* REC Silicon, Vestas, Gamesa all rise on market
* IShares Clean Energy ETF also gains ground
* Goldman: Paris deal most important since 1997 Kyoto accord
* But some caution against rushing in to buy "green" stocks
By Sudip Kar-Gupta and Annabella Nielsen
LONDON/COPENHAGEN, Dec 14 European renewable
energy stocks rallied on Monday following an agreement over the
weekend at the Paris global climate summit to find ways to stop
Goldman Sachs' analysts described the deal in Paris as the
most important climate agreement since the 1997 Kyoto Protocol,
adding it would boost the world's low carbon-emissions economy,
which it estimated as a fast-growing $600 billion-plus market.
Norway's REC Silicon, which makes the key raw
material for solar panels, surged 10 percent.
Shares in wind turbine makers Vestas Wind, Nordex
and Gamesa also rose by between 2-5 percent,
outperforming a 0.7 percent rise on the benchmark pan-European
FTSEurofirst 300 index.
Novozymes, a maker of biofuel technology, climbed
1.2 percent, solar power generator Scatec Solar
advanced 2.5 percent, Enel Green Power rose 0.7
percent and Greencoat UK Wind progressed 1.7 percent.
The iShares Global Clean Energy Exchange Traded Fund
, which allows investors to trade a basket of stocks
involved in the renewable energy space, also rose 2 percent.
Andrea Williams, European equities fund manager at Royal
London Asset Management, said that while her portfolio did not
currently hold such stocks, the Paris climate deal might lead
her to start considering buying up those companies.
"The Paris climate change agreement will definitely help the
renewables industry, as it should lead to continued investment
in the area by major world economies," she said.
The agreement commits both rich and poor nations to reining
in rising emissions blamed for warming the planet, and sets out
a sweeping, long-term goal of eliminating net manmade greenhouse
gas output this century.
Nearly 200 countries took part in the negotiations to strike
the first climate deal to commit all countries to cut emissions,
with an initial target being set for 2020.
Along with the wind turbine makers, Goldman Sachs' other top
picks for stocks that would benefit from the Paris climate deal
included electric car company Tesla Motors, solar panel
group SolarEdge and Albemarle, a chemicals
company that supplies lithium - a key component for batteries.
However, others cautioned against rushing in to buy such
stocks, noting that the Paris agreement was not a legally
Some critics added that the United States, the world's
biggest economy, might back away from the targets set in the
Paris climate agreement if the Republican Party won next year's
U.S. presidential election, given general scepticism within the
Republican camp over such matters.
"I would not just rush in to buy these stocks on the back of
the weekend's agreement. You need to give time to wait for the
dust to settle, and 2020 is still a long way out," said Francois
Savary, chief investment officer at investment management firm
Nevertheless, many brokers said that - for now - the Paris
climate agreement would enhance the prospects for companies
involved in the renewable energy industry.
"In short, we think the Paris agreement represents a strong
outcome and will therefore help boost the long-term fundamentals
of the capital-goods and low-carbon power-generation sectors
while weakening the long-term fundamentals of fossil-fuel
industries," Barclays' analysts wrote in a note.
(Additional reporting by Henrik Stolen; Editing by Tom