Green shares rise as climate policy heats up

LONDON (Reuters) - Shares in "green" companies rose on Monday after press reports on the urgent need for action on climate change and that Gordon Brown intends to create five eco towns, analysts and traders said.

"All of my stocks are up ... there has been lots of press on climate change over the weekend, particularly about Gordon Brown and what he might invest in green energy," said alternative energy analyst John-Marc Bunce at broker Ambrian Partners.

The Sunday Times said that Brown, who is Prime Minister Tony Blair's likely successor, wanted to raise his green profile, and the newspaper also focused on Citigroup's announcement last week that it planned to spend $50 billion (25.3 billion pounds) on green projects.

Green companies include those involved in renewable energy, such as solar and wind power, or those who reduce greenhouse gas emissions, such as fuel cell developers.

Shares in Climate Exchange, which runs Europe's main exchange for trading credits for reducing carbon gas emissions, rose 3.6 percent to hit an all-time high of 1605 pence.

At the same time, the price of carbon credits for delivery in December 2008 -- as part of the European Union allowances programme -- rose to a 10-month high.

Companies get one credit when they reduce carbon emissions by one tonne. They can then trade the credits for profit.

Shares in Climate Exchange have more than tripled in five months.

Other companies viewed as important in reducing greenhouse gas emissions, including fuel cell makers, also gained.