Brochure Global Prospects for Alternative Energy Remain Bright

							GLObaL PROSPECTS FOR aLTERNaTivE ENERGy REMaiN bRiGHT
Although	the	global	financial	crisis	stalled	the	rapid	advance	of	the	alternative	energy	sector,	its	long-
term	prospects	remain	bright—fueled	by	favorable	political,	social	and	economic	trends.	


Prior to the financial crisis, revenue growth among alternative                              The	rising	global	energy	demand.		
energy companies was thriving, as global revenues for solar
photovoltaics, wind power, and biofuels grew from $75.8                                      Even with the global recession, world population growth and
billion in 2007 to $115.9 billion in 2008.1 At the same time,                                rising living standards are expected to translate into higher
investment in energy technologies, including venture capital                                 global demand for energy. Global primary energy demand is
and project finance, was on the rise.                                                        predicted to rise 50% between now and 2030, with more than
                                                                                             80% of that demand coming from developing countries, such
Today, a weak global economy, lower crude oil prices, and a                                  as India and China.2
prolonged “flight to quality” on the part of investors have hit
alternative energy companies particularly hard. “Despite these                               A	scarcity	of	accessible	oil.	
near-term difficulties,” says Jens Peers, lead portfolio manager
of the Calvert	Global	Alternative	Energy	Fund, “we see a                                     While the recent decline in oil prices may have dampened
favorable business landscape beginning to emerge for various                                 the sense of urgency over diminished supplies, data show
segments of this sector—including wind, solar, hydropower,                                   that 54 of the 65 largest oil-producing countries have begun
fuel cells, and energy conservation.”                                                        to experience a decline in oil production.3 As a result, the
                                                                                             development of biofuels and advances in transportation
Peers sees tremendous growth potential for the sector,                                       technologies, such as those used in hybrid vehicles, appear
resulting from a convergence of favorable political, social, and                             increasingly attractive.
economic forces. For instance, “green investments” are a key
component of major stimulus programs in the United States,                                   The	growing	investment	in	new	energy	
China, the European Union, and the United Kingdom.                                           technologies.		

                                                                                             New alternative energy technologies are likely to play a
Five	Key	Trends	                                                                             growing role in bridging the energy supply-demand gap, while
                                                                                             curbing carbon impacts. For instance, experts estimate that
Looking ahead, Peers and Calvert believe the following five                                  making the electric grid even 5% more efficient would mean
trends will help propel longer-term growth in the alternative                                savings equal to the elimination of greenhouse gas (GHG)
energy sector:                                                                               emissions from 53 million cars.4 Of the total venture capital


  ProjEctEd incrEASE in world mArkEtEd EnErgy conSumPtion by rEgion From 2005 – 2030 (Quadrillion British Thermal Units)

  Between 2005 and 2030, global energy demand is projected to increase by 50%—with more than 80% of that demand coming from emerging
  economies, namely China and India.
                                                                                                                                          AvERAGE AnnuAL PERCEnT
   REGIon                                                2005          2010           2015           2020           2025          2030       ChAnGE 2005 - 2030
   oEcd                                                  240.9         249.7         260.5          269.0           277.6         285.9            0.7
   north America                                         121.3         126.4         132.3          137.8           143.4         148.9            0.8
   Europe                                                 81.4          83.9          88.5           86.8           90.4           92.0            0.5
   Asia                                                   38.2          39.3          41.4           42.7            43.7          44.9            0.7
   non-oEcd                                              221.3         262.8         302.5          339.4           374.2         408.8            2.5
   Europe and Eurasia                                     50.7          55.1          59.5           63.3           66.0           69.1            1.2
   Asia                                                  109.9          137.1        164.2          189.4           215.3         240.8            3.2
   middle East                                            22.9          26.4          29.5           32.6            34.7          36.8            1.9
   Africa                                                 14.4          16.5          18.9           20.9            22.5          23.9            2.0
   central and South America                              23.4          27.7          30.5           33.2            35.7          38.3            2.0
   total world                                           462.2         512.5         563.0          608.4           651.8         694.7            1.6
  The Organisation for Economic Cooperation and Development (OECD) is comprised of economically developed countries, including the United
  States, European countries, Australia, and Canada. It promotes economic and social welfare throughout the OECD area.
  Source: Energy Information Administration (EIA), International Energy Annual 2005 (June-October 2007), http://www. eia.doe.gov/iea.
  Note: Totals may not equal sum of components due to independent rounding. Projections: EIA, World Energy Projections Plus (2008).
investment in the United States in 2008, 11.8% was related to                                    Consider	an	Allocation	to		
energy technologies, up from just 0.6% in 2000.5                                                 Alternative	Energy
Climate	change.	                                                                                 In view of these converging trends, and with alternative
                                                                                                 energy stock prices driven to attractive levels due to the
Today, there is broad scientific, public, and business consensus                                 market correction, now may be a good time to consider
about the potentially catastrophic impact of climate change.                                     adding alternative energy exposure to your portfolio’s equity
The Investor Network on Climate Risk, a coalition of 70                                          allocation. “Including alternative energy companies can
institutional investors managing $7 trillion in assets, has                                      enhance overall portfolio returns by providing investors with
persuaded some two dozen Fortune 500 companies to improve                                        access to a new, potentially high-growth set of companies,”
their climate policies, practices, and disclosure.6                                              says Peers. On balance, while alternative energy stocks
                                                                                                 represent higher return potential, they also involve higher risk
A	changing	regulatory	landscape.	                                                                potential.

