What's in the news...

The oil industry is investing billions in a new type of diesel fuel called GTL. GTL is made from natural gas whereas so far all diesel has been made from crude oil. The earth's crude oil reserves are running low but there are apparently trillions and trillions of square feet of natural gas (GTL is an acronym for gas to liquid).

South African company Sasol has produced the first two cars to run on pure GTL in association with US car company Chevron.

BP, Exxon and Shell are all thought to be working on GTL diesel for cars and a study by Daimler Chrysler suggests that by 2010, GTL could meet 5-10 per cent of European diesel demand, which might be up to 30 per cent by 2020.

Shell is opening an experimental plant in Germany later this year that will also create alternative diesel sources : wood chippings. It's suggested that running a car on this and it's effectively CO2 that is absorbed while the feed-stock crop is growing.

Some of the benefits of GTL:

• More efficient combustion in the cylinder due to a higher cetane rating
• Less weight in vehicle (hence better fuel consumption) as the engine block is not so bulky
• Quieter and there is less wear on mechanics because of fewer impurities sel.
• Low sulphur content
• Hydrocarbon and nitrogen oxide emissions lowered by 95 per cent.

The biggest names in British retail and services are now competing to be the greenest. Aims to be carbon neutral and ranges of climate frindly products are top on the agenda for the big companies, and it seems to be working. Many investors will now only put money into companies that meet environmental and social performance criteria, and as awareness grows in consumers, it is becoming more and more important for companies to be seen as green.