Government proposals to cap greenhouse gas emissions, along with high oil prices, will support investments in alternative energy such as wind and solar power, U.S. mutual fund company Calvert Group Ltd. said.
The U.S. Senate is considering five bills that would limit emissions of greenhouse gases linked to global warming, such as carbon dioxide. President George W. Bush said the U.S. would consider measures to reduce harmful emissions in concert with other nations.
The issue is on the legislative agenda now that Democrats have taken control of Congress, Bennett Freeman, a senior vice president with Calvert, said today at a press conference. That gives companies and investors confidence they'll have the framework for investment decisions, he said.
“The key point here is the writing is on the wall,'' Bennett said. “There will be caps. There will be regulation. There will be, sooner rather than later, a national framework in the United States.''
Freeman, a former U.S. State Department senior adviser in President Bill Clinton's administration, said it's unlikely Congress will pass climate change legislation while Bush is in office. Bush remains opposed to mandatory limits on carbon dioxide and other greenhouse gases.
New Fund
Bethesda, Maryland-based Calvert today introduced an alternative energy fund that includes renewable energy companies and technologies that support energy efficiency. Investor appetite for renewable energy is rising, according to a survey by Calvert, which has about $15 billion under management in 42 funds.
The survey of 1,094 investors showed that 76 percent are concerned about global warming while 85 percent said alternative energy investments can support the environment and generate profits. The poll, conducted last month, has a margin of error of plus or minus three percentage points.
“We expect to see a lot of investor interest,'' said Steve Falci, chief investment officer at Calvert.
The fund will assess about 120 companies, 30 percent of which are based in the U.S., 60 percent in Europe and most of the rest in Japan and China, said Jens Peers, portfolio manager for Calvert's alternative energy fund. Up to 80 percent of companies in the fund must generate at least half their revenue from alternative energy. The fund has a capacity of about $2.66 billion.
