Asset Management

Deutsche Bank Publishes Climate Change Report

Deutsche Asset Management (DeAM) has published a research paper arguing that the accelerating pace of global warming will force governments to invest more heavily in climate change mitigation and adaptation despite the financial setbacks of the current market crash. “Investing in Climate Change 2009 – Necessity and Opportunity in Turbulent Times,” presents an analytical framework for understanding the opportunities for investing in climate change. It also says that an economic downturn offers governments across the developed world a prime opportunity to boost their spending on ‘green’ infrastructure as a stimulus to avoid severe recession.

According to Mark Fulton, DeAM’s Global Head of Climate Change Investment Research, “The current crisis is making the necessity of tackling climate change an opportunity to stimulate growth through investment opportunities.”

The paper states that the debate around climate change is shifting away from cost and risk towards the question of how to capitalize on exciting opportunities. The climate change universe is well-suited for public equity markets and particularly, private markets such as venture capital, private equity, infrastructure and timberland. To encourage private capital into technologies that mitigate or adapt to climate change, including renewable energy technologies, governments must create a favourable regulatory framework – in particular, a global carbon price, the report says.

To download a copy of the report, click here.