Global climate revenues fell 5 percent in 2011 to $539 billion from an all-time high the previous year, mainly dragged down by the weak performance of low-carbon energy companies hit by the global economic slowdown, a report by HSBC said on Tuesday.
Climate revenues were unlikely to exceed 2010's all-time high of $567 billion over the next few years. Revenues could contract further in 2013 and flatten through 2015, HSBC said in its annual climate change index review.
The HSBC Climate Change Index tracks the performance of 347 stocks across the low-carbon energy production, energy efficiency, environment and land-use management and climate finance sectors.
The index declined 5.2 percent in 2011, compared to a 9.9 percent gain in 2010, and underperformed the MSCI All Country World Index by 15.1 percent.
Global engagement in climate change seems to have temporarily stalled as many governments have to focus on overcoming an economic downturn and as companies suffer from the slowdown.
"The global economy continues to face headwinds with the resulting backdrop not being particularly supportive for the climate sector," the report said.