After a banner year in 2008 of investments directed to capital-intensive technologies like solar and wind, US venture capitalists backed away from that plan in 2009. So where are they putting their money now? Where the fastest payback is likely to be. New analysis shows a surge of investments in energy efficiency solutions—such as smart grid, and commercial and residential energy management.
The Deutsche Bank’s Asset Management Division (DeAM) recently released a scientifically researched report which gives investors an analysis of climate change policies and shows risk factor to 109 countries, states and regions on key government mandates and supporting policy frameworks. This report provides DB’s investors a reference for policies that are being discussed at upcoming “Climate Change Summit” in Copenhagen (Denmark).
Last week, Ethical Markets Media and The Climate Prosperity Alliance launched their Global Climate Prosperity Scoreboard, which tracks private investment in companies growing the green economy globally. This new, never before reported number, showing $1,248,740,645,993.00 (over $1.248 trillion) in total investment since 2007, indicates how investors and entrepreneurs are leading governments in promoting sustainable growth. The scoreboard totals investments in solar, wind, geothermal, ocean/hydro, energy efficiency and storage, and agriculture.
Venture capitalists invested $4.8 billion in 637 deals in the third quarter of 2009, according to the MoneyTree™ Report from PricewaterhouseCoopers LLP (PwC) and the National Venture Capital Association (NVCA), based on data provided by Thomson Reuters . Quarterly investment activity increased 17 percent in terms of dollars, but fell 3 percent in number of deals compared to the second quarter of 2009 when $4.1 billion was invested in 657 deals. The increase in dollars invested was driven by several large rounds in the Clean Technology sector, one of which is the ninth largest deal since 1995. The Life Sciences sector (biotechnology and medical device industries combined) also had a solid quarter relative to other industry sectors, leaving Software as the third highest investment sector, a notable decline in industry ranking.
U.S. Energy Secretary Steven Chu announced in Washington that the Department of Energy (DOE) will provide up to $750 million in new funding from the American Recovery and Reinvestment Act to help accelerate the development of renewable energy generation projects. This funding will be targeted to cover the cost of loan guarantees for renewable energy projects and could support as much as $4 to 8 billion in lending to eligible projects, and the Department will invite private sector participation to accelerate the financing of these renewable energy projects.
With experts predicting a jobless recovery, there is one hopeful statistic emerging that is contradicting that prediction. According to The National Governors Association Center for Best Practices (NGA), every state is seeing growth in at least one green industry segment. In most instances, this business growth stems from existing strengths in the state. As part of an effort to help states continue to grow these industries, the NGA Center has created a series of reports analyzing emerging “green” economies in each state in terms of the scope of green business activity reveals areas of comparative advantage, promising areas for workforce development and opportunities for building partnerships within and across green industry segments. It is intended that this information be used to help states analyze their current efforts and form strategies to grow green economies.
Senior members of the US Chamber of Commerce are strdently opposing the Chamber’s position of opposition to climate policy. These organizations are eager “to boost their green credentials,” for fear of alienating their customers and senators. This is an indications that Social movements shape political power and concerned citizens, can move even the most entrenched corporate and political interests. NRDC research finds that “only 23 members of the U.S. Chamber’s board have a publicly stated position on climate change and more than 80 percent [19 members] are not on board” with the Chamber’s official position.
Institutional investors may have a fiduciary duty to consider environmental, social, and governance (ESG) factors, according to a new study from the United Nations Environment Programme Finance Initiative (UNEP FI). In reporting on “Fiduciary Responsibility,” Social Funds’ Robert Kropp expressed the uncertainty that still surrounds the question of ESG-related fiduciary responsibilities.
The financial risk of carbon liabilities, a need for better management control over carbon data, and new government regulations in a number of countries, will will compel CFOs to invest in carbon management software in the coming year. This is the main conclusion of the report, The Business Case For Carbon Management Software, from the research firm Verdantix. The report analyzes the business case for investing in carbon software from vendors like CarbonView, Carbon Hub, ESS, Greenstone Carbon Management, Hara, IHS, PE International, SAP and SAS.
