Private equity firms have cultivated greater interest in renewable energy during the past few years and with many governments paying more attention to renewables, offering subsidies to encourage investment in the sector, it appears their timing could not have been better. But can the pace of growth be maintained?
Sir David King, former chief scientific advisor to the UK government, believes the UK's policy-makers and financiers fail to support its promising low-carbon sector. The Smith School of Enterprise and the Environment, which he heads, is working to change that.
Much was expected but little emerged from the climate talks in Copenhagen in 2009. As the financial crisis hit, discussion about the cap and trade system got pushed back. In Europe, market participants are worried about the move from government-allocated carbon credits to market auctions.
Whatever happens at the UN meetings in Copenhagen this December, the carbon markets will have to re-examine the structures put in place by the Kyoto Protocol, not least the Clean Development Mechanism. But is it beyond repair or just in need of a tune-up? Writer Jim Kharouf
Banks are at the heart of the carbon business, originating and funding emission reduction projects, trading allowances and offsets, and creating structured products. But just as many projects become more capital intensive, will financial meltdown and recession put the brakes on the business? Writer Geraldine Lambe.