New Energy Finance's Global Energy Innovation Index (GEIX) has completed the first quarter since its launch. Although as a whole the GEIX is up only 0.25% since the beginning of the 2005, closer analysis shows a potentially significant "Kyoto Effect."

The 20 constituent companies of the GEIX which are quoted in countries that signed the Kyoto Protocol are up by an average of 21.9%. By contrast, the 30 GEIX constituents quoted in the U.S and Australia, which did not sign the Kyoto Protocol, are down by an average of 13.3%.

The GEIX tracks the performance of the largest 50 pure-play quoted renewable and low-carbon energy technology companies worldwide.

Highlights from the GEIX's performance over the first quarter of 2005 are as follows:

• Overall, the GEIX was up just 0.25% at the end of the quarter. In the same period, by comparison, the Nasdaq was down 9.3% on general technology sentiment, and the Amex Oil Index was up 15.0% on the back of high oil prices.
  
  
• Performance of GEIX constituents quoted on stock markets in Kyoto signatory countries was as follows: Frankfurt (4 companies) +52.7%; AIM (7 companies) +28.3%; Copenhagen (2 companies) +19.5%; Toronto (5 companies) +7.3%
  
  
• Performance of GEIX constituents quoted on stock markets in non-Kyoto signatory countries performed as follows: Nasdaq (24 companies) -13.8%; Australian Stock exchange (4 companies) +4.2%
  
  
• Leading sectoral growth were the 5 Biomass and Biofuels businesses in the GEIX, with average performance of +34.9%, closely followed by solar with +33.0%
  
  
• Poorest performing sectors were fuel cells/hydrogen with a drop of 13.6%, and Efficiency Breakthrough with a drop of 16.7%
  
  
• The quarter saw the second-largest ever IPO of a pure-play new energy company, Conergy AG, which completed a EUR 243m float in Frankfurt in March. Conergy is now trading around 30% up on its IPO price with a market capitalization of around EUR 695m (GBP 480m / USD 900m). The largest ever IPO in renewable or low-carbon energy technology was Ballard Power Systems Inc, the Canadian fuel cell company, which raised USD 341m on NASDAQ in February 2000.
  
  
• Other IPOs (or reverse IPOs) of renewable energy companies worldwide during the quarter included Solartron Co Ltd (Solar/Bangkok), Reinecke & Pohl Sun Energy AG (Solar/Frankfurt), Renewable Energy Holdings (Wind/AIM), Intelligent Energy Inc (Fuel Cells/NASDAQ), MCC Energy Plc (Various/AIM) and Voller Energy Group Plc (Fuel Cells/AIM).

"It is too early to tell whether this 'Kyoto Effect' is a one-off, or whether it will drive a sustained divergence in the value of new energy stocks in Kyoto and non-Kyoto countries. It does indicate, however, that Kyoto has improved the prospects of European renewable energy technology companies vis-a-vis their U.S. counterparts," said Michael Liebreich, CEO and founder of New Energy Finance. "Despite this, we are still seeing more energy technology startups being created in the U.S. than in Europe because there is such a strong entrepreneurial culture there, so the game is by no means over."