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Interesting, though technical, comments for investors keen on the green sector were issued by Numis’ Andrew Stone this month. He notes that the share prices of carbon credit developers such as AgCert, Camco, Econergy, EcoSecurities and Trading Emissions have come under recent pressure as a result of the drop in the price of European Union carbon credit allowances with ‘December 2006 delivery’.

Stone has not altered his recommendations or target valuations for the shares, but expects a volatile month on the carbon exchanges and reiterates that ‘in order for the EU to bring down the level of its emissions, which are currently too high, there will be cut-backs in the allocations for Phase 2’.

In another new-energy sub-sector, he has downgraded BioFuels Corporation from buy to hold after a good run over recent weeks. ‘With crude oil prices easing,’ he writes, ‘we think the momentum could now fade.’ And Climate Exchange, ‘which is a play on carbon volumes, as opposed to carbon prices’, has been upgraded from hold to add, as the drop in its share price is anomalous with very heavy volumes in the number of carbon allowances traded recently.

Numis also upgraded to ‘add’ status the prestige car replacement star Accident Exchange on the back of its first acquisition (of software provider DCML), which extends the customer base and strengthens key relationships with car manufacturers and insurers. ‘Trading momentum appears to be strong,’ states the broker, which has set a 475p target price for the shares.