A major new study from Deutsche Bank has found that Germany, China and Japan present some of the lowest risks for clean tech investors and firms looking to expand their operations, while the UK and the US currently have a higher risk policy and investment environment.
The extensive report entitled “Global Climate Change Policy Tracker: An Investor's Assessment” analyses low carbon policies in 109 countries and ranked them based on the risks they presented clean tech investors. Kevin Parker, global head of asset management at the bank said the "Climate Tracker" represented a world first and would become a valuable tool for green investors and clean tech firms. "We believe that as a comprehensive exercise at both a policy and country level, this is the only publicly available study of its kind," he said.
Of the countries in the Major Economies Forum, Australia, Brazil, China, France, Germany and Japan were found to present the lowest risks. Germany and China also ranked highly in terms of the amount of money invested in low carbon projects between 2000 and 2008.
In contrast, the UK, the US, Canada, India, Indonesia, Mexico, Russia, South Africa and South Korea were found to be less attractive in terms of investment risks. Nevertheless, both the UK and the US boasted relatively high levels of green capital investment between 2000 and 2008 with $17. billion and $52.1 billion invested respectively.
Italy came last, designated as the major economy with the highest level of risk for clean tech investors.
Overall, the report found that more capital is required to mobilise climate change industries, and more action by government is required to attract capital. It also warned that even if current and select proposed policies were to make their maximum possible impact, emissions in 2020 would still exceed the amount needed to limit the average world temperature increase to 2 degrees C.
Its authors emphasise that governments must create transparent, long-term, and certain policies to attract capital, and warn that while carbon markets may offer long term solutions, at present investors are driven by on-the-ground mandates and incentives.
Download the report here:
Global Climate Change Policy Tracker: An Investor's Assessment
