15 January 2010

Investments in sectors aimed at spurring low- carbon economies are showing good returns. “The return story is strong,” according to Mark Fulton, global head of climate change investment research at Deutsche Bank.

He told reports today climate change investments in 2010 should be bullish. “Overall, clean energy, energy efficiency, water and agribusiness managed to outperform the world equity markets from the bottom of the market through the end of the year."

The bank reports that a simulated investment portfolio with a 6% allocation to climate change would have outperformed a benchmark portfolio over the last 3-5 years. “In other words, climate change is not merely an investment sector that may hold future promise; it is a sector that has already delivered and is continuing to deliver."

The bank said more than $90 billion was allocated to the clean energy infrastructure last year, and some $10 trillion will be required through 2030 to meet total demand.

“Carbon markets have only really been established in Europe, although the US, and Australia are looking at them and implementation over the next five years seems probably based on proposed policies and regulation.".