1700: Chairs Introduction Roger Harrabin, Environment Analyst BBC

1
Agenda
1700 Chairs IntroductionRoger Harrabin,
Environment Analyst BBC 1710 A summary of the
financial outlook the implications Martin
Brough, Director - Oxera 1720 The effect on
investment flows in to Clean Tech and new climate
friendly businessesMark Campanale, Director
London Bridge Capital 1730 Consumer
responses to a slow downChris Coulter VP
Globescan 1740 In-house efforts How
corporations will reactMaggie Brenneke,
Director, Skoll Social Enterprise Program -
SustainAbility 1750 How might policy be
affected at home and abroad?Tom Burke CBE,
Environmental Policy Rio Tinto 1800 Panel QA
2
Green and global market instability financial
outlook and implications

• Prepared for Green Business Events
• Martin Brough, Director

March 5th 2008
3
Staying green through global market turmoil?

• economics is lagging behind the science and the
  politics of climate change
• three things economics can do to keep green
  policies on corporate agenda
• Fix the disconnect between carbon prices and the
  effort needed
• UK FTSE 100 dropped 77 billion in one day on
  January 21st 2008
• buying offsets for 60 of the UKs CO2 emissions
  at current carbon prices would only cost around
  5 billion pa or 0.5 of GDP
• Make the medicine taste better
• painkillers are prescribed for global market
  turmoil
• why does green medicine taste so bad?
• the economics of marginal prices versus the
  politics of redistribution
• Give clearer investment signals
• normal supply and demand corrections give clear
  price and investment signals
• green policies give mixed messages

4
www.oxera.com

• Contact
• Martin Brough
• 44 (0) 1865 253 019
• martin.brough_at_oxera.com

5
Agenda
1700 Chairs IntroductionRoger Harrabin,
Environment Analyst BBC 1710 A summary of the
financial outlook the implications Martin
Brough, Director - Oxera 1720 The effect on
investment flows in to Clean Tech and new climate
friendly businessesMark Campanale, Director
London Bridge Capital 1730 Consumer
responses to a slow downChris Coulter VP
Globescan 1740 In-house efforts How
corporations will reactMaggie Brenneke,
Director, Skoll Social Enterprise Program -
SustainAbility 1750 How might policy be
affected at home and abroad?Tom Burke CBE,
Environmental Policy Rio Tinto 1800 Panel QA
6
Investment flows in to Clean Tech Mark
Campanale, mc_at_lbc.uk.net March 2008
London Bridge Capital is an FSA authorised
corporate finance boutique focused exclusively on
the clean tech and carbon markets
7
London Bridge Capital

• LBC is an investment banking boutique
  specialising in the provision of advice to small
  and medium enterprises whose products are in the
  clean technology space, with a particular focus
  on the renewable energy industry.

