Managers welcome increased funding for green sectors

Managers have welcomed the Chancellor's commitment to further investment in renewable energy and efficiency incentives, as laid out in last week's Budget.

Alistair Darling has set aside an additional £1.4bn to support the low-carbon sector, including £525m for offshore wind and £375m to increase energy efficiency in homes and businesses.

As well as pledging a commitment to increasing jobs in the environmental sector, Darling flagged Britain's potential for offshore wind generation to become as important as the country's offshore oil development in the North Sea, with ambitions of deriving 15% of the UK's energy from renewable sources by 2020.

Jupiter Ecology fund manager Charlie Thomas said the move presents exciting opportunities for long-term investors, naming SIG, Kingspan and Eaga as companies which could benefit from the green boost.

"The Government has also committed an additional £375m to support energy efficiency in businesses, public buildings and households. We believe this is an often overlooked investment opportunity and an area of ongoing focus for our green portfolios."

Head of socially responsible investments at the group Emma Howard Boyd says while the carbon budgets represent steps towards a low carbon UK economy, more detail is needed on how to fully asses the impact on industry and the opportunities presented.

Meanwhile Bozena Jankowska, manager of the Allianz RCM Global EcoTrends fund says she will also be keeping an eye on the Government's promises.

"Despite having the best wind resources in Europe, the UK has been accused of failing to cash in on a potential boom area."