Why a lower oil price is not a death knell for the environmental sector

The FTSE ET 100 returned 5% versus the MSCI All Countries World index, which advanced 3.3%, in 2015 rounding off what was a successful year for environment markets.

Important environmental policy developments can be important drivers of these markets and the positive outcome at last December's Paris Climate Agreement certainly proved to be a strong catalyst. In the build-up to this event, we saw global environmental policy tighten ahead of country pledges being finalised. The build-up to the talks and the media attention they received also heightened investor interest and sentiment. We expect this momentum to be maintained over the longer term and future stock performance will be driven by the ratcheting up of environmental regulations at a count...