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Consumer Technology Green investment

Published on November 7th, 2013 | by Silvio Marcacci

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Two New Green Investing Options Could Help Avoid The Carbon Bubble

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November 7th, 2013 by  

It’s one of the biggest hurdles facing fossil fuel divestment: Where to find sustainable investment options that create secure returns on investment in an energy market often dominated by fossil fuel companies.

But thanks to action taken by two of the world’s largest investment funds, that hurdle has just been lowered for organizations and individuals who want to avoid the carbon bubble by investing in a sustainable future.

Calvert Investments has launched a Green Bond Fund focused on climate change and sustainability solutions, while Morgan Stanley went a step further by establishing a multi-faceted Institute for Sustainable Investing.

Green investment

Green investment image via Shutterstock

A Fossil Fuel Divestment Option For Today

Both announcements will create new options for fossil fuel divestment, but the Calvert Green Bond Fund offers investors immediate action. The fund packages multiple climate- and sustainability-themed development bonds, project financing loans, and real estate deals together into one managed mutual fund.

“Corporate holdings in this fund will meet our definition of green if they derive at least half of their revenues from clean tech or an environmentally beneficial technology, product, or service,” said Cathy Roy, Calvert’s Chief Investment Officer. “We’ll also invest in project bonds that achieve project goals such as developing smart growth and transit, energy efficiency, pollution prevention, and green real estate.”

With $13 billion in total funds management and a history of managing sustainable bond products since 1987, Calvert is in unique position to provide financial returns for clean tech investors while funding a sustainable future and avoiding the estimated $6 trillion at risk from fossil fuel investments. “The fund is designed to capture the investment opportunity from the trillions needed in new capital to address key global sustainability challenges,” said Mauricio Agudelo, fund co-manager.

Improving Green Investing For Years To Come 

While Calvert’s announcement provides options today, Morgan Stanley’s news could help improve sustainable investing options far into the future. The Institute for Sustainable Investing will develop sustainability-focused financial products, direct capital to sustainable investments, and create public-private partnerships to increase green investing opportunities.

Those imperatives may seem a bit vague at this point, but the Institute is launching with four major commitments:

Make no mistake – Morgan Stanley’s foray into green investing isn’t greenwashing. The firm estimates sustainable investing opportunities will reach $10 trillion annually by 2050, and with 4 million clients representing $1.8 trillion in assets, the Institute is a shrewd investment in the green business growth market.

“Our clients are increasingly turning their attention to what it takes to secure lasting and safe supplies of food, energy, water, and shelter,” said James Gorman, Morgan Stanley Chairman and CEO. “Our philosophy is clear – the most effective solutions to sustainability challenges are those that can be brought to scale.”

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About the Author

Silvio is Principal at Marcacci Communications, a full-service clean energy and climate-focused public relations company based in Washington, D.C.



  • JamesWimberley

    The greening of Wall Street is going faster than anyone could have expected. The herd effects that bring us bubbles and crashes are now working for the energy transition. Fund managers lose sleep over stranded fossil assets. How long before one of the rich Ivies divests from fossil fuels? Or coal shares are worthless?

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