Corporate Finance

Corporate Finance’s efforts in addressing the climate change centre around its renewable energy initiative.

We recognise that the banking sector will play a key role in the development of the renewable energy sector. The carbon agenda is a major concern for Chairmen and CEOs worldwide and Deutsche Bank aims to be an ambassador for climate change.

Deutsche Bank occupies a leading position as an advisory and intermediary in the renewable energy sector and has been involved in a series of landmark transactions.

We aim to develop and deliver climate change-related banking solutions for our  priority clients. As well as strengthening awareness, we also advise our clients of the challenges and the opportunities presented by climate change.

Further initiatives

Renewables effort makes progress in 2009

Global Banking’s climate change strategy gathered momentum in 2009, with so-called "clean tech" deals up by 100% in EMEA and revenues from all renewable energy M&A and ECM transactions increasing by over 20%.

Charles Bryant, Head of Renewables in Global Banking, says that importantly, awareness of the green agenda is on the rise, as evidenced by the recent telephone conference call hosted by the Bank, which attracted 79 clients, many of who were very senior people at their respective companies.
Earlier in 2009, the DB Leadership Forum, which focused on the opportunities and challenges presented by climate change, was heralded a big success with clients. "We have had excellent traction with clients in respect of these events," he says.

In Global Banking, a virtual, globally integrated clean-tech and renewable energy team was established in February 2009. The team focused on developing fee opportunities and market share and facilitated access to the renewables platform for a wide range of clients with climate change needs. "While there continues to be a predominance of smaller transactions, there is increasing demand from Global Banking’s core target client base," adds Bryant.

Bryant anticipates a wave of consolidation among renewable energy companies in 2010-11, with large companies snapping up smaller institutions. And as awareness of climate change grows, more and more companies, many from non-renewables sectors, will be undertaking projects. "There will be a significant number of opportunities for us going forward and we are seen as one of the leaders in this field," says Bryant.

The next big focus is on the Climate Change meeting in Mexico City later this year. "A lot of people have been negative about the outcome of Copenhagen, but we prefer to look upon the glass as being "half full". I expect that some more concrete agreements will come out of the next meeting."

Climate Change Conference Copenhagen

Deutsche Bank Research has issued a paper that looks at the outcome of the recent United Nations Climate Change Conference in Copenhagen.

The report says “the glass is half full”, and admits that while the Copenhagen Accord has disappointed many observers, particularly as no legally binding agreement was reached and that no specific reduction targets were agreed on.
Deutsche Bank Research comments: “Still, the Accord addresses many crucial elements of a framework for tackling climate change. The greatest near-term risk stemming from the Accord concerns the future of carbon markets. In order to reduce uncertainties it is necessary to make quick progress on both carbon market reform and financing of international mitigation projects. Many countries have embarked upon their own climate policies. The Copenhagen Accord does not end these policies or slow down the momentum that was gained in the run-up to Copenhagen. The weeks ahead will of course reveal countries’ willingness to register ambitious policies and thus keep up the momentum.”

The report adds that building trust is crucial and that future conferences may want to break down the discussion into smaller, still complex topics, for example by separating mitigation and  adaption issues.

Deutsche Bank Research: Copenhagen and beyond – a glass half full, Jan 25, 2010
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