Rethink of stock bets ahead of new carbon laws

SINGAPORE: The price of carbon is going up. While no one knows exactly how high it will go or how quickly, money managers are beginning to assess the impact of rising costs on their equity investments.

Invesco Ltd now tests its portfolios under a range of carbon prices from less than US$10 a tonne to more than US$100. At Morgan Stanley, the sustainability research team is monitoring carbon regulations that are likely to inflate costs for companies.