---
Sent From Bloomberg Mobile MSG
+------------------------------------------------------------------------------+
Climate Change Capital Plans to Raise More Money, Cameron Says
2010-08-02 01:15:34.189 GMT
By Natalie Obiko Pearson
Aug. 2 (Bloomberg) -- Climate Change Capital, a London fund
manager that has invested more than $1 billion in greenhouse gas
credits, plans to attract additional cash and focus future
investments on emissions-reducing projects.
"We are ready to raise money for follow-on funds," James
Cameron, executive vice chairman, said in an interview. "The
future is likely to involve more investment in the underlying
asset," and less on credits which trade in the UN's Clean
Development Mechanism, the world's second-largest carbon market.
Doubts about the future of global carbon markets were
compounded after the U.S., the world's largest emitter, shelved
climate legislation on July 28 that would cap emissions and
create a market in pollution allowances.
"A lot of this uncertainty makes space for people who have
conviction over the longer term that investments in reducing
emissions will have value," said Cameron by telephone on July 29
from New Delhi, where he was visiting as part of a delegation to
India with U.K. Prime Minister David Cameron. "We figure it's a
good time to invest actually."
Cameron declined to give further details on fund-raising
plans, citing U.S. regulatory restrictions. Current investors
include SNS Reaal NV, the second-largest Dutch life insurer,
Universities Superannuation Scheme Ltd., the U.K.'s second-
biggest private pension fund, and banks such as Standard
Chartered Plc and HSBC Holdings Plc, he said.
Need to Adapt
Cap-and-trade markets aim to reduce emissions of carbon
dioxide and other heat-trapping gases linked to global warming.
Emitters that produce more than their cap buy permits and those
releasing less can sell their surpluses to stay below an overall
limit.
Their outlook has been shaken by the failure of global
talks to agree on caps for nations beyond 2012, as well as
delays and oversight problems in the UN system.
"No doubt there's some pain at the moment," said Cameron,
formerly an attorney at Baker & McKenzie LLP in London. "We've
had to adapt. It's extremely difficult to raise money now to
deploy directly in carbon market."
New opportunities may include energy efficiency and solar
investments in India, the carbon fund's biggest investment
destination after China, he said. Climate Change Capital is also
currently evaluating a hydropower plant in the northern state of
Kashmir, he added.
Climate Change Capital's carbon finance fund has invested
more than a billion dollars to date, Cameron said. It also has
private equity, property and energy infrastructure funds,
according to its website.
For Related News and Information:
Top environment stories: GREEN <GO>
Emission market news: NI ENVMARKET <GO>
Global emissions data: EMIS <GO>
--Editors: Clyde Russell, Jane Lee.
To contact the reporter on this story:
Natalie Obiko Pearson in Mumbai at +91-22-6612-9107 or
npearson7@bloomberg.net.
To contact the editor responsible for this story:
Clyde Russell at +65-6311-2423 or crussell7@bloomberg.net.