8
Global Carbon Emissions
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Multiple technologies can contribute to
stabilising concentrations
Current trend
Stabilisation triangle
Global carbon emissions
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Gtc/year
0
2000
2054
1954
Source R Socolow, R. Hotinski, J.B. Greenblatt
and S Pacala, Solving the Climate Problem
Technologies Available to Curb CO2 Emissions,
Environment, Volume 46, No.10, December 2004 Gtc
means billion of metric tons of carbon
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New Investment in Clean Energy
Globally 2004-2007
1 of global fixed asset investment
19 of global energy industry infrastructure
investment
250 of commercial aircraft investment
Source New Energy Finance, IMF WEO Database, IEA
WEO 2007, Boeing 2006 Annual Report
Adjusted for reinvestment. Geared re-investment
assumes a 1 year lag between VC/PE/Public Markets
funds raised and re-investment in projects.
9
10
New Investment by Sector, 2004 - 2007
Wind
Source New Energy Finance
10
VC/PE, Public Markets and Asset Finance only.
Excludes re-investment adjustment
11
Clean Energy Investment, Region, 04-07
Source New Energy Finance
11
Adjusted for reinvestment. Geared re-investment
assumes a 1 year lag between VC/PE/Public Markets
funds raised and re-investment in projects.
12
Clean Energy by Asset Class 2004 - 2007
VC/PE
9.8bn
7.3bn
3.0bn
1.6bn
Source New Energy Finance
12
Excludes re-investment adjustment
13
NEX vs NASDAQ, SP 500 and AMEX Oil
500
2003-2008 YTD
450
400
350
300
250
200
150
100
50
0
30 Dec2005
30 Jun2006
30 Dec2006
30 Jun2007
30 Dec2007
30 Dec2002
30 Jun2003
30 Dec2003
30 Jun2004
30 Dec2004
30 Jun2005
Index Values rebased to 100 on 31 December 2002
13
Source New Energy Finance Bloomberg
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NEX Growth Scenarios
30
NEX
20?
10?
Shaded region represents corridor of safety with
annual growth ranging between 10 20
Source New Energy Finance Bloomberg
14
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Mark Campanale
Education York University BA (Hons) Politics
and Economic History Wye Agricultural College,
London University MSc Agricultural Economics
Career 1985 Environmental Consultant EC,
ERM, World Vision, Band Aid/Live
Aid 1989 Jupiter Asset Management Senior
Sustainability Investment Analyst 1994 NPI Asset
Management Ltd Senior Sustainability Investment
Analyst
1999 Henderson Global Investors SRI Business
Development 2001-2007 Henderson Global
Investors Associate Director of SRI Business
Development 2007 London Bridge
Capital Investment Manager, Listed
Assets Directorships Director, Carbon Assets
Fund Carbon Capital Markets Director, UK
Social Investment Forum Director, The
Rainforest Foundation (UK) Co-Founder,
www.ecosecuritisation.com
Contact mc_at_lbc.uk.net 07714 415262
16
Data used in this presentation
New Energy Finance New Carbon
Finance www.newenergyfinance.com
www.newcarbonfinance.com tel [phone]
8800 email benjamin.kafri_at_newenergyfinance.com

• News service
• Newsletters
• Deal investor databases
• Research
• Analysis
• Consulting
• Carbon price forecasting
• Advisory support

16
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London Bridge Capital

• London Bridge Capital Limited ("LBC") is an
  investment banking boutique specialising in the
  provision of advice to small and medium
  enterprises whose products are in the clean
  technology space, with a particular focus on the
  renewable energy industry.LBC has a strong
  management and executive team with many years of
  experience gained in all areas of the Worlds
  stock markets, across a number of differing
  functions.London Bridge Capital Limited is
  Authorised and Regulated by the Financial
  Services Authority.
• Contact Mark Campanale mc_at_lbc.uk.net

18
Agenda
1700 Chairs IntroductionRoger Harrabin,
Environment Analyst BBC 1710 A summary of the
financial outlook the implications Martin
Brough, Director - Oxera 1720 The effect on
investment flows in to Clean Tech and new climate
friendly businessesMark Campanale, Director
London Bridge Capital 1730 Consumer
responses to a slow downChris Coulter VP
Globescan 1740 In-house efforts How
corporations will reactMaggie Brenneke,
Director, Skoll Social Enterprise Program -
SustainAbility 1750 How might policy be
affected at home and abroad?Tom Burke CBE,
Environmental Policy Rio Tinto 1800 Panel QA
19

• Coulter

20
Agenda
1700 Chairs IntroductionRoger Harrabin,
Environment Analyst BBC 1710 A summary of the
financial outlook the implications Martin
Brough, Director - Oxera 1720 The effect on
investment flows in to Clean Tech and new climate
friendly businessesMark Campanale, Director
London Bridge Capital 1730 Consumer
responses to a slow downChris Coulter VP
Globescan 1740 In-house efforts How
corporations will reactMaggie Brenneke,
Director, Skoll Social Enterprise Program -
SustainAbility 1750 How might policy be
affected at home and abroad?Tom Burke CBE,
Environmental Policy Rio Tinto 1800 Panel QA
21
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Opinions of the Recent Increase in Corporate
Communications about Sustainability and
Environment
Average Rating, 2008
Subsample Respondents who answered the question
(n2135)
On a scale of 1 to 5, where 1 means Strategic
and temporary and 5 means Authentic change.
23
Groups Providing Most Important Sustainable
Development Leadership
Over Next Ten Years, in Your Country, 2008
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Agenda - Panel
Roger Harrabin, Environment Analyst BBC
(Chair)Tom Burke CBE, Environmental Policy Rio
Tinto Nick Coad, Head of Group Environment
Strategy - National Express Mark Campanale,
Director London Bridge CapitalChris Coulter
VP Globescan Martin Brough, Director
Oxera Maggie Brenneke, Director Skoll Social
Enterprise Program - SustainAbility