The significance of the Copenhagen meeting should not be overestimated

2009-11-09

We have in the past month witnessed high levels of political activity in order to permit a framework for the major climate summit in Copenhagen on 7-18 December. Activity that has been reflected by high inefficiency when no actual steps were taken to get to a binding international agreement in Copenhagen, an agreement that would replace the current Kyoto Protocol that expires in 2012. But according to a new report from cleantech.com does a failure in Copenhagen by no means mean the end of international environmental cooperation, rather the opposite.

The report identifies five points of emphasis to bair in mind before and after the December meeting:

- Investors in the environmental field should see Copenhagen as a milestone for international consensus on climate change which will ultimately lead to higher demand for environmental products. Not so much that a global agreement will dramatically change the climate for environmental investments.

- The meeting will be adversely affected by the U.S. inability to reach agreement on climate change which in turn can lead China down the same path.

- Negotiations which do not lead to a new agreement should not be seen as a failure. International negotiations on the issue of climate change will bring up the question on each country's political agenda and accelerate the development of individual countries legislation and at the same time be helpful in building consensus on the issue at international level.

- Regardless of the outcome in Copenhagen, there will be no major impact on the environment investment landscape in the short term. Government stimulus package reaching the sector in 2010 will create favorable conditions for continued strong growth in many segments, regardless of the outcome in Copenhagen.

- The dialogue in economic and political contexts has to a great extent shifted over from carbon trading to more focus on innovation and value creation. The UN-led climate talks never favors innovation and value creation to the same extent as the G20, G2, and the US-led MEF why more attention should be paid to the latter.

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Save Earth Fund invests in renewable energy, environmental technology and water management through actively managed funds, ETFs and stocks. The fund is the only of its kind in Sweden. Our aim is to generate a return that clearly exceeds that of the MSCI World index, with a lower than the average risk of environmental funds. No minimum investment. The management fee is 1%. Daily subscriptions/redemptions. Mr Carl Bernadotte, Mr Alexander Jansson and Mr Marcus Grimfors are responsible for managing the fund. Learn more about our managers here.