While policy changes favoring renewable energy are taking                                        Navigating the companies in this relatively young sector
hold in the United States, these issues are already high on                                      should be done with the help of investment professionals
the international policy agenda. A longtime green-energy                                         skilled in assessing the financial strength, competitive
leader, the European Union recently affirmed its 2020 target                                     advantages, and future growth prospects of these unique
calling for a 20% reduction in carbon emissions. These                                           companies. KBC Asset Management, the sub-advisor of
global initiatives are likely to help make alternative energy                                    Calvert’s Global Alternative Energy Fund, as well as Calvert’s
significantly more competitive in the period ahead.                                              Global Water Fund, is a leader in the alternative energy field.
                                                                                                 It has been investing in alternative energy since 2000 through
                                                                                                 the KBC Eco Alternative Energy Fund (available in Europe).
                                                                                                 The Calvert Global Alternative Energy Fund (CGAEX) is an all-
                                                                                                 market-cap, alternative energy sector mutual fund that invests
                                                                                                 in a globally diverse selection of companies.



To read our white paper, “A Bright Future for Alternative Energy,” and for information about
Calvert Global Alternative Energy Fund, visit us online at www.calvert.com.

Financial advisors: Our recent webinar on alternative energy featuring Jens Peers is available
online in the Financial Advisor section of www.calvert.com.


1. Clean Energy Trends 2009, March 2009, CleanEdge.
2. Energy Information Administration (EIA), World Energy Projections Plus (2008).
3. Association for the Study of Peak Oil&Gas, “The Oil Supply Tsunami Alert,” by Kjell Aleklett, http://www.peakoil.net/Oil_tsunami.html.
4. Department of Energy, “The Smart Grid: An Introduction,” http://www.oe.energy.gov/smartgrid.htm
5. Clean Energy Trends 2009, March 2009, CleanEdge.
6. Calvert is a member of The Investor Network on Climate Risk.
A Word About the Risks. Calvert Global Alternative Energy Fund is subject to the risk that stocks that comprise the energy sector may decline in value,
and the risk that prices of energy (including traditional sources of energy such as oil, gas, or electricity) or alternative energy may decline. The stock
markets in which the Fund invests may also experience periods of volatility and instability. In addition, shares of the companies involved in the energy
industry have been more volatile than shares of companies operating in other more established industries. Consequently, the Fund may tend to be more
volatile than other mutual funds. Lastly, foreign investments involve greater risks than U.S. investments, including political and economic risks and the
risk of currency fluctuations.
For more information on any Calvert fund, please contact your financial advisor or call Calvert at 800.368.2748 for a free prospectus. Institutional
investors call 800.327.2109. An investor should consider the investment objectives, risks, charges, and expenses of an investment carefully before
investing. The prospectus contains this and other information. Read it carefully before you invest or send money.
Calvert mutual funds are underwritten and distributed by Calvert Distributors Inc., member FINRA, a subsidiary of Calvert Group, Ltd. 800.368.2748.
Calvert funds are available at NAV for RIAs and Wrap Programs. Not all funds available at all firms. #9139-200906