| Media Centre
It's been a
long time since the outlook for resource efficiency stocks and
environmental markets has been quite as good as it is right now.
The next 12 months look promising across our investment strategies,
buoyed by a broad-based cyclical recovery from the deepest downturn
in living memory.
But there is
much more at play than a cyclical pick-up. Away from the
headlines, the last few years have seen the ratchet of building
regulations, energy efficiency standards and pollution limits
continue to tighten. And, as the global economy recovers,
companies exposed to these themes are seeing their earnings start
to rise strongly as houses get built, cars roll off the production
lines, and long-delayed infrastructure projects move
We look ahead to 2014 and consider the prospects for the main
Asian markets in which we invest, and discuss some of the key
themes which we believe will drive our resource efficiency markets
across the region.
One of the compelling drivers of our resource efficiency and
environmental markets is the continual tightening of global
environmental policy. As we approach 2014 we look at some of
the most pressing policy issues coming over the horizon from
Europe, the United States and China, and assess how they might
affect our markets and drive investment opportunities.
Following the resounding victory for Angela Merkel's CDU party
in the September 22 federal elections, we expect a number of
announcements on environmental and energy reforms to follow in the
next few months. However, the choice of SPD or Greens as
coalition partner for the CDU is still unresolved and is likely to
be a major influence on future reforms.
Leaks from the UN's Fifth Assessment Report ("AR5") on climate
change ("CC"), which is due out on 27 September, have once again
stirred the hornets' nest and the airwaves are full of opinions
from CC "believers" and "deniers" alike. Although many
observers will be inclined to sit on the fence, decision makers who
employ scenario planning are actually well-placed to assimilate new
information in the report; in simple terms, scenarios in which
governments take additional action to reduce greenhouse gas
emissions should be assigned higher probability. In
particular, investors, whether they are natural "scenario planners"
or not, need to get up to speed with CC as an investment issue and
consider taking steps to manage related risks and exploit
Talking about climate change is fashionable again. In the
year when the concentration of carbon dioxide in the atmosphere
touched 400 parts per million for the first time in human history,
President Obama has elevated the topic in his in-tray, the Chinese
are experimenting with "cap and trade" and the Liberal Party in
Australia is threatening to roll back policy.
© 1998 - 2014 Impax Asset Management Group plc
Web Designers & IT Support