Features, October 1999 INDEXES DOW INITIATIVE IGNITES DEBATE A new index family from Dow Jones has cast the spotlight on sustainable investing, and on its chosen methodology. Mark Nicholls talks to experts - and competitors - about how Dow Jones, and its partner, Switzerland's SAM Sustainability Group, have chosen to compile the first global indexes of companies that best address environmental and social issues as well as economic ones. More... CARBON CREDITS US SHUNS WORLD BANK'S CARBON FUND The World Bank's project to start a market in carbon credits has created controversy - US industry and investors have questioned whether the World Bank is overstepping its mandate, and risks distorting any carbon credits market. Graham Cooper reports on the fund, and on the debate, and finds non-US players more enthusiastic. More... HOW I SEE IT THE CONVERGENCE OF ENVIRONMENTAL AND CAPITAL MARKETS Richard Sandor finds good news in two unrelated events: BP's pilot programme in reducing emissions shows the cost is less than expected, and the launch of the Dow Jones/SAM Sustainability Group equity indexes show the outperformance of 'sustainable' companies. FUND MANAGEMENT PENSION FUNDS TO COME CLEAN ON SRI From July 2000, UK pension funds will be required to disclose what - if any - their policies are on socially responsible investing. Mark Nicholls asks fund managers, consultants, and actuaries what this will mean for the industry - will it be business as usual, or will a wave of member activisim radicalise the pension fund business? EMISSIONS LEGISLATION SLOW PROGRESS ON 'EARLY ACTION' BILLS Congress is considering a slew of bills to reward US companies for cutting emissions ahead of any international - or domestic - framework is agreed. Peter Spiegel compares the various bills, and asks Capitol Hill analysts and advisors whether any actually reach the President's desk. ENERGY TAXES TO TAX OR NOT TO TAX? On the one side, Peter Agar, deputy director general of the Confederation of British Industry. On the other, Michael Grubb, of the Royal Institute of International Affairs. Agar puts the case that the government's planned Climate Change Levy will be a disaster for British industry. Not so, says Grubb. Environmental taxes have a legitimate place in a balanced policy mix, and the levy would show the government's committment to tackling climate change. WEATHER DERIVATIVES WINTER WARMS WEATHER TRADERS Everyone is talking about weather derivatives - and the dealers and brokers say the market is growing fast. But Mark Nicholls finds that the market is still dominated by the energy sector, and that more needs to be done to attract diverse end-users to create a balance of supply and demand. CATASTROPHE INSURANCE QUAKES SEND TREMORS THROUGH INSURANCE INDUSTRY In a summer that saw devastating quakes hit Turkey, Taiwan, and Greece, the reinsurers escaped relatively unscathed. But despite high capacity within the sector, the reinsurers are under pressure to consider new products, Sumit Paul-Choudhury reports. CLIMATE CHANGE CLEANING UP AFTER KYOTO The Kyoto Protocol need not mean economic disaster for the US. A new study from the Tellus Institute shows how it could profit by slashing its greenhouse gas emissions. Stephen Bernow, Karylnn Cory, William Dougherty, Max Duckworth, Sivan Kartha, and Michael Ruth explain how. FOR THE FULL STORY EVERY MONTH, SUBSCRIBE TO ENVIRONMENTAL FINANCE, OR CONTACT info@environmental-finance.com FOR OUR BACK ISSUES SERVICE