Investment opportunities from climate change

The global climate is heating up…and so are the investment opportunities

Climate change – what is happening?
Our climate is changing. The evidence for that is no longer in dispute.

While there is still some argument about whether the changes are manmade, or happening naturally, the weight of scientific evidence is now strongly of the view that man is having a serious impact.

Whatever view you hold, the predicted consequences of climate change are such that if we can prevent or even mitigate what is happening, then we should make every effort to do so. Climate change is already bringing rising sea levels, increasing desertification, and more extremes of weather and natural hazards.

But there are other trends that are making the impact of climate change even worse. The global population is increasing at an alarming rate. A 30% increase is forecast over the next 40 years. In turn this will put greater pressure on resources that are finite. It is inevitable that demand will grow for clean, fresh water, food, timber and the like. Demand will grow for energy. Yet we only have so much to go round.

Although the Copenhagen Conference was a disappointment in many respects – in that it didn’t provide a clear map for finding a way through the issues of climate change – it is worth remembering that it is only part of a process. Climate change is happening, and the need to provide solutions will only intensify. That is why there will be ongoing economic and investment opportunities.

The investment opportunities from climate change
The impacts of climate change, population growth and dwindling natural resources are bound to create some very exciting investment opportunities.

Investment into new technologies to find more efficient and cleaner sources of energy is going to be huge. In the USA alone, Barack Obama has promised $150 billion of investment over the next decade.

The demand for clean water and food will grow.

The demand for resources, such as timber, is forecast to soar.

There will be major investment needed into the infrastructure of industries such as waste management and travel. Then there is the adaptation work that is needed, to make housing and businesses more energy efficient. And there is also the climate change mitigation work needed, to protect society from the impact of rising sea levels and desertification that is already happening.

There will be winners and losers amongst all companies and market sectors, as the world embraces the impact of climate change. The need to find solutions is becoming increasingly urgent. The companies that develop and market these solutions are likely to perform very well.

That is why the opportunity for investors is so exciting.

A unique approach to climate change investing
Even through the recent recession, the climate change sector was one where new funds continued to be launched, as fund management groups recognised the economic potential of investing in climate change.

This means that today there are a wide range of funds available for the investor. Some are general funds. Others are specialising in specific aspects of sustainable investing, such as clean tech, water, timber, forestry or solar parks.

The challenge for the investor that wants to both support and benefit from developments in the climate change world is that there is now a bewildering choice. And the experience and expertise of different fund managers varies a great deal.

That is where we come in. By teaming up with Vestra Wealth, we have secured the services of investment managers that have extensive and award winning experience of running funds of funds, including investing in the environmental and ethical sectors. By also working closely with Ethical Screening we have added the expertise of some of the leading analysts in this market. Our aim is to use this depth of experience to identify the funds that have a sustainable focus, and have experienced and knowledgeable managers that have proved themselves in this sector. We will willingly embrace new ideas and opportunities, but only if the managers have the right industry experience and track record.

Our aim is to bring together the best in environmental investing. By doing this our aim is to reduce volatility, whilst producing good long term growth for our investors.

The WAY Green Portfolio Fund is our solution.