Reserves of fossil fuels are finite, yet demand for energy is ever expanding, driven by global population growth and the rise of the middle classes in emerging markets.
At the same time, governments in both the developed and emerging economies are legislating to reduce emissions, improve energy efficiency and promote the development of alternative energy sources. However, the low carbon energy production sector, which is comprised of companies engaged in renewable energy such as wind or solar power, does not seem to be able to convert record levels of investment into strong share price performance. Despite a total of $257bn of new investments in 2011, up from 2007 levels of $132bn, we saw the MSCI Global Alternative Energy index (GAEI) fell by almost...
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