14 July 2010
Funds that provide a carbon tilt to favour low-carbon companies could see a rise in UK investments under proposals to reserve increases in ISA limits for green/low carbon ISAs. The Green Investment Bank Commission outlined recommendations in June for a new financial institution to finance low-carbon investments, including plans to attract money from retail as well as institutional investors.
Simon Thomas, Chief Executive of Trucost said, "The new Government is proposing that recently announced increases in ISA limits be reserved for green or low carbon ISAs. These products accept that large companies currently employing conventional technologies will make an important contribution to greening our economy by increasing the carbon efficiency of their businesses; these new low carbon ISAs will reward this transition by overweighting the most carbon efficient companies. The Carbon Footprint Fund PLC has shown great foresight by anticipating the new ISA limits and will provide a natural home for the investment flows that this initiative will stimulate."
Carbon Footprint PLC intend to sponsor the launch of a new Fund later this year based on the carbon efficiency of selected FTSE 350 companies. Carbon efficiency weightings are to be based on standardised greenhouse gas emissions data provided by Trucost, the environmental data provider. "