Green investors tell US law makers: "we want a new Energy Bill"

While much attention is focused on the introduction of the British Government's Climate Change Bill to parliament, major City investors are also stepping up pressure on the US congress to follow suit with an Energy Bill.

F&C is a co-signatory to a letter sent to the US Senate and House leaders this week urging the passage of a national Energy Bill that would include measures for expanding clean energy, reduce oil dependence and curb global warming pollution. F&C and 29 other US and European investors, who are part of the Investor Network on Climate Risk, strongly believe that to date regulatory uncertainty and the lack of Federal regulations has discouraged investment in renewable energy technologies. In their letter they have requested an Energy Bill which will incorporate three key priorities: A robust renewable electricity standard, strong energy efficiency incentives and increased fuel economy measures.

Terry Coles, co-manager of the F&C Climate Change Opportunities Fund, said: "Legislation to tackle climate change and boost investment in renewable energy technologies is on the rise as global regulatory regimes recognise the need to act quickly to address this dilemma.

"Having said that, unlike the typical climate change fund, the fund we manage is not limited to clean energy investments and is exposed to nine clear themes. Although renewable energy is a key theme, we are also focusing on companies that support society to cope with challenges of fresh water scarcity, and that provide products and services that help society adapt to the changing climate.
"Playing on the theme of adaptation, we have invested in agriculture chemicals company Syngenta. As crop cycles become increasingly irregular with the changing climate, products such as drought tolerant crop varieties being developed by Syngenta, will benefit farmers in areas which are likely to become increasingly drought-prone.

"Manila Water, which has a monopoly in water supply within the East Zone of Metro Manila, is another holding. A rare example of a monopoly which is actually working for the greater good, in ten years the company has increased access to fresh water across the country from 16 to 24 hours a day. The company is incentivised to make improvements in its service by the regulator which allows them to raise rates,"

"Within the theme of sustainable mobility, we like Toyota, a key player in the hybrid car market, as well as Aisin Seiki, the Japanese company which supplies Toyota and others with the underlying technology needed in hybrid cars." concluded Coles.