Hedging climate change bets

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The recent G8 summit failed to reach agreement on proposals for even a voluntary code of conduct for the world's 9000 "locust" hedge funds with an estimated value of $16 billion as reported on Spiegel Online. However, while there may remain disagreement over transparency issues, it seems G8 leaders might applaud hedge funds for taking the initiative on another key G8 theme - climate change.

Hedge funds are jumping on the green investment bandwagon. As reported in the UK's Observer, Schroders are launching a climate change fund, adding to a number of green investment products already on the market. Even Man Group, the largest listed hedge fund worldwide, has announced plans to get in on the act. As reported on thisismoney, Man's Chairman Harvey McGrath sees "significant further developments" around carbon trading and the "green space."


Authors

Michael Jarvis

Executive Director, Transparency and Accountability Initiative

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