BEIJING Government efforts to tackle climate
change are creating a "megatrend" investment opportunity that
should tempt even those skeptical about the nature and pace of
global warming, Deutsche Bank analysts said on Thursday.
"The climate change markets are being created by
governments through their regulation," said Mark Fulton, the
bank's global head of strategic planning and climate change
"Whether you believe the science or not, investable markets
are being created by governments, and these investable markets
we think will grow significantly over the next 20 to 30 years,"
he said at the launch of a report on climate change investment.
The bank has attracted around 6 billion euros ($8.55
billion) into climate change funds, which target firms with
products that cut greenhouse gases or help people adapt to a
warmer world, in sectors from agriculture to power and
It is hoping to tap into a growing awareness of the cash to
be made from cleaner technology -- once more a preserve of
idealists than hardnosed investors.
"We believe the shift away from a carbon-based economy is a
megatrend that will shape the asset management industry for
many years," Kevin Parker, global head of asset management,
said in a statement.
"We expect return opportunities in sectors like renewable
energy, water, and agribusiness will justify dedicated
The fund is not seeking tiny start-ups or firms with
radical environmental credentials. Companies must have a market
capitalization of at least 200 million euros and a minimum 20
percent free float to be considered.
Its top ten holdings include French utility Veolia
Environnement, Spanish building and construction group Acciona
and diversified U.S. manufacturer United Technologies Corp.
Around 50 percent of its investments in clean technology,
some 20 percent energy efficiency and over 25 percent in firms
focused on adaptation, Fulton said. He declined to comment on
current or future performance.