Barack Obama and climate change - by Ad Schellen, manager of the Delta Lloyd L Water & Climate Fund.
2009 will be an important year for climate change, the environment and alternative energy. For example, the successor to the Kyoto Protocol will be negotiated in Copenhagen, setting the course for a global climate policy moving away from fossil fuels towards new and cleaner sources of energy. In the past, the United States has often taken a backseat or even obstructed international discussions, such as those on the Kyoto Protocol. With the election of Barack Obama, this should now change. His commitment to invest US$150 billion over the next 10 years in the fight against climate change shows a clear change in the USA's energy and environmental policy. The appointment of Steven Chu as the new Energy Secretary also sends a clear signal to the world. Obama seems well aware of the problems of climate change, as well as of the USA's reliance on foreign oil. A solution to these problems must be found quickly, and Obama's planned economic programme will help to make this possible.
One of Obama's targets is to reduce greenhouse gas (primarily CO2) emissions to 80% of 1990 levels by 2050. To put this plan into action he will first invest in new and alternative forms of energy, as well as establishing an emissions trading system whereby pollution rights will be put up for auction. Part of the income from this system, around US$15 billion, will be invested in developing clean and alternative energies, in improving energy efficiency, and in the next generation of biofuel and environmentally-friendly vehicles. In addition he aims to significantly increase the proportion of energy in the US that is supplied by renewable sources by 2012, partly through the increased use of solar, wind and geothermal energy.
In the short term, the new President has also made some promising assurances. For example, the energy efficiency of millions of private households should be improved. Furthermore, he hopes that there will be at least one million hybrid cars in the US by the year 2015. Considerable amounts of fuel can be saved using this technology, and cars can travel up to 60 kilometres (37 miles) on one litre of petrol or diesel. To set a good example, the White House will be converting its entire fleet to hybrid vehicles.
Perhaps even more significant than the planned measures, is the message that President Obama is sending. In contrast to his predecessor, the theme of global warming is a top priority for Obama. The USA is currently 22nd in a list of the most energy-efficient counties of the world. In his efforts against climate change, Obama aims to make the USA a pioneer in climate policy and to play a leading role at international climate conferences. The government also plans to offer incentives for businesses that invest in renewable energy. Alongside the hope for millions of new jobs created by this investment, the participation of one of the largest nations in climate policy will also lead to economies of scale and innovation. These make a significant contribution towards making renewable energy more effective and cost-efficient which will considerably increase growth in this sector. Investors in the Delta Lloyd L Water & Climate Fund (ISIN LU0269461587) can profit from this bright outlook, since the fund invests in numerous American companies that work on technologies, products and services related to renewable energy.
Examples of these companies include First Solar, Inc, the largest provider of thin film solar cells on glass. The company offers the lowest costs per watt in the industry. Secondly, Itron, the leading provider of electricity meters. The company will profit from the fact that more and more suppliers are investing in intelligent equipment to measure consumption. These improved electricity meters can give the suppliers more information relating to consumption as well as costs and help to better regulate demand for electricity.
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For further information:
Martina Fassbender
Telephone: 0611 773 25 71
Fax: 0611 773 14 25 71
E-mail: martina.fassbender@deltalloyd.de
Notes to editors:
About Delta Lloyd Asset Management
Delta Lloyd Asset Management (DLAM) is the asset manager of Delta Lloyd Groep, one of the leading providers of financial services in the Netherlands, active in the fields of insurance, banking and asset management. With assets of €39 billion (as at June 2008) under management for internal and external customers, DLAM is the fifth-largest asset manager in the Netherlands. The asset management company administers investment funds for Delta Lloyd, OHRA and Triodos and also operates as asset manager for institutional investors.
About Delta Lloyd
Delta Lloyd Germany is a 100% subsidiary of Delta Lloyd Group, Amsterdam, and therefore part of the British Aviva Group. The company offers a one-stop shop for a wide range of financial, investment and provident products and also provides expert advice on all financial matters. In addition to Delta Lloyd Leben and Hamburger Leben, a pension fund and a consultancy for occupational pension schemes respectively, the Delta Lloyd Group in Germany also comprises the private bank Gries & Heissel and a mortgage broker.