UBS' Taiwan branch will raise as much as NT$6.5 billion for its Global Innovators Fund, said Evelyn Yeh, who will oversee the investments. Yeh said she aims to pick 50 to 70 stocks worldwide using research by UBS' Socially Responsible Investments team, which manages $2 billion in assets globally.

"As awareness of climate change and water shortages prompt governments to address the issues, certain companies will benefit," said Laura Wurtenberger, a Singapore based analyst at UBS. "That also creates investment opportunities."

The Taipei-based Global Innovators Fund plans to invest about three-quarters of its assets in companies with products and services that help address climate change. About a quarter of the money is earmarked for Germany, primarily shares of companies involved in solar energy, Yeh said.

The European Commission, the European Union's regulatory arm, is drafting rules to meet the bloc's 2020 goals of reducing greenhouse-gas emissions by 20 percent and increasing the market share of renewable energies such as wind power and solar to 20 percent.

UBS' planned fund will not invest in companies that produce biofuels from dietary crops, such as corn, because of the potential competition for food with humans, Wurtenberger said. It will also steer clear of nuclear power.

"We are investing in what's best for our planet, so we will avoid those with harmful potential," she said.