxxiii Achim Steiner, UN Environment Programme Investing in a low-carbon world: a view from the British governmentxxv Gregory Barker, Minister of state, UK Department of Energy & Climate Change Introductionxxvii Environmental Markets Quizxxx Section 1. Environmental and Low-Carbon Technologies1 1Wind power3 Mark Thompson, Tiptree Investments 2Solar industry - entering new dimensions21 Matthias Fawer, Bank Sarasin 3Hydropower and ocean power45 Mark Thompson, Tiptree Investments 4Geothermal energy59 Alexander Richter, Canadian Geothermal Energy Association 5 Biomass77 Mark Thompson, Tiptree Investments 6Energy efficiency as an investment theme93 Zoe Knight, HSBC 7 Water technologies and infrastructure101 Daniel Wild, Marc-Olivier Buffle, Junwei Haffner-Cai, SAM; Sustainable Asset Management 8 Investment opportunities in renewable energy and environmental infrastructure143 Erich Becker, Zouk Capital LLP 9Heat pumps159 Philip Wolfe, Ownergy Plc 10Sustainable timberland investing163 Simon Fox, Mercer 11Climate change: key issues for institutional investors173 Mark Fulton, Bruce Kahn, Deutsche Bank Climate Change Advisors Section 2. Investment Approaches, Products and Markets191 12Environmental technologies within strategic asset allocation193 Danyelle Guyatt, Catholic Super; Laureen Bird, Mercer 13Investment approaches to environmental markets211 Ian Simm, Impax Asset Management 14Capturing the performance of environmental technology companies219 David Harris, FTSE Group 15Exchange traded funds as an investment option233 Lillian Goldthwaite, Friends Provident 16Climate bonds - the investment case241 Sean Kidney, Stuart Clenaghan, Padraig Oliver, The Climate Bonds Initiative 17Carbon risk and carbon trading: considerations for institutional investors251 Xinting Jia, Mercer 18The European carbon emissions market263 David Peniket, ICE Futures Europe 19 Measuring carbon intensity and risk 271 Simon Thomas, Liesel van Ast, Trucost Section 3. Regulation, Incentives, Investor and Company Case Studies281 20Policy regulation: a risk and an opportunity283 Kirsty Hamilton, Chatham House 21Renewable energy incentive mechanisms295 Louise Moore, Henry Davey, Herbert Smith LLP 22An investment portfolio view of the low-carbon world317 Professor Michael Mainelli, Z/Yen Group; James Palmer, BP; Liang Shi, University of Edinburgh 23Investor case study: investment issues for public pension funds 333 Winston Hickox, adviser to CalPERS and the FTSE Group 24Investor case study: an institutional investor approach to 'clean-tech'339 David Russell, Universities Superannuation Scheme (UK) 25Investor case study: low-carbon investments and considerations343 Marcel Jeucken, Pieter van Stijn, PGGM 26 Company case study: the challenge of moving to mass low-carbon automotive transportation349 Nissan Motor Company 27Company case study: desalination's place in the water cycle355 Degremont (part of Suez Environnement) Concluding remarks363 Glossary of terms371 Appendix: The FTSE Environmental Markets Indices 379 Environmental Markets Quiz: answers394
About the Author :
Will Oulton is Global Head of Responsible Investment at First State Investments. He was previously Head of Responsible Investment for Mercer Investments across Europe, the Middle East and Africa and before that Director of Responsible Investment at FTSE Group, where he led the development of FTSE's global sustainability indices and services, including the leading SRI index series FTSE4Good
Review :
"I welcome this contribution to increasing the knowledge and understanding of investors in what is an important part of our future." Sir Mark Moody-Stuart, Former chairman, Shell Group and Anglo-American plc "I welcome this book as an important resource for institutional investors looking to understand and profit from the increasing demand for low-carbon investment opportunities." Matt Christensen Head of Responsible Investment, AXA Investment Managers "Climate change is a major structural risk factor facing long-term investors. But it is also an opportunity - This book is highly recommended reading for all investors who want to know more about these opportunities." Tom A Fearnley, Investment Director Norwegian Ministry of Finance